S.Amdt. 2068

TEXT OF AMENDMENTS

SA 2053. Mr. SHELBY (for himself and Mr. Sarbanes) proposed an
amendment to the bill S. 1753, to amend the Fair Credit Reporting Act
in order to prevent identity theft, to improve the use of and consumer
access to consumer reports, to enhance the accuracy of consumer
reports, to limit the sharing of certain consumer information, to
improve financial education and literacy, and for other purposes; as
follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``National
Consumer Credit Reporting System Improvement Act of 2003''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

Subtitle A--Identity Theft Prevention

Sec. 111. Definitions.
Sec. 112. Fraud alerts and active duty alerts.
Sec. 113. Truncation of credit card and debit card account numbers.
Sec. 114. Establishment of procedures for the identification of
possible instances of identity theft.
Sec. 115. Amendments to existing identity theft prohibition.
Sec. 116. Authority to truncate social security numbers.

Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History

Sec. 151. Summary of rights of identity theft victims.
Sec. 152. Blocking of information resulting from identity theft.
Sec. 153. Coordination of identity theft complaint investigations.
Sec. 154. Prevention of repollution of consumer reports.
Sec. 155. Notice by debt collectors with respect to fraudulent
information.
Sec. 156. Statute of limitations.

TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION

Sec. 211. Free credit reports.
Sec. 212. Credit scores.
Sec. 213. Enhanced disclosure of the means available to opt out of
prescreened lists.
Sec. 214. Affiliate sharing.
Sec. 215. Study of effects of credit scores and credit-based insurance
scores on availability and affordability of financial
products.

TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

Sec. 311. Risk-based pricing notice.
Sec. 312. Procedures to enhance the accuracy and completeness of
information furnished to consumer reporting agencies.
Sec. 313. Federal Trade Commission and consumer reporting agency action
concerning complaints.
Sec. 314. Ongoing audits of the accuracy of consumer reports.
Sec. 315. Improved disclosure of the results of reinvestigation.
Sec. 316. Reconciling addresses.
Sec. 317. FTC study of issues relating to the Fair Credit Reporting
Act.

TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM

Sec. 411. Protection of medical information in the financial system.
Sec. 412. Confidentiality of medical contact information in consumer
reports.

TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

Sec. 511. Short title.
Sec. 512. Definitions.
Sec. 513. Establishment of Financial Literacy and Education Commission.
Sec. 514. Duties of the Commission.
Sec. 515. Powers of the Commission.
Sec. 516. Commission personnel matters.
Sec. 517. Study by the Comptroller General.
Sec. 518. Authorization of appropriations.

TITLE VI--RELATION TO STATE LAW

Sec. 611. Relation to State law.

TITLE VII--MISCELLANEOUS

Sec. 711. Clerical amendments.

TITLE I--IDENTITY THEFT PREVENTION AND CREDIT HISTORY RESTORATION

Subtitle A--Identity Theft Prevention

SEC. 111. DEFINITIONS.

Section 603 of the Fair Credit Reporting Act (15 U.S.C.
1681a) is amended by adding at the end the following:
``(q) Definitions Relating to Fraud Alerts.--
``(1) Active duty military consumer.--The term `active duty
military consumer' means a consumer in military service who--
``(A) is on active duty (as defined in section 101(d)(1) of
title 10, United States Code) or is a reservist performing
duty under a call or order to active duty under a provision
of law referred to in section 101(a)(13) of title 10, United
States Code; and
``(B) is assigned to service away from the usual duty
station of the consumer.
``(2) Fraud alert; active duty alert.--The terms `fraud
alert' and `active duty alert' mean a statement in the file
of a consumer that--
``(A) notifies all prospective users of a consumer report
relating to the consumer that the consumer may be a victim of
fraud, including identity theft, or is an active duty
military consumer, as applicable;
``(B) provides to all prospective users of a consumer
report relating to the consumer, a telephone number or other
reasonable contact method designated by the consumer for the
user to obtain authorization from the consumer before
establishing new credit (including providing any increase in
a credit limit with respect to an existing credit account) in
the name of the consumer; and
``(C) is presented in a manner that facilitates a clear and
conspicuous view of the statement described in subparagraph
(A) or (B) by any person requesting such consumer report.
``(r) Credit Card.--The term `credit card' has the same
meaning as in section 103 of the Truth in Lending Act.
``(s) Debit Card.--The term `debit card' means any card
issued by a financial institution to a consumer for use in
initiating an electronic fund transfer from the account of
the consumer at such financial institution, for the purpose
of transferring money between accounts or obtaining money,
property, labor, or services.
``(t) Account and Electronic Fund Transfer.--The terms
`account' and `electronic fund transfer' have the same
meanings as in section 903 of the Electronic Fund Transfer
Act.
``(u) Credit and Creditor--The terms `credit' and
`creditor' have the same meanings as in section 702 of the
Equal Credit Opportunity Act.
``(v) Federal Banking Agencies.--The term `Federal banking
agencies' has the same meaning as in section 3 of the Federal
Deposit Insurance Act.
``(w) Financial Institution.--The term `financial
institution' means a State or National bank, a State or
Federal savings and loan association, a mutual savings bank,
a State or Federal credit union, or any other person that,
directly or indirectly, holds an account belonging to a
consumer.
``(x) Reseller.--The term `reseller' means a consumer
reporting agency that--
``(1) assembles and merges information contained in the
database of another consumer reporting agency or multiple
consumer reporting agencies concerning any consumer for
purposes of furnishing such information to any third party,
to the extent of such activities; and
``(2) does not maintain a database of the assembled or
merged information from which new consumer reports are
produced.
``(y) Definitions Relating to Credit Scores.--
``(1) Credit score and key factors.--When used in
connection with an application for an extension of credit for
a consumer purpose that is to be secured by a dwelling--
``(A) the term `credit score'--
``(i) means a numerical value or categorization derived
from a statistical tool or modeling system used to predict
the likelihood of certain credit behaviors, including
default; and
``(ii) does not include--

``(I) any mortgage score or rating of an automated
underwriting system that considers 1 or more factors in
addition to credit information, including the loan-to-value
ratio, the amount of down payment, or the financial assets of
a consumer; or
``(II) other elements of the underwriting process or
underwriting decision; and

``(B) the term `key factors' means all relevant elements or
reasons affecting the credit score for a consumer, listed in
the order of their importance, based on their respective
effects on the credit score.
``(2) Dwelling.--The term `dwelling' has the same meaning
as in section 103 of the Truth in Lending Act.
``(z) Identity Theft Report.--The term `identity theft
report' means a report--
``(1) that alleges an identity theft;

[[Page S13913]]

``(2) that is filed by a consumer with an appropriate
Federal, State, or local government agency, including the
United States Postal Inspection Service and any law
enforcement agency; and
``(3) the filing of which subjects the person filing the
report to criminal penalties relating to the filing of false
information if, in fact, the information in the report is
false.''.

SEC. 112. FRAUD ALERTS AND ACTIVE DUTY ALERTS.

The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is
amended by inserting after section 605 the following:

``Sec. 605A. Identity theft prevention; fraud alerts and
active duty alerts

``(a) One-Call Fraud Alerts.--
``(1) Initial alerts.--Upon the request of a consumer who
asserts in good faith a suspicion that the consumer has been
or is about to become a victim of fraud or related crime,
including identity theft, a consumer reporting agency
described in section 603(p) that maintains a file on the
consumer and has received appropriate proof of the identity
of the requester shall--
``(A) include a fraud alert in the file of that consumer
for a period of not less than 90 days, beginning on the date
of such request, unless the consumer requests that such fraud
alert be removed before the end of such period, and the
agency has received appropriate proof of the identity of the
requester for such purpose; and
``(B) refer the information regarding the fraud alert under
this paragraph to each of the other consumer reporting
agencies described in section 603(p), in accordance with
procedures developed under section 621(f).
``(2) Access to free reports.--In any case in which a
consumer reporting agency includes a fraud alert in the file
of a consumer pursuant to this subsection, the consumer
reporting agency shall--
``(A) disclose to the consumer that the consumer may
request a free copy of the file of the consumer pursuant to
section 612(d); and
``(B) provide to the consumer all disclosures required to
be made under section 609, without charge to the consumer,
not later than 3 business days after any request described in
subparagraph (A).
``(b) Extended Alerts.--
``(1) In general.--Upon the request of a consumer who
submits an identity theft report to a consumer reporting
agency described in section 603(p) that maintains a file on
the consumer, if the agency has received appropriate proof of
the identity of the requester, the agency shall--
``(A) include a fraud alert in the file of that consumer
during the 7-year period beginning on the date of such
request, unless the consumer requests that such fraud alert
be removed before the end of such period and the agency has
received appropriate proof of the identity of the requester
for such purpose;
``(B) during the 7-year period beginning on the date of
such request, exclude the consumer from any list of consumers
prepared by the consumer reporting agency and provided to any
third party to offer credit or insurance to the consumer as
part of a transaction that was not initiated by the consumer,
unless the consumer requests that such exclusion be rescinded
before the end of such period; and
``(C) refer the information regarding the extended fraud
alert under this paragraph to each of the other consumer
reporting agencies described in section 603(p), in accordance
with procedures developed under section 621(f).
``(2) Verification of identity theft claim.--For purposes
of paragraph (1), a consumer reporting agency shall accept as
proof of a claim of identity theft, in lieu of an identity
theft report--
``(A) a properly completed copy of a standardized affidavit
of identity theft developed and made available by the Federal
Trade Commission; or
``(B) any affidavit of fact that is acceptable to the
consumer reporting agency for that purpose.
``(3) Access to free reports.--In any case in which a
consumer reporting agency includes a fraud alert in the file
of a consumer pursuant to this subsection, the consumer
reporting agency shall--
``(A) disclose to the consumer that the consumer may
request 2 free copies of the file of the consumer pursuant to
section 612(d) during the 12-month period beginning on the
date on which the fraud alert was included in the file; and
``(B) provide to the consumer all disclosures required to
be made under section 609, without charge to the consumer,
not later than 3 business days after any request described in
subparagraph (A).
``(c) Active Duty Alerts.--Upon the request of an active
duty military consumer, a consumer reporting agency described
in section 603(p) that maintains a file on the active duty
military consumer and has received appropriate proof of the
identity of the requester shall--
``(1) include an active duty alert in the file of that
active duty military consumer during a period of not less
than 12 months, beginning on the date of the request, unless
the active duty military consumer requests that such fraud
alert be removed before the end of such period, and the
agency has received appropriate proof of the identity of the
requester for such purpose;
``(2) during the 12-month period beginning on the date of
such request, exclude the active duty military consumer from
any list of consumers prepared by the consumer reporting
agency and provided to any third party to offer credit or
insurance to the consumer as part of a transaction that was
not initiated by the consumer, unless the consumer requests
that such exclusion be rescinded before the end of such
period; and
``(3) refer the information regarding the active duty alert
to each of the other consumer reporting agencies described in
section 603(p), in accordance with procedures developed under
section 621(f).
``(d) Procedures.--Each consumer reporting agency described
in section 603(p) shall establish policies and procedures to
comply with this section, including procedures that allow
consumers and active duty military consumers to request
temporary, extended, or active duty alerts (as applicable) in
a simple and easy manner, including by telephone.
``(e) Referrals of Fraud Alerts.--Each consumer reporting
agency described in section 603(p) that receives a referral
of a fraud alert or active duty alert from another consumer
reporting agency pursuant to this section shall, as though
the agency received the request from the consumer directly,
follow the procedures required under--
``(1) paragraphs (1)(A) and (2) of subsection (a), in the
case of a referral under subsection (a)(1)(B);
``(2) paragraphs (1)(A), (1)(B), and (3) of subsection (b),
in the case of a referral under subsection (b)(1)(C); and
``(3) paragraphs (1) and (2) of subsection (c), in the case
of a referral under subsection (c)(3).
``(f) Duty of Reseller To Reconvey Alert.--A reseller shall
include in its report any fraud alert or active duty alert
placed in the file of a consumer pursuant to this section by
another consumer reporting agency.
``(g) Duty of Other Consumer Reporting Agencies To Provide
Contact Information.--If a consumer contacts any consumer
reporting agency that is not described in section 603(p) to
communicate a suspicion that the consumer has been or is
about to become a victim of fraud or related crime, including
identity theft, the agency shall provide information to the
consumer on how to contact the Federal Trade Commission and
the consumer reporting agencies described in section 603(p)
to obtain more detailed information and request alerts under
this section.''.

SEC. 113. TRUNCATION OF CREDIT CARD AND DEBIT CARD ACCOUNT
NUMBERS.

Section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c) is amended by adding at the end the following:
``(g) Truncation of Credit Card and Debit Card Numbers.--
``(1) In general.--Except as otherwise specifically
provided in this subsection, no person that accepts credit
cards or debit cards for the transaction of business shall
print more than the last 5 digits of the card account number
or the expiration date upon any receipt provided to the
cardholder at the point of the sale or transaction.
``(2) Limitation.--This subsection applies only to receipts
that are electronically printed, and does not apply to
transactions in which the sole means of recording a credit
card or debit card account number is by handwriting or by an
imprint or copy of the card.
``(3) Effective date.--This subsection shall become
effective--
``(A) 3 years after the date of enactment of this
subsection, with respect to any cash register or other
machine or device that electronically prints receipts for
credit card or debit card transactions that is in use before
January 1, 2005; and
``(B) 1 year after the date of enactment of this
subsection, with respect to any cash register or other
machine or device that electronically prints receipts for
credit card or debit card transactions that is first put into
use on or after January 1, 2005.''.

SEC. 114. ESTABLISHMENT OF PROCEDURES FOR THE IDENTIFICATION
OF POSSIBLE INSTANCES OF IDENTITY THEFT.

(a) In General.--Section 615 of the Fair Credit Reporting
Act (15 U.S.C. 1681m) is amended--
(1) by striking ``(e)'' at the end; and
(2) by adding at the end the following:
``(e) Red Flag Guidelines and Regulations Required.--
``(1) Guidelines.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, with respect to the entities that are
subject to their respective enforcement authority under
section 621, and in coordination as described in paragraph
(2)--
``(A) establish and maintain guidelines for use by each
financial institution and each other person that is a
creditor or other user of a consumer report regarding
identity theft with respect to account holders at, or
customers of, such entities, and update such guidelines as
often as necessary; and
``(B) prescribe regulations requiring each financial
institution and each other person that is a creditor or other
user of a consumer report to establish reasonable policies
and procedures for implementing the guidelines established
pursuant to paragraph (1), to identify possible risks to
account holders or to the safety and soundness of the
institution or customers.
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.

[[Page S13914]]

``(3) Criteria.--In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1)
shall identify patterns, practices, and specific forms of
activity that indicate the possible existence of identity
theft.
``(4) Consistency with verification requirements.--Policies
and procedures established pursuant to paragraph (1) shall
not be inconsistent with, or duplicative of, the policies and
procedures required under section 5318(l) of title 31, United
States Code.
``(f) Investigation of Changes of Address.--
``(1) In general.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission, in carrying out the responsibilities of such
agencies under subsection (e) shall, with respect to the
entities that are subject to their respective enforcement
authority under section 621, and in coordination as described
in paragraph (2), prescribe regulations applicable to card
issuers to ensure that, if any such card issuer receives a
request for an additional or replacement card for an existing
account not later than 30 days after the card issuer has
received notification of a change of address for the same
account, the card issuer will follow reasonable policies and
procedures that prohibit, as appropriate, the card issuer
from issuing the additional or replacement card, unless the
card issuer--
``(A) notifies the cardholder of the request at the former
address of the cardholder and provides to the cardholder a
means of promptly reporting incorrect address changes;
``(B) notifies the cardholder of the request by such other
means of communication as the cardholder and the card issuer
previously agreed to; or
``(C) uses other means of assessing the validity of the
change of address, in accordance with reasonable policies and
procedures established by the card issuer in accordance with
the regulations prescribed under subsection (e).
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
``(3) Definition of card issuer.--For purposes of this
subsection, the term `card issuer' means--
``(A) any person who issues a credit card, or the agent of
such person with respect to such card; and
``(B) any person who issues a debit card.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect 1 year after the date of enactment of this
Act.

SEC. 115. AMENDMENTS TO EXISTING IDENTITY THEFT PROHIBITION.

Section 1028 of title 18, United States Code, is amended--
(1) in subsection (a)(7)--
(A) by striking ``transfers'' and inserting ``transfers,
possesses,''; and
(B) by striking ``abet,'' and inserting ``abet, or in
connection with,'';
(2) in subsection (b)(1)(D), by striking ``transfer'' and
inserting ``transfer, possession,''; and
(3) in subsection (b)(2), by striking ``three years'' and
inserting ``5 years''.

SEC. 116. AUTHORITY TO TRUNCATE SOCIAL SECURITY NUMBERS.

Section 609(a)(1) of the Fair Credit Reporting Act (15
U.S.C. 1681g(a)(1)) is amended by striking ``except that
nothing'' and inserting the following: ``except that--
``(A) if the consumer to whom the file relates requests
that the first 5 digits of the social security number (or
similar identification number) of the consumer not be
included in the disclosure and the consumer reporting agency
has received appropriate proof of the identity of the
requester, the consumer reporting agency shall so truncate
such number in such disclosure; and
``(B) nothing''.

Subtitle B--Protection and Restoration of Identity Theft Victim Credit
History

SEC. 151. SUMMARY OF RIGHTS OF IDENTITY THEFT VICTIMS.

(a) In General.--Section 609 of the Fair Credit Reporting
Act (15 U.S.C. 1681g) is amended by adding at the end the
following:
``(d) Summary of Rights of Identity Theft Victims.--
``(1) In general.--The Federal Trade Commission, in
consultation with the Federal banking agencies and the
National Credit Union Administration, shall prescribe the
form and content of a summary of the rights of consumers
under this title with respect to the procedures for remedying
the effects of fraud or identity theft involving credit,
electronic fund transfers, or accounts or transactions at or
with a financial institution.
``(2) Summary of rights and contact information.--If any
consumer contacts a consumer reporting agency and expresses a
belief that the consumer is a victim of fraud or identity
theft involving credit, an electronic fund transfer, or an
account or transaction at or with a financial institution,
the consumer reporting agency shall, in addition to any other
action that the agency may take, provide the consumer with
the model summary of rights prepared by the Federal Trade
Commission under paragraph (1) and information on how to
contact the Commission to obtain more detailed
information.''.
(b) Public Campaign To Prevent Identity Theft.--Not later
than 2 years after the date of enactment of this Act, the
Federal Trade Commission shall establish and implement a
media and distribution campaign to teach the public how to
prevent identity theft. Such campaign shall include existing
Federal Trade Commission education materials, as well as
radio, television, and print public service announcements,
video cassettes, interactive digital video discs (DVD's) or
compact audio discs (CD's), and Internet resources.
(c) Conforming Amendment.--Section 624(b)(3) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(3), regarding
relation to State laws) is amended by striking ``section
609(c)'' and inserting ``subsection (c) or (d) of section
609''.

SEC. 152. BLOCKING OF INFORMATION RESULTING FROM IDENTITY
THEFT.

(a) In General.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended by inserting after section 605A, as
added by this Act, the following:

``Sec. 605B. Block of information resulting from identity
theft

``(a) Block.--Except as otherwise provided in this section,
a consumer reporting agency shall block the reporting of any
information in the file of a consumer that the consumer
identifies as information that resulted from an alleged
identity theft, not later than 3 business days after the date
of receipt by such agency of--
``(1) appropriate proof of the identity of the consumer;
``(2) a copy of an identity theft report; and
``(3) the identification of such information by the
consumer.
``(b) Notification.--A consumer reporting agency shall
promptly notify the furnisher of information identified by
the consumer under subsection (a)--
``(1) that the information may be a result of identity
theft;
``(2) that an identity theft report has been filed;
``(3) that a block has been requested under this section;
and
``(4) of the effective dates of the block.
``(c) Authority To Decline or Rescind.--
``(1) In general.--A consumer reporting agency may decline
to block, or may rescind any block, of information relating
to a consumer under this section, if the consumer reporting
agency reasonably determines that--
``(A) the information was blocked in error or a block was
requested by the consumer in error;
``(B) the information was blocked, or a block was requested
by the consumer, on the basis of a material misrepresentation
of fact relevant to the request to block; or
``(C) the consumer obtained possession of goods, services,
or money as a result of the blocked transaction or
transactions.
``(2) Notification to consumer.--If a block of information
is declined or rescinded under this subsection, the affected
consumer shall be notified promptly, in the same manner as
consumers are notified of the reinsertion of information
under section 611(a)(5)(B).
``(3) Significance of block.--For purposes of this
subsection, if a consumer reporting agency rescinds a block,
the presence of information in the file of a consumer prior
to the blocking of such information is not evidence of
whether the consumer knew or should have known that the
consumer obtained possession of any goods, services, or money
as a result of the block.
``(d) Exception for Resellers.--
``(1) No reseller file.--This section shall not apply to a
consumer reporting agency, if the consumer reporting agency--
``(A) is a reseller;
``(B) is not, at the time of the request of the consumer
under subsection (a), otherwise furnishing or reselling a
consumer report concerning the information identified by the
consumer; and
``(C) informs the consumer, by any means, that the consumer
may report the identity theft to the Federal Trade Commission
to obtain consumer information regarding identity theft.
``(2) Reseller with file.--The sole obligation of the
consumer reporting agency under this section, with regard to
any request of a consumer under this section, shall be to
block the consumer report maintained by the consumer
reporting agency from any subsequent use, if--
``(A) the consumer, in accordance with the provisions of
subsection (a), identifies, to a consumer reporting agency,
information in the file of the consumer that resulted from
identity theft; and
``(B) the consumer reporting agency is a reseller of the
identified information.
``(3) Notice.--In carrying out its obligation under
paragraph (2), the reseller shall promptly provide a notice
to the consumer of the decision to block the file. Such
notice shall contain the name, address, and telephone number
of each consumer reporting agency from which the consumer
information was obtained for resale.
``(e) Exception for Verification Companies.--The provisions
of this section do not apply to a check services company,
acting as such, which issues authorizations for the purpose
of approving or processing negotiable instruments, electronic
fund transfers, or similar methods of payments, except that,
beginning 3 business days after receipt of information
described in paragraphs (1) through (3) of subsection (a), a
check services company shall not report to a national
consumer reporting agency described in section 603(p), any
information identified in the

[[Page S13915]]

subject identity theft report as resulting from identity
theft.
``(f) Access to Blocked Information by Law Enforcement
Agencies.--No provision of this section shall be construed as
requiring a consumer reporting agency to prevent a Federal,
State, or local law enforcement agency from accessing blocked
information in a consumer file to which the agency could
otherwise obtain access under this title.''.
(b) Clerical Amendment.--The table of sections for the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by
inserting after the item relating to section 605 the
following new items:

``605A. Identity theft prevention; fraud alerts and active duty alerts.
``605B. Block of information resulting from identity theft.''.

SEC. 153. COORDINATION OF IDENTITY THEFT COMPLAINT
INVESTIGATIONS.

Section 621 of the Fair Credit Reporting Act (15 U.S.C.
1681s) is amended by adding at the end the following:
``(f) Coordination of Consumer Complaint Investigations.--
``(1) In general.--Each consumer reporting agency described
in section 603(p) shall develop and maintain procedures for
the referral to each other such agency of any consumer
complaint received by the agency alleging identity theft, or
requesting a fraud alert under section 605A or a block under
section 605B.
``(2) Model form and procedure for reporting identity
theft.--The Federal Trade Commission, in consultation with
the Federal banking agencies and the National Credit Union
Administration, shall develop a model form and model
procedures to be used by consumers who are victims of
identity theft for contacting and informing creditors and
consumer reporting agencies of the fraud.
``(3) Annual summary reports.--Each consumer reporting
agency described in section 603(p) shall submit an annual
summary report to the Federal Trade Commission on consumer
complaints received by the agency on identity theft or fraud
alerts.''.

SEC. 154. PREVENTION OF REPOLLUTION OF CONSUMER REPORTS.

(a) Prevention of Reinsertion of Erroneous Information.--
(1) Duties of furnishers upon notice of identity theft-
related disputes.--Section 623(b) of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2(b)) is amended--
(A) by redesignating paragraph (2) as paragraph (3);
(B) by inserting after paragraph (1) the following:
``(2) Duties of furnishers upon notice of identity theft-
related disputes.--A person that furnishes information to any
consumer reporting agency shall--
``(A) have in place reasonable procedures to respond to any
notification that it receives from a consumer reporting
agency under section 605B relating to information resulting
from identity theft, to prevent that person from refurnishing
such blocked information; and
``(B) take the actions described in subparagraphs (A)
through (D) of paragraph (1), if such person receives
directly from a consumer, an identity theft report or a
properly completed copy of a standardized affidavit of
identity theft developed and made available by the Federal
Trade Commission.''; and
(C) in paragraph (3), as redesignated, by striking
``paragraph (1)'' and inserting ``this subsection''.
(2) Conforming amendments relating to notice of identity
theft directly from consumers.--Section 623(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is amended--
(A) in the matter preceding subparagraph (A), by inserting
``or as described in paragraph (2)(B),'' after ``agency,'';
(B) subparagraph (B), by inserting before the semicolon the
following: ``, and by the consumer, and other documentation
reasonably available to the person that is necessary to
conduct a reasonable investigation''; and
(C) in subparagraph (C), by inserting before the semicolon
at the end the following: ``, and to the consumer, if notice
of the dispute was received directly from the consumer, as
described in paragraph (2)(B)''.
(b) Prohibition on Sale or Transfer of Debt Caused by
Identity Theft.--Section 615 of the Fair Credit Reporting Act
(15 U.S.C. 1681m), as amended by this Act, is amended by
adding at the end the following:
``(g) Prohibition on Sale or Transfer of Debt Caused by
Identity Theft.--
``(1) In general.--No person shall sell, transfer for
consideration, or place for collection a debt that such
person has been notified under section 605B has resulted from
identity theft.
``(2) Applicability.--The prohibitions of this subsection
shall apply to all persons collecting a debt described in
paragraph (1) after the date of a notification under
paragraph (1).
``(3) Rule of construction.--Nothing in this subsection
shall be construed to prohibit--
``(A) the repurchase of a debt in any case in which the
assignee of the debt requires such repurchase because the
debt has resulted from identity theft;
``(B) the securitization of a debt; or
``(C) the transfer of debt as a result of a merger,
acquisition, purchase and assumption transaction, or transfer
of substantially all of the assets of an entity.''.

