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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS


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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the court finds

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the c

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS


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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the court finds

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the c

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the court finds

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 03, 1999)

Text of this article available as: TXT PDF [Pages S4578-S4605] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DURBIN (for himself, Mr. Chafee, Mr. Kennedy, Mr. Schumer, Mr. Lautenberg, Mrs. Boxer, and Mr. Reed): S. 936. A bill to prevent children from having access to firearms; to the Committee on the Judiciary. children's firearm access prevention act Mr. DURBIN. Mr. President, I rise today with my colleagues Senator Chafee, Senator Kennedy, Senator Schumer, Senator Lautenberg, Senator Boxer, and Senator Reed to introduce the Child Firearm Access Prevention Act of 1999. Following the tragedy in Littleton, Colorado, it is natural to ask ``why'', but we also need to ask ``how?'' How do two teenagers enter their high school armed with a Tec 9, semi-automatic assault rifle, two sawed off 12 gauge shotguns, a 9 millimeter semi-automatic pistol, 30 explosive devices and kill 13 innocent people? There are those who say you can't pass laws to stop this behavior because those inclined to do it will simply ignore the law. I guess the message of this logic is if you can't solve the entire problem, you shouldn't even try. I think that logic is wrong. We have to act and we have to act now. Everyday in America, 13 children die as a result of gun violence. In the last two years our schools have been shattered by gun violence. October 1, 1997, Pearl, Mississippi: A sixteen year old boy killed his mother then went to his high school and shot nine students, two fatally. December 1, 1997, West Paducah, Kentucky: Three students were killed and five were wounded in a hallway at Heath High School by a 14 year old classmate. March 24, 1998, Jonesboro, Arkansas: Four girls and a teacher were shot to death and 10 people were wounded during a false fire alarm at a middle school when two boys 11 and 13 opened fire from the woods. April 24, 1998, Edinboro, Pennsylvania: A science teacher was shot to death in front of students at an eighth grade dance by a 14 year old student. May 19, 1998, Fayetteville, Tennessee: Three days before his graduation, an 18 year old honor student allegedly opened fire in a parking lot at a high school killing a classmate who was dating his ex- girlfriend. May 21, 1998, Springfield, Oregon: Two teen-agers were killed and more than 20 people were hurt when a 15 year old boy allegedly opened fire at a high school. The boy's parents were killed at their home. There is something we can do to protect our children. Seventeen states have already recognized the problem and passed a child firearm access prevention law, which is known as a CAP law. These laws say to those who purchase and own guns, it is not enough for you to follow the law in purchasing them and to use the guns safely; you have another responsibility. If you are going to own a firearm in your home, you have to keep it safely and securely so that children do not have access to it. [[Page S4579]] These laws are effective. Florida was the first State to pass a CAP law in 1989. The following year, unintentional shooting deaths of children dropped 50%. Moreover, a study published in the Journal of the American Medical Association (JAMA) in October of 1997 found a 23% decrease in unintentional firearm related deaths among children younger than 15 in those States that had implemented CAP laws. According to the JAMA article, if all 50 states had CAP laws during the period of 1990- 94, 216 children might have lived. Should we consider these state laws as a national model? I think the obvious answer is yes. Unfortunately, the Littleton tragedy is no longer unique. Mr. President, what I propose today is Federal legislation that will apply to every State, not just 17, but every State. And this is what it says. If you want to own a handgun, a rifle or shotgun, and it is legal to do so, you can; but if you own it, you have a responsibility to make certain that it is kept securely and safely. What does the bill do? The bill imposes criminal penalties for gun owners who know or should know that a juvenile could gain access to the gun, and a juvenile does gain access & thereby causes death or injury or exhibits the gun in a public place. The gun owner is subject to a prison sentence of up to 1 year and/or fined $10,000 (a misdemeanor penalty). The bill also provides a felony provision for a reckless violation. The bill has 5 common sense exceptions. (1) The adult uses a trigger lock, secure storage box, or other secure storage technique; (2) The juvenile used the gun in a lawful act of self-defense; (3) The juvenile takes the gun off the person of a law enforcement official; (4) The owner has no reasonable expectation that juveniles will be on the premises; and (5) The juvenile got the gun as a result of a burglary. States which have passed CAP laws include: Florida, Connecticut, Iowa, California, Nevada, New Jersey, Virginia, Wisconsin, Hawaii, Maryland, Minnesota, North Carolina, Delaware, Rhode Island, Texas, Massachusetts and Illinois. An examination of this list does not reveal the most liberal states in America. The first State to pass this legislation in 1989 was Florida and in 1995, Texas, certainly no bleeding heart state by any political definition, passed a CAP law. I ask my Senate colleagues to join me in this bipartisan effort to protect children from the dangers of gun violence. Children and easy access to guns are a recipe for tragedy. Mr. President, I ask unanimous consent that a copy of the legislation be printed in the Record. There being no objection, the bill was order to be printed in the Record, as follows: S. 936 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 ``Children's Firearm Access Prevention Act''. SEC. 2. CHILDREN AND FIREARMS SAFETY. (a) Definition.--Section 921(a)(34)(A) of title 18, United States Code, is amended by inserting ``or removing'' after ``deactivating''. (b) Prohibition.--Section 922 of title 18, United States Code, is amended by inserting after subsection (y) the following: ``(z) Prohibition Against Giving Juveniles Access to Certain Firearms.-- ``(1) Definition of juvenile.