SEC. 155. NOTICE BY DEBT COLLECTORS WITH RESPECT TO
FRAUDULENT INFORMATION.

Section 615 of the Fair Credit Reporting Act (15 U.S.C.
1681m), as amended by this Act, is amended by adding at the
end the following:
``(h) Debt Collector Communications Concerning Identity
Theft.--If a person acting as a debt collector (as that term
is defined in title VIII) on behalf of a third party that is
a creditor or other user of a consumer report is notified
that any information relating to a debt that the person is
attempting to collect may be fraudulent or may be the result
of identity theft, that person shall--
``(1) notify the third party that the information may be
fraudulent or may be the result of identity theft; and
``(2) upon request of the consumer to whom the debt
purportedly relates, provide to the consumer all information
to which the consumer would otherwise be entitled if the
consumer were not a victim of identity theft, but wished to
dispute the debt under provisions of law applicable to that
person.''.

SEC. 156. STATUTE OF LIMITATIONS.

Section 618 of the Fair Credit Reporting Act (15 U.S.C.
1681p) is amended to read as follows:

``Sec. 618. Jurisdiction of courts; limitation of actions

``An action to enforce any liability created under this
title may be brought in any appropriate United States
district court, without regard to the amount in controversy,
or in any other court of competent jurisdiction, not later
than the earlier of--
``(1) 2 years after the date of discovery by the plaintiff
of the violation that is the basis for such liability; or
``(2) 7 years after the date on which the violation that is
the basis for such liability occurs.''.

TITLE II--IMPROVEMENTS IN USE OF AND CONSUMER ACCESS TO CREDIT
INFORMATION

SEC. 211. FREE CREDIT REPORTS.

(a) In General.--Section 612 of the Fair Credit Reporting
Act (15 U.S.C. 1681j) is amended--
(1) by redesignating subsection (a) as subsection (f), and
transferring it to the end of the section;
(2) by inserting before subsection (b) the following:
``(a) Free Annual Disclosure.--
``(1) In general.--A consumer reporting agency described in
section 603(p) shall make all disclosures pursuant to section
609 once during any 12-month period upon request of the
consumer and without charge to the consumer, only if the
request is made by mail or through an Internet website using
the centralized system and the standardized form established
for such requests in accordance with section 211(c) of the
National Consumer Credit Reporting System Improvement Act of
2003.
``(2) Timing.--A consumer reporting agency shall provide a
consumer report under paragraph (1) not later than 15 days
after the date on which the request is received under
paragraph (1).
``(3) Reinvestigations.--Notwithstanding the time periods
specified in section 611(a)(1), a reinvestigation under that
section by a consumer reporting agency upon a request of a
consumer that is made after receiving a consumer report under
this subsection shall be completed not later than 45 days
after the date on which the request is received.'';
(3) by redesignating subsection (d) as subsection (e);
(4) by inserting before subsection (e), as redesignated,
the following:
``(d) Free Disclosures in Connection With Fraud Alerts.--
Upon the request of a consumer, a consumer reporting agency
described in section 603(p) shall make all disclosures
pursuant to section 609 without charge to the consumer, as
provided in subsections (a)(2) and (b)(3) of section 605A, as
applicable.'';
(5) in subsection (e), as redesignated, by striking
``subsection (a)'' and inserting ``subsection (f)''; and
(6) in subsection (f), as redesignated, by striking
``Except as provided in subsections (b), (c), and (d), a''
and inserting ``In the case of a request from a consumer
other than a request that is covered by any of subsections
(a) through (d), a''.
(b) Summary of Rights To Obtain and Dispute Information in
Consumer Reports and To Obtain Credit Scores.--Section 609(c)
of the Fair Credit Reporting Act (15 U.S.C. 1681g) is amended
to read as follows:
``(c) Summary of Rights To Obtain and Dispute Information
in Consumer Reports and To Obtain Credit Scores.--
``(1) Commission summary of rights required.--
``(A) In general.--The Federal Trade Commission shall
prepare a model summary of the rights of consumers under this
title.
``(B) Content of summary.--The summary of rights prepared
under subparagraph (A) shall include a description of--
``(i) the right of a consumer to obtain a copy of a
consumer report under subsection (a) from each consumer
reporting agency;
``(ii) the frequency and circumstances under which a
consumer is entitled to receive a consumer report without
charge under section 612;
``(iii) the right of a consumer to dispute information in
the file of the consumer under section 611;

[[Page S13916]]

``(iv) the right of a consumer to obtain a credit score
from a consumer reporting agency, and a description of how to
obtain a credit score; and
``(v) the method by which a consumer can contact, and
obtain a consumer report from, a consumer reporting agency
without charge, as provided in the regulations of the Federal
Trade Commission prescribed under section 211(c) of the
National Consumer Credit Reporting System Improvement Act of
2003.
``(C) Availability of summary of rights.--The Federal Trade
Commission shall--
``(i) actively publicize the availability of the summary of
rights prepared under this paragraph;
``(ii) conspicuously post on its Internet website the
availability of such summary of rights; and
``(iii) promptly make such summary of rights available to
consumers, on request.
``(2) Summary of rights required to be included with agency
disclosures.--A consumer reporting agency shall provide to a
consumer, with each written disclosure by the agency to the
consumer under this section--
``(A) the summary of rights prepared by the Federal Trade
Commission under paragraph (1);
``(B) in the case of a consumer reporting agency described
in section 603(p), a toll-free telephone number established
by the agency, at which personnel are accessible to consumers
during normal business hours;
``(C) a list of all Federal agencies responsible for
enforcing any provision of this title, and the address and
any appropriate phone number of each such agency, in a form
that will assist the consumer in selecting the appropriate
agency;
``(D) a statement that the consumer may have additional
rights under State law, and that the consumer may wish to
contact a State or local consumer protection agency or a
State attorney general (or the equivalent thereof) to learn
of those rights; and
``(E) a statement that a consumer reporting agency is not
required to remove accurate derogatory information from the
file of a consumer, unless the information is outdated under
section 605 or cannot be verified.''.
(c) Rulemaking Required.--
(1) In general.--The Federal Trade Commission shall
prescribe regulations applicable to consumer reporting
agencies described in section 603(p) of the Fair Credit
Reporting Act to require the establishment of--
(A) a centralized source, through which consumers may
obtain a consumer report from each consumer reporting agency
described in that section 603(p) using a single request and
without charge to the consumer, as provided in section 612(a)
of the Fair Credit Reporting Act (as amended by this Act);
(B) a standardized form for a consumer to make such a
request for a consumer report by mail or through an Internet
website; and
(C) streamlined methods by which such a consumer reporting
agency shall provide such consumer reports, after
consideration of--
(i) the significant demands that may be placed on consumer
reporting agencies in providing such consumer reports;
(ii) appropriate means to ensure that consumer reporting
agencies can satisfactorily meet those demands, including the
efficacy of a system of staggering the availability to
consumers of such consumer reports using a quarterly method
based on the birth month of the consumer; and
(iii) the ease by which consumers should be able to contact
consumer reporting agencies with respect to access to such
consumer reports.
(2) Timing.--Regulations required by this subsection
shall--
(A) be issued in final form not later than 6 months after
the date of enactment of this Act; and
(B) become effective not later than 6 months after the date
on which they are issued in final form.
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall become effective on the effective date of the
regulations prescribed by the Federal Trade Commission in
accordance with subsection (c).

SEC. 212. CREDIT SCORES.

(a) Duties of Consumer Reporting Agencies To Disclose
Credit Scores.--
(1) In general.--Section 609(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at
the end the following:
``(6) In connection with an application for an extension of
credit for a consumer purpose that is to be secured by a
dwelling--
``(A) the current, or most recent, credit score of the
consumer that was previously calculated by the agency;
``(B) the range of possible credit scores under the model
used;
``(C) the key factors, if any, not to exceed 4, that
adversely affected the credit score of the consumer in the
model used;
``(D) the date on which the credit score was created; and
``(E) the name of the person or entity that provided the
credit score or the credit file on the basis of which the
credit score was created.''.
(2) Limitations on required provision of credit score.--
Section 609 of the Fair Credit Reporting Act (15 U.S.C.
1681g), as amended by this Act, is amended by adding at the
end the following:
``(e) Limitations on Required Provision of Credit Score.--
``(1) In general.--Subsection (a)(6) may not be construed--
``(A) to compel a consumer reporting agency to develop or
disclose a credit score if the agency does not, in the
ordinary course of its business--
``(i) distribute scores that are used in connection with
extensions of credit secured by residential real property; or
``(ii) develop credit scores that assist creditors in
understanding the general credit behavior of the consumer and
predicting future credit behavior;
``(B) to require a consumer reporting agency that
distributes credit scores developed by another person or
entity to provide a further explanation of those scores, or
to process a dispute arising pursuant to section 611(a),
except that the consumer reporting agency shall be required
to provide to the consumer the name and information for
contacting the person or entity that developed the score;
``(C) to require a consumer reporting agency to maintain
credit scores in its files; or
``(D) to compel disclosure of a credit score, except upon
specific request of the consumer, except that if a consumer
requests the credit file and not the credit score, then the
consumer shall be provided with the credit file and a
statement that the consumer may request and obtain a credit
score.
``(2) Provision of scoring model.--In complying with
subsection (a)(6) and this subsection, a consumer reporting
agency shall supply to the consumer--
``(A) a credit score that is derived from a credit scoring
model that is widely distributed to users of credit scores by
that consumer reporting agency in connection with any
extension of credit secured by a dwelling; or
``(B) a credit score that assists the consumer in
understanding the credit scoring assessment of the credit
behavior of the consumer and predictions about future credit
behavior.''.
(3) Conforming amendment.--Section 609(a)(1)(B) of the Fair
Credit Reporting Act (15 U.S.C. 1681g(a)(1)(B)), as so
designated by section 116, is amended by inserting before the
period ``, other than as provided in paragraph (6)''.
(b) Duties of Users of Credit Scores.--
(1) In general.--Section 615 of the Fair Credit Reporting
Act (15 U.S.C. 1681m), as amended by this Act, is amended by
adding at the end the following:
``(i) Duties of Users of Credit Scores.--
``(1) Disclosures.--Any person that makes or arranges
extensions of credit for consumer purposes that are to be
secured by a dwelling and that uses credit scores for that
purpose, shall be required to provide to the consumer to whom
the credit score relates, as soon as is reasonably
practicable after such use--
``(A) a copy of the information described in section
609(a)(6) that was obtained from a consumer reporting agency
or that was developed and used by that user of the credit
score information; or
``(B) if the user of the credit score information obtained
such information from a third party that developed such
information (other than a consumer reporting agency or the
user itself), only--
``(i) a copy of the information described in section
609(a)(6) provided to the user by the person or entity that
developed the credit score; and
``(ii) a notice that generally describes credit scores,
their use, and the sources and kinds of data used to generate
credit scores.
``(2) Rule of construction.--This subsection may not be
construed to require the user of a credit score described in
paragraph (1)--
``(A) to explain to the consumer the information provided
pursuant to section 609(a)(6), unless that information was
developed by the user;
``(B) to disclose any information other than a credit score
or the key factors required to be disclosed under section
609(a)(6)(C);
``(C) to disclose any credit score or related information
obtained by the user after a transaction occurs; or
``(D) to provide more than 1 disclosure under this
subsection to any 1 consumer per credit transaction.
``(3) Limitation.--Except as otherwise provided in this
subsection, the obligation of a user of a credit score under
this subsection shall be limited solely to providing a copy
of the information that was received from the consumer
reporting agency or other person. A user of a credit score
has no liability under this subsection for the content of
credit score information received from a consumer reporting
agency or for the omission of any information within the
report provided by the consumer reporting agency.''.
(2) Conforming amendment.--Section 615 of the Fair Credit
Reporting Act (15 U.S.C. 1681m) is amended in the section
heading, by adding at the end the following: ``and credit
scores''.
(c) Contractual Liability.--Section 616 of the Fair Credit
Reporting Act (15 U.S.C. 1681n) is amended by adding at the
end the following:
``(d) Use of Credit Scores.--Any provision of any contract
that prohibits the disclosure of a credit score by a consumer
reporting agency or a person who makes or arranges extensions
of credit to the consumer to whom the credit score relates is
void. A user of a credit score shall not have liability

[[Page S13917]]

under any such contractual provision for disclosure of a
credit score.''.
(d) Relation to State Laws.--Section 624(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(1), regarding
relation to State laws) is amended--
(1) in subparagraph (E), by striking ``or'' at the end; and
(2) by adding at the end the following:
``(G) subsections (a)(6) and (e) of section 609, relating
to the disclosure of credit scores by consumer reporting
agencies in connection with an application for an extension
of credit that is to be secured by a dwelling;
``(H) section 615(i), relating to the duties of users of
credit scores to disclose credit score information to
consumers in connection with an application for an extension
of credit that is to be secured by a dwelling; or''.
(e) Effective Date.--The amendments made by this section
shall become effective 180 days after the date of enactment
of this Act.

SEC. 213. ENHANCED DISCLOSURE OF THE MEANS AVAILABLE TO OPT
OUT OF PRESCREENED LISTS.

(a) Notice and Response Format for Users of Reports.--
Section 615(d)(2) of the Fair Credit Reporting Act (15 U.S.C.
1681m(d)(2)) is amended to read as follows:
``(2) Disclosure of address and telephone number; format.--
A statement under paragraph (1) shall--
``(A) include the address and toll-free telephone number of
the appropriate notification system established under section
604(e); and
``(B) be presented in such format and in such type size and
manner as is established by the Federal Trade Commission, by
rule, in consultation with the Federal banking agencies and
the National Credit Union Administration.''.
(b) Rulemaking Schedule.--Regulations required by section
615(d)(2) of the Fair Credit Reporting Act, as amended by
this section, shall be issued in final form not later than 1
year after the date of enactment of this Act.
(c) Duration of Elections.--Section 604(e) of the Fair
Credit Reporting Act (15 U.S.C. 1681b(e)) is amended in each
of paragraphs (3)(A) and (4)(B)(i)), by striking ``2-year
period'' each place that term appears and inserting ``7-year
period''.
(d) Public Awareness Campaign.--The Federal Trade
Commission shall actively publicize and conspicuously post on
its website any address and the toll-free telephone number
established as part of a notification system for opting out
of prescreening under section 604(e), and otherwise take
measures to increase public awareness regarding the
availability of the right to opt out of prescreening.

SEC. 214. AFFILIATE SHARING.

(a) Limitation.--The Fair Credit Reporting Act (15 U.S.C.
1601 et seq.) is amended--
(1) by redesignating section 624 (regarding relation to
State laws), as so designated by section 2413(b) of the
Consumer Credit Reporting Reform Act of 1996 (110 Stat. 3009-
447), as section 625;
(2) by redesignating section 624 (regarding disclosures to
FBI for counterintelligence purposes), as added by section
601(a) of the Intelligence Authorization Act for Fiscal Year
1996 (Public Law 104-93; 109 Stat. 974) (15 U.S.C. 1681u)),
as section 626; and
(3) by inserting after section 623 the following:

``SEC. 624. AFFILIATE SHARING.

``(a) Special Rule for Solicitation for Purposes of
Marketing.--
``(1) Notice.--Any person that receives from another person
related to it by common ownership or affiliated by corporate
control a communication of information that would be a
consumer report, except for clauses (i) through (iii) of
section 603(d)(2)(A), may not use the information to make a
solicitation for marketing purposes to a consumer about its
products or services, unless--
``(A) it is clearly and conspicuously disclosed to the
consumer that the information may be communicated among such
persons for purposes of making such solicitations to the
consumer; and
``(B) the consumer is provided an opportunity and a simple
method to prohibit the making of such solicitations to the
consumer by such person.
``(2) Consumer choice.--
``(A) In general.--The notice required under paragraph (1)
shall allow the consumer the opportunity to prohibit all such
solicitations, and may allow the consumer to choose from
different options when electing to prohibit the sending of
such solicitations, including options regarding the types of
entities and information covered, and which methods of
delivering solicitations the consumer elects to prohibit.
``(B) Format.--Notwithstanding subparagraph (A), the notice
required under paragraph (1) must be clear, conspicuous, and
concise, and any method provided under paragraph (1)(B) must
be simple. The regulations prescribed to implement this
section shall provide specific guidance regarding how to
comply with such standards.
``(3) Duration.--The election of the consumer pursuant to
paragraph (1)(B) to prohibit the sending of solicitations
shall be effective for 5 years, beginning on the date on
which the person receives the election of the consumer,
unless the consumer requests that such election be revoked
before the end of such period. At such time as the election
of the consumer pursuant to paragraph (1)(B) is no longer
effective, a person may not use information it receives as
described in paragraph (1) to make a solicitation for
marketing purposes to such consumer unless the consumer
receives a notice and an opportunity to extend the opt out
for another period of 5 years, pursuant to the procedure
described in paragraph (1).
``(4) Scope.--This section shall not apply to a person--
``(A) using information to make a solicitation for
marketing purposes to a consumer with whom the person has a
pre-existing business relationship;
``(B) using information to perform services on behalf of
another person related by common ownership or affiliated by
corporate control, except that this subparagraph shall not
permit a person to send solicitations on behalf of another
person if such other person would not be permitted to send
the solicitation on its own behalf as a result of the
election of the consumer to prohibit solicitations under
paragraph (1)(B);
``(C) using information in direct response to a
communication initiated by the consumer in which the consumer
has requested information about a product or service; or
``(D) using information to directly respond to
solicitations authorized or requested by the consumer.
``(b) Notice for Other Purposes Permissible.--A notice or
other disclosure that is equivalent to the notice required by
subsection (a), and that is provided by a person described in
subsection (a) to a consumer together with disclosures
required by any other provision of law shall satisfy the
requirements of subsection (a).''.
(b) Rulemaking Required.--
(1) In general.--The Federal banking agencies, the National
Credit Union Administration, and the Federal Trade Commission
shall, with respect to the entities that are subject to their
respective enforcement authority under section 621 of the
Fair Credit Reporting Act, and in coordination as described
in paragraph (2), prescribe regulations to implement section
624 of the Fair Credit Reporting Act, as added by this
section.
(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
(3) Considerations.--In promulgating regulations under this
subsection, the Federal Trade Commission shall--
(A) ensure that affiliate sharing notification methods
provide a simple means for consumers to make determinations
and choices under section 624 of the Fair Credit Reporting
Act, as added by this section; and
(B) consider the affiliate sharing notification practices
employed on the date of enactment of this Act by persons that
will be subject to that section 624.
(4) Timing.--Regulations required by this subsection
shall--
(A) be issued in final form not later than 6 months after
the date of enactment of this Act; and
(B) become effective not later than 3 months after the date
on which they are issued in final form.
(c) Conforming Amendment.--Section 603(d)(2)(A) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)) is amended by
inserting ``subject to section 624,'' after ``(A)''.
(d) Clerical Amendment.--The Fair Credit Reporting Act (15
U.S.C. 1681 et seq.) is amended in the table of sections, by
striking the items following the item relating to section 623
and inserting the following:

``624. Affiliate sharing.
``625. Relation to State laws.
``626. Disclosures to FBI for counterintelligence purposes.''.
(e) Studies of Information Sharing Practices.--
(1) In general.--The Federal banking agencies, the National
Credit Union Administration, and the Federal Trade Commission
shall jointly conduct regular studies of the consumer
information sharing practices by financial institutions and
other persons that are creditors or users of consumer reports
with their affiliates.
(2) Matters for study.--In conducting the studies required
by paragraph (1), the agencies described in paragraph (1)
shall--
(A) identify--
(i) the purposes for which financial institutions and other
creditors and users of consumer reports share consumer
information;
(ii) the types of information shared by such entities with
their affiliates;
(iii) the number of choices provided to consumers with
respect to the control of such sharing, and the degree to and
manner in which consumers exercise such choices, if at all;
and
(iv) whether such entities share or may share personally
identifiable transaction or experience information with
affiliates for purposes--

(I) that are related to employment or hiring, including
whether the person that is the subject of such information is
given notice of such sharing, and the specific uses of such
shared information; or
(II) of general publication of such information; and

(B) specifically examine the information sharing practices
that financial institutions and other creditors and users of
consumer reports and their affiliates employ for the purpose
of making underwriting decisions or credit evaluations of
consumers.
(3) Reports.--

[[Page S13918]]

(A) Initial report.--Not later than 3 years after the date
of enactment of this Act, the Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall jointly submit a report to the Congress on
the results of the initial study conducted in accordance with
this subsection, together with any recommendations for
legislative or regulatory action.
(B) Followup reports.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, not less frequently than once every 3 years
following the date of submission of the initial report under
subparagraph (A), jointly submit a report to the Congress
that, together with any recommendations for legislative or
regulatory action--
(i) documents any changes in the areas of study referred to
in paragraph (2)(A) occurring since the date of submission of
the previous report;
(ii) identifies any changes in the practices of financial
institutions and other creditors and users of consumer
reports in sharing consumer information with their affiliates
for the purpose of making underwriting decisions or credit
evaluations of consumers occurring since the date of
submission of the previous report; and
(iii) examines the effects that changes described in clause
(ii) have had, if any, on the degree to which such affiliate
sharing practices reduce the need for financial institutions,
creditors, and other users of consumer reports to rely on
credit reports for such decisions.
(f) Definitions.--As used in this section--
(1) the terms ``consumer'', ``consumer report'', ``consumer
reporting agency'', ``creditor'', ``Federal banking
agencies'', and ``financial institution'', have the same
meanings as in section 603 of the Fair Credit Reporting Act,
as amended by this Act; and
(2) the term ``affiliates'' means persons that are related
by common ownership or affiliated by corporate control.

SEC. 215. STUDY OF EFFECTS OF CREDIT SCORES AND CREDIT-BASED
INSURANCE SCORES ON AVAILABILITY AND
AFFORDABILITY OF FINANCIAL PRODUCTS.

(a) Defined Term.--As used in this section, the term
``credit score'' means a numerical value or a categorization
derived from a statistical tool or modeling system used to
predict the likelihood of certain credit or insurance
behaviors, including default.
(b) Study Required.--The Federal Trade Commission shall
conduct a study of--
(1) the effects of the use of credit scores and credit-
based insurance scores on the availability and affordability
of financial products and services, including credit cards,
mortgages, auto loans, and property and casualty insurance;
(2) the degree of correlation between the factors
considered by credit score systems and the quantifiable risks
and actual losses experienced by businesses, including the
extent to which each of the factors considered or otherwise
taken into account by such systems correlated to risk or
loss;
(3) the extent to which the use of credit scoring models,
credit scores and credit-based insurance scores benefit or
negatively impact persons based on geography, income,
ethnicity, race, color, religion, national origin, age, sex,
marital status, or creed; and
(4) the extent to which credit scoring systems are used by
businesses, the factors considered by such systems, and the
effects of variables which are not considered by such
systems.
(c) Public Participation.--The Federal Trade Commission
shall seek public input about the prescribed methodology and
research design of the study required by subsection (b).
(d) Report.--
(1) In general.--Before the end of the 18-month period
beginning on the date of enactment of this Act, the Federal
Trade Commission shall submit a detailed report on the study
conducted under this section to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) the findings and conclusions of the Commission;
(B) recommendations to address specific areas of concern
that were identified in the study; and
(C) recommendations for legislative or administrative
action that the Commission may determine to be necessary to
ensure that credit and credit-based insurances score are used
appropriately and fairly.

TITLE III--ENHANCING THE ACCURACY OF CONSUMER REPORT INFORMATION

SEC. 311. RISK-BASED PRICING NOTICE.

(a) Duties of Users.--Section 615 of the Fair Credit
Reporting Act (15 U.S.C. 1681m), as amended by this Act, is
amended by adding at the end the following:
``(j) Duties of Users in Certain Credit Transactions.--
``(1) In general.--Subject to rules prescribed as provided
in paragraph (5), if any person uses a consumer report in
connection with a grant, extension, or other provision of
credit on material terms that are materially less favorable
than the most favorable terms available to a substantial
proportion of consumers from or through that person, based in
whole or in part on a consumer report, the person shall
provide a notice to the consumer in the form and manner
required by regulations prescribed in accordance with this
subsection.
``(2) Exceptions.--No notice shall be required from a
person under this subsection if--
``(A) the consumer applied for specific material terms and
was granted those terms, unless those terms were initially
specified by the person after the transaction was initiated
by the consumer and after the person obtained a consumer
report; or
``(B) the person has provided or will provide a notice to
the consumer under subsection (a) in connection with the
transaction.
``(3) Other notice not sufficient.--A person that is
required to provide a notice under subsection (a) cannot meet
that requirement by providing a notice under this subsection.
``(4) Content and delivery of notice.--A notice under this
subsection shall include, at a minimum--
``(A) a statement informing the consumer that the terms
offered to the consumer were set based on information from a
consumer report;
``(B) identification of the consumer reporting agency that
furnished that report;
``(C) a statement informing the consumer that the consumer
may obtain a copy of a consumer report from that consumer
reporting agency without charge; and
``(D) the contact information specified by that consumer
reporting agency for obtaining such consumer reports
(including a toll-free telephone number established by the
agency in the case of a consumer reporting agency described
in section 603(p)).
``(5) Rulemaking.--
``(A) Rules required.--The Federal Trade Commission and the
Board of Governors of the Federal Reserve System shall
jointly prescribe rules, in accordance with section 553 of
title 5, United States Code, to carry out this subsection.
``(B) Content.--Rules required by subparagraph (A) shall
address, but are not limited to--
``(i) the form, content, time, and manner of delivery of
any notice under this subsection;
``(ii) clarification of the meaning of terms used in this
subsection, including what credit terms are material, and
when credit terms are materially less favorable;
``(iii) exceptions to the notice requirement under this
subsection for classes of persons or transactions regarding
which the agencies determine that notice would not
significantly benefit consumers; and
``(iv) a model notice that may be used to comply with this
subsection.''.
(b) Relation to State Laws.--Section 625(b)(1) of the Fair
Credit Reporting Act (15 U.S.C. 1681t(b)(1), regarding
relation to State laws), as so designated and amended by this
Act, is amended by adding at the end the following:
``(I) section 615(j), relating to the duties of users of
consumer reports to provide notice with respect to terms in
certain credit transactions;''.

SEC. 312. PROCEDURES TO ENHANCE THE ACCURACY AND COMPLETENESS
OF INFORMATION FURNISHED TO CONSUMER REPORTING
AGENCIES.

(a) Accuracy Guidelines and Regulations.--Section 623 of
the Fair Credit Reporting Act (15 U.S.C. 15 U.S.C. 1681s-2)
is amended by adding at the end the following:
``(e) Accuracy Guidelines and Regulations Required.--
``(1) Guidelines.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, with respect to the entities that are
subject to their respective enforcement authority under
section 621, and in coordination as described in paragraph
(2)--
``(A) establish and maintain guidelines for use by each
person that furnishes information to a consumer reporting
agency regarding the accuracy and completeness of the
information relating to consumers that such entities furnish
to consumer reporting agencies, and update such guidelines as
often as necessary; and
``(B) prescribe regulations requiring each person that
furnishes information to a consumer reporting agency to
establish reasonable policies and procedures for implementing
the guidelines established pursuant to subparagraph (A).
``(2) Coordination.--Each agency required to prescribe
regulations under paragraph (1) shall consult and coordinate
with each other such agency so that, to the extent possible,
the regulations prescribed by each such entity are consistent
and comparable with the regulations prescribed by each other
such agency.
``(3) Criteria.--In developing the guidelines required by
paragraph (1)(A), the agencies described in paragraph (1)
shall--
``(A) identify patterns, practices, and specific forms of
activity that can compromise the accuracy and completeness of
information furnished to consumer reporting agencies;
``(B) review the methods (including technological means)
used to furnish information relating to consumers to consumer
reporting agencies;
``(C) determine whether persons that furnish information to
consumer reporting agencies maintain and enforce policies to
provide complete and accurate information to consumer
reporting agencies; and
``(D) examine the policies and processes that persons that
furnish information to consumer reporting agencies employ to
conduct reinvestigations and correct inaccurate information
relating to consumers that has

[[Page S13919]]

been furnished to consumer reporting agencies.''.
(b) Furnisher Liability Exception.--Section 623(a)(5) of
the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is
amended--
(1) by striking ``A person'' and inserting the following:
``(A) In general.--A person'';
(2) by inserting ``date of delinquency on the account,
which shall be the'' before ``month'';
(3) by inserting ``on the account'' before ``that
immediately preceded''; and
(4) by adding at the end the following:
``(B) Rule of construction.--For purposes of this paragraph
only, and provided that the consumer does not dispute the
information, a person that furnishes information on a
delinquent account that is placed for collection, charged for
profit or loss, or subjected to any similar action, complies
with this paragraph, if--
``(i) the person reports the same date of delinquency as
that provided by the creditor to which the account was owed
at the time at which the commencement of the delinquency
occurred, if the creditor previously reported that date of
delinquency to a consumer reporting agency;
``(ii) the creditor did not previously report the date of
delinquency to a consumer reporting agency, and the person
establishes and follows reasonable procedures to obtain the
date of delinquency from the creditor or another reliable
source and reports that date as the date of delinquency; or
``(iii) the creditor did not previously report the date of
delinquency to a consumer reporting agency and the date of
delinquency cannot be reasonably obtained as provided in
clause (ii), the person establishes and follows reasonable
procedures to ensure the date reported as the date of
delinquency precedes the date on which the account is placed
for collection, charged to profit or loss, or subjected to
any similar action, and reports such date to the credit
reporting agency.''.
(c) Liability and Enforcement.--
(1) Civil liability.--Section 623 of the Fair Credit
Reporting Act (15 U.S.C. 1681s-2) is amended by striking
subsections (c) and (d) and inserting the following:
``(c) Limitation on Liability.--Except as provided in
section 621(c)(1)(B), sections 616 and 617 do not apply to
any violation of--
``(1) subsection (a) of this section;
``(2) subsection (e) of this section, except that nothing
in this paragraph shall limit, expand, or otherwise affect
liability under section 616 or 617, as applicable, for
violations of subsection (b) of this section;
``(3) subsection (e) or (f) of section 615; or
``(4) subparagraph (A) of subsection (b)(2) of this section
that is based on the development of procedures required by
that subparagraph, except that refurnishing information
otherwise in violation of subsection (b) shall be subject to
liability under sections 616 and 617, as applicable, to the
same extent as such a refurnishing violation was subject to
such liability on the day before the date of enactment of the
National Consumer Credit Reporting System Improvement Act of
2003.
``(d) Limitation on Enforcement.--The provisions of law
described in paragraphs (1) through (4) of subsection (c)
(other than with respect to the exceptions described in
paragraphs (2) and (4) of subsection (c)) shall be enforced
exclusively as provided under section 621 by the Federal
agencies and officials and the State officials identified in
section 621.''.
(2) State actions.--Section 621(c) of the Fair Credit
Reporting Act (15 U.S.C. 1681s(c)) is amended--
(A) in paragraph (1)(B)(ii), by striking ``of section
623(a)'' and inserting ``described in any of paragraphs (1)
through (4) of section 623(c) (other than with respect to the
exception described in paragraph (4) of section 623(c))'';
and
(B) in paragraph (5)--
(i) in each of subparagraphs (A) and (B), by inserting
after ``section 623(a)(1)'' each place that term appears the
following: ``or a violation described in any of paragraphs
(2) through (4) of section 623(c) (other than with respect to
the exception described in paragraph (4) of section
623(c))''; and
(ii) by amending the paragraph heading to read as follows:
``(5) Limitations on state actions for certain
violations.--''.
(d) Rule of Construction.--Nothing in this section, the
amendments made by this section, or any other provision of
this Act shall be construed to affect any liability under
section 616 or 617 of the Fair Credit Reporting Act (15
U.S.C. 1681n, 1681o) that existed on the day before the date
of enactment of this Act.

SEC. 313. FEDERAL TRADE COMMISSION AND CONSUMER REPORTING
AGENCY ACTION CONCERNING COMPLAINTS.

Section 611 of the Fair Credit Reporting Act (15 U.S.C.
1681i) is amended by adding at the end the following:
``(e) Treatment of Complaints and Report to Congress.--
``(1) In general.--The Federal Trade Commission shall--
``(A) compile all complaints that it receives that a file
of a consumer that is maintained by a consumer reporting
agency described in section 603(p) contains incomplete or
inaccurate information, with respect to which, the consumer
appears to have disputed the completeness or accuracy with
the consumer reporting agency or otherwise utilized the
procedures provided by subsection (a); and
``(B) transmit each such complaint to each consumer
reporting agency involved.
``(2) Exclusion.--Complaints received or obtained by the
Federal Trade Commission pursuant to its investigative
authority under the Federal Trade Commission Act shall not be
subject to this paragraph (1).
``(3) Agency responsibilities.--Each consumer reporting
agency described in section 603(p) that receives a complaint
transmitted by the Federal Trade Commission pursuant to
paragraph (1) shall--
``(A) review each such complaint to determine whether all
legal obligations imposed on the consumer reporting agency
under this title (including any obligation imposed by an
applicable court or administrative order) have been met with
respect to the subject matter of the complaint;
``(B) provide reports on a regular basis to the Commission
regarding the determinations of and actions taken by the
consumer reporting agency, if any, in connection with its
review of such complaints; and
``(C) maintain, for a reasonable time period, records
regarding the disposition of each such complaint that is
sufficient to demonstrate compliance with this subsection.
``(4) Rulemaking authority.--The Federal Trade Commission
may prescribe regulations in accordance with the requirements
of section 553 of title 5, United States Code, as appropriate
to implement this subsection.
``(5) Annual report.--The Federal Trade Commission shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives an annual report regarding
information gathered by the Commission under this
subsection.''.

SEC. 314. ONGOING AUDITS OF THE ACCURACY OF CONSUMER REPORTS.

(a) Audits Required.--The Board of Governors of the Federal
Reserve System (in this section referred to as ``the Board'')
shall conduct ongoing audits of the accuracy and completeness
of information contained in consumer reports prepared or
maintained by consumer reporting agencies. The Board shall
independently verify the accuracy and completeness of
information contained in consumer reports by evaluating
information and data provided by consumer reporting agencies
(as defined in section 603 of the Fair Credit Reporting Act).
(b) Subject Matters.--In conducting audits under this
section, the Board shall examine--
(1) the accuracy and completeness of information contained
in consumer reports, including an analysis of the type of
inaccurate or incomplete information, if any, that may have
the most significant impact on the availability and terms of
various credit products offered to borrowers; and
(2) the impact, if any, of incomplete and inaccurate
information on the credit and credit-based insurance scores
that are most widely used to determine borrower credit
worthiness and to make insurance underwriting and rating
decisions, including an analysis of how, if at all, changes
to credit scores resulting from inaccurate or incomplete
credit reporting information affect the availability and
terms of various credit products offered to borrowers.
(c) Biennial Reports Required.--
(1) In general.--The Board shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives at the end of the 2-year period beginning
on the date of enactment of this Act. Thereafter, the Board
shall conduct additional audits and submit additional reports
once every 2 years.
(2) Contents.--Each report submitted under this subsection
shall contain a detailed summary of the findings and
conclusions of the Board with respect to the audits required
by this section, and such recommendations for legislative and
administrative action as the Board may determine to be
appropriate.
(d) Provision of Reports to the Board for Purposes of
Analysis.--Section 604(d) of the Fair Credit Reporting Act
(12 U.S.C. 1681b(d)) is amended to read as follows:
``(d) Furnishing Consumer Reports for Accuracy or
Compliance Audits.--A consumer reporting agency shall provide
consumer reports to the Board of Governors of the Federal
Reserve System, upon request, for the purpose of conducting
an accuracy or compliance audit in accordance with section
314 of the National Consumer Credit Reporting System
Improvement Act of 2003.''.

SEC. 315. IMPROVED DISCLOSURE OF THE RESULTS OF
REINVESTIGATION.

(a) In General.--Section 611(a)(5)(A) of the Fair Credit
Reporting Act (15 U.S.C. 1681i) is amended by striking
``shall'' and all that follows through the end of the
subparagraph, and inserting the following: ``shall--
``(i) promptly delete that item of information from the
file of the consumer, or modify that item of information, as
appropriate, based on the results of the reinvestigation; and
``(ii) promptly notify the furnisher of that information
that the information has been modified or deleted from the
file of the consumer.''.
(b) Furnisher Requirements Relating to Inaccurate,
Incomplete, or Unverifiable Information.--Section 623(b)(1)
of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(b)(1)) is
amended--

[[Page S13920]]

(1) in subparagraph (C), by striking ``and'' at the end;
and
(2) in subparagraph (D), by striking the period at the end
and inserting the following: ``; and
``(E) if an item of any information disputed by a consumer
is found to be inaccurate or incomplete or cannot be verified
after any reinvestigation under paragraph (1), promptly
delete that item of information from the furnisher's records
or modify that item of information, as appropriate, based on
the results of the reinvestigation.''.

SEC. 316. RECONCILING ADDRESSES.

Section 605 of the Fair Credit Reporting Act (15 U.S.C.
1681c), as amended by this Act, is amended by adding at the
end the following:
``(h) Notice of Discrepancy in Address.--
``(1) In general.--If a person has requested a consumer
report relating to a consumer from a consumer reporting
agency described in section 603(p), the request includes an
address for the consumer that substantially differs from the
addresses in the file of the consumer, and the agency
provides a consumer report in response to the request, the
consumer reporting agency shall notify the requester of the
existence of the discrepancy.
``(2) Regulations.--
``(A) Regulations required.--The Federal banking agencies,
the National Credit Union Administration, and the Federal
Trade Commission shall, with respect to the entities that are
subject to their respective enforcement authority under
section 621, and in coordination as described in subparagraph
(B), prescribe regulations providing guidance regarding
reasonable policies and procedures that a user of a consumer
report should employ when such user has received a notice of
discrepancy under paragraph (1).
``(B) Coordination.--Each agency required to prescribe
regulations under subparagraph (A) shall consult and
coordinate with each other such agency so that, to the extent
possible, the regulations prescribed by each such entity are
consistent and comparable with the regulations prescribed by
each other such agency.
``(C) Policies and procedures to be included.--The
regulations prescribed under subparagraph (A) shall describe
reasonable policies and procedures for use by a user of a
consumer report--
``(i) to form a reasonable belief that the user knows the
identity of the person to whom the consumer report pertains;
and
``(ii) if the user establishes a continuing relationship
with the consumer, and the user regularly and in the ordinary
course of business furnishes information to the consumer
reporting agency from which the notice of discrepancy
pertaining to the consumer was obtained, to reconcile the
address of the consumer with the consumer reporting agency by
furnishing such address to such consumer reporting agency as
part of information regularly furnished by the user for the
period in which the relationship is established.''.

SEC. 317. FTC STUDY OF ISSUES RELATING TO THE FAIR CREDIT
REPORTING ACT.

(a) Study Required.--
(1) In general.--The Federal Trade Commission shall conduct
a study on ways to improve the operation of the Fair Credit
Reporting Act.
(2) Areas for study.--In conducting the study under
paragraph (1), the Federal Trade Commission shall review--
(A) the efficacy of increasing the number of points of
identifying information that a credit reporting agency is
required to match to ensure that a consumer is the correct
individual to whom a consumer report relates before releasing
a consumer report to a user, including--
(i) the extent to which requiring additional points of such
identifying information to match would--

(I) enhance the accuracy of credit reports; and
(II) combat the provision of incorrect consumer reports to
users;

(ii) the extent to which requiring an exact match of the
first and last name, social security number, and address and
ZIP Code of the consumer would enhance the likelihood of
increasing credit report accuracy; and
(iii) the effects of allowing consumer reporting agencies
to use partial matches of social security numbers and name
recognition software on the accuracy of credit reports;
(B) requiring notification to consumers when negative
information has been added to their credit reports,
including--
(i) the potential impact of such notification on the
ability of consumers to identify errors on their credit
reports; and
(ii) the potential impact of such notification on the
ability of consumers to remove fraudulent information from
their credit reports;
(C) the effects of requiring that a consumer who has
experienced an adverse action based on a credit report
receives a copy of the same credit report that the creditor
relied on in taking the adverse action, including--
(i) the extent to which providing such reports to consumers
would increase the ability of consumers to identify errors in
their credit reports; and
(ii) the extent to which providing such reports to
consumers would increase the ability of consumers to remove
fraudulent information from their credit reports;
(D) any common financial transactions that are not
generally reported to the consumer reporting agencies, but
would provide useful information in determining the credit
worthiness of consumers; and
(E) any actions that might be taken within a voluntary
reporting system to encourage the reporting of the types of
transactions described in subparagraph (D).
(3) Costs and benefits.--With respect to each area of study
described in paragraph (2), the Federal Trade Commission
shall consider the extent to which such requirements would
benefit consumers, balanced against the cost of implementing
such provisions.
(b) Report Required.--Not later than 270 days after the
date of enactment of this Act, the chairman of the Federal
Trade Commission shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives containing a detailed summary of the findings
and conclusions of the study under this section, together
with such recommendations for legislative or administrative
actions as may be appropriate.

TITLE IV--LIMITING THE USE AND SHARING OF MEDICAL INFORMATION IN THE
FINANCIAL SYSTEM

SEC. 411. PROTECTION OF MEDICAL INFORMATION IN THE FINANCIAL
SYSTEM.

(a) In General.--Section 604(g) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(g)) is amended to read as
follows:
``(g) Protection of Medical Information.--
``(1) Limitation on consumer reporting agencies.--A
consumer reporting agency shall not furnish for employment
purposes, or in connection with a credit or insurance
transaction, a consumer report that contains medical
information about a consumer, unless--
``(A) if furnished in connection with an insurance
transaction, the consumer affirmatively consents to the
furnishing of the report;
``(B) if furnished for employment purposes or in connection
with a credit transaction--
``(i) the information to be furnished is relevant to
process or effect the employment or credit transaction; and
``(ii) the consumer provides specific written consent for
the furnishing of the report that describes in clear and
conspicuous language the use for which the information will
be furnished; or
``(C) such information is restricted or reported using
codes that do not identify, or provide information sufficient
to infer, the specific provider or the nature of such
services, products, or devices to a person other than the
consumer, unless the report is being provided to an insurance
company for a purpose relating to engaging in the business of
insurance, other than property and casualty insurance.
``(2) Limitation on creditors.--Except as permitted
pursuant to paragraph (3)(C) or regulations prescribed under
paragraph (5)(A), a creditor shall not obtain or use medical
information pertaining to a consumer in connection with any
determination of the consumer's eligibility, or continued
eligibility, for credit.
``(3) Actions authorized by federal law, insurance
activities and regulatory determinations.--Section 603(d)(3)
shall not be construed so as to treat information or any
communication of information as a consumer report if the
information or communication is disclosed--
``(A) in connection with the business of insurance or
annuities, including the activities described in section 18B
of the model Privacy of Consumer Financial and Health
Information Regulation issued by the National Association of
Insurance Commissioners (as in effect on January 1, 2003);
``(B) for any purpose permitted without authorization under
the Standards for Individually Identifiable Health
Information promulgated by the Department of Health and Human
Services pursuant to the Health Insurance Portability and
Accountability Act of 1996, or referred to under section 1179
of such Act, or described in section 502(e) of Public Law
106-102; or
``(C) as otherwise determined to be necessary and
appropriate, by regulation or order and subject to paragraph
(6), by the Federal Trade Commission, any Federal banking
agency or the National Credit Union Administration (with
respect to any financial institution subject to the
jurisdiction of such agency or Administration under paragraph
(1), (2), or (3) of section 621(b), or the applicable State
insurance authority (with respect to any person engaged in
providing insurance or annuities).
``(4) Limitation on redisclosure of medical information.--
Any person that receives medical information pursuant to
paragraph (1) or (3) shall not disclose such information to
any other person, except as necessary to carry out the
purpose for which the information was initially disclosed, or
as otherwise permitted by statute, regulation, or order.
``(5) Regulations and effective date for paragraph (2).--
``(A) Regulations required.--Each Federal banking agency
and the National Credit Union Administration shall, subject
to paragraph (6) and after notice and opportunity for
comment, prescribe regulations that permit transactions under
paragraph (2) that are determined to be necessary and
appropriate to protect legitimate operational, transactional,
risk, consumer, and other needs, consistent with the intent
of paragraph (2) to restrict the use of medical information
for inappropriate purposes.
``(B) Final regulations required.--The Federal banking
agencies and the National Credit Union Administration shall
issue the

[[Page S13921]]

regulations required under subparagraph (A) in final form
before the end of the 6-month period beginning on the date of
enactment of the National Consumer Credit Reporting System
Improvement Act of 2003.
``(6) Coordination with other laws.--No provision of this
subsection shall be construed as altering, affecting, or
superseding the applicability of any other provision of
Federal law relating to medical confidentiality.''.
(b) Restriction on Sharing of Medical Information.--Section
603(d) of the Fair Credit Reporting Act (15 U.S.C. 1681a(d))
is amended--
(1) in paragraph (2), by striking ``The term'' and
inserting ``Except as provided in paragraph (3), the term'';
and
(2) by adding at the end the following new paragraph:
``(3) Restriction on sharing of medical information.--
Except for information or any communication of information
disclosed as provided in section 604(g)(3), the exclusions in
paragraph (2) shall not apply with respect to information
disclosed to any person related by common ownership or
affiliated by corporate control, if--
``(A) the information is medical information; or
``(B) the information is an individualized list or
description based on a consumer's payment transactions for
medical products or services, or an aggregate list of
identified consumers based on payment transactions for
medical products or services.''.
(c) Effective Dates.--This section shall take effect at the
end of the 180-day period beginning on the date of enactment
of this Act, except that paragraph (2) of section 604(g) of
the Fair Credit Reporting Act (as amended by subsection (a))
shall take effect on the later of--
(1) the end of the 90-day period beginning on the date on
which the regulations required under paragraph (5)(B) of such
section 604(g) (as added by subsection (a) of this section)
are issued in final form; or
(2) the date specified in the regulations referred to in
paragraph (1).

SEC. 412. CONFIDENTIALITY OF MEDICAL CONTACT INFORMATION IN
CONSUMER REPORTS.

(a) Duties of Medical Information Furnishers.--Section
623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s-
2(a)) is amended by adding at the end the following:
``(6) Duty to provide notice of status as medical
information furnisher.--A person whose primary business is
providing medical services, products, or devices, or the
person's agent or assignee, who furnishes information to a
consumer reporting agency on a consumer shall be considered a
medical information furnisher for purposes of this title, and
shall notify the agency of such status.''.
(b) Restriction of Dissemination of Medical Contact
Information.--Section 605(a) of the Fair Credit Reporting Act
(15 U.S.C. 1681c(a)) is amended by adding at the end the
following:
``(6) The name, address, and telephone number of any
medical information furnisher that has notified the agency of
its status, unless--
``(A) such name, address, and telephone number are
restricted or reported using codes that do not identify, or
provide information sufficient to infer, the specific
provider or the nature of such services, products, or devices
to a person other than the consumer; or
``(B) the report is being provided to an insurance company
for a purpose relating to engaging in the business of
insurance other than property and casualty insurance.''.
(c) No Exceptions Allowed for Dollar Amounts.--Section
605(b) of the Fair Credit Reporting Act (15 U.S.C. 1681c(b))
is amended by striking ``The provisions of subsection (a)''
and inserting ``The provisions of paragraphs (1) through (5)
of subsection (a)''.
(d) Coordination With Other Laws.--No provision of any
amendment made by this section shall be construed as
altering, affecting, or superseding the applicability of any
other provision of Federal law relating to medical
confidentiality.
(e) FTC Regulation of Coding of Trade Names.--Section 621
of the Fair Credit Reporting Act (15 U.S.C. 1681s), as
amended by this Act, is amended by adding at the end the
following:
``(g) FTC Regulation of Coding of Trade Names.--If the
Federal Trade Commission determines that a person described
in paragraph (6) of section 623(a) has not met the
requirements of such paragraph, the Commission shall take
action to ensure the person's compliance with such paragraph,
which may include issuing model guidance or prescribing
reasonable policies and procedures as necessary to ensure
that such person complies with such paragraph.''.
(f) Technical and Conforming Amendments.--Section 604(g) of
the Fair Credit Reporting Act (15 U.S.C. 1681b(g)), as
amended by section 411 of this Act, is amended--
(1) in paragraph (1), by inserting ``(other than medical
contact information treated in the manner required under
section 605(a)(6))'' after ``a consumer report that contains
medical information''; and
(2) in paragraph (2), by inserting ``(other than medical
information treated in the manner required under section
605(a)(6))'' after ``a creditor shall not obtain or use
medical information''.
(g) Effective Date.--The amendments made by this section
shall take effect at the end of the 15-month period beginning
on the date of enactment of this Act.

TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT

SEC. 511. SHORT TITLE.

This title may be cited as the ``Financial Literacy and
Education Improvement Act''.

SEC. 512. DEFINITIONS.

As used in this title--
(1) the term ``Chairperson'' means the Chairperson of the
Financial Literacy and Education Commission; and
(2) the term ``Commission'' means the Financial Literacy
and Education Commission established under section 513.

SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION
COMMISSION.