--In this subsection, the term `juvenile' means an individual who has not attained the age of 18 years. ``(2) Prohibition.--Except as provided in paragraph (3), it shall be unlawful for any person to keep a loaded firearm, or an unloaded firearm and ammunition for the firearm, any of which has been shipped or transported in interstate or foreign commerce or otherwise substantially affects interstate or foreign commerce, within any premise that is under the custody or control of that person if that person knows, or reasonably should know, that a juvenile is capable of gaining access to the firearm without the permission of the parent or legal guardian of the juvenile. ``(3) Exceptions.--Paragraph (2) does not apply if-- ``(A) the person uses a secure gun storage or safety device for the firearm; ``(B) the person is a peace officer, a member of the Armed Forces, or a member of the National Guard, and the juvenile obtains the firearm during, or incidental to, the performance of the official duties of the person in that capacity; ``(C) the juvenile obtains, or obtains and discharges, the firearm in a lawful act of self-defense or defense of 1 or more other persons; ``(D) the person has no reasonable expectation, based on objective facts and circumstances, that a juvenile is likely to be present on the premises on which the firearm is kept; or ``(E) the juvenile obtains the firearm as a result of an unlawful entry by any person.''. (c) Penalties.--Section 924(a) of title 18, United States Code, is amended by adding at the end the following: ``(7) Whoever violates section 922(z), if a juvenile (as defined in section 922(z)) obtains access to the firearm and thereby causes death or bodily injury to the juvenile or to any other person, or exhibits the firearm either in a public place, or in violation of section 922(q)-- ``(A) shall be fined not more than $10,000, imprisoned not more than 1 year, or both; or ``(B) if such violation is reckless, shall be fined in accordance with this title, imprisoned not more than 5 years, or both.''. (d) Role of Licensed Firearms Dealers.--Section 926 of title 18, United States Code, is amended by adding at the end the following: ``(d) Contents of Form.--The Secretary shall ensure that a copy of section 922(z) appears on the form required to be obtained by a licensed dealer from a prospective transferee of a firearm.''. (e) No Effect on State Law.--Nothing in this section or the amendments made by this section shall be construed to preempt any provision of the law of any State, the purpose of which is to prevent juveniles from injuring themselves or others with firearms. ______ By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye): S. 937. A bill to authorize appropriations for fiscal years 2000 and 2001 for certain maritime programs of the Department of Transportation, and for other purposes; to the Committee on Commerce, Science, and Transportation. maritime administration authorization act for fiscal years 2000 and 2001 Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation on behalf of myself, Senator McCain, chairman of the Senate Commerce Committee, Senator Hollings, the ranking member of the Commerce Committee and Senator Inouye, Surface Transportation and Merchant Marine Subcommittee ranking member. This legislation authorizes appropriations for fiscal year 2000 for the Maritime Administration. The introduction of this bill demonstrates our firm commitment to our nation's maritime industry and our willingness to work with the Maritime Administration to provide effective leadership on a wide range of maritime issues. The bill was developed along with Administration officials and provides a base to build upon in coming weeks. There are several aspects of this measure that will require interested members of the Senate to work together to come to a consensus. Therefore, this bill can be viewed as a starting point for reauthorizing the agency and making changes to U.S. maritime policy. I look forward to working with members of the Committee and the administration to find common ground for a final legislation. The bill authorizes appropriations for the Maritime Administration [MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) operations and training and (2) the shipbuilding loan guarantee program authorized by Title XI of the Merchant Marine Act, 1936. MarAd oversees the operations of U.S. Government-supported maritime promotion programs, such as the Maritime Security Program, the state maritime academies and the U.S. Merchant Marine Academy. I am a strong supporter of the state maritime academies, in particular, and want to ensure that they are adequately funded. Title XI shipbuilding loan guarantee program is important to ensuring critical shipbuilding capacity in the United States. This legislation provides $6 million in loan guarantee funds for Title XI in FY2000. However, this program has received substantially more in previous years, and I look forward to working with the Administration to determine the appropriate level of funding. This bill codifies the administrative process associated with Title XI. The measure provides the Secretary the authority to hold all bond proceeds generated under Title XI during the construction period in escrow. Currently, the Secretary must administratively establish a separate construction fund with a private bond agent for a portion of the bond proceeds not captured in escrow. This will eliminate the cost associated with the establishment of the [[Page S4580]] separate construction fund and better protect the government's interest. Futher, the measure provides the Secretary authority under Title XI to collect and hold cash collateral in the U.S. Treasury, under certain circumstances associated with a guaranteed transaction. This will relieve the obligors and the agency from spending the time and money associated with negotiating depository agreements and legal opinions in Title XI transactions. Additionally, the bill amends Title IX to provide a waiver of the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo. The waiver would be in effect for one year beginning on the date of enactment. Finally, the bill would reauthorize the War Risk Insurance Program through June 30, 2005, change the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to a biennial report, and make clear the ownership status of the vessel named the Jeremiah O'Brien. I look forward to working on this important legislation and hope my colleagues will join me and the other sponsors in expeditiously moving this authorization through the legislative process. Mr. McCAIN. Mr. President, I am pleased to join Senator Hutchison, Chairman of the Surface Transportation and Merchant Marine Subcommittee in the