(a) In General.--There is established a commission to be
known as the ``Financial Literacy and Education Commission''.
(b) Purpose.--The Commission shall serve to improve the
financial literacy and education of persons in the United
States.
(c) Membership.--
(1) Composition.--The Commission shall be composed of--
(A) the Secretary of the Treasury;
(B) the respective head of each of the Federal banking
agencies (as defined in section 3 of the Federal Deposit
Insurance Act), the National Credit Union Administration, the
Securities and Exchange Commission, each of the Departments
of Education, Agriculture, Defense, Health and Human
Services, Housing and Urban Development, Labor, and Veterans
Affairs, the Federal Trade Commission, the General Services
Administration, the Small Business Administration, the Social
Security Administration, the Commodity Futures Trading
Commission, and the Office of Personnel Management; and
(C) at the discretion of the President, not more than 5
individuals appointed by the President from among the
administrative heads of any other Federal agencies,
departments, or other Government entities, whom the President
determines to be engaged in a serious effort to improve
financial literacy and education.
(2) Alternates.--Each member of the Commission may
designate an alternate if the member is unable to attend a
meeting of the Commission. Such alternate shall be an
individual who exercises significant decisionmaking
authority.
(d) Chairperson.--The Secretary of the Treasury shall serve
as the Chairperson.
(e) Meetings.--The Commission shall hold, at the call of
the Chairperson, at least 1 meeting every 4 months. All such
meetings shall be open to the public. The Commission may
hold, at the call of the Chairperson, such other meetings as
the Chairperson sees fit to carry out this title.
(f) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) Initial Meeting.--The Commission shall hold its first
meeting not later than 60 days after the date of enactment of
this Act.

SEC. 514. DUTIES OF THE COMMISSION.

(a) Duties.--
(1) In general.--The Commission, through the authority of
the members referred to in section 513(c), shall take such
actions as it deems necessary to streamline, improve, or
augment the financial literacy and education programs,
grants, and materials of the Federal Government, including
curricula for all Americans.
(2) Areas of emphasis.--To improve financial literacy and
education, the Commission shall emphasize, among other
elements, basic personal income and household money
management and planning skills, including how to--
(A) create household budgets, initiate savings plans, and
make strategic investment decisions for education,
retirement, home ownership, wealth building, or other savings
goals;
(B) manage spending, credit, and debt, including credit
card debt, effectively;
(C) increase awareness of the availability and significance
of credit reports and credit scores in obtaining credit, the
importance of their accuracy (and how to correct
inaccuracies), their effect on credit terms, and the effect
common financial decisions may have on credit scores;
(D) ascertain fair and favorable credit terms;
(E) avoid abusive, predatory, or deceptive credit offers
and financial products;
(F) understand, evaluate, and compare financial products,
services, and opportunities;
(G) understand resources that ought to be easily accessible
and affordable, and that inform and educate investors as to
their rights and avenues of recourse when an investor
believes his or her rights have been violated by
unprofessional conduct of market intermediaries; and
(H) improve financial literacy and education through all
other related skills.
(b) Website.--
(1) In general.--The Commission shall establish and
maintain a website, such as the domain name
``FinancialLiteracy.gov'', or a similar domain name.
(2) Purposes.--The website established under paragraph (1)
shall--
(A) serve as a clearinghouse of information about Federal
financial literacy and education programs;
(B) provide a coordinated entry point for accessing
information about all Federal publications, grants, and
materials promoting enhanced financial literacy and
education;

[[Page S13922]]

(C) offer information on all Federal grants to promote
financial literacy and education, and on how to target, apply
for, and receive a grant that is most appropriate under the
circumstances;
(D) as the Commission considers appropriate, feature
website links to efforts that have no commercial content and
that feature information about financial literacy and
education programs, materials, or campaigns; and
(E) offer such other information as the Commission finds
appropriate to share with the public in the fulfillment of
its purpose.
(c) Toll-Free Hotline.--The Commission shall establish a
toll-free telephone number that shall be made available to
members of the public seeking information about issues
pertaining to financial literacy and education.
(d) Development and Dissemination of Materials.--The
Commission shall--
(1) develop materials to promote financial literacy and
education; and
(2) disseminate such materials to the general public.
(e) Coordination of Efforts.--The Commission shall take
such steps as are necessary to coordinate and promote
financial literacy and education efforts at the State and
local level, including promoting partnerships among Federal,
State, and local governments, nonprofit organizations, and
private enterprises.
(f) National Strategy.--
(1) In general.--The Commission shall--
(A) not later than 18 months after the date of enactment of
this Act, develop a national strategy to promote basic
financial literacy and education among all American
consumers; and
(B) coordinate Federal efforts to implement the strategy
developed under subparagraph (A).
(2) Strategy.--The strategy to promote basic financial
literacy and education required to be developed under
paragraph (1) shall provide for--
(A) participation by State and local governments and
private, nonprofit, and public institutions in the creation
and implementation of such strategy;
(B) the development of methods--
(i) to increase the general financial education level of
current and future consumers of financial services and
products; and
(ii) to enhance the general understanding of financial
services and products;
(C) review of Federal activities designed to promote
financial literacy and education, and development of a plan
to improve coordination of such activities; and
(D) the identification of areas of overlap and duplication
among Federal financial literacy and education activities and
proposed means of eliminating any such overlap and
duplication.
(3) National strategy review.--The Commission shall, not
less than annually, review the national strategy developed
under this subsection and make such changes and
recommendations as it deems necessary
(g) Consultation.--The Commission shall actively consult
with a variety of representatives from private and nonprofit
organizations and State and local agencies, as determined
appropriate by the Commission.
(h) Reports.--
(1) In general.--Not later than 18 months after the date of
the first meeting of the Commission, and annually thereafter,
the Commission shall issue a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives on the progress of the Commission in carrying
out this title.
(2) Contents.--The report required under paragraph (1)
shall include--
(A) information concerning the implementation of the duties
of the Commission under subsections (a) through (g);
(B) an assessment of the success of the Commission in
implementing the national strategy developed under subsection
(f);
(C) an assessment of the availability, utilization, and
impact of Federal financial literacy and education materials;
(D) information concerning the content and public use of--
(i) the website established under subsection (b); and
(ii) the toll-free telephone number established under
subsection (c);
(E) a brief survey of the financial literacy and education
materials developed under subsection (d), and data regarding
the dissemination and impact of such materials, as measured
by improved financial decision making;
(F) a brief summary of any hearings conducted by the
Commission, including a list of witnesses who testified at
such hearings;
(G) information about the activities of the Commission
planned for the next fiscal year;
(H) a summary of all Federal financial literacy and
education activities targeted to communities that have
historically lacked access to financial literacy materials
and education, and have been underserved by the mainstream
financial systems; and
(I) such other materials relating to the duties of the
Commission as the Commission deems appropriate.
(3) Initial report.--The initial report under paragraph (1)
shall include information regarding all Federal programs,
materials, and grants which seek to improve financial
literacy, and assess the effectiveness of such programs.
(i) Testimony.--The Commission shall provide, upon request,
testimony by the Chairperson to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.

SEC. 515. POWERS OF THE COMMISSION.

(a) Hearings.--The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable
to carry out this title.
(b) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry
out this title. Upon request of the Chairperson, the head of
such department or agency shall furnish such information to
the Commission.
(c) Periodic Studies.--The Commission may conduct periodic
studies regarding the state of financial literacy and
education in the United States, as the Commission determines
appropriate.

SEC. 516. COMMISSION PERSONNEL MATTERS.

(a) Compensation of Members.--Each member of the Commission
shall serve without compensation in addition to that received
for their service as an officer or employee of the United
States.
(b) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Commission.
(c) Assistance.--
(1) In general.--The Director of the Office of Financial
Education of the Department of the Treasury shall provide
assistance to the Commission, upon request of the Commission,
without reimbursement.
(2) Detail of government employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.

SEC. 517. STUDY BY THE COMPTROLLER GENERAL.

Not later than 3 years after the date of enactment of this
Act, the Comptroller General of the United States shall
submit a report to Congress assessing the effectiveness of
the Commission in promoting financial literacy and education.

SEC. 518. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Commission
such sums as may be necessary to carry out this title,
including administrative expenses of the Commission.

TITLE VI--RELATION TO STATE LAW

SEC. 611. RELATION TO STATE LAW.

Section 625(d) of the Fair Credit Reporting Act (15 U.S.C.
1681t(d), regarding relation to State laws), as so designated
by section 214 of this Act, is amended--
(1) by striking paragraph (2);
(2) by striking ``(c)--'' and all that follows through ``do
not affect'' and inserting ``(c) do not affect''; and
(3) by striking ``1996; and'' and inserting ``1996.''.

TITLE VII--MISCELLANEOUS

SEC. 711. CLERICAL AMENDMENTS.

(a) Short Title.--Section 601 of the Fair Credit Reporting
Act (15 U.S.C. 1601 note) is amended by striking ``the Fair
Credit Reporting Act.'' and inserting ``the `Fair Credit
Reporting Act'.''.
(b) Section 604.--Section 604(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(a)) is amended in paragraphs
(1) through (5), other than subparagraphs (E) and (F) of
paragraph (3), by moving each margin 2 ems to the right.
(c) Section 605.--
(1) Section 605(a)(1) of the Fair Credit Reporting Act (15
U.S.C. 1681c(a)(1)) is amended by striking ``(1) cases'' and
inserting ``(1) Cases''.
(2)(A) Section 5(1) of Public Law 105-347 (112 Stat. 3211)
is amended by striking ``Judgments which'' and inserting
``judgments which''.
(B) The amendment made by subparagraph (A) shall be deemed
to have the same effective date as section 5(1) of Public Law
105-347 (112 Stat. 3211).
(d) Section 609.--Section 609(a) of the Fair Credit
Reporting Act (15 U.S.C. 1681g(a)) is amended--
(1) in paragraph (2), by moving the margin 2 ems to the
right; and
(2) in paragraph (3)(C), by moving the margins 2 ems to the
left.
(e) Section 617.--Section 617(a)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681o(a)(1)) is amended by adding
``and'' at the end.
(f) Section 621.--Section 621(b)(1)(B) of the Fair Credit
Reporting Act (15 U.S.C. 1681s(b)(1)(B)) is amended by
striking ``25(a)'' and inserting ``25A''.
(g) Title 31.--Section 5318 of title 31, United States
Code, is amended by redesignating the second item designated
as subsection (l) (relating to applicability of rules) as
subsection (m).
(h) Conforming Amendment.--Section 2411(c) of Public Law
104-208 (110 Stat. 3009-445) is repealed.
______

SA 2054. Mrs. FEINSTEIN (for herself, Mrs. Boxer, Mr. Harkin, Mr.
Feingold, Mr. Durbin, Mr. Lautenberg, and Mr. Nelson of Florida)
proposed an amendment to the bill S. 1753, to

[[Page S13923]]

amend the Fair Credit Reporting Act in order to prevent identity theft,
to improve the use of and consumer access to consumer reports, to
enhance the accuracy of consumer reports, to limit the sharing of
certain consumer information, to improve financial education and
literacy, and for other purposes; as follows:

Strike section 214 and insert the following:

SEC. 214. AFFILIATE SHARING.

(a) Limitation.--The Fair Credit Reporting Act (15 U.S.C.
1601 et seq.) is amended--
(1) by redesignating section 624, as so designated by
section 2413(b) of the Consumer Credit Reporting Reform Act
of 1996 (110 Stat. 3009-447), regarding relation to State
laws, as section 625;
(2) by redesignating section 624, as added by section
601(a) of the Intelligence Authorization Act for Fiscal Year
1996 (Public Law 104-93; 109 Stat. 974) (15 U.S.C. 1681u)),
regarding disclosures to FBI for counterintelligence
purposes, as section 626; and
(3) by inserting after section 623 the following:

``SEC. 624. AFFILIATE SHARING.

``(a) Opt-Out for Affiliate Sharing.--Any persons that are
related by common ownership or affiliated by corporate
control, and that share information that would be a consumer
report except for clause (i) or (ii) of section 603(d)(2),
shall provide to each consumer to which the information
relates, a notice that--
``(1) clearly and conspicuously discloses to the consumer
that the information may be shared among such persons for
marketing or other purposes; and
``(2) provides an opportunity and a simple method for the
consumer to prohibit the sharing of such information.
``(b) Exceptions.--Nothing in this section shall restrict
or prohibit the sharing of the information described in
subsection (a) between persons related by common ownership or
affiliated by corporate control--
``(1) if--
``(A) the persons are regulated by the same functional
regulator;
``(B) the affiliate disclosing such information and the
affiliate receiving such information are both principally
engaged in the same line of business;
``(C) the affiliate disclosing such information and the
affiliate receiving such information share a common brand,
excluding a brand consisting solely of a graphic element or
symbol, within their trade mark, service mark, or trade name,
which is used to identify the source of the products and
services provided; and
``(D) the affiliate disclosing such information and the
affiliate receiving such information are wholly owned
subsidiaries, whether wholly owned directly or wholly owned
indirectly in a chain of wholly owned subsidiaries, of the
same person or holding company;
``(2) as necessary to effect, administer, or enforce a
transaction requested or authorized by the consumer, or in
connection with--
``(A) servicing or processing a financial product or
service requested or authorized by the consumer;
``(B) maintaining or servicing the consumer's account with
any such affiliate as part of a private label credit card
program or other extension of credit on behalf of such
entity; or
``(C) a proposed or actual securitization, secondary market
sale (including sales of servicing rights), or similar
transaction related to a transaction of the consumer;
``(3) with the consent or at the direction of the consumer;
``(4) to protect the confidentiality or security of an
affiliate's records pertaining to the consumer, the service
or product, or the transaction therein;
``(5) to protect against or prevent actual or potential
fraud, identity theft, unauthorized transactions, claims, or
other liability;
``(6) for required institutional risk control, or for
resolving customer disputes or inquiries;
``(7) to persons holding a legal or beneficial interest
relating to the consumer, including for purposes of debt
collection;
``(8) to persons acting in a fiduciary or representative
capacity on behalf of the consumer;
``(9) to provide information to insurance rate advisory
organizations, guaranty funds or agencies, applicable rating
agencies, persons assessing an affiliate's compliance with
industry standards, and an affiliate's attorneys,
accountants, and auditors;
``(10) to the extent specifically permitted or required
under other provisions of law and in accordance with the
Right to Financial Privacy Act of 1978, to law enforcement
agencies (including a Federal functional regulator, the
Secretary of the Treasury with respect to subchapter II of
chapter 53 of title 31, United States Code, and chapter 2 of
title I of Public Law 91-508 (12 U.S.C. 1951-1959), a State
insurance authority, the Federal Trade Commission), a self-
regulatory organization, as defined in section 3 of the
Securities Exchange Act of 1934, or for an investigation on a
matter related to public safety;
``(11) in connection with a proposed or actual sale,
merger, transfer, or exchange of all or a portion of a
business or operating unit if the disclosure of the
information concerns solely consumers of such business or
unit;
``(12) to comply with Federal, State, or local laws, rules,
and other applicable legal requirements; to comply with a
properly authorized civil, criminal, or regulatory
investigation or subpoena or summons by Federal, State, or
local authorities, or to respond to judicial process or
government regulatory authorities having jurisdiction over
the affiliate for examination, compliance, or other purposes
as authorized by law;
``(13) if such information is released to an affiliate in
order for the affiliate to perform business or professional
services, such as printing, mailing services, data processing
or analysis, or customer surveys, on behalf of another
affiliate, if--
``(A) the services to be performed by the affiliate could
lawfully be performed by the affiliate;
``(B) there is a written contract between the affiliates
that prohibits the affiliate from disclosing or using such
information other than to carry out the purpose for which the
information is disclosed, as set forth in the written
contract;
``(C) the information provided to the affiliate is limited
to that which is necessary for an affiliate to perform the
services contracted for on behalf of the other affiliate; and
``(D) the affiliate providing the information does not
receive any payment from or through the affiliate receiving
the information in connection with, or as a result of, the
release of the information;
``(14) if the information is released to identify or locate
missing and abducted children, witnesses, criminals and
fugitives, parties to lawsuits, parents delinquent in child
support payments, organ and bone marrow donors, pension fund
beneficiaries, and missing heirs, or to report a known or
suspected instance of elder or dependent adult financial
abuse;
``(15) if the information is released to a real estate
appraiser licensed or certified by a State for submission to
central data repositories and the information is compiled
strictly to complete other real estate appraisals and is not
used for any other purpose;
``(16) if the information is released as required by title
III of the Federal United and Strengthening America by
Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (the USA PATRIOT ACT); or
``(17) if the information is released in connection with a
written agreement between a consumer and a broker-dealer
registered under the Securities Exchange Act of 1934, or an
investment adviser registered under the Investment Advisers
Act of 1940, to provide investment management services,
portfolio advisory services, or financial planning, and the
information is released for the sole purpose of providing the
products and services covered by that agreement.
``(c) No Effect on Existing Law.--Nothing in this section
is intended to affect any provision of law in effect on the
date of enactment of the National Consumer Credit Reporting
System Improvement Act of 2003 relating to access by law
enforcement agencies to information held by financial
institutions.
``(d) Limit on Reuse and Redisclosure.--A person that
receives information pursuant to--
``(1) paragraph (1) of subsection (b) shall not directly or
indirectly further disclose such information, except as
permitted under subsection (b); and
``(2) any of paragraphs (2) through (17) of subsection (b)
shall not use or disclose the information, except in the
ordinary course of business to carry out the activity covered
by the exception under which the information was received.
``(e) Notice for Other Purposes Permissible.--A notice or
other disclosure that is equivalent to the notice required by
subsection (a), and that is provided by a person described in
subsection (a) to a consumer, together with disclosures
required by any other provision of law, shall satisfy the
requirements of subsection (a).
``(f) Rule of Construction.--For purposes of this section,
a person does not disclose information to, or share
information, with, its affiliate solely because information
described in subsection (a) is maintained in a common
information system or database, and employees of the person
and its affiliate have access to that common information
system or database, or a consumer accesses a website jointly
operated or maintained under a common name by or on behalf of
the person and its affiliate, provided that in any case in
which a consumer has exercised his or her right to prohibit
the sharing of information pursuant to this section, the
information described in subsection (a) is not accessed,
disclosed, or used by an affiliate, except as permitted by
this section.
``(g) Definitions.--
``(1) Functional regulators.--For purposes of subsection
(b)(1)--
``(A) financial institutions regulated by the Office of the
Comptroller of the Currency, Office of Thrift Supervision,
National Credit Union Administration, or a State regulator of
depository institutions shall be deemed to be regulated by
the same functional regulator;
``(B) persons regulated by the Securities and Exchange
Commission, the United States Department of Labor, or a State
securities regulator shall be deemed to be regulated by the
same functional regulator; and
``(C) insurers licensed by a State, or otherwise permitted
by the State, to engage in the business of insurance shall be
deemed to be in compliance with subsection (b)(2).

[[Page S13924]]

``(2) Line of business.--As used in subsection (b)(2), the
term `same line of business' describes a condition where both
affiliates are principally engaged in the business of--
``(A) insurance;
``(B) banking;
``(C) securities; or
``(D) any other distinct line of business identified, by
rule, by the Federal Trade Commission.''.
(b) Rulemaking Required.--
(1) In general.--The Federal banking agencies (as defined
in section 3 of the Federal Deposit Insurance Act), the
National Credit Union Administration, and the Federal Trade
Commission shall jointly promulgate regulations to implement
section 624 of the Fair Credit Reporting Act, as amended by
this section.
(2) Considerations.--In promulgating regulations under this
subsection, the agencies referred to in paragraph (1) shall--
(A) ensure that affiliate sharing notification methods
provide a simple means for consumers to make determinations
and choices under section 624 of the Fair Credit Reporting
Act as amended by this section; and
(B) consider the affiliate sharing notification practices
employed on the date of enactment of this Act by persons that
will be subject to that section 624.
(3) Timing.--Regulations required by this subsection
shall--
(A) be issued in final form not later than 6 months after
the date of enactment of this Act; and
(B) become effective not later than 3 months after the date
on which they are issued in final form.
(c) Conforming Amendment.--Section 603(d)(2)(A) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)) is amended by
inserting ``subject to section 624,'' after ``(A)''.
(d) Clerical Amendment.--The Consumer Credit Protection Act
(15 U.S.C. 1601 et seq.) is amended in the table of sections
for title VI, by striking the items following the item
relating to section 623 and inserting the following:

``624. Affiliate sharing.
``625. Relation to State laws.
``626. Disclosures to FBI for counterintelligence purposes.''.
(e) Studies of Information Sharing Practices.--
(1) In general.--The Federal banking agencies, the National
Credit Union Administration, and the Federal Trade Commission
shall jointly conduct regular studies of the consumer
information sharing practices by financial institutions and
other persons that are creditors or users of consumer reports
with their affiliates.
(2) Matters for study.--In conducting the studies required
by paragraph (1), the agencies described in paragraph (1)
shall--
(A) identify--
(i) the purposes for which financial institutions and other
creditors and users of consumer reports share consumer
information;
(ii) the types of information shared by such entities with
their affiliates;
(iii) the number of choices provided to consumers with
respect to the control of such sharing, and the degree to and
manner in which consumers exercise such choices, if at all;
and
(iv) whether such entities share or may share personally
identifiable transaction or experience information with
affiliates for purposes--

(I) that are related to employment or hiring, including
whether the person that is the subject of such information is
given notice of such sharing, and the specific uses of such
shared information; or
(II) of general publication of such information; and

(B) specifically examine the information sharing practices
that financial institutions and other creditors and users of
consumer reports and their affiliates employ for the purpose
of making underwriting decisions or credit evaluations of
consumers.
(3) Reports.--
(A) Initial report.--Not later than 3 years after the date
of enactment of this Act, the Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall jointly submit a report to the Congress on
the results of the initial study conducted in accordance with
this subsection, together with any recommendations for
legislative or regulatory action.
(B) Followup reports.--The Federal banking agencies, the
National Credit Union Administration, and the Federal Trade
Commission shall, not less frequently than once every 3 years
following the date of submission of the initial report under
subparagraph (A), jointly submit a report to the Congress
that, together with any recommendations for legislative or
regulatory action--
(i) documents any changes in the areas of study referred to
in paragraph (2)(A) occurring since the date of submission of
the previous report;
(ii) identifies any changes in the practices of financial
institutions and other creditors and users of consumer
reports in sharing consumer information with their affiliates
for the purpose of making underwriting decisions or credit
evaluations of consumers occurring since the date of
submission of the previous report; and
(iii) examines the effects that changes described in clause
(ii) have had, if any, on the degree to which such affiliate
sharing practices reduce the need for financial institutions,
creditors, and other users of consumer reports to rely on
credit reports for such decisions.
(f) Definitions.--As used in this section--
(1) the terms ``consumer'', ``consumer report'', ``consumer
reporting agency'', ``creditor'', ``Federal banking
agencies'', and ``financial institution'', have the same
meanings as in section 603 of the Fair Credit Reporting Act,
as amended by this Act; and
(2) the term ``affiliates'' means persons that are related
by common ownership or affiliated by corporate control.
______

SA 2055. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill S. 1585, making appropriations for the Departments of
Commerce, Justice, and State, the Judiciary, and related agencies for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 63, strike line 20, and all that follows
through page 64, line 11, and insert the following:
In addition, for the costs of worldwide security upgrades,
$644,373,000, to remain available until expended.

capital investment fund

For necessary expenses of the Capital Investment Fund,
$157,000,000, to remain available until expended, as
authorized: Provided, That section 135(e) of Foreign
Relations Authorization Act, Fiscal Years 1994 and 1995 shall
not apply to funds available under this heading.
______

SA 2056. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill S. 1585, making appropriations for the Departments of
Commerce, Justice, and State, the Judiciary, and related agencies for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

On page 75, strike lines 1 through 22.
______

SA 2057. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill S. 1585, making appropriations for the Departments of
Commerce, Justice, and State, the Judiciary, and related agencies for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 98, strike line 23 and all that follows
through page 99, line 18.

On page 77, between lines 20 and 21, insert the following
new section:

(transfer of funds)

Sec. 413. The funds appropriated in title II under the
heading ``international fisheries commissions'' are hereby
transferred to the Secretary of State for the purposes
described, and may be advanced as provided, under such
heading.
______

SA 2058. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill S. 1585, making appropriations for the Departments of
Commerce, Justice, and State, the Judiciary, and related agencies for
the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

On page 77, between lines 20 and 21, insert the following
new section:
Sec. 413. It is the sense of Congress that the total amount
requested by the President for the Congress-Bundestag youth
exchange program, $2,994,000, should be made available for
the program in fiscal year 2004.
______

SA 2059. Ms. CANTWELL (for herself, Mr. Enzi, and Mr. Leahy)
submitted an amendment intended to be proposed by her to the bill S.
1753, to amend the Fair Credit Reporting Act in order to prevent
identity theft, to improve the use of and consumer access to consumer
reports, to enhance the accuracy of consumer reports, to limit the
sharing of certain consumer information, to improve financial education
and literacy, and for other purposes; as follows:

On page 22, line 6, strike the quotation marks and the
final period and insert the following:
``(e) Information Available to Victims.--
``(1) In general.--For the purpose of documenting
fraudulent transactions resulting from identity theft, not
later than 20 days after the date of receipt of a request
from a victim in accordance with paragraph (3), and subject
to verification of the identity of the victim and the claim
of identity theft in accordance with paragraph (2), a
business entity that has provided credit to, provided for
consideration products, goods, or services to, accepted
payment from, or otherwise entered into a commercial
transaction for consideration with, a person who has
allegedly made unauthorized use of the means of
identification of the victim, shall provide a copy of
application and business transaction records in the control
of the business entity, whether maintained by the business
entity or by another person on behalf of the business entity,
evidencing any transaction alleged to be a result of identity
theft to--

[[Page S13925]]

``(A) the victim;
``(B) any Federal, State, or local governing law
enforcement agency or officer specified by the victim in such
a request; or
``(C) any law enforcement agency investigating the identity
theft and authorized by the victim to take receipt of records
provided under this subsection.
``(2) Verification of identity and claim.--Before a
business entity provides any information under paragraph (1),
unless the business entity, at its discretion, is otherwise
able to verify the identity of the victim making a request
under paragraph (1), the victim shall provide to the business
entity--
``(A) as proof of positive identification of the victim, at
the election of the business entity--
``(i) the presentation of a government-issued
identification card;
``(ii) personally identifying information of the same type
as was provided to the business entity by the unauthorized
person; or
``(iii) personally identifying information that the
business entity typically requests from new applicants or for
new transactions, at the time of the victim's request for
information, including any documentation described in clauses
(i) and (ii); and
``(B) as proof of a claim of identity theft, at the
election of the business entity--
``(i) a copy of a police report evidencing the claim of the
victim of identity theft; and
``(ii) a properly completed--

``(I) copy of a standardized affidavit of identity theft
developed and made available by the Federal Trade Commission;
or
``(II) an affidavit of fact that is acceptable to the
business entity for that purpose.