introducing the Maritime Administration Authorization Act for Fiscal Year 2000. The bill was developed along with administration officials and provides a firm base to build on in coming weeks. While I do not fully agree with all aspects of this measure. I look forward to an open debate in formulating final legislation. The bill authorizes appropriations for the Maritime Administration[MarAd] for fiscal year 2000 covering operations and training along with the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936. MarAd's oversight of the operations of U.S. Government-suppored maritime promotion programs are as important toady as ever. With increasing pressure on our nation's military resources, MarAd's administration of the Martime Security Program provides an important link in insuring that our troops world wide receive essential supplies in a timely and efficient manor. This bill will streamline several administrative processes associated with the Title XI Loan Guarantee Program. The measure provides the Secretary of Transportation with additional authority to secure loan guaranteed by allowing collateral collected to be held in the U.S. Treasury. This will not only save time and money associated with negotiating depository agreements but will provide greater security for tax payers funds appropriated for this program. Further, the bill amends Title IX of the Merchant Marine At of 1936 to provide a waiver for eliminating the three year period bulk and breakbulk vessels newly registered under the U.S. flag must wait in order to carry government-impelled cargo; reauthorize the War Risk Insurance Program through June 30, 2005; reduces the requirement for an annual report to Congress by the Maritime Administration detailing its's activities to be a biennial report; and makes clear the ownership status of the vessel names the Jeremian O'Brien. I am pleased that the Subcommittee is taking this action today and will join Senator Hutchison and the other sponsors in expeditiously moving this authorization through the legislative proceeds. ______ By Mr. SPECTER (by request): S. 940. A bill to provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes; to the Committee on Veterans' Affairs. department of veterans affairs employment reduction assistance act of 1999 Mr. SPECTER. Mr. President, as chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Department of Veterans Affairs, S. 940, the proposed Department of Veterans Affairs Employment Reduction Assistance Act of 1999. The Department of Veterans Affairs submitted this legislation to the President of the Senate by an undated letter received by the President of the Senate on April 13, 1999. My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and the enclosed analysis of the draft legislation which accompanied it. There being no objection, the material was ordered to be printed in the Record, as follows: S. 940 SECTION 1. SHORT TITLE. This Act may be cited as the ``Department of Veterans Affairs Employment Reduction Assistance Act of 1999.'' SEC. 2. DEFINITIONS. For the purpose of this Act-- (a) ``Department'' means the Department of Veterans Affairs. (b) ``Employee'' means an employee (as defined by section 2105 of title 5, United States Code) of the Department of Veterans Affairs, who is serving under an appointment without time limitation, and has been currently employed by such Department for a continuous period of at least 3 years, but does not include-- (1) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (2) an employee having a disability on the basis of which such employee is eligible for disability retirement under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Federal Government; (3) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (4) an employee who previously has received any voluntary separation incentive payment by the Federal Government under this Act or any other authority; (5) an employee covered by statutory reemployment rights who is on transfer to another organization; or (6) any employee who, during the twenty-four month period preceding the date of separation, has received a recruitment or relocation bonus under section 5753 of title 5, United States Code, or a recruitment bonus under section 7458 of title 38, United States Code; (7) any employee who, during the twelve-month period preceding the date of separation, received a retention allowance under section 5754 of title 5, United States Code, or a retention bonus under section 7458 of title 38, United States Code. (c) ``Secretary'' means the Secretary of Veterans Affairs. SEC. 3. DEPARTMENT PLANS; APPROVAL. (a) In General.--The Secretary, before obligating any resources for voluntary separation incentive payments, shall submit to the Director of the Office of Management and Budget a strategic plan outlining the use of such incentive payments and a proposed organizational chart for the Department once such incentive payments have been completed. (b) Contents.--The plan shall specify-- (1) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level; the proposed coverage may be based on-- (A) any component of the Department; (B) any occupation, level or type of position; (C) any geographic location; (D) other non-personal factors; or (E) any appropriate combination of the factors in paragraphs (A), (B), (C) and (D); (2) the manner in which such reductions will improve operating efficiency or meet actual or anticipated levels of budget or staffing resources; (3) the period of time during which incentives may be paid; and (4) a description of how the affected component(s) of the Department will operate without the eliminated functions and positions. (c) Approval.--The Director of the Office of Management and Budget shall approve or disapprove each plan submitted under subsection (a), and may make appropriate modifications to the plan with respect to the time period in which voluntary separation incentives may be paid, with respect to the number and amounts of incentive payments, or with respect to the coverage of incentives on the basis of the factors in subsection (b)(1). SEC. 4. VOLUNTARY SEPARATION INCENTIVE PAYMENTS. (a) Authority To Provide Voluntary Separation Incentive Payments.-- (1) In General.--The Secretary may pay a voluntary separation incentive payment to [[Page S4581]] an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan; (2) Employees who may receive incentives.--In order to receive a voluntary separation incentive payment, an employee must separate from service with the Department voluntarily (whether by retirement or resignation) under the provisions of this Act; (b) Amount and Treatment of Payments.--A voluntary separation incentive payment-- (1) shall be paid in a lump sum after the employee's separation; (2) shall be equal to the lesser of-- (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section (without adjustment for any previous payment made under that section); or (B) an amount determined by the Secretary, not to exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account in determining the amount of severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and (5) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. SEC. 5 EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT. (a) An individual who has received a voluntary separation incentive payment under this Act and accepts any employment with the Government of the United States, or who works for any agency of the United States Government through a personal services contract, within 5 years after the date of the separation on which the payment is based shall be required to repay, prior to the individual's first day of employment, the entire amount of the incentive payment to the Department. (b)(1) If the employment under subsection (a) is with an Executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (2) If the employment under subsection (a) is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under subsection (a) is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (c) For the purpose of this section, the term ``employment'' includes-- (1) for the purposes of subsections (a) and (b), employment of any length or under any type of appointment, but does not include employment that is without compensation; and (2) for the purpose of subsection (a), employment with any agency of the United States Government through a personal services contract. SEC. 6. ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND. (a) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, the Department shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee of the Department who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (b) For the purpose of this section, the term `final basic pay', with respect to an employee, means the total amount of basic pay that would be payable for a year of service by that employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. SEC. 7. REDUCTION OF AGENCY EMPLOYMENT LEVELS. (a) In General.--The total full-time equivalent employment in the Department shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the Department's full-time equivalent employment for the fiscal year in which the voluntary separation payments are made with the actual full-time equivalent employment for the prior fiscal year. (b) Enforcement.--The President, through the Office of Management and Budget, shall monitor the Department and take any action necessary to ensure that the requirements of this section are met. (c) Subsection (a) of this section may be waived upon a determination by the President that-- (1) the existence of a state of war or other national emergency so requires; or (2) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment, so requires. SEC. 8. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d)(4) of title 5, United States Code, is amended-- (1) in subparagraph (A) by inserting after force ``, or an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing adjustment''; (2) in subparagraph (B) by inserting at the beginning thereof ``With respect to the Department of Defense,''; (3) by redesignating subparagraph (C) as subparagraph (D); (4) by adding a new subparagraph (C) as follows: (C) With respect to the Department of Veterans Affairs, this paragraph shall apply with respect to any individual whose continued coverage is based on a separation occurring on or after the date of enactment of this paragraph and before-- (i) October 1, 2004; or (ii) February 1, 2005, if specific notice of such separation was given to such individual before October 1, 2004. SEC. 9. REGULATIONS. The Director of the Office of Personnel Management may prescribe any regulations necessary to administer the provisions of this Act. SEC. 10. LIMITATION; SAVINGS CLAUSE. (a) No voluntary separation incentive under this Act may be paid based on the separation of an employee after September 30, 2004; (b) This Act supplements and does not supersede other authority of the Secretary. SEC. 11. EFFECTIVE DATE. (a) This Act shall take effect on the date of enactment. ____ Analysis of Draft Bill The first section provides a title for the bill, ``Department Of Veterans Affairs Employment Reduction Assistance Act of 1999.'' Section 2 provides definitions of ``Department'', employee'', and ``Secretary.'' Among the provisions, an employee who has received any previous voluntary separation incentive from the Federal Government is excluded from any incentives under this Act. Section 3 requires the VA Secretary to submit to the Director of the Office of Management and Budget a strategic plan outlining the use of voluntary separation incentive payments to Department employees, and a proposed organizational chart for the Department once such incentive payments have been completed. The Secretary must submit the plan before obligating any resources for such incentive payments. The plan must include the proposed coverage for offers of incentives to Department employees, specifying the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of the Department of Veterans Affairs, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions will improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected component of the Department will operate without the eliminated functions and positions. The Director of the Office of Management and Budget shall approve or disapprove each plan submitted, and may modify the plan with respect to the time period of incentives, with respect to the number and amounts of incentive payments, or the coverage of incentive offers. Section 4 authorizes the Secretary to pay a voluntary separation incentive payment to an employee only to the extent necessary to reduce or eliminate the positions and functions identified by the strategic plan. It also requires that an employee must separate from service with the Department (whether by retirement or resignation) under the Act in order to receive a voluntary separation incentive. The voluntary separation incentive is to be paid in a lump sum after the employee's separation. The incentive payment would be for an amount equal to the lesser of the amount of severance pay that the employee would be entitled to receive under section 5595 of title 5, United States Code, if so entitled, (without adjustment for any previous severance pay), or an amount determined by the Secretary, not to exceed $25,000. The incentive payment is not to be a basis for the computation of any other type of Government benefit, and is not be taken