``(3) Procedures.--The request of a victim under paragraph
(1) shall--
``(A) be in writing; and
``(B) be mailed to an address specified by the business
entity, if any.
``(4) No charge to victim.--Information required to be
provided under paragraph (1) shall be so provided without
charge.
``(5) Authority to decline to provide information.--A
business entity may decline to provide information under
paragraph (1) if, in the exercise of good faith, the business
entity determines that--
``(A) this subsection does not require disclosure of the
information;
``(B) the request for the information is based on a
misrepresentation of fact by the individual requesting the
information relevant to the request for information; or
``(C) the information requested is Internet navigational
data or similar information about a person's visit to a
website or online service.
``(6) Limitation on liability.--Except as provided in
section 621, sections 616 and 617 do not apply to any
violation of this subsection.
``(7) No new recordkeeping obligation.--Nothing in this
subsection creates an obligation on the part of a business
entity to obtain, retain, or maintain information or records
that are not otherwise required to be obtained, retained, or
maintained in the ordinary course of its business or under
other applicable law.
``(8) Rule of construction.--
``(A) In general.--No provision of Federal or State law
(except a law involving the nondisclosure of information
related to a pending Federal criminal investigation)
prohibiting the disclosure of financial information by a
business entity to third parties shall be used to deny
disclosure of information to the victim under this
subsection.
``(B) Limitation.--Except as provided in subparagraph (A),
nothing in this subsection permits a business entity to
disclose information, including information to law
enforcement under subparagraphs (B) and (C) of paragraph (1),
that the business entity is otherwise prohibited from
disclosing under any other applicable provision of Federal or
State law.
``(9) Affirmative defense.--In any civil action brought to
enforce this subsection, it is an affirmative defense (which
the defendant must establish by a preponderance of the
evidence) for a business entity to file an affidavit or
answer stating that--
``(A) the business entity has made a reasonably diligent
search of its available business records; and
``(B) the records requested under this subsection do not
exist or are not available.
``(10) Definition of victim.--For purposes of this
subsection, the term `victim' means a consumer whose means of
identification or financial information has been used or
transferred (or has been alleged to have been used or
transferred) without the authority of that consumer, with the
intent to commit, or to aid or abet, identity theft or any
other violation of law.''.
On page 33, line 6, strike ``7'' and insert ``5''.
On page 41, line 19, strike ``(e)'' and insert ``(f)''.
On page 47, line 1, strike ``(e)'' and insert ``(f)''.
______

SA 2060. Mrs. BOXER (for herself and Mrs. Feinstein) proposed an
amendment to the bill S. 1753, to amend the Fair Credit Reporting Act
in order to prevent identity theft, to improve the use of and consumer
access to consumer reports, to enhance the accuracy of consumer
reports, to limit the sharing of certain consumer information, to
improve financial education and literacy, and for other purposes; as
follows:

On page 50, strike line 12 and all that follows through
page 51, line 3 and insert the following:
``(3) Duration.--The election of a consumer pursuant to
paragraph (1)(B) to prohibit the sending of solicitations
shall be effective permanently, beginning on the date on
which the person receives the election of the consumer,
unless the consumer requests that such election be revoked.
``(4) Definition.--For purposes of this section, the term
`pre-existing business relationship' means a relationship
between a person and a consumer, based on--
``(A) the purchase, rental, or lease by the consumer of
that person's goods or services, or a financial transaction
between the consumer and that person during the 18-month
period immediately preceding the date on which the consumer
receives the notice required under this section; or
``(B) an inquiry or application by the consumer regarding a
product or service offered by that person, during the 3-month
period immediately preceding the date on which the consumer
receives the notice required under this section.
``(5) Scope.--This section shall not apply to a''.
______

SA 2061. Mrs. FEINSTEIN (for herself, Mrs. Boxer, and Mr. Kennedy)
proposed an amendment to the bill S. 1753, to amend the Fair Credit
Reporting Act in order to prevent identity theft, to improve the use of
and consumer access to consumer reports, to enhance the accuracy of
consumer reports, to limit the sharing of certain consumer information,
to improve financial education and literacy, and for other purposes; as
follows:

On page 81, strike lines 6 through 15 and insert the
following: ``to any person related by common ownership or
affiliated by corporate control, if the information is
medical information, including information that is an
individualized list or description based on the payment
transactions of the consumer for medical products or
services, or an aggregate list of identified consumers based
on payment transactions for medical products or services.''.
(c) Definition.--Section 603(i) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(i)) is amended to read as
follows:
``(i) Medical Information.--The term `medical information'
means information or data, other than age or gender, whether
oral or recorded, in any form or medium, created by or
derived from a health care provider or the consumer, that
relates to--
``(1) the past, present, or future physical, mental, or
behavioral health or condition of an individual;
``(2) the provision of health care to an individual; or
``(3) the payment for the provision of health care to an
individual.''.
______

SA 2062. Mr. DURBIN proposed an amendment to the bill S. 1753, to
amend the Fair Credit Reporting Act in order to prevent identity theft,
to improve the use of and consumer access to consumer reports, to
enhance the accuracy of consumer reports, to limit the sharing of
certain consumer information, to improve financial education and
literacy, and for other purposes; as follows:

At the end of section 312, insert the following:
(c) Reports to Consumer Reporting Agencies.--
(1) Reports.--Section 430A(a) of the Higher Education Act
of 1965 (20 U.S.C. 1080a(a)) is amended to read as follows:
``(a) Agreements to Exchange Information.--
``(1) In general.--For the purpose of promoting responsible
repayment of loans covered by Federal loan insurance pursuant
to this title or covered by a guaranty agreement pursuant to
section 428, the Secretary, each guaranty agency, eligible
lender, and subsequent holder shall enter into an agreement
with each national consumer reporting agency as described in
section 603(p) of the Fair Credit Reporting Act (15 U.S.C.
1681a(p)) to exchange such information as is required by the
Secretary concerning each borrower of a loan made, insured,
or guaranteed under this title who is served by the
Secretary, agency, lender, or holder, respectively,
regardless of the default status of the borrower. Such
information shall be reported to the agencies regularly,
shall be identified as pertaining to such a loan, and shall
include any positive or negative repayment information
relevant to the borrower.
``(2) Objections raised by borrowers.--For the purpose of
assisting the reporting agencies in complying with the Fair
Credit Reporting Act, such agreements may provide for timely
response by the Secretary (concerning loans covered by
Federal loan insurance), by a guaranty agency, eligible
lender, or subsequent holder (concerning loans covered by a
guaranty agreement), or to requests from the reporting
agencies, for responses to objections raised by borrowers.
``(3) Nonpayment.--Subject to the requirements of
subsection (c), such agreements shall require the Secretary,
the guaranty agency, eligible lender, or subsequent holder,
as appropriate, to disclose to the reporting agencies, with
respect to any loan under this

[[Page S13926]]

part that has not been repaid by the borrower--
``(A) the total amount of loans made to any borrower under
this part and the remaining balance of the loans;
``(B) information concerning the date of any default on the
loan and the collection of the loan, including information
concerning the repayment status of any defaulted loan on
which the Secretary has made a payment pursuant to section
430(a) or the guaranty agency has made a payment to the
previous holder of the loan; and
``(C) the date of cancellation of the note upon completion
of repayment by the borrower of the loan or payment by the
Secretary pursuant to section 437.''.
(2) Technical and Conforming Amendments.--The Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended--
(A) in section 427(a)(2)(G)(i) (20 U.S.C.
1077(a)(2)(G)(i)), by striking ``credit bureau
organizations'' and inserting ``reporting agencies'';
(B) in section 428C(b)(4)(E)(i) (20 U.S.C. 1078-
3(b)(4)(E)(i)), by striking ``credit bureau organizations''
and inserting ``reporting agencies''; and
(C) in section 430A (20 U.S.C. 1080a)--
(i) in subsection (b)--

(I) by striking ``such organizations'' and inserting ``the
reporting agencies''; and
(II) by striking ``(a)(2)'' and inserting ``(a)(3)(B)'';

(ii) in subsection (c)(2), by striking ``such
organizations'' and inserting ``the reporting agencies'';
(iii) in subsection (b)(4)--

(I) by striking ``(a)(2)'' and inserting ``(a)(3)(B)''; and
(II) by striking ``credit bureau organizations'' and
inserting ``the reporting agencies'';

(iv) in subsection (d), by striking ``credit bureau
organization'' and inserting ``reporting agency''; and
(v) in subsection (f), by striking ``consumer reporting
agency'' each place the term appears and inserting
``reporting agency''.
______

SA 2063. Mr. LAUTENBERG (for himself, Ms. Mikulski, Mr. Jeffords,
Mrs. Boxer, Mr. Corzine, Mr. Schumer, Mr. Leahy, Mr. Lieberman, Mr.
Kerry, and Mr. Kennedy) submitted an amendment intended to be proposed
by him to the bill H.R. 2861, making appropriations for the Departments
of Veterans Affairs and Housing and Urban Development, and for sundry
independent agencies, boards, commissions, corporations, and offices
for the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

On page 98, line 5, before the period at the end, insert
the following: ``, of which, in addition to any other amounts
provided under this heading for compliance monitoring, civil
enforcement, and capacity building in the Office of
Enforcement and Compliance Assurance, $5,400,000 shall be
made available for those activities''.
______

SA 2064. Mr. CORZINE proposed an amendment to the bill S. 1753, to
amend the Fair Credit Reporting Act in order to prevent identity theft,
to improve the use of and consumer access to consumer reports, to
enhance the accuracy of consumer reports, to limit the sharing of
certain consumer information, to improve financial education and
literacy, and for other purposes; as follows:

On page 16, line 25, strike the period at the end and
insert the following: ``; and
``(C) prescribe regulations requiring each financial
institution and each other person that is a creditor or other
user of a consumer report to notify the Federal Trade
Commission (and any other agency or person that such
rulemaking agency determines appropriate) in any case in
which there has been, or is reasonably believed to have been
unauthorized access to computerized or physical records which
compromises the security, confidentiality, or integrity of
consumer information maintained by or on behalf of that
entity, except that such regulations shall not apply to a
good faith acquisition of information by an employee or agent
of such entity for a business purpose of that entity, if the
information is not subject to further unauthorized access.''.
______

SA 2065. Mr. FEINGOLD proposed an amendment to the bill S. 1753, to
amend the Fair Credit Reporting Act in order to prevent identity theft,
to improve the use of and consumer access to consumer reports, to
enhance the accuracy of consumer reports, to limit the sharing of
certain consumer information, to improve financial education and
literacy, and for other purposes; as follows:

At the appropriate place, insert the following:

SEC. __. DATA-MINING REPORTING ACT OF 2003.

(a) Short Title.--This section may be cited as the ``Data-
Mining Reporting Act of 2003''.
(b) Definitions.--In this section:
(1) Data-mining.--The term ``data-mining'' means a query or
search or other analysis of 1 or more electronic databases,
where--
(A) at least 1 of the databases was obtained from or
remains under the control of a non-Federal entity, or the
information was acquired initially by another department or
agency of the Federal Government for purposes other than
intelligence or law enforcement;
(B) the search does not use a specific individual's
personal identifiers to acquire information concerning that
individual; and
(C) a department or agency of the Federal Government is
conducting the query or search or other analysis to find a
pattern indicating terrorist or other criminal activity.
(2) Database.--The term ``database'' does not include
telephone directories, information publicly available via the
Internet or available by any other means to any member of the
public without payment of a fee, or databases of judicial and
administrative opinions.
(c) Reports on Data-Mining Activities.--
(1) Requirement for report.--The head of each department or
agency of the Federal Government that is engaged in any
activity to use or develop data-mining technology shall each
submit a public report to Congress on all such activities of
the department or agency under the jurisdiction of that
official.
(2) Content of report.--A report submitted under paragraph
(1) shall include, for each activity to use or develop data-
mining technology that is required to be covered by the
report, the following information:
(A) A thorough description of the data-mining technology
and the data that will be used.
(B) A thorough discussion of the plans for the use of such
technology and the target dates for the deployment of the
data-mining technology.
(C) An assessment of the likely efficacy of the data-mining
technology in providing accurate and valuable information
consistent with the stated plans for the use of the
technology.
(D) An assessment of the likely impact of the
implementation of the data-mining technology on privacy and
civil liberties.
(E) A list and analysis of the laws and regulations that
govern the information to be collected, reviewed, gathered,
and analyzed with the data-mining technology and a
description of any modifications of such laws that will be
required to use the information in the manner proposed under
such program.
(F) A thorough discussion of the policies, procedures, and
guidelines that are to be developed and applied in the use of
such technology for data-mining in order to--
(i) protect the privacy and due process rights of
individuals; and
(ii) ensure that only accurate information is collected and
used.
(G) A thorough discussion of the procedures allowing
individuals whose personal information will be used in the
data-mining technology to be informed of the use of their
personal information and what procedures are in place to
allow for individuals to opt out of the technology. If no
such procedures are in place, a thorough explanation as to
why not.
(H) Any necessary classified information in an annex that
shall be available to the Committee on Governmental Affairs,
the Committee on the Judiciary, and the Committee on
Appropriations of the Senate and the Committee on Homeland
Security, the Committee on the Judiciary, and the Committee
on Appropriations of the House of Representatives.
(3) Time for report.--Each report required under paragraph
(1) shall be--
(A) submitted not later than 90 days after the date of the
enactment of this Act; and
(B) updated once a year and include any new data-mining
technologies.
______

SA 2066. Mr. FEINGOLD proposed an amendment to the bill S. 1753, to
amend the Fair Credit Reporting Act in order to prevent identity theft,
to improve the use of and consumer access to consumer reports, to
enhance the accuracy of consumer reports, to limit the sharing of
certain consumer information, to improve financial education and
literacy, and for other purposes; as follows:

At the end of title VII, add the following:

SEC. 712. BUY AMERICAN REPORT.

(a) In General.--Not later than 60 days after the end of
each fiscal year, the head of each Federal agency shall
submit a report to Congress on the amount of the acquisitions
made by the agency from entities that manufacture the
articles, materials, or supplies outside of the United States
in that fiscal year.
(b) Content of Report.--The report required by subsection
(a) shall separately indicate--
(1) the dollar value of any articles, materials, or
supplies purchased that were manufactured outside of the
United States;
(2) an itemized list of all waivers granted with respect to
such articles, materials, or supplies under the Buy American
Act (41 U.S.C. 10a et seq.); and
(3) a summary of the total procurement funds spent on goods
manufactured in the United States versus funds spent on goods
manufactured outside of the United States.
(c) Public Availability.--The head of each Federal agency
submitting a report under subsection (a) shall make the
report publicly available by posting on an Internet website.

[[Page S13927]]

______

SA 2067. Mr. SHELBY (for Mr. Nelson of Florida) proposed an amendment
to the bill S. 1753, to amend the Fair Credit Reporting Act in order to
prevent identity theft, to improve the use of and consumer access to
consumer reports, to enhance the accuracy of consumer reports, to limit
the sharing of certain consumer information, to improve financial
education and literacy, and for other purposes; as follows:

At the end of title II, add the following:

SEC. 216. DISPOSAL OF CONSUMER REPORT INFORMATION AND
RECORDS.

(a) In General.--The Fair Credit Reporting Act (15 U.S.C.
1681m) is amended by adding at the end the following:

``Sec. 627. Disposal of records

``(a) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Federal Trade Commission shall
issue final regulations requiring any person that maintains
or otherwise possesses consumer information or any
compilation of consumer information derived from consumer
reports for a business purpose to properly dispose of any
such information or compilation.
``(2) Exemption authority.--In issuing regulations under
this section, the Federal Trade Commission may exempt any
person or class of persons from application of those
regulations, as the Commission deems appropriate to carry out
the purpose of this section.
``(b) Rule of Construction.--Nothing in this section may be
construed to alter or affect any requirement imposed under
any other provision of law to maintain any record.''.
(b) Clerical Amendment.--The table of sections for the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.), as amended by
this Act, is amended by adding at the end the following:

``627. Disposal of records.''.
______

SA 2068. Mr. CRAPO (for himself and Mr. Smith) submitted an amendment
intended to be proposed by him to the bill H.R. 2673, making
appropriations for Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies for the fiscal year ending
September 30, 2004, and for other purposes; which was ordered to lie on
the table; as follows:

On page 79, strike line 7 and insert the following:
the provisions of this title.''.

DIVISION B--HEALTHY FORESTS RESTORATION

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This division may be cited as the
``Healthy Forests Restoration Act of 2003''.
(b) Table of Contents.--The table of contents of this
division is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

Sec. 101. Definitions.
Sec. 102. Authorized hazardous fuel reduction projects.
Sec. 103. Prioritization.
Sec. 104. Environmental analysis.
Sec. 105. Special administrative review process.
Sec. 106. Judicial review in United States district courts.
Sec. 107. Effect of title.
Sec. 108. Authorization of appropriations.

TITLE II--BIOMASS

Sec. 201. Findings.
Sec. 202. Definitions.
Sec. 203. Grants to improve commercial value of forest biomass for
electric energy, useful heat, transportation fuels,
compost, value-added products, and petroleum-based
product substitutes.
Sec. 204. Reporting requirement.
Sec. 205. Improved biomass use research program.
Sec. 206. Rural revitalization through forestry.

TITLE III--WATERSHED FORESTRY ASSISTANCE

Sec. 301. Findings and purposes.
Sec. 302. Watershed forestry assistance program.
Sec. 303. Tribal watershed forestry assistance.

TITLE IV--INSECT INFESTATIONS AND RELATED DISEASES

Sec. 401. Findings and purpose.
Sec. 402. Definitions.
Sec. 403. Accelerated information gathering regarding forest-damaging
insects.
Sec. 404. Applied silvicultural assessments.
Sec. 405. Relation to other laws.
Sec. 406. Authorization of appropriations.

TITLE V--HEALTHY FORESTS RESERVE PROGRAM

Sec. 501. Establishment of healthy forests reserve program.
Sec. 502. Eligibility and enrollment of lands in program.
Sec. 503. Restoration plans.
Sec. 504. Financial assistance.
Sec. 505. Technical assistance.
Sec. 506. Protections and measures
Sec. 507. Involvement by other agencies and organizations.
Sec. 508. Authorization of appropriations.

TITLE VI--PUBLIC LAND CORPS

Sec. 601. Purposes.
Sec. 602. Definitions.
Sec. 603. Public Land Corps.
Sec. 604. Nondisplacement.
Sec. 605. Authorization of appropriations.

TITLE VII--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

Sec. 701. Purpose
Sec. 702. Definitions.
Sec. 703. Rural community forestry enterprise program.

TITLE VIII--FIREFIGHTERS MEDICAL MONITORING ACT

Sec. 801. Short Title.
Sec. 802. Monitoring of firefighters in disaster areas.

TITLE IX--DISASTER AIR QUALITY MONITORING ACT

Sec. 901. Short Title.
Sec. 902. Monitoring of air quality in disaster areas.

TITLE X--HIGHLANDS REGION CONSERVATION

Sec. 1001. Short title.
Sec. 1002. Findings.
Sec. 1003. Purposes.
Sec. 1004. Definitions.
Sec. 1005. Land conservation partnership projects in the Highlands
region.
Sec. 1006. Forest Service and USDA programs in the Highlands region.
Sec. 1007. Private property protection and lack of regulatory effect.

TITLE XI--MISCELLANEOUS PROVISIONS

Sec. 1101. Forest inventory and management.
Sec. 1102. Program for emergency treatment and reduction of nonnative
invasive plants.
Sec. 1103. USDA National Agroforestry Center.
Sec. 1104. Upland Hardwoods Research Center.
Sec. 1105. Emergency fuel reduction grants.
Sec. 1106. Eastern Nevada landscape coalition.
Sec. 1107. Sense of Congress regarding enhanced community fire
protection.
Sec. 1108. Collaborative monitoring.
Sec. 1109. Best-value contracting.
Sec. 1110. Suburban and community forestry and open space program;
Forest Legacy Program.
Sec. 1111. Wildland firefighter safety.
Sec. 1112. Green Mountain National Forest boundary adjustment.
Sec. 1113. Puerto Rico karst conservation.
Sec. 1114. Farm Security and Rural Development Act.
Sec. 1115. Enforcement of animal fighting prohibitions under the Animal
Welfare Act.
Sec. 1116. Increase in maximum fines for violation of public land
regulations and establishment of minimum fine for
violation of public land fire regulations during fire
ban.

SEC. 2. PURPOSES.

The purposes of this division are--
(1) to reduce wildfire risk to communities, municipal water
supplies, and other at-risk Federal land through a
collaborative process of planning, prioritizing, and
implementing hazardous fuel reduction projects;
(2) to authorize grant programs to improve the commercial
value of forest biomass (that otherwise contributes to the
risk of catastrophic fire or insect or disease infestation)
for producing electric energy, useful heat, transportation
fuel, and petroleum-based product substitutes, and for other
commercial purposes;
(3) to enhance efforts to protect watersheds and address
threats to forest and rangeland health, including
catastrophic wildfire, across the landscape;
(4) to promote systematic gathering of information to
address the impact of insect and disease infestations and
other damaging agents on forest and rangeland health;
(5) to improve the capacity to detect insect and disease
infestations at an early stage, particularly with respect to
hardwood forests; and
(6) to protect, restore, and enhance forest ecosystem
components--
(A) to promote the recovery of threatened and endangered
species;
(B) to improve biological diversity; and
(C) to enhance productivity and carbon sequestration.

SEC. 3. DEFINITIONS.

In this division:
(1) Federal land.--The term ``Federal land'' means--
(A) land of the National Forest System (as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C 1609(a))) administered by the
Secretary of Agriculture, acting through the Chief of the
Forest Service; and
(B) public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C 1702)), the
surface of which is administered by the Secretary of the
Interior, acting through the Director of the Bureau of Land
Management.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).

[[Page S13928]]

TITLE I--HAZARDOUS FUEL REDUCTION ON FEDERAL LAND

SEC. 101. DEFINITIONS.