into account in determining the amount of severance pay to which an employee may be entitled based on any other separation. Appropriations for employee basic pay are to be used to pay the incentive payments. Section 5 provides that any employee who receives a voluntary separation incentive under this Act and then accepts any employment with the Government within 5 years after separating must, prior to the first day of such employment, repay the entire amount of the incentive to the agency that paid the incentive. If the subsequent employment is with the Executive branch, including the United States Postal Service, the Director of the Office of Personnel Management may waive the repayment at the request of [[Page S4582]] the agency head if the individual possesses unique ability and is the only qualified applicant available for the position. For subsequent employment in the legislative branch, the head of the entity or the appointing official may waive repayment on the same criteria. If the subsequent employment is in the judicial branch, the Director of the Administrative Office of the United States Courts may waive repayment on the same criteria. For the purpose of the repayment provisions, but not the waiver provisions, employment includes employment under a personal service contract. For the purpose of the repayment and waiver provisions, employment does not include without compensation employment. Section 6 requires additional agency contributions to the Civil Service Retirement and Disability Fund in amounts equal to 15 percent of the final basic pay of each employee of the Department who is covered by the Civil Service Retirement System, or the Federal Employees' Retirement System, to whom a voluntary separation incentive is paid under this Act. It also defines ``final basic pay''. Section 7 requires the reduction of full-time equivalent employment (FTEE) in the Department of Veterans Affairs by one FTEE for each separation of an employee who receives a voluntary separation incentive under this Act. Also it directs the Office of Management and Budget to take any action necessary to ensure compliance. Reductions will be calculated on a FTEE basis. For example, if the Department's FTEE usage in FY 1998 was 1050 FTEEs, and 50 FTEE separate during FY 1999 using voluntary separation incentive payments provided under this Act, then the Department's staffing levels at the end of FY 1999 shall not exceed 1000 FTEEs. The President may waive the reduction in FTEE in the event of war or emergency. Section 8 amends section 8905a(d)(4) of title 5 to provide that VA employees who are involuntarily separated in a reduction in force or staffing adjustment, can continue health benefits coverage for 18 months and be required to pay only the employee's share of the premium. Section 8 also extends the section 8905a sunset provisions for VA employees for FY 1999 through FY2004. Section 9 provides that the Director of OPM may prescribe any regulations necessary to administer the provisions of the Act. Section 10 provides that no voluntary separation incentive under the Act may be paid based on the separation of an employee after September 30, 2004, and that the Act supplements and does not supersede other authority of the Secretary. Section 11 provides that the Act is effective on the date of enactment. ____ Department of Veterans Affairs, Washington, DC. Hon. Albert Gore, Jr. President of the Senate, Washington, DC. Dear Mr. President: On behalf of the Department of Veterans Affairs (VA), I am submitting a draft bill ``To provide a temporary authority for the use of voluntary separation incentives by the Department of Veterans Affairs to reduce employment levels, restructure staff, and for other purposes.'' The Department requests that it be referred to the appropriate committee for prompt consideration and enactment. In the next several years, VA will undergo significant changes. VA believes that separation incentives can be an appropriate tool for those VA components that are redesigning their employment mix, when the use of incentives is properly related to the specific changes that are needed. Separation incentives can also be an invaluable tool for components that are restructuring and reengineering, such as the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA), as they move towards primary care and new methods of delivering services to veterans. Other VA components also are engaged in reengineering and restructuring, and would benefit from this authority. Under the draft bill, the use of the incentives would be related to the specific changes that are needed for reshaping VA for the future. Further, the draft bill would appropriately limit the time period for the incentive offers over the next five fiscal years, when VA will accomplish these changes. This initiative is based on VA's previous experience with voluntary separation incentives under the Federal Workforce Restructuring Act of 1994, and the Treasury, Postal Service, and General Government Appropriations Act of 1997. We believe that VA used these previous authorities conservatively, responsibly, and effectively. As an example, VHA required that elements allowing a buyout must abolish the position of the employee receiving the buyout. VA has implemented a total of 9,392 buyouts under both statutes, which is significantly fewer than the total number authorized. VA's previous use of buyouts significantly assisted VA in restructuring its workforce, and enabled it to achieve downsizing and streamlining goals while minimizing adverse impact on employees, through such actions as involuntary separations. * * * * * The Office of Financial Management would like to offer approximately 60 buyouts over the next five fiscal years to support its plans to reduce and adjust the staffing mix in its Franchise Fund and Supply Fund activities. Over this period, these activities will undergo changes in program and product lines, as well as new technologies. These changes will require fewer employees and employees with different skill sets the current employees. The Office of Financial Management will target any incentive payments to specific organizations, locations, occupations and grade levels. Under the proposed bill, before obligating any resources for any incentive payments, the VA Secretary must submit to the Director of the Office of Management and Budget (OMB) a strategic plan outlining the use of such incentive payments. The plan must specify the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level. Coverage may be on the basis of any component of VA, any occupation, levels of an occupation or type of position, any geographic location, other non-personal factors, or any appropriate combination of these factors. The plan must also specify the manner in which the planned employment reductions would improve efficiency or meet budget or staffing levels. The plan must also include a proposed time period for payment of separation incentives, and a description of how the affected VA component would operate without the eliminated functions and positions. The Director of the OMB would approve or disapprove each plan submitted, and would have authority to modify the time period for payment of incentives, the number and amounts of incentive payments, or coverage of incentive offers. We believe that these provisions for plan approval would ensure that separation incentives are appropriately targeted within VA in view of the specific cuts that are needed, and are offered on a timely basis. Although VA would reduce full-time equivalent employment by one for each employee receiving an incentive payment who separates, we believe that service to veterans would improve as a result of the reengineering that is happening simultaneously within the system. The authority for separation incentives would be in effect for the period starting with the enactment of this Act and ending September 30, 2004. The amount of an employee's incentive would be the lesser of the amount that the employee's severance pay would be, or an amount determined by the Secretary, not to exceed $25,000. Any employee who receives an incentive and then accepts any employment with the Government within 5 years after separating must, prior to the first day of employment, repay the entire amount of the incentive. The repayment requirement could be waived only under very stringent circumstances of agency need. This proposal would provide a very useful tool to assist in reorganizing VA and reengineering services quickly, effectively, and humanely, to provide higher quality service to more veterans. We also believe that it is a tool that would allow significant cost savings. The buyout would be funded within the base in the President's FY 1999 Budget. If VA receives authority before June 30, 1999, it could implement buyouts in VBA with modest costs of $4.7 million in FY 1999 and estimated savings of $13.3 million annually in subsequent years. It also could implement buyouts in the Office of Financial Management with savings of $320,000 in FY 1999 and estimated savings of approximately $1 million annually in subsequent years. VHA would implement buyouts at the beginning of FY 2000, with expected discretionary savings of $103 million in FY 2000 and estimated savings of $220.1 million annually in subsequent years. VBA's savings for buyouts authorized for FY 2000 would be $2.7 million, with estimated savings of $15.5 million annually in subsequent years. The Office of Financial Management savings for FY 2000 would be $992,000, with estimated savings of approximately $1 million annually in subsequent years. In addition, each subsequent year's buyouts during the five-year period would yield additional discretionary savings. The Office of Management and Budget advises that there is no objection to the submission of this draft bill from the standpoint of the Administration's program. Sincerely yours, Sheila Clarke McCready, Principal Deputy Assistant Secretary for Congressional Affairs. ______ By Mr. INHOFE: S. 944. A bill to amend Public Law 105-188 to provide for the mineral leasing of certain Indian lands in Oklahoma; to the Committee on Indian Affairs. mineral leasing of certain indian lands in oklahoma Mr. INHOFE. Mr. President, for too long, economic development in Indian country has been hindered by antiquated rules and regulations, many dating back to before the turn of the century. Many American Indians continue to struggle, denied by bureaucracy the opportunity to take steps to improve their position. I am proposing legislation today that would reverse one of these situations. Under current law, Indian lands owned by more than one person require the consent of 100 percent of the owners before mineral development can go [[Page S4583]] forward. Oftentimes, this fractionated property is owned by over one hundred people; it is difficult, if not impossible, to locate all the owners. Once found, developers must obtain their unanimous consent. As you can imagine, this creates a significant and often insurmountable obstacle for leasing or other development. Last year, Congress lowered this requirement for the Three Affiliated Tribes of the Fort Berthold Indian Reservation to a majority, which more closely resembles regulations for non-Indian land. By loosening the consent requirements, these tribes have found the right balance between economic progress and protection of landowners' rights. I am proposing to extend last year's legislation to seven Oklahoma tribes: the Comanche, Kiowa, Apache, Fort Sill Apache, Delaware, and the Wichita and Affiliated Tribes. Oil and gas are the cornerstone of Oklahoma's economy, but these tribes have by and large been left out of this industry because of the stringent consent statutes. Increased access to their own land would greatly facilitate mineral development, bringing increased economic opportunity. These tribes and their members will now be able to undertake oil and gas exploration which was previously not possible. This will represent a significant advance toward greater economic empowerment, breaking out of the constraints now imposed on these tribes. Common sense dictates that the first step of self-sufficiency is being allowed to use the resources you already own. This proposal will be equitable and beneficial to all parties involved. I look forward to working with my colleagues on this and other such legislation that would help American Indians achieve greater economic independence. ______ By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, and Mr. Sarbanes): S. 945. A bill to amend title 11, United States Code, and for other purposes; to the Committee on the Judiciary. consumer bankruptcy reform act of 1999 Mr. DURBIN. Mr. President, today, joined by colleagues, Senator Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am introducing the bankruptcy reform bill that passed the Senate last year by a vote of 97-1. A constant theme that has guided me throughout the consideration of bankruptcy legislation is balanced reform. You cannot have meaningful bankruptcy reform without addressing both sides of the problem-- irresponsible debtors and irresponsible creditors. Unfortunately, the bill we worked so hard to develop, was decimated in conference and the result was a one-sided bill designed to reward the credit industry and penalize American consumers. I could not support it. I hope this year will be different. The bankruptcy code is delicate