In this title:
(1) At-risk community.--The term ``at-risk community''
means an area--
(A) that is comprised of--
(i) an interface community as defined in the notice
entitled ``Wildland Urban Interface Communities Within the
Vicinity of Federal Lands That Are at High Risk From
Wildfire'' issued by the Secretary of Agriculture and the
Secretary of the Interior in accordance with title IV of the
Department of the Interior and Related Agencies
Appropriations Act, 2001 (114 Stat. 1009) (66 Fed. Reg. 753,
January 4, 2001); or
(ii) a group of homes and other structures with basic
infrastructure and services (such as utilities and
collectively maintained transportation routes) within or
adjacent to Federal land;
(B) in which conditions are conducive to a large-scale
wildland fire disturbance event; and
(C) for which a significant threat to human life or
property exists as a result of a wildland fire disturbance
event.
(2) Authorized hazardous fuel reduction project.--The term
``authorized hazardous fuel reduction project'' means the
measures and methods described in the definition of
``appropriate tools'' contained in the glossary of the
Implementation Plan, on Federal land described in section
102(a) and conducted under sections 103 and 104.
(3) Community wildfire protection plan.--The term
``community wildfire protection plan'' means a plan for an
at-risk community that--
(A) is developed within the context of the collaborative
agreements and the guidance established by the Wildland Fire
Leadership Council and agreed to by the applicable local
government, local fire department, and State agency
responsibile for forest management, in consultation with
interested parties and the Federal land management agencies
managing land in the vicinity of the at-risk community;
(B) identifies and prioritizes areas for hazardous fuel
reduction treatments and recommends the types and methods of
treatment on Federal and non-Federal land that will protect 1
or more at-risk communities and essential infrastructure; and
(C) recommends measures to reduce structural ignitability
throughout the at-risk community.
(4) Condition class 2.--The term ``condition class 2'',
with respect to an area of Federal land, means the condition
class description developed by the Forest Service Rocky
Mountain Research Station in the general technical report
entitled ``Development of Coarse-Scale Spatial Data for
Wildland Fire and Fuel Management'' (RMRS-87), dated April
2000 (including any subsequent revision to the report), under
which--
(A) fire regimes on the land have been moderately altered
from historical ranges;
(B) there exists a moderate risk of losing key ecosystem
components from fire;
(C) fire frequencies have increased or decreased from
historical frequencies by 1 or more return intervals,
resulting in moderate changes to--
(i) the size, frequency, intensity, or severity of fires;
or
(ii) landscape patterns; and
(D) vegetation attributes have been moderately altered from
the historical range of the attributes.
(5) Condition class 3.--The term ``condition class 3'',
with respect to an area of Federal land, means the condition
class description developed by the Rocky Mountain Research
Station in the general technical report referred to in
paragraph (4) (including any subsequent revision to the
report), under which--
(A) fire regimes on land have been significantly altered
from historical ranges;
(B) there exists a high risk of losing key ecosystem
components from fire;
(C) fire frequencies have departed from historical
frequencies by multiple return intervals, resulting in
dramatic changes to--
(i) the size, frequency, intensity, or severity of fires;
or
(ii) landscape patterns; and
(D) vegetation attributes have been significantly altered
from the historical range of the attributes.
(6) Day.--The term ``day'' means--
(A) a calendar day; or
(B) if a deadline imposed by this title would expire on a
nonbusiness day, the end of the next business day.
(7) Decision document.--The term ``decision document''
means--
(A) a decision notice (as that term is used in the Forest
Service Handbook);
(B) a decision record (as that term is used in the Bureau
of Land Management Handbook); and
(C) a record of decision (as that term is used in
applicable regulations of the Council on Environmental
Quality).
(8) Fire regime i.--The term ``fire regime I'' means an
area--
(A) in which historically there have been low-severity
fires with a frequency of 0 through 35 years; and
(B) that is located primarily in low elevation forests of
pine, oak, or pinyon juniper.
(9) Fire regime ii.--The term ``fire regime II'' means an
area--
(A) in which historically there are stand replacement
severity fires with a frequency of 0 through 35 years; and
(B) that is located primarily in low- to mid-elevation
rangeland, grassland, or shrubland.
(10) Fire regime iii.--The term ``fire regime III'' means
an area--
(A) in which historically there are mixed severity fires
with a frequency of 35 through 100 years; and
(B) that is located primarily in forests of mixed conifer,
dry Douglas fir, or wet Ponderosa pine.
(11) Implementation plan.--The term ``Implementation Plan''
means the Implementation Plan for the Comprehensive Strategy
for a Collaborative Approach for Reducing Wildland Fire Risks
to Communities and the Environment, dated May 2002, developed
pursuant to the conference report to accompany the Department
of the Interior and Related Agencies Appropriations Act, 2001
(House Report 106-64) (and subsequent revisions).
(12) Municipal water supply system.--The term ``municipal
water supply system'' means the reservoirs, canals, ditches,
flumes, laterals, pipes, pipelines, and other surface
facilities and systems constructed or installed for the
collection, impoundment, storage, transportation, or
distribution of drinking water.
(13) Resource management plan.--The term ``resource
management plan'' means--
(A) a land and resource management plan prepared for 1 or
more units of land of the National Forest System described in
section 3(1)(A) under section 6 of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C. 1604); or
(B) a land use plan prepared for 1 or more units of the
public land described in section 3(1)(B) under section 202 of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1712).
(14) Secretary.--The term ``Secretary'' means--
(A) the Secretary of Agriculture, with respect to land of
the National Forest System described in section 3(1)(A); and
(B) the Secretary of the Interior, with respect to public
lands described in section 3(1)(B).
(15) Threatened and endangered species habitat.--The term
``threatened and endangered species habitat'' means Federal
land identified in--
(A) a determination that a species is an endangered species
or a threatened species under the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.);
(B) a designation of critical habitat of the species under
that Act; or
(C) a recovery plan prepared for the species under that
Act.
(16) Wildland-urban interface.--The term ``wildland-urban
interface'' means--
(A) an area within or adjacent to an at-risk community that
is identified in recommendations to the Secretary in a
community wildfire protection plan; or
(B) in the case of any area for which a community wildfire
protection plan is not in effect--
(i) an area extending \1/2\-mile from the boundary of an
at-risk community;
(ii) an area extending more than \1/2\-mile from the
boundary of an at-risk community, if the land adjacent to the
at-risk community--

(I) has a sustained steep slope that creates the potential
for wildfire behavior endangering the at-risk community; or
(II) has a geographic feature that aids in creating an
effective fire break, such as a road or ridge top, within \3/
4\-mile of the nearest at-risk community boundary; and

(iii) an area that is adjacent to an evacuation route for
an at-risk community that the Secretary determines, in
cooperation with the at-risk community, requires hazardous
fuel reduction to provide safer evacuation from the at-risk
community.

SEC. 102. AUTHORIZED HAZARDOUS FUEL REDUCTION PROJECTS.

(a) Authorized Projects.--As soon as practicable after the
date of enactment of this Act, the Secretary shall implement
authorized hazardous fuel reduction projects, consistent with
the Implementation Plan, on--
(1) Federal land in wildland-urban interface areas;
(2) condition class 3 Federal land, in such proximity to a
municipal water supply system or a stream feeding such a
system within a municipal watershed that a significant risk
exists that a fire disturbance event would have adverse
effects on the water quality of the municipal water supply or
the maintenance of the system, including a risk to water
quality posed by erosion following such a fire disturbance
event;
(3) condition class 2 Federal land located within fire
regime I, fire regime II, or fire regime III, in such
proximity to a municipal water supply system or a stream
feeding such a system within a municipal watershed that a
significant risk exists that a fire disturbance event would
have adverse effects on the water quality of the municipal
water supply or the maintenance of the system, including a
risk to water quality posed by erosion following such a fire
disturbance event;
(4) Federal land on which windthrow or blowdown, ice storm
damage, or the existence of disease or insect infestation,
poses a significant threat to an ecosystem component, or
forest or rangeland resource, on the Federal land or adjacent
non-Federal land;
(5) Federal land not covered by paragraphs (1) through (4)
that contains threatened and endangered species habitat, if--

[[Page S13929]]

(A) natural fire regimes on that land are identified as
being important for, or wildfire is identified as a threat
to, an endangered species, a threatened species, or habitat
of an endangered species or threatened species in a species
recovery plan prepared under section 4 of the Endangered
Species Act of 1973 (16 U.S.C. 1533), or a notice published
in the Federal Register determining a species to be an
endangered species or a threatened species or designating
critical habitat;
(B) the authorized hazardous fuel reduction project will
provide enhanced protection from catastrophic wildfire for
the endangered species, threatened species, or habitat of the
endangered species or threatened species; and
(C) the Secretary complies with any applicable guidelines
specified in any management or recovery plan described in
subparagraph (A).
(b) Relation to Agency Plans.--An authorized hazardous fuel
reduction project shall be conducted consistent with the
resource management plan and other relevant administrative
policies or decisions applicable to the Federal land covered
by the project.
(c) Acreage Limitation.--Not more than a total of
20,000,000 acres of Federal land may be treated under
authorized hazardous fuel reduction projects.
(d) Exclusion of Certain Federal Land.--The Secretary may
not conduct an authorized hazardous fuel reduction project
that would occur on--
(1) a component of the National Wilderness Preservation
System;
(2) Federal land on which the removal of vegetation is
prohibited or restricted by Act of Congress or Presidential
proclamation (including the applicable implementation plan);
or
(3) a Wilderness Study Area.
(e) Old Growth Stands.--
(1) Definitions.--In this subsection and subsection (f):
(A) Covered project.--The term ``covered project'' means an
authorized hazardous fuel reduction project carried out under
paragraph (1), (2), (3), or (5) of subsection (a).
(B) Old growth stand.--The term ``old growth stand'' has
the meaning given the term under standards used pursuant to
paragraphs (3) and (4), based on the structure and
composition characteristic of the forest type, and in
accordance with applicable law, including section 6(g)(3)(B)
of the Forest and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1604(g)(3)(B)).
(C) Standards.--The term ``standards'' means definitions,
designations, standards, guidelines, goals, or objectives
established for an old growth stand under a resource
management plan developed in accordance with applicable law,
including section 6(g)(3)(B) of the Forest and Rangeland
Renewable Resources Planning Act of 1974 (16 U.S.C.
1604(g)(3)(B)).
(2) Project requirements.--In carrying out a covered
project, the Secretary shall fully maintain, or contribute
toward the restoration of, the structure and composition of
old growth stands according to the pre-fire suppression old
growth conditions characteristic of the forest type, taking
into account the contribution of the stand to landscape fire
adaptation and watershed health, and retaining the large
trees contributing to old growth structure.
(3) Newer standards.--
(A) In general.--If the standards for an old growth stand
were established during the 10-year period ending on the date
of enactment of this Act, the Secretary shall meet the
requirements of paragraph (2) in carrying out a covered
project by implementing the standards.
(B) Amendments or revisions.--Any amendment or revision to
standards for which final administrative approval is granted
after the date of enactment of this Act shall be consistent
with paragraph (2) for the purpose of carrying out covered
projects.
(4) Older standards.--
(A) In general.--If the standards for an old growth stand
were established before the 10-year period described in
paragraph (3)(A), the Secretary shall meet the requirements
of paragraph (2) in carrying out a covered project by
implementing the standards--
(i) during the 2-year period beginning on the date of
enactment of this Act; or
(ii) if the Secretary is in the process of revising a
resource management plan as of the date of enactment of this
Act, during the 3-year period beginning on the date of
enactment of this Act.
(B) Review required.--During the applicable period
described in subparagraph (A) for the standards for an old
growth stand under a resource management plan, the Secretary
shall--
(i) review the standards, taking into account any relevant
scientific information made available since the adoption of
the standards; and
(ii) revise the standards to be consistent with paragraph
(2), if necessary to reflect relevant scientific information
the Secretary did not consider in formulating the resource
management plan.
(C) Review not completed.--
(i) In general.--If the Secretary does not complete the
review of the standards in accordance with subparagraph (B),
during the applicable period described in subparagraph (A),
the Secretary shall not carry out any portion of a covered
project in a stand that is identified as an old growth stand
(based on substantial supporting evidence) by any person
during scoping.
(ii) Period.--Clause (i) applies during the period--

(I) beginning on the termination of the applicable period
for the standards described in subparagraph (A); and
(II) ending on the earlier of--

(aa) the date the Secretary completes the action required
by subparagraph (B) for the standards; or
(bb) the date on which the acreage limitation specified in
subsection (c) (as that limitation may be adjusted by
subsequent Act of Congress) is reached.
(f) Large Tree Retention.--Except in old growth stands
where the standards are consistent with subsection (e)(2),
the Secretary shall carry out a covered project in a manner
that--
(1) focuses largely on small diameter trees, thinning,
strategic fuel breaks, and prescribed fire to modify fire
behavior, as measured by the projected reduction of
uncharacteristically severe wildfire effects for the forest
type (such as adverse soil impacts, tree mortality or other
impacts); and
(2) maximizes the retention of large trees, as appropriate
for the forest type, to the extent that the trees promote
fire-resilient stands and the purposes of section 6(g)(3)(B)
of the Forest and Rangeland Renewable Resources Planning Act
of 1976 (16 U.S.C. 1604(g)(3)(B)).
(g) Monitoring and Assessing Forest and Rangeland Health.--
(1) In general.--For each Forest Service administrative
region and each Bureau of Land Management State Office, the
Secretary shall--
(A) monitor the results of the projects authorized under
this section; and
(B) not later than 5 years after the date of enactment of
this Act, and each 5 years thereafter, issue a report that
includes--
(i) an evaluation of the progress towards project goals;
and
(ii) recommendations for modifications to the projects and
management treatments.
(2) Consistency of projects with recommendations.--An
authorized hazardous fuel reduction project approved
following the issuance of a monitoring report shall, to the
maximum extent practicable, be consistent with any applicable
recommendations in the report.
(3) Similar vegetation types.--The results of a monitoring
report shall be made available in, and (if appropriate) used
for, a project conducted in a similar vegetation type on land
under the jurisdiction of the Secretary.
(4) Monitoring and assessments.--From a representative
sample of authorized hazardous fuel reduction projects, for
each management unit, monitoring and assessment shall include
a description of the effects on changes in condition class,
using the Fire Regime Condition Class Guidebook or successor
guidance, specifically comparing end results to--
(A) pretreatment conditions;
(B) historical fire regimes; and
(C) any applicable watershed or landscape goals or
objectives in the resource management plan or other relevant
direction.
(5) Tracking.--For each management unit, the Secretary
shall track acres burned, by the degree of severity, by large
wildfires (as defined by the Secretary).
(6) Monitoring and maintenance of treated areas.--The
Secretary shall, to the maximum extent practicable, develop a
process for monitoring the need for maintenance of treated
areas, over time, in order to preserve the forest health
benefits achieved.

SEC. 103. PRIORITIZATION.

(a) In General.--In accordance with the Implementation
Plan, the Secretary shall develop an annual program of work
for Federal land that gives priority to authorized hazardous
fuel reduction projects that provide for the protection of
at-risk communities or watersheds or that implement community
wildfire protection plans.
(b) Collaboration.--
(1) In general.--The Secretary shall consider
recommendations under subsection (a) that are made by at-risk
communities that have developed community wildfire protection
plans.
(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the planning process and
recommendations concerning community wildfire protection
plans.
(c) Administration.--
(1) In general.--Federal agency involvement in a community
wildfire protection plan, or a recommendation made in a
community wildfire protection plan, shall not be considered a
Federal agency action under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Compliance.--In implementing authorized hazardous fuel
reduction projects on Federal land, the Secretary shall, in
accordance with section 104, comply with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(d) Funding Allocation.--
(1) Federal land.--
(A) In general.--Subject to subparagraph (B), the Secretary
shall use not less than 50 percent of the funds allocated for
authorized hazardous fuel reduction projects in the wildland-
urban interface.
(B) Applicability and allocation.--The funding allocation
in subparagraph (A) shall apply at the national level, and
the Secretary may allocate the proportion of funds
differently than is required under subparagraph (A) within
individual management

[[Page S13930]]

units as appropriate, in particular to conduct authorized
hazardous fuel reduction projects on land described in
section 102(a)(4).
(2) Non-federal land.--In providing financial assistance
under any provision of law for hazardous fuel reduction
projects on non-Federal land, the Secretary shall consider
recommendations made by at-risk communities that have
developed community wildfire protection plans.

SEC. 104. ENVIRONMENTAL ANALYSIS.

(a) Authorized Hazardous Fuel Reduction Projects.--Except
as otherwise provided in this title, the Secretary shall
conduct authorized hazardous fuel reduction projects in
accordance with--
(1) the National Environmental Policy Act of 1969 (42
U.S.C. 4331 et seq.); and
(2) other applicable laws.
(b) Environmental Assessment or Impact Statements.--
(1) In general.--The Secretary shall prepare an
environmental assessment or an environmental impact statement
(pursuant to section 102(2) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2))) for any authorized
hazardous fuel reduction project.
(2) Alternatives.--In the environmental assessment or
environmental impact statement prepared under paragraph (1),
the Secretary shall study, develop, and describe--
(A) the proposed agency action;
(B) the alternative of no action; and
(C) an additional action alternative, if the additional
alternative--
(i) is proposed during scoping or the collaborative
process; and
(ii) meets the purpose and need of the project, in
accordance with regulations promulgated by the Council on
Environmental Quality.
(3) Multiple additional alternatives.--If more than 1
additional alternative is proposed under paragraph (2)(C),
the Secretary shall--
(A) select which additional alternative to consider; and
(B) provide a written record describing the reasons for the
selection.
(c) Public Notice and Meeting.--
(1) Public notice.--The Secretary shall provide notice of
each authorized hazardous fuel reduction project in
accordance with applicable regulations and administrative
guidelines.
(2) Public meeting.--During the preparation stage of each
authorized hazardous fuel reduction project, the Secretary
shall--
(A) conduct a public meeting at an appropriate location
proximate to the administrative unit of the Federal land on
which the authorized hazardous fuel reduction project will be
conducted; and
(B) provide advance notice of the location, date, and time
of the meeting.
(d) Public Collaboration.--In order to encourage meaningful
public participation during preparation of authorized
hazardous fuel reduction projects, the Secretary shall
facilitate collaboration among State and local governments
and Indian tribes, and participation of interested persons,
during the preparation of each authorized fuel reduction
project in a manner consistent with the Implementation Plan.
(e) Environmental Analysis and Public Comment.--In
accordance with section 102(2) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable
regulations and administrative guidelines, the Secretary
shall provide an opportunity for public comment during the
preparation of any environmental assessment or environmental
impact statement for an authorized hazardous fuel reduction
project.
(f) Decision Document.--The Secretary shall sign a decision
document for authorized hazardous fuel reduction projects and
provide notice of the final agency actions.

SEC. 105. SPECIAL ADMINISTRATIVE REVIEW PROCESS.

(a) Interim Final Regulations.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the Secretary of Agriculture shall
promulgate interim final regulations to establish a
predecisional administrative review process for the period
described in paragraph (2) that will serve as the sole means
by which a person can seek administrative review regarding an
authorized hazardous fuel reduction project on Forest Service
land.
(2) Period.--The predecisional administrative review
process required under paragraph (1) shall occur during the
period--
(A) beginning after the completion of the environmental
assessment or environmental impact statement; and
(B) ending not later than the date of the issuance of the
final decision approving the project.
(3) Effective date.--The interim final regulations
promulgated under paragraph (1) shall take effect on the date
of promulgation of the regulations.
(b) Final Regulations.--The Secretary shall promulgate
final regulations to establish the process described in
subsection (a)(1) after the interim final regulations have
been published and reasonable time has been provided for
public comment.
(c) Administrative Review.--
(1) In general.--A person may bring a civil action
challenging an authorized hazardous fuel reduction project in
a Federal district court only if the person has challenged
the authorized hazardous fuel reduction project by
exhausting--
(A) the administrative review process established by the
Secretary of Agriculture under this section; or
(B) the administrative hearings and appeals procedures
established by the Department of the Interior.
(2) Issues.--An issue may be considered in the judicial
review of an action under section 106 only if the issue was
raised in an administrative review process described in
paragraph (1).
(3) Exception.--An exception to the requirement of
exhausting the administrative review process before seeking
judicial review shall be available if a Federal court finds
that the futility or inadequacy exception applies to a
specific plaintiff or claim.

SEC. 106. JUDICIAL REVIEW IN UNITED STATES DISTRICT COURTS.

(a) Venue.--Notwithstanding section 1391 of title 28,
United States Code, or other applicable law, an authorized
hazardous fuels reduction project conducted under this title
shall be subject to judicial review only in the United States
district court for the district in which the Federal land to
be treated under the authorized hazardous fuels reduction
project is located.
(b) Expeditious Completion of Judicial Review.--In the
judicial review of an action challenging an authorized
hazardous fuel reduction project under subsection (a),
Congress encourages a court of competent jurisdiction to
expedite, to the maximum extent practicable, the proceedings
in the action with the goal of rendering a final
determination on jurisdiction, and (if jurisdiction exists) a
final determination on the merits, as soon as practicable
after the date on which a complaint or appeal is filed to
initiate the action.
(c) Injunctions.--
(1) In general.--Subject to paragraph (2), the length of
any preliminary injunctive relief and stays pending appeal
covering an authorized hazardous fuel reduction project
carried out under this title shall not exceed 60 days.
(2) Renewal.--
(A) In general.--A court of competent jurisdiction may
issue 1 or more renewals of any preliminary injunction, or
stay pending appeal, granted under paragraph (1).
(B) Updates.--In each renewal of an injunction in an
action, the parties to the action shall present the court
with updated information on the status of the authorized
hazardous fuel reduction project.
(3) Balancing of short- and long-term effects.--As part of
its weighing the equities while considering any request for
an injunction that applies to an agency action under an
authorized hazardous fuel reduction project, the court
reviewing the project shall balance the impact to the
ecosystem likely affected by the project of--
(A) the short- and long-term effects of undertaking the
agency action; against
(B) the short- and long-term effects of not undertaking the
agency action.

SEC. 107. EFFECT OF TITLE.

(a) Other Authority.--Nothing in this title affects, or
otherwise biases, the use by the Secretary of other statutory
or administrative authority (including categorical exclusions
adopted to implement the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)) to conduct a hazardous fuel
reduction project on Federal land (including Federal land
identified in section 102(d)) that is not conducted using the
process authorized by section 104.
(b) National Forest System.--For projects and activities of
the National Forest System other than authorized hazardous
fuel reduction projects, nothing in this title affects, or
otherwise biases, the notice, comment, and appeal procedures
for projects and activities of the National Forest System
contained in part 215 of title 36, Code of Federal
Regulations, or the consideration or disposition of any legal
action brought with respect to the procedures.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated $760,000,000 for
each fiscal year to carry out--
(1) activities authorized by this title; and
(2) other hazardous fuel reduction activities of the
Secretary, including making grants to States for activities
authorized by law.

TITLE II--BIOMASS

SEC. 201. FINDINGS.

Congress finds that--
(1)(A) thousands of communities in the United States, many
located near Federal land, are at risk of wildfire;
(B) more than 100,000,000 acres of land managed by the
Secretary of Agriculture and the Secretary of the Interior
are at risk of catastrophic fire in the near future; and
(C) the accumulation of heavy forest and rangeland fuel
loads continues to increase as a result of fire exclusion,
disease, insect infestations, and drought, further raising
the risk of fire each year;
(2)(A) more than 70,000,000 acres across all land
ownerships are at risk of higher than normal mortality during
the 15-year period beginning on the date of enactment of this
Act because of insect infestation and disease; and
(B) high levels of tree mortality from insects and disease
result in--
(i) increased fire risk;
(ii) loss of older trees and old growth;
(iii) degraded watershed conditions;
(iv) changes in species diversity and productivity;
(v) diminished fish and wildlife habitat;
(vi) decreased timber values; and
(vii) increased threats to homes, businesses, and community
watersheds;

[[Page S13931]]

(3)(A) preventive treatments (such as reducing fuel loads,
crown density, ladder fuels, and hazard trees), planting
proper species mix, restoring and protecting early
successional habitat, and completing other specific
restoration treatments designed to reduce the susceptibility
of forest and rangeland to insect outbreaks, disease, and
catastrophic fire present the greatest opportunity for long-
term forest and rangeland health, maintenance, and
enhancement by creating a mosaic of species-mix and age
distribution; and
(B) those vegetation management treatments are widely
acknowledged to be more successful and cost-effective than
suppression treatments in the case of insects, disease, and
fire;
(4)(A) the byproducts of vegetative management treatment
(such as trees, brush, thinnings, chips, slash, and other
hazardous fuels) removed from forest and rangeland represent
an abundant supply of--
(i) biomass for biomass-to-energy facilities; and
(ii) raw material for business; and
(B) there are currently few markets for the extraordinary
volumes of by-products being generated as a result of the
necessary large-scale preventive treatment activities; and
(5) the United States should--
(A) promote economic and entrepreneurial opportunities in
using by-products removed through vegetation treatment
activities relating to hazardous fuels reduction, disease,
and insect infestation;
(B) develop and expand markets for traditionally underused
wood and biomass as an outlet for by-products of preventive
treatment activities; and
(C) promote research and development to provide, for the
by-products, economically and environmentally sound--
(i) management systems;
(ii) harvest and transport systems; and
(iii) utilization options.

SEC. 202. DEFINITIONS.

In this title:
(1) Biomass.--The term ``biomass'' means trees and woody
plants (including limbs, tops, needles, other woody parts,
and wood waste) and byproducts of preventive treatment (such
as wood, brush, thinnings, chips, and slash) that are
removed--
(A) to reduce hazardous fuels;
(B) to reduce the risk of or to contain disease or insect
infestation; or
(C) to improve forest health and wildlife habitat
conditions.
(2) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary);
(C) an Indian tribe;
(D) a small business, microbusiness, or a corporation that
is incorporated in the United States; and
(E) a nonprofit organization.
(3) Preferred community.--The term ``preferred community''
means--
(A) any town, township, municipality, Indian tribe, or
other similar unit of local government (as determined by the
Secretary) that--
(i) has a population of not more than 50,000 individuals;
and
(ii) the Secretary, in the sole discretion of the
Secretary, determines contains or is located near, or with a
water supply system that contains or is located near, land
that--

(I) is at significant risk of catastrophic wildfire,
disease, or insect infestation; or
(II) suffers from disease or insect infestation; or

(B) any area or unincorporated area represented by a
nonprofit organization approved by the Secretary, that--
(i) is not wholly contained within a metropolitan
statistical area; and
(ii) the Secretary, in the sole discretion of the
Secretary, determines contains or is located near, or with a
water supply system that contains or is located near, land--

(I) the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation; or
(II) that suffers from disease or insect infestation.

(4) Secretary.--The term ``Secretary'' means--
(A) the Secretary of Agriculture, with respect to National
Forest System land; and
(B) the Secretary of the Interior, with respect to Federal
land under the jurisdiction of the Secretary of the Interior
(including land held in trust for the benefit of an Indian
tribe).

SEC. 203. GRANTS TO IMPROVE COMMERCIAL VALUE OF FOREST
BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, COMPOST, VALUE-ADDED
PRODUCTS, AND PETROLEUM-BASED PRODUCT
SUBSTITUTES.

(a) Biomass Commercial Utilization Grant Program.--
(1) In general.--The Secretary may make grants to any
person that owns or operates a facility that uses biomass as
a raw material to produce electric energy, sensible heat,
transportation fuels, substitutes for petroleum-based
products, wood-based products, pulp, or other commercial
products to offset the costs incurred to purchase biomass for
use by the facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--
(A) In general.--As a condition of a grant under this
subsection, the grant recipient shall keep such records as
the Secretary may require to fully and correctly disclose the
use of the grant funds and all transactions involved in the
purchase of biomass.
(B) Access.--On notice by a representative of the
Secretary, the grant recipient shall afford the
representative--
(i) reasonable access to the facility that purchases or
uses biomass; and
(ii) an opportunity to examine the inventory and records of
the facility.
(b) Value-Added Grant Program.--
(1) In general.--The Secretary--
(A) may make grants to persons to offset the cost of
projects to add value to biomass; and
(B) in making a grant under subparagraph (A), shall give
preference to persons in preferred communities.
(2) Selection.--The Secretary shall select a grant
recipient under paragraph (1)(A) after giving consideration
to--
(A) the anticipated public benefits of the project;
(B) opportunities for the creation or expansion of small
businesses and microbusinesses resulting from the project;
and
(C) the potential for new job creation as a result of the
project.
(3) Grant amount.--A grant under this subsection shall not
exceed $100,000.
(c) Relation to Other Endangered Species and Riparian
Protections.--
(1) In general.--The Secretary shall comply with applicable
endangered species and riparian protections in making grants
under this section.
(2) Projects.--Projects funded using grant proceeds shall
be required to comply with the protections.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
each of fiscal years 2004 through 2008.

SEC. 204. REPORTING REQUIREMENT.

(a) Report Required.--Not later than October 1, 2008, the
Secretary of Agriculture, in consultation with the Secretary
of the Interior, shall submit to the Committee on Resources
and the Committee on Agriculture of the House of
Representatives and the Committee on Energy and Natural
Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing the results of the
grant programs authorized by section 203.
(b) Contents of Report.--The report shall include--
(1) an identification of the source, size, type, and the
end-use of biomass by persons that receive grants under
section 203;
(2) the haul costs incurred and the distance between the
land from which the biomass was removed and the facilities
that used the biomass;
(3) the economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations; and
(4) the environmental effects of the activities described
in this section.

SEC. 205. IMPROVED BIOMASS USE RESEARCH PROGRAM.

(a) Uses of Grants, Contracts, and Assistance.--Section
307(d) of the Biomass Research and Development Act of 2000 (7
U.S.C. 7624 note; Public Law 106-224) is amended--
(1) in paragraph (3), by striking ``or'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(5) research to integrate silviculture, harvesting,
product development, processing information, and economic
evaluation to provide the science, technology, and tools to
forest managers and community developers for use in
evaluating forest treatment and production alternatives,
including--
``(A) to develop tools that would enable land managers,
locally or in a several-State region, to estimate--
``(i) the cost to deliver varying quantities of wood to a
particular location; and
``(ii) the amount that could be paid for stumpage if
delivered wood was used for a specific mix of products;
``(B) to conduct research focused on developing appropriate
thinning systems and equipment designs that are--
``(i) capable of being used on land without significant
adverse effects on the land;
``(ii) capable of handling large and varied landscapes;
``(iii) adaptable to handling a wide variety of tree sizes;
``(iv) inexpensive; and
``(v) adaptable to various terrains; and
``(C) to develop, test, and employ in the training of
forestry managers and community developers curricula
materials and training programs on matters described in
subparagraphs (A) and (B).''.
(b) Funding.--Section 310(b) of the Biomass Research and
Development Act of 2000 (7 U.S.C. 7624 note; Public Law 106-
224) is amended by striking ``$49,000,000'' and inserting
``$54,000,000''.

SEC. 206. RURAL REVITALIZATION THROUGH FORESTRY.

Section 2371 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 6601) is amended by adding at the
end the following:
``(d) Rural Revitalization Technologies.--
``(1) In general.--The Secretary of Agriculture, acting
through the Chief of the Forest Service, in consultation with
the State and Private Forestry Technology Marketing Unit at
the Forest Products Laboratory, and in collaboration with
eligible institutions, may carry out a program--

[[Page S13932]]

``(A) to accelerate adoption of technologies using biomass
and small-diameter materials;
``(B) to create community-based enterprises through
marketing activities and demonstration projects; and
``(C) to establish small-scale business enterprises to make
use of biomass and small-diameter materials.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $5,000,000
for each of fiscal years 2004 through 2008.''.

TITLE III--WATERSHED FORESTRY ASSISTANCE

SEC. 301. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds that--
(1) there has been a dramatic shift in public attitudes and
perceptions about forest management, particularly in the
understanding and practice of sustainable forest management;
(2) it is commonly recognized that the proper stewardship
of forest land is essential to sustaining and restoring the
health of watersheds;
(3) forests can provide essential ecological services in
filtering pollutants, buffering important rivers and
estuaries, and minimizing flooding, which makes forest
restoration worthy of special focus; and
(4) strengthened education, technical assistance, and
financial assistance for nonindustrial private forest
landowners and communities, relating to the protection of
watershed health, is needed to realize the expectations of
the general public.
(b) Purposes.--The purposes of this title are--
(1) to improve landowner and public understanding of the
connection between forest management and watershed health;
(2) to encourage landowners to maintain tree cover on
property and to use tree plantings and vegetative treatments
as creative solutions to watershed problems associated with
varying land uses;
(3) to enhance and complement forest management and buffer
use for watersheds, with an emphasis on community watersheds;
(4) to establish new partnerships and collaborative
watershed approaches to forest management, stewardship, and
conservation;
(5) to provide technical and financial assistance to States
to deliver a coordinated program that enhances State forestry
best-management practices programs, and conserves and
improves forested land and potentially forested land, through
technical, financial, and educational assistance to
qualifying individuals and entities; and
(6) to maximize the proper management and conservation of
wetland forests and to assist in the restoration of those
forests.

SEC. 302. WATERSHED FORESTRY ASSISTANCE PROGRAM.

The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 5 (16 U.S.C. 2103a) the following:

``SEC. 6. WATERSHED FORESTRY ASSISTANCE PROGRAM.

``(a) Definition of Nonindustrial Private Forest Land.--In
this section, the term `nonindustrial private forest land'
means rural land, as determined by the Secretary, that--
``(1) has existing tree cover or that is suitable for
growing trees; and
``(2) is owned by any nonindustrial private individual,
group, association, corporation, or other private legal
entity, that has definitive decisionmaking authority over the
land.
``(b) General Authority and Purpose.--The Secretary, acting
through the Chief of the Forest Service, may provide
technical, financial, and related assistance to State
foresters, equivalent State officials, and officials of the
Cooperative State Research, Education, and Extension Service
for the purpose of expanding State forest stewardship
capacities and activities through State forestry best-
management practices and other means at the State level to
address watershed issues on non-Federal forested land and
potentially forested land.
``(c) Technical Assistance To Protect Water Quality.--
``(1) In general.--The Secretary, in cooperation with State
foresters, officials of the Cooperative State Research,
Education, and Extension Service, or equivalent State
officials, shall engage interested members of the public,
including nonprofit organizations and local watershed
councils, to develop a program of technical assistance to
protect water quality described in paragraph (2).
``(2) Purpose of program.--The program under this
subsection shall be designed--
``(A) to build and strengthen watershed partnerships that
focus on forested landscapes at the State, regional, and
local levels;
``(B) to provide State forestry best-management practices
and water quality technical assistance directly to owners of
nonindustrial private forest land;
``(C) to provide technical guidance to land managers and
policymakers for water quality protection through forest
management;
``(D) to complement State and local efforts to protect
water quality and provide enhanced opportunities for
consultation and cooperation among Federal and State agencies
charged with responsibility for water and watershed
management; and
``(E) to provide enhanced forest resource data and support
for improved implementation and monitoring of State forestry
best-management practices.
``(3) Implementation.--In the case of a participating
State, the program of technical assistance shall be
implemented by State foresters or equivalent State officials.
``(d) Watershed Forestry Cost-Share Program.--
``(1) In general.--The Secretary shall establish a
watershed forestry cost-share program--
``(A) which shall be--
``(i) administered by the Forest Service; and
``(ii) implemented by State foresters or equivalent State
officials in participating States; and
``(B) under which funds or other support provided to
participating States shall be made available for State
forestry best-management practices programs and watershed
forestry projects.
``(2) Watershed forestry projects.--The State forester,
State Research, Education and Extension official, or
equivalent State official of a participating State, in
coordination with the State Forest Stewardship Coordinating
Committee established under section 19(b) (or an equivalent
committee) for that State, shall make awards to communities,
nonprofit groups, and owners of nonindustrial private forest
land under the program for watershed forestry projects
described in paragraph (3).
``(3) Project elements and objectives.--A watershed
forestry project shall accomplish critical forest
stewardship, watershed protection, and restoration needs
within a State by demonstrating the value of trees and
forests to watershed health and condition through--
``(A) the use of trees as solutions to water quality
problems in urban and rural areas;
``(B) community-based planning, involvement, and action
through State, local and nonprofit partnerships;
``(C) application of and dissemination of monitoring
information on forestry best-management practices relating to
watershed forestry;
``(D) watershed-scale forest management activities and
conservation planning; and
``(E)(i) the restoration of wetland (as defined by the
States) and stream-side forests; and
``(ii) the establishment of riparian vegetative buffers.
``(4) Cost-sharing.--
``(A) Federal share.--
``(i) Funds under this subsection.--Funds provided under
this subsection for a watershed forestry project may not
exceed 75 percent of the cost of the project.
``(ii) Other federal funds.--The percentage of the cost of
a project described in clause (i) that is not covered by
funds made available under this subsection may be paid using
other Federal funding sources, except that the total Federal
share of the costs of the project may not exceed 90 percent.
``(B) Form.--The non-Federal share of the costs of a
project may be provided in the form of cash, services, or
other in-kind contributions.
``(5) Prioritization.--The State Forest Stewardship
Coordinating Committee for a State, or equivalent State
committee, shall prioritize watersheds in that State to
target watershed forestry projects funded under this
subsection.
``(6) Watershed forester.--Financial and technical
assistance shall be made available to the State Forester or
equivalent State official to create a State watershed or
best-management practice forester position to--
``(A) lead statewide programs; and
``(B) coordinate watershed-level projects.
``(e) Distribution.--
``(1) In general.--Of the funds made available for a fiscal
year under subsection (g), the Secretary shall use--
``(A) at least 75 percent of the funds to carry out the
cost-share program under subsection (d); and
``(B) the remainder of the funds to deliver technical
assistance, education, and planning, at the local level,
through the State Forester or equivalent State official.
``(2) Special considerations.--Distribution of funds by the
Secretary among States under paragraph (1) shall be made only
after giving appropriate consideration to--
``(A) the acres of agricultural land, nonindustrial private
forest land, and highly erodible land in each State;
``(B) the miles of riparian buffer needed;
``(C) the miles of impaired stream segments and other
impaired water bodies where forestry practices can be used to
restore or protect water resources;
``(D) the number of owners of nonindustrial private forest
land in each State; and
``(E) water quality cost savings that can be achieved
through forest watershed management.
``(f) Willing Owners.--
``(1) In general.--Participation of an owner of
nonindustrial private forest land in the watershed forestry
assistance program under this section is voluntary.
``(2) Written consent.--The watershed forestry assistance
program shall not be carried out on nonindustrial private
forest land without the written consent of the owner of, or
entity having definitive decisionmaking over, the
nonindustrial private forest land.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2004 through 2008.''.

SEC. 303. TRIBAL WATERSHED FORESTRY ASSISTANCE.

(a) In General.--The Secretary of Agriculture (referred to
in this section as the ``Secretary''), acting through the
Chief of the Forest Service, shall provide technical,

[[Page S13933]]

financial, and related assistance to Indian tribes for the
purpose of expanding tribal stewardship capacities and
activities through tribal forestry best-management practices
and other means at the tribal level to address watershed
issues on land under the jurisdiction of or administered by
the Indian tribes.
(b) Technical Assistance To Protect Water Quality.--
(1) In general.--The Secretary, in cooperation with Indian
tribes, shall develop a program to provide technical
assistance to protect water quality, as described in
paragraph (2).
(2) Purpose of program.--The program under this subsection
shall be designed--
(A) to build and strengthen watershed partnerships that
focus on forested landscapes at the State, regional, tribal,
and local levels;
(B) to provide tribal forestry best-management practices
and water quality technical assistance directly to Indian
tribes;
(C) to provide technical guidance to tribal land managers
and policy makers for water quality protection through forest
management;
(D) to complement tribal efforts to protect water quality
and provide enhanced opportunities for consultation and
cooperation among Federal agencies and tribal entities
charged with responsibility for water and watershed
management; and
(E) to provide enhanced forest resource data and support
for improved implementation and monitoring of tribal forestry
best-management practices.
(c) Watershed Forestry Program.--
(1) In general.--The Secretary shall establish a watershed
forestry program to be administered by Indian tribes.
(2) Programs and projects.--Funds or other support provided
under the program shall be made available for tribal forestry
best-management practices programs and watershed forestry
projects.
(3) Annual awards.--The Secretary shall annually make
awards to Indian tribes to carry out this subsection.
(4) Project elements and objectives.--A watershed forestry
project shall accomplish critical forest stewardship,
watershed protection, and restoration needs within land under
the jurisdiction of or administered by an Indian tribe by
demonstrating the value of trees and forests to watershed
health and condition through--
(A) the use of trees as solutions to water quality
problems;
(B) application of and dissemination of monitoring
information on forestry best-management practices relating to
watershed forestry;
(C) watershed-scale forest management activities and
conservation planning;
(D) the restoration of wetland and stream-side forests and
the establishment of riparian vegetative buffers; and
(E) tribal-based planning, involvement, and action through
State, tribal, local, and nonprofit partnerships.
(5) Prioritization.--An Indian tribe that participates in
the program under this subsection shall prioritize watersheds
in land under the jurisdiction of or administered by the
Indian tribe to target watershed forestry projects funded
under this subsection.
(6) Watershed forester.--The Secretary may provide to
Indian tribes under this section financial and technical
assistance to establish a position of tribal forester to lead
tribal programs and coordinate small watershed-level
projects.
(d) Distribution.--The Secretary shall devote--
(1) at least 75 percent of the funds made available for a
fiscal year under subsection (e) to the program under
subsection (c); and
(2) the remainder of the funds to deliver technical
assistance, education, and planning on the ground to Indian
tribes.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,500,000 for
each of fiscal years 2004 through 2008.

TITLE IV--INSECT INFESTATIONS AND RELATED DISEASES

SEC. 401. FINDINGS AND PURPOSE.

(a) Findings.--Congress finds that--
(1) high levels of tree mortality resulting from insect
infestation (including the interaction between insects and
diseases) may result in--
(A) increased fire risk;
(B) loss of old trees and old growth;
(C) loss of threatened and endangered species;
(D) loss of species diversity;
(E) degraded watershed conditions;
(F) increased potential for damage from other agents of
disturbance, including exotic, invasive species; and
(G) decreased timber values;
(2)(A) forest-damaging insects destroy hundreds of
thousands of acres of trees each year;
(B) in the West, more than 21,000,000 acres are at high
risk of forest-damaging insect infestation, and in the South,
more than 57,000,000 acres are at risk across all land
ownerships; and
(C) severe drought conditions in many areas of the South
and West will increase the risk of forest-damaging insect
infestations;
(3) the hemlock woolly adelgid is--
(A) destroying streamside forests throughout the mid-
Atlantic and Appalachian regions;
(B) threatening water quality and sensitive aquatic
species; and
(C) posing a potential threat to valuable commercial timber
land in northern New England;
(4)(A) the emerald ash borer is a nonnative, invasive pest
that has quickly become a major threat to hardwood forests
because an emerald ash borer infestation is almost always
fatal to affected trees; and
(B) the emerald ash borer pest threatens to destroy more
than 692,000,000 ash trees in forests in Michigan and Ohio
alone, and between 5 and 10 percent of urban street trees in
the Upper Midwest;
(5)(A) epidemic populations of Southern pine beetles are
ravaging forests in Alabama, Arkansas, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina,
Tennessee, and Virginia; and
(B) in 2001, Florida and Kentucky experienced 146 percent
and 111 percent increases, respectively, in Southern pine
beetle populations;
(6) those epidemic outbreaks of Southern pine beetles have
forced private landowners to harvest dead and dying trees, in
rural areas and increasingly urbanized settings;
(7) according to the Forest Service, recent outbreaks of
the red oak borer in Arkansas and Missouri have been
unprecedented, with more than 1,000,000 acres infested at
population levels never seen before;
(8) much of the damage from the red oak borer has taken
place in national forests, and the Federal response has been
inadequate to protect forest ecosystems and other ecological
and economic resources;
(9)(A) previous silvicultural assessments, while useful and
informative, have been limited in scale and scope of
application; and
(B) there have not been sufficient resources available to
adequately test a full array of individual and combined
applied silvicultural assessments;
(10) only through the full funding, development, and
assessment of potential applied silvicultural assessments
over specific time frames across an array of environmental
and climatic conditions can the most innovative and cost
effective management applications be determined that will
help reduce the susceptibility of forest ecosystems to attack
by forest pests;
(11)(A) often, there are significant interactions between
insects and diseases;
(B) many diseases (such as white pine blister rust, beech
bark disease, and many other diseases) can weaken trees and
forest stands and predispose trees and forest stands to
insect attack; and
(C) certain diseases are spread using insects as vectors
(including Dutch elm disease and pine pitch canker); and
(12) funding and implementation of an initiative to combat
forest pest infestations and associated diseases should not
come at the expense of supporting other programs and
initiatives of the Secretary.
(b) Purposes.--The purposes of this title are--
(1) to require the Secretary to develop an accelerated
basic and applied assessment program to combat infestations
by forest-damaging insects and associated diseases;
(2) to enlist the assistance of colleges and universities
(including forestry schools, land grant colleges and
universities, and 1890 Institutions), State agencies, and
private landowners to carry out the program; and
(3) to carry out applied silvicultural assessments.

SEC. 402. DEFINITIONS.

In this title:
(1) Applied silvicultural assessment.--
(A) In general.--The term ``applied silvicultural
assessment'' means any vegetative or other treatment carried
out for a purpose described in section 403.
(B) Inclusions.--The term ``applied silvicultural
assessment'' includes (but is not limited to) timber
harvesting, thinning, prescribed burning, pruning, and any
combination of those activities.
(2) 1890 institution.--
(A) In general.--The term ``1890 Institution'' means a
college or university that is eligible to receive funds under
the Act of August 30, 1890 (7 U.S.C. 321 et seq.).
(B) Inclusion.--The term ``1890 Institution'' includes
Tuskegee University.
(3) Forest-damaging insect.--The term ``forest-damaging
insect'' means--
(A) a Southern pine beetle;
(B) a mountain pine beetle;
(C) a spruce bark beetle;
(D) a gypsy moth;
(E) a hemlock woolly adelgid;
(F) an emerald ash borer;
(G) a red oak borer;
(H) a white oak borer; and
(I) such other insects as may be identified by the
Secretary.
(4) Secretary.--The term ``Secretary'' means--
(A) the Secretary of Agriculture, acting through the Forest
Service, with respect to National Forest System land; and
(B) the Secretary of the Interior, acting through
appropriate offices of the United States Geological Survey,
with respect to federally owned land administered by the
Secretary of the Interior.

SEC. 403. ACCELERATED INFORMATION GATHERING REGARDING FOREST-
DAMAGING INSECTS.

(a) Information Gathering.--The Secretary, acting through
the Forest Service and United States Geological Survey, as
appropriate, shall establish an accelerated program--

[[Page S13934]]

(1) to plan, conduct, and promote comprehensive and
systematic information gathering on forest-damaging insects
and associated diseases, including an evaluation of--
(A) infestation, prevention, and suppression methods;
(B) effects of infestations and associated disease
interactions on forest ecosystems;
(C) restoration of forest ecosystem efforts;
(D) utilization options regarding infested trees; and
(E) models to predict the occurrence, distribution, and
impact of outbreaks of forest-damaging insects and associated
diseases;
(2) to assist land managers in the development of
treatments and strategies to improve forest health and reduce
the susceptibility of forest ecosystems to severe
infestations of forest-damaging insects and associated
diseases on Federal land and State and private land; and
(3) to disseminate the results of the information
gathering, treatments, and strategies.
(b) Cooperation and Assistance.--The Secretary shall--
(1) establish and carry out the program in cooperation
with--
(A) scientists from colleges and universities (including
forestry schools, land grant colleges and universities, and
1890 Institutions);
(B) Federal, State, and local agencies; and
(C) private and industrial landowners; and
(2) designate such colleges and universities to assist in
carrying out the program.

SEC. 404. APPLIED SILVICULTURAL ASSESSMENTS.

(a) Assessment Efforts.--For information gathering and
research purposes, the Secretary may conduct applied
silvicultural assessments on Federal land that the Secretary
determines is at risk of infestation by, or is infested with,
forest-damaging insects.
(b) Limitations.--
(1) Exclusion of certain areas.--Subsection (a) does not
apply to--
(A) a component of the National Wilderness Preservation
System;
(B) any Federal land on which, by Act of Congress or
Presidential proclamation, the removal of vegetation is
restricted or prohibited;
(C) a congressionally-designated wilderness study area; or
(D) an area in which activities under subsection (a) would
be inconsistent with the applicable land and resource
management plan.
(2) Certain treatment prohibited.--Nothing in subsection
(a) authorizes the application of insecticides in municipal
watersheds or associated riparian areas.
(3) Peer review.--
(A) In general.--Before being carried out, each applied
silvicultural assessment under this title shall be peer
reviewed by scientific experts selected by the Secretary,
which shall include non-Federal experts.
(B) Existing peer review processes.--The Secretary may use
existing peer review processes to the extent the processes
comply with subparagraph (A).
(c) Public Notice and Comment.--
(1) Public notice.--The Secretary shall provide notice of
each applied silvicultural assessment proposed to be carried
out under this section.
(2) Public comment.--The Secretary shall provide an
opportunity for public comment before carrying out an applied
silviculture assessment under this section.
(d) Categorical Exclusion.--
(1) In general.--Applied silvicultural assessment and
research treatments carried out under this section on not
more than 1,000 acres for an assessment or treatment may be
categorically excluded from documentation in an environmental
impact statement and environmental assessment under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
(2) Administration.--Applied silvicultural assessments and
research treatments categorically excluded under paragraph
(1)--
(A) shall not be carried out in an area that is adjacent to
another area that is categorically excluded under paragraph
(1) that is being treated with similar methods; and
(B) shall be subject to the extraordinary circumstances
procedures established by the Secretary pursuant to section
1508.4 of title 40, Code of Federal Regulations.
(3) Maximum categorical exclusion.--The total number of
acres categorically excluded under paragraph (1) shall not
exceed 250,000 acres.
(4) No additional findings required.--In accordance with
paragraph (1), the Secretary shall not be required to make
any findings as to whether an applied silvicultural
assessment project, either individually or cumulatively, has
a significant effect on the environment.

SEC. 405. RELATION TO OTHER LAWS.

The authority provided to each Secretary under this title
is supplemental to, and not in lieu of, any authority
provided to the Secretaries under any other law.

SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are
necessary to carry out this title for each of fiscal years
2004 through 2008.

TITLE V--HEALTHY FORESTS RESERVE PROGRAM

SEC. 501. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.

(a) Establishment.--The Secretary of Agriculture shall
establish the healthy forests reserve program for the purpose
of restoring and enhancing forest ecosystems--
(1) to promote the recovery of threatened and endangered
species;
(2) to improve biodiversity; and
(3) to enhance carbon sequestration.
(b) Coordination.--The Secretary of Agriculture shall carry
out the healthy forests reserve program in coordination with
the Secretary of the Interior and the Secretary of Commerce.

SEC. 502. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

(a) In General.--The Secretary of Agriculture, in
coordination with the Secretary of the Interior and the
Secretary of Commerce, shall describe and define forest
ecosystems that are eligible for enrollment in the healthy
forests reserve program.
(b) Eligibility.--To be eligible for enrollment in the
healthy forests reserve program, land shall be--
(1) private land the enrollment of which will restore,
enhance, or otherwise measurably increase the likelihood of
recovery of a species listed as endangered or threatened
under section 4 of the Endangered Species Act of 1973 (16
U.S.C. 1533); and
(2) private land the enrollment of which will restore,
enhance, or otherwise measurably improve the well-being of
species that--
(A) are not listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); but
(B) are candidates for such listing, State-listed species,
or special concern species.
(c) Other Considerations.--In enrolling land that satisfies
the criteria under subsection (b), the Secretary of
Agriculture shall give additional consideration to land the
enrollment of which will--
(1) improve biological diversity; and
(2) increase carbon sequestration.
(d) Enrollment by Willing Owners.--The Secretary of
Agriculture shall enroll land in the healthy forests reserve
program only with the consent of the owner of the land.
(e) Maximum Enrollment.--The total number of acres enrolled
in the healthy forests reserve program shall not exceed
2,000,000 acres.
(f) Methods of Enrollment.--
(1) In general.--Land may be enrolled in the healthy
forests reserve program in accordance with--
(A) a 10-year cost-share agreement;
(B) a 30-year agreement; or
(C) an agreement of not more than 99 years.
(2) Proportion.--The extent to which each enrollment method
is used shall be based on the approximate proportion of owner
interest expressed in that method in comparison to the other
methods.
(g) Enrollment Priority.--
(1) Species.--The Secretary of Agriculture shall give
priority to the enrollment of land that provides the greatest
conservation benefit to--
(A) primarily, species listed as endangered or threatened
under section 4 of the Endangered Species Act of 1973 (16
U.S.C. 1533); and
(B) secondarily, species that--
(i) are not listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); but
(ii) are candidates for such listing, State-listed species,
or special concern species.
(2) Cost-effectiveness.--The Secretary of Agriculture shall
also consider the cost-effectiveness of each agreement, and
associated restoration plans, so as to maximize the
environmental benefits per dollar expended.