balance. When you push one thing, almost invariably something else will give. For that reason, it is crucial for bankruptcy reform to be thoughtful and for the changes to be targeted and not create more problems than they attempt to solve. This year, Senator Grassley has introduced S.625, the bankruptcy reform bill of 1999. This bill has more similarities to last year's conference report than the bipartisan measure that passed the Senate last year by an overwhelming margin. The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from IRS collection allowances. The test would require every debtor, regardless of income, who files for Chapter 7 bankruptcy to be scrutinized by the U.S. trustee to determine whether the filling is abusive. The bill creates a presumption that a case is abusive if a debtor can pay the lesser of 25% of unsecured nonpriority claims or $15,000 over 5 years. The IRS means test was designed for use on a case by case basis, not as an automatic template. In my home state, the average annual income for bankruptcy filers in the Central District of Illinois for 1998 was $20,448, yet the average amount of unsecured debt was $22,900. This figure shows that many filers were hopelessly insolvent. They owed more money on debt that had no collateral than their total income for the entire year. These debtors don't even come close to meeting the standards that would require them to convert their case to a chapter 13 case, but they will be forced to go through additional scrutiny at extra costs to everyone involved. In contrast, the Durbin-Leahy bill gives courts discretion to dismiss or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 13 repayment plan. One of the factors for the court to consider in making the decision is whether the debtor is capable of paying 30% of unsecured claims under a 3 year plan. This reform can address abuses without the complexity of certifying ability to pay in every case as required by S.625. The Durbin-Leahy bill is cheaper because every case does not go through means testing. By requiring the trustee to submit reports on all filers the cost to trustees is dramatically increased with little reward. The means test in S. 625 looks a lot like the means test in the House bill. We now know that the means test in the House bill would only apply to far less than 10% of Chapter 7 filings. A study released by the American Bankruptcy Institute found that by using the test from the House bill, 97% of sample Chapter 7 debtors had too little income to repay even 20% of their unsecured debts over five years. As a result, only 3% of the sample Chapter 7 filers had sufficient repayment capacity to be barred from Chapter 7 under the rigid means test. This means 100% of the filers would have to go through a process that would only apply to 3% of the cases. Beyond the administrative costs, there is the unneeded stress on poor families. According to the National Conference on Bankruptcy Judges, a review of surveys of Chapter 7 cases from 46 judicial districts in 33 states reveals that the median gross annual income for the 3151 cases in 1998 was $21,540, some $15,000 lower than the 1997 national median income for all families in the United States. Yet, the median amount of unsecured nonpriority debt for these same debtors was $23,411. These people are insolvent, and forcing them to go through unnecessary hoops for little reward is unfair and ineffective. The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill includes credit disclosures designed to help families understand their debt and prevent them from incurring debt which makes them financially vulnerable. Many families file for bankruptcy after a health crisis or some other catastrophic event that prevents them from paying their debts. For example, the survey conducted by the bankruptcy judges shows that on average over 25% of bankruptcy cases involve debtors with medical debts over $1000. By requiring more complete information for debtors, they can make better credit decisions and avoid bankruptcy altogether. The Durbin-Leahy bill addresses abusive creditor practices. The Durbin-Leahy bill protects the elderly from predatory lending practices. Much of our discussion concerning reform of the nation's bankruptcy laws has focused upon perceived abuses of the bankruptcy system by consumer debtors. Far less discussion has occurred with regard to abuses by creditors that help usher the nation's consumers into bankruptcy. I believe that abuses exist on both sides of the debtor-creditor relationship and that bankruptcy reform is incomplete if it fails to address documented abuses among creditors. Last year, I worked to protect elderly Americans by prohibiting a high-cost mortgage lender who extended credit in violation of the provisions of the Truth-In-Lending Act from collecting its claim in bankruptcy. If the lender has failed to comply with the requirements of the Truth-in-Lending Act for high-cost second mortgages, the lender will have absolutely no claim against the bankruptcy estate. This provision is not aimed at all lenders or at all second mortgages. Indeed, it is aimed only at the worst, most predatory, of these by and large worthy lenders. It is aimed only at practices that are already illegal and it does not deal with technical or immaterial violations of the Truth in Lending Act. Disallowing the claims of predatory lenders in bankruptcy cases will not end these predatory practices altogether. Yet it is one step we can take to curb creditor abuse in a situation where the lender bears primary responsibility for the deterioration of a consumer's financial situation. [[Page S4584]] I encourage my Senate colleagues to join Senator Leahy and me in this effort. Bankruptcy reform must be balanced and must not create a nation of financial outlaws. Mr. President, I ask unanimous consent that a copy 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. 