SEC. 503. RESTORATION PLANS.

(a) In General.--Land enrolled in the healthy forests
reserve program shall be subject to a restoration plan, to be
developed jointly by the landowner and the Secretary of
Agriculture.
(b) Practices.--The restoration plan shall require such
restoration practices as are necessary to restore and enhance
habitat for--
(1) species listed as endangered or threatened under
section 4 of the Endangered Species Act of 1973 (16 U.S.C.
1533); and
(2) animal or plant species before the species reach
threatened or endangered status, such as candidate, State-
listed species, and special concern species.

SEC. 504. FINANCIAL ASSISTANCE.

(a) Agreements of Not More Than 99 Years.--In the case of
land enrolled in the healthy forests reserve program using an
agreement of not more than 99 years described in section
502(f)(1)(C), the Secretary of Agriculture shall pay the
owner of the land an amount equal to not less than 75
percent, nor more than 100 percent, of (as determined by the
Secretary)--
(1) the fair market value of the enrolled land during the
period the land is subject to the agreement, less the fair
market value of the land encumbered by the agreement; and
(2) the actual costs of the approved conservation practices
or the average cost of approved practices carried out on the
land during the period in which the land is subject to the
agreement.
(b) 30-Year Agreement.-- In the case of land enrolled in
the healthy forests reserve program using a 30-year
agreement, the Secretary of Agriculture shall pay the owner
of the land an amount equal to not more than (as determined
by the Secretary)--
(1) 75 percent of the fair market value of the land, less
the fair market value of the land encumbered by the
agreement; and
(2) 75 percent of the actual costs of the approved
conservation practices or 75 percent of the average cost of
approved practices.
(c) 10-Year Agreement.--In the case of land enrolled in the
healthy forests reserve

[[Page S13935]]

program using a 10-year cost-share agreement, the Secretary
of Agriculture shall pay the owner of the land an amount
equal to not more than (as determined by the Secretary)--
(1) 50 percent of the actual costs of the approved
conservation practices; or
(2) 50 percent of the average cost of approved practices.
(d) Acceptance of Contributions.--The Secretary of
Agriculture may accept and use contributions of non-Federal
funds to make payments under this section.

SEC. 505. TECHNICAL ASSISTANCE.

(a) In General.--The Secretary of Agriculture shall provide
landowners with technical assistance to assist the owners in
complying with the terms of plans (as included in agreements)
under the healthy forests reserve program.
(b) Technical Service Providers.--The Secretary of
Agriculture may request the services of, and enter into
cooperative agreements with, individuals or entities
certified as technical service providers under section 1242
of the Food Security Act of 1985 (16 U.S.C. 3842), to assist
the Secretary in providing technical assistance necessary to
develop and implement the healthy forests reserve program.

SEC. 506. PROTECTIONS AND MEASURES

(a) Protections.--In the case of a landowner that enrolls
land in the program and whose conservation activities result
in a net conservation benefit for listed, candidate, or other
species, the Secretary of Agriculture shall make available to
the landowner safe harbor or similar assurances and
protection under--
(1) section 7(b)(4) of the Endangered Species Act of 1973
(16 U.S.C. 1536(b)(4)); or
(2) section 10(a)(1) of that Act (16 U.S.C. 1539(a)(1)).
(b) Measures.--If protection under subsection (a) requires
the taking of measures that are in addition to the measures
covered by the applicable restoration plan agreed to under
section 503, the cost of the additional measures, as well as
the cost of any permit, shall be considered part of the
restoration plan for purposes of financial assistance under
section 504.

SEC. 507. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.

In carrying out this title, the Secretary of Agriculture
may consult with--
(1) nonindustrial private forest landowners;
(2) other Federal agencies;
(3) State fish and wildlife agencies;
(4) State forestry agencies;
(5) State environmental quality agencies;
(6) other State conservation agencies; and
(7) nonprofit conservation organizations.

SEC. 508. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this
title--
(1) $25,000,000 for fiscal year 2004; and
(2) such sums as are necessary for each of fiscal years
2005 through 2008.

TITLE VI--PUBLIC LAND CORPS

SEC. 601. PURPOSES.

The purposes of this title are--
(1) to carry out, in a cost-effective and efficient manner,
rehabilitation, enhancement, and beautification projects;
(2) to offer young people, ages 16 through 25, particularly
those who are at-risk or economically disadvantaged, the
opportunity to gain productive employment and exposure to the
world of work;
(3) to give those young people the opportunity to serve
their communities and their country; and
(4) to expand educational opportunities by rewarding
individuals who participate in the Public Land Corps with an
increased ability to pursue higher education or job training.

SEC. 602. DEFINITIONS.

In this title:
(1) Alaska native corporation.--The term ``Alaska Native
Corporation'' means a Regional Corporation or Village
Corporation, as defined in section 101(11) of the National
and Community Service Act of 1990 (42 U.S.C. 12511(11)).
(2) Corps.--The term ``Corps'' means the Public Land Corps
established under section 603(a).
(3) Hawaiian home lands.--The term ``Hawaiian home lands''
means that term, within the meaning of the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.).
(4) Indian lands.--The term ``Indian lands'' has the
meaning given the term in section 101 of the National and
Community Service Act of 1990 (42 U.S.C. 12511).
(5) Secretaries.--The term ``Secretaries'' means--
(A) the Secretary of Agriculture; and
(B) the Secretary of the Interior.
(6) Service and conservation corps.--The term ``service and
conservation corps'' means any organization established by a
State or local government, nonprofit organization, or Indian
tribe that--
(A) has a demonstrable capability to provide productive
work to individuals;
(B) gives participants a combination of work experience,
basic and life skills, education, training, and support
services; and
(C) provides participants with the opportunity to develop
citizenship values through service to their communities and
the United States.
(7) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana Islands;
(G) the Federated States of Micronesia;
(H) the Republic of the Marshall Islands;
(I) the Republic of Palau; and
(J) the United States Virgin Islands.

SEC. 603. PUBLIC LAND CORPS.

(a) Establishment.--There is established a Public Land
Corps.
(b) Participants.--The Corps shall consist of individuals
who are enrolled as members of a service or conservation
corps.
(c) Contracts or Agreements.--The Secretaries may enter
into contracts or cooperative agreements--
(1) directly with any service and conservation corps to
perform appropriate rehabilitation, enhancement, or
beautification projects; or
(2) with a department of natural resources, agriculture, or
forestry (or an equivalent department) of any State that has
entered into a contract or cooperative agreement with a
service and conservation corps to perform appropriate
rehabilitation, enhancement, or beautification projects.
(d) Projects.--
(1) In general.--The Secretaries may use the members of a
service and conservation corps to perform rehabilitation,
enhancement, or beautification projects authorized by law.
(2) Included land.--In addition to Federal and State lands,
the projects may be carried out on--
(A) Indian lands, with the approval of the applicable
Indian tribe;
(B) Hawaiian home lands, with the approval of the relevant
State agency in the State of Hawaii; and
(C) Alaska native lands, with the approval of the
applicable Alaska Native Corporation.
(e) Preference.--In carrying out this title, the
Secretaries shall give preference to projects that will--
(1) provide long-term benefits by reducing hazardous fuels
on Federal land;
(2) instill in members of the service and conservation
corps--
(A) a work ethic;
(B) a sense of personal responsibility; and
(C) a sense of public service;
(3) be labor intensive; and
(4) be planned and initiated promptly.
(f) Supportive Services.--The Secretaries may provide such
services as the Secretaries consider necessary to carry out
this title.
(g) Technical Assistance.--To carry out this title, the
Secretaries shall provide technical assistance, oversight,
monitoring, and evaluation to--
(1) State Departments of Natural Resources and Agriculture
(or equivalent agencies); and
(2) members of service and conservation corps.

SEC. 604. NONDISPLACEMENT.

The nondisplacement requirements of section 177(b) of the
National and Community Service Act of 1990 (42 U.S.C.
12637(b)) shall apply to activities carried out by the Corps
under this title.

SEC. 605. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this
title $15,000,000 for each of fiscal years 2004 through 2008.

TITLE VII--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

SEC. 701. PURPOSE

The purpose of this title is to assist in the economic
revitalization of rural forest resource-dependent communities
through incentives and collaboration to promote investment in
private enterprise and community development by--
(1) the Department of Agriculture;
(2) the Department of the Interior;
(3) the Department of Commerce;
(4) the Small Business Administration;
(5) land grant colleges and universities; and
(6) 1890 Institutions.

SEC. 702. DEFINITIONS.

In this title:
(1) 1890 institution.--The term ``1890 Institution'' has
the meaning given the term in section 2 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601).
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of State or local government;
(B) an Indian tribe;
(C) a nonprofit organization;
(D) a small forest products business;
(E) a rural forest resource-dependent community;
(F) a land grant college or university; or
(G) an 1890 institution.
(3) Eligible project.--The term ``eligible project'' means
a project described in section 703 that will promote the
economic development in rural forest resource-dependent
communities based on--
(A) responsible forest stewardship;
(B) the production of sustainable forest products; or
(C) the development of forest related tourism and
recreation activities.
(4) Forest products.--The term ``forest products'' means--
(A) logs;
(B) lumber;
(C) chips;
(D) small-diameter finished wood products;
(E) energy biomass;
(F) mulch; and
(G) any other material derived from forest vegetation or
individual trees or shrubs.
(5) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is--

[[Page S13936]]

(A) described in section 501(c) of the Internal Revenue
Code of 1986; and
(B) exempt from taxation under 501(a) of that Code.
(6) Program.--The term ``program'' means the rural
community forestry enterprise program established under
section 703.
(7) Small forest products business.--The term ``small
forest products business'' means a small business concern (as
defined under section 3 of the Small Business Act (15 U.S.C.
632)) that is classified under subsector 113 or code number
115310 of the North American Industrial Classification
System.
(8) Rural forest resource-dependent community.--
(A) In general.--The term ``rural forest resource-dependent
community'' means a community located in a rural area of the
United States that is traditionally dependent on forestry
products as a primary source of community infrastructure.
(B) Inclusions.--The term ``rural forest resource-dependent
community'' includes a community described in subparagraph
(A) located in--
(i) the northern forest land of Maine;
(ii) New Hampshire;
(iii) New York;
(iv) Vermont;
(v) the Upper Peninsula of Michigan;
(vi) northern California; and
(vii) eastern Oregon.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.

SEC. 703. RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM.

(a) In General.--
(1) Establishment.--The Secretary shall establish within
the Forest Service a program to be known as the ``Rural
Community Forestry Enterprise Program''.
(2) Consultation.--In carrying out the program, the
Secretary shall consult with--
(A) the Small Business Administration;
(B) the Economic Development Administration;
(C) land grant colleges and universities;
(D) 1890 institutions;
(E) research stations and laboratories of the Forest
Service;
(F) other agencies of the Department of Agriculture that
administer rural development programs; and
(G) private nonprofit organizations.
(b) Purposes.--The purposes of the program are--
(1) to enhance technical and business management skills
training;
(2) to organize cooperatives and marketing programs;
(3) to establish and maintain timber worker skill pools;
(4) to establish and maintain forest product distribution
networks and collection centers;
(5) to facilitate technology transfer for processing small
diameter trees and brush into useful products;
(6) to develop, where support exists, a program to promote
science-based technology implementation and technology
transfer that expands the capacity for small forest product
businesses to work within market areas;
(7) to promote forest-related tourism and recreational
activities;
(8) to enhance the rural forest business infrastructure
needed to reduce hazardous fuels on public and private land;
and
(9) to carry out related programs and activities, as
determined by the Secretary.
(c) Forest Enterprise Centers.--
(1) In general.--The Secretary shall establish Forest
Enterprise Centers to provide services to rural forest-
dependent communities.
(2) Location.--A Center shall be located within close
proximity of rural forest-dependent communities served by the
Center, with at least 1 center located in each of the States
of California, Idaho, Oregon, Montana, New Mexico, Vermont,
and Washington.
(3) Duties.--A Center shall--
(A) carry out eligible projects; and
(B) coordinate assistance provided to small forest products
businesses with--
(i) the Small Business Administration, including the timber
set-aside program carried out by the Small Business
Administration;
(ii) the Rural Utilities Service, the Rural Housing
Service, and the Rural Business-Cooperative Service of the
Department of Agriculture;
(iii) the Economic Development Administration, including
the local technical assistance program of the Economic
Development Administration; and
(iv) research stations and laboratories of the Forest
Service.
(d) Forest Enterprise Technical Assistance and Grant
Program.--
(1) In general.--The Secretary, acting through the Forest
Enterprise Centers established under subsection (c), shall
establish a program to provide technical assistance and
grants to eligible entities to carry out eligible projects.
(2) Criteria.--The Secretary shall work with each Forest
Enterprise Center to develop appropriate program review and
prioritization criteria for each Research Station.
(3) Matching funds.--Grants under this section shall--
(A) not exceed 50 percent of the cost of an eligible
project; and
(B) be made on the condition that non-Federal sources pay
for the remainder of the cost of an eligible project
(including payment through in-kind contributions of services
or materials).
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $15,000,000
for each of fiscal years 2004 through 2008.

TITLE VIII--FIREFIGHTERS MEDICAL MONITORING ACT

SEC. 801. SHORT TITLE.

This title shall be referred to as the ``Firefighters
Medical Monitoring Act of 2003''.

SEC. 802. MONITORING OF FIREFIGHTERS IN DISASTER AREAS.

(a) In General.--The National Institute for Occupational
Safety and Health shall monitor the long-term medical health
of those firefighters who fought fires in any area declared a
disaster area by the Federal Government.
(b) Health Monitoring.--The long-term health monitoring
referred to in subsection (a) shall include, but not be
limited to, pulmonary illness, neurological damage, and
cardiovascular damage, and shall utilize the medical
expertise in the local areas affected.
(c) Authorization.--To carry out this title, there are
authorized to be appropriated such sums as may be necessary
in each of fiscal years 2004 through 2008.

TITLE IX--DISASTER AIR QUALITY MONITORING ACT

SEC. 901. SHORT TITLE.

This title shall be referred to as the ``Disaster Air
Quality Monitoring Act of 2003''.

SEC. 902. MONITORING OF AIR QUALITY IN DISASTER AREAS.

(a) In General.--No later than six (6) months after the
enactment of this legislation, the Environmental Protection
Agency shall provide each of its regional offices a mobile
air pollution monitoring network to monitor the emissions of
hazardous air pollutants in areas declared a disaster as
referred to in subsection (b), and publish such information
on a daily basis on its web site and in other forums, until
such time as the Environmental Protection Agency has
determined that the danger has subsided.
(b) Disaster Areas.--The areas referred to in subsection
(a) are those areas declared a disaster area by the Federal
Government.
(c) Continuous Monitoring.--The monitoring referred to in
subsection (a) shall include the continuous and spontaneous
monitoring of hazardous air pollutants, as defined in Public
Law 95-95, section 112(b).
(d) Authorization.--To carry out this title, there are
authorized to be appropriated $8,000,000.

TITLE X--HIGHLANDS REGION CONSERVATION

SEC. 1001. SHORT TITLE.

This title may be cited as the ``Highlands Conservation
Act''.

SEC. 1002. FINDINGS.

Congress finds the following:
(1) The Highlands region is a physiographic province that
encompasses more than 2,000,000 acres extending from eastern
Pennsylvania through the States of New Jersey and New York to
northwestern Connecticut.
(2) The Highlands region is an environmentally unique area
that--
(A) provides clean drinking water to over 15,000,000 people
in metropolitan areas in the States of Connecticut, New
Jersey, New York, and Pennsylvania;
(B) provides critical wildlife habitat, including habitat
for 247 threatened and endangered species;
(C) maintains an important historic connection to early
Native American culture, colonial settlement, the American
Revolution, and the Civil War;
(D) contains recreational resources for 14 million visitors
annually;
(E) provides other significant ecological, natural,
tourism, recreational, educational, and economic benefits;
and
(F) provides homeownership opportunities and access to
affordable housing that is safe, clean, and healthy;
(3) An estimated 1 in 12 citizens of the United States live
within a 2-hour drive of the Highlands region.
(4) More than 1,400,000 residents live in the Highlands
region.
(5) The Highlands region forms a greenbelt adjacent to the
Philadelphia-New York City-Hartford urban corridor that
offers the opportunity to preserve water, forest and
agricultural resources, wildlife habitat, recreational areas,
and historic sites, while encouraging sustainable economic
growth and development in a fiscally and environmentally
sound manner.
(6) Continued population growth and land use patterns in
the Highlands region--
(A) reduce the availability and quality of water;
(B) reduce air quality;
(C) fragment the forests;
(D) destroy critical migration corridors and forest
habitat; and
(E) result in the loss of recreational opportunities and
scenic, historic, and cultural resources;
(7) The water, forest, wildlife, recreational,
agricultural, and cultural resources of the Highlands region,
in combination with the proximity of the Highlands region to
the largest metropolitan areas in the United States, make the
Highlands region nationally significant.
(8) The national significance of the Highlands region has
been documented in--
(A) the New York-New Jersey Highlands Regional Study
conducted by the Forest Service in 1990;

[[Page S13937]]

(B) the New York-New Jersey Highlands Regional Study: 2002
Update conducted by the Forest Service;
(C) the bi-State Skylands Greenway Task Force Report;
(D) the New Jersey State Development and Redevelopment
Plan;
(E) the New York State Open Space Conservation Plan;
(F) the Connecticut Green Plan: Open Space Acquisition FY
2001-2006;
(G) the open space plans of the State of Pennsylvania; and
(H) other open space conservation plans for States in the
Highlands region;
(9) The Highlands region includes or is adjacent to
numerous parcels of land owned by the Federal Government or
federally designated areas that protect, conserve, or restore
resources of the Highlands region, including--
(A) the Wallkill River National Wildlife Refuge;
(B) the Shawanagunk Grasslands Wildlife Refuge;
(C) the Morristown National Historical Park;
(D) the Delaware and Lehigh Canal Corridors;
(E) the Hudson River Valley National Heritage Area;
(F) the Delaware River Basin;
(G) the Delaware Water Gap National Recreation Area;
(H) the Upper Delaware Scenic and Recreational River;
(I) the Appalachian National Scenic Trail;
(J) the United States Military Academy at West Point, New
York;
(K) the Highlands National Millenium Trail;
(L) the Great Swamp National Wildlife Refuge;
(M) the proposed Crossroads of the Revolution National
Heritage Area;
(N) the proposed Musconetcong National Scenic and
Recreational River in New Jersey; and
(O) the Farmington River Wild and Scenic Area in
Connecticut;
(10) It is in the interest of the United States to protect,
conserve, and restore the resources of the Highlands region
for the residents of, and visitors to, the Highlands region.
(11) The States of Connecticut, New Jersey, New York, and
Pennsylvania, and units of local government in the Highlands
region have the primary responsibility for protecting,
conserving, preserving, restoring and promoting the resources
of the Highlands region.
(12) Because of the longstanding Federal practice of
assisting States in creating, protecting, conserving, and
restoring areas of significant natural and cultural
importance, and the national significance of the Highlands
region, the Federal Government should, in partnership with
the Highlands States and units of local government in the
Highlands region, protect, restore, and preserve the water,
forest, agricultural, wildlife, recreational and cultural
resources of the Highlands region.

SEC. 1003. PURPOSES.

The purposes of this title are as follows:
(1) To recognize the importance of the water, forest,
agricultural, wildlife, recreational and cultural resources
of the Highlands, and the national significance of the
Highlands region to the United States.
(2) To authorize the Secretary of Interior to work in
partnership with the Secretary of Agriculture to provide
financial assistance to the Highlands States to preserve and
protect high priority conservation lands in the Highlands
region.
(3) To continue the ongoing Forest Service programs in the
Highlands region to assist the Highlands States, local units
of government and private forest and farm landowners in the
conservation of lands and natural resources in the Highlands
region.

SEC. 1004. DEFINITIONS.

In this title:
(1) Highlands region.--The term ``Highlands region'' means
the physiographic province, defined by the Reading Prong and
ecologically similar adjacent upland areas, that encompasses
more than 2,000,000 acres extending from eastern Pennsylvania
through the States of New Jersey and New York to northwestern
Connecticut.
(2) Highlands state.--The term ``Highlands State'' means--
(A) the State of Connecticut;
(B) the State of New Jersey;
(C) the State of New York;
(D) the State of Pennsylvania; and
(E) any agency or department of any Highlands State.
(3) Land conservation partnership project.--The term ``land
conservation partnership project'' means a land conservation
project located within the Highlands region identified as
having high conservation value by the Forest Service in which
a non-Federal entity acquires land or an interest in land
from a willing seller for the purpose of permanently
protecting, conserving, or preserving the land through a
partnership with the Federal Government.
(4) Non-federal entity.--The term ``non-Federal entity''
means any Highlands State, or any agency or department of any
Highlands State with authority to own and manage land for
conservation purpose, including the Palisades Interstate Park
Commission.
(5) Study.--The term ``study'' means the New York-New
Jersey Highlands Regional Study conducted by the Forest
Service in 1990.
(6) Update.--The term ``update'' means the New York-New
Jersey Highlands Regional Study: 2002 Update conducted by the
Forest Service.

SEC. 1005. LAND CONSERVATION PARTNERSHIP PROJECTS IN THE
HIGHLANDS REGION.

(a) Submission of Proposed Projects.--Annually, the
Governors of the Highlands States, with input from pertinent
units of local government and the public, may jointly
identify land conservation partnership projects in the
Highlands region that shall be proposed for Federal financial
assistance and submit a list of those projects to the
Secretary of the Interior.
(b) Consideration of Projects.--The Secretary of the
Interior, in consultation with the Secretary of Agriculture,
shall annually submit to Congress a list of those land
conservation partnership projects submitted under subsection
(a) that are eligible to receive financial assistance under
this section.
(c) Eligibility Conditions.--To be eligible for financial
assistance under this section for a land conservation
partnership project, a non-Federal entity shall enter into an
agreement with the Secretary of the Interior that--
(1) identifies the non-Federal entity that shall own or
hold and manage the land or interest in land;
(2) identifies the source of funds to provide the non-
Federal share required under subsection (d);
(3) describes the management objectives for the land that
will assure permanent protection and use of the land for the
purpose for which the assistance will be provided;
(4) provides that, if the non-Federal entity converts,
uses, or disposes of the land conservation partnership
project for a purpose inconsistent with the purpose for which
the assistance was provided, as determined by the Secretary
of the Interior, the United States may seek specific
performance of the conditions of financial assistance in
accordance with paragraph (3) in Federal court and shall be
entitled to reimbursement from the non-Federal entity in an
amount that is, as determined at the time of conversion, use,
or disposal, the greater of--
(A) the total amount of the financial assistance provided
for the project by the Federal Government under this section;
or
(B) the amount by which the financial assistance increased
the value of the land or interest in land; and
(5) provides that land conservation partnership projects
will be consistent with areas identified as having high
conservation value in the following:
(A) Important Areas portion of the Forest Service study.
(B) Conservation Focal Areas portion of the Forest Service
update.
(C) Conservation Priorities portion of the update.
(D) Lands identified as having higher or highest resource
value in the Conservation Values Assessment portion of the
update.
(d) Non-Federal Share Requirement.--The Federal share of
the cost of carrying out a land conservation partnership
project under this section shall not exceed 50 percent of the
total cost of the land conservation partnership project.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of the Interior from the
general funds of the Treasury or the Land and Water
Conservation Fund to carry out this section $10,000,000 for
each of the fiscal years 2005 through 2014. Amounts
appropriated pursuant to this authorization of appropriations
shall remain available until expended.

SEC. 1006. FOREST SERVICE AND USDA PROGRAMS IN THE HIGHLANDS
REGION.

(a) In General.--In order to meet the land resource goals
of, and the scientific and conservation challenges identified
in, the study, update, and any future study that the Forest
Service may undertake in the Highlands region, the Secretary
of Agriculture, acting through the Chief of the Forest
Service and in consultation with the Chief of the Natural
Resource Conservation Service, shall continue to assist the
Highlands States, local units of government, and private
forest and farm landowners in the conservation of lands and
natural resources in the Highlands region.
(b) Duties.--The Forest Service shall--
(1) in consultation with the Highlands States, undertake
other studies and research as appropriate in the Highlands
region consistent with the purposes of this title;
(2) communicate the findings of the study and update and
maintain a public dialogue regarding implementation of the
study and update; and
(3) assist the Highland States, local units of government,
individual landowners, and private organizations in
identifying and using Forest Service and other technical and
financial assistance programs of the Department of
Agriculture.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Agriculture to carry
out this section $1,000,000 for each of the fiscal years 2005
through 2014.

SEC. 1007. PRIVATE PROPERTY PROTECTION AND LACK OF REGULATORY
EFFECT.