945 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Consumer Bankruptcy Reform Act of 1999''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--NEEDS-BASED BANKRUPTCY Sec. 101. Conversion. Sec. 102. Dismissal or conversion. TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS Sec. 201. Allowance of claims or interests. Sec. 202. Exceptions to discharge. Sec. 203. Effect of discharge. Sec. 204. Automatic stay. Sec. 205. Discharge. Sec. 206. Discouraging predatory lending practices. Sec. 207. Enhanced disclosure for credit extensions secured by dwelling. Sec. 208. Dual-use debit card. Sec. 209. Enhanced disclosures under an open end credit plan. Sec. 210. Violations of the automatic stay. Sec. 211. Discouraging abusive reaffirmation practices. Sec. 212. Sense of Congress regarding the homestead exemption. Sec. 213. Encouraging creditworthiness. Sec. 214. Treasury Department study regarding security interests under an open end credit plan. TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE BANKRUPTCY SYSTEM Sec. 301. Notice of alternatives. Sec. 302. Fair treatment of secured creditors under chapter 13. Sec. 303. Discouragement of bad faith repeat filings. Sec. 304. Timely filing and confirmation of plans under chapter 13. Sec. 305. Application of the codebtor stay only when the stay protects the debtor. Sec. 306. Improved bankruptcy statistics. Sec. 307. Audit procedures. Sec. 308. Creditor representation at first meeting of creditors. Sec. 309. Fair notice for creditors in chapter 7 and 13 cases. Sec. 310. Stopping abusive conversions from chapter 13. Sec. 311. Prompt relief from stay in individual cases. Sec. 312. Dismissal for failure to timely file schedules or provide required information. Sec. 313. Adequate time for preparation for a hearing on confirmation of the plan. Sec. 314. Discharge under chapter 13. Sec. 315. Nondischargeable debts. Sec. 316. Credit extensions on the eve of bankruptcy presumed nondischargeable. Sec. 317. Definition of household goods and antiques. Sec. 318. Relief from stay when the debtor does not complete intended surrender of consumer debt collateral. Sec. 319. Adequate protection of lessors and purchase money secured creditors. Sec. 320. Limitation. Sec. 321. Miscellaneous improvements. Sec. 322. Bankruptcy judgeships. Sec. 323. Definition of domestic support obligation. Sec. 324. Priorities for claims for domestic support obligations. Sec. 325. Requirements to obtain confirmation and discharge in cases involving domestic support obligations. Sec. 326. Exceptions to automatic stay in domestic support obligation proceedings. Sec. 327. Nondischargeability of certain debts for alimony, maintenance, and support. Sec. 328. Continued liability of property. Sec. 329. Protection of domestic support claims against preferential transfer motions. Sec. 330. Protection of retirement savings in bankruptcy. Sec. 331. Additional amendments to title 11, United States Code. Sec. 332. Debt limit increase. Sec. 333. Elimination of requirement that family farmer and spouse receive over 50 percent of income from farming operation in year prior to bankruptcy. Sec. 334. Prohibition of retroactive assessment of disposable income. Sec. 335. Amendment to section 1325 of title 11, United States Code. Sec. 336. Protection of savings earmarked for the postsecondary education of children. TITLE IV--FINANCIAL INSTRUMENTS Sec. 401. Bankruptcy Code amendments. Sec. 402. Damage measure. Sec. 403. Asset-backed securitizations. Sec. 404. Prohibition on certain actions for failure to incur finance charges. Sec. 405. Fees arising from certain ownership interests. Sec. 406. Bankruptcy fees. Sec. 407. Applicability. TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES Sec. 501. Amendment to add chapter 6 to title 11, United States Code. Sec. 502. Amendments to other chapters in title 11, United States Code. TITLE VI--MISCELLANEOUS Sec. 601. Executory contracts and unexpired leases. Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals. Sec. 603. Creditors and equity security holders committees. Sec. 604. Repeal of sunset provision. Sec. 605. Cases ancillary to foreign proceedings. Sec. 606. Limitation. Sec. 607. Amendment to section 546 of title 11, United States Code. Sec. 608. Amendment to section 330(a) of title 11, United States Code. TITLE VII--TECHNICAL CORRECTIONS Sec. 701. Adjustment of dollar amounts. Sec. 702. Extension of time. Sec. 703. Who may be a debtor. Sec. 704. Penalty for persons who negligently or fraudulently prepare bankruptcy petitions. Sec. 705. Limitation on compensation of professional persons. Sec. 706. Special tax provisions. Sec. 707. Effect of conversion. Sec. 708. Automatic stay. Sec. 709. Allowance of administrative expenses. Sec. 710. Priorities. Sec. 711. Exemptions. Sec. 712. Exceptions to discharge. Sec. 713. Effect of discharge. Sec. 714. Protection against discriminatory treatment. Sec. 715. Property of the estate. Sec. 716. Preferences. Sec. 717. Postpetition transactions. Sec. 718. Technical amendment. Sec. 719. Disposition of property of the estate. Sec. 720. General provisions. Sec. 721. Appointment of elected trustee. Sec. 722. Abandonment of railroad line. Sec. 723. Contents of plan. Sec. 724. Discharge under chapter 12. Sec. 725. Extensions. Sec. 726. Bankruptcy cases and proceedings. Sec. 727. Knowing disregard of bankruptcy law or rule. Sec. 728. Rolling stock equipment. Sec. 729. Curbing abusive filings. Sec. 730. Study of operation of title 11 of the United States Code with respect to small businesses. Sec. 731. Transfers made by nonprofit charitable corporations. Sec. 732. Effective date; application of amendments. TITLE I--NEEDS-BASED BANKRUPTCY SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting ``or consents to'' after ``requests''. SEC. 102. DISMISSAL OR CONVERSION. (a) In General.--Section 707 of title 11, United States Code, is amended-- (1) by striking the section heading and inserting the following: ``Sec. 707. Dismissal of a case or conversion to a case under chapter 13''; and (2) in subsection (b)-- (A) by inserting ``(1)'' after ``(b)''; (B) in paragraph (1), as redesignated by subparagraph (A) of this paragraph-- (i) in the first sentence-- (I) by striking ``but not'' and inserting ``or''; (II) by inserting ``, or, with the debtor's consent, convert such a case to a case under chapter 13,'' after ``consumer debts''; and (III) by striking ``substantial abuse'' and inserting ``abuse''; and (ii) by striking ``There shall be a presumption in favor of granting the relief requested by the debtor.''; and (C) by adding at the end the following: ``(2) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall consider whether-- ``(A) under section 1325(b)(1), on the basis of the current income of the debtor, the debtor could pay an amount greater than or equal to 30 percent of unsecured claims that are not considered to be priority claims (as determined under subchapter I of chapter 5); or ``(B) the debtor filed a petition for the relief in bad faith. ``(3)(A) If a panel trustee appointed under section 586(a)(1) of title 28 brings a motion for dismissal or conversion under this subsection and the court grants that motion and finds that the action of the counsel for the debtor in filing under this chapter was not substantially justified, the court shall order the counsel for the debtor to reimburse the trustee for all reasonable costs in prosecuting the motion, including reasonable attorneys' fees. [[Page S4585]] ``(B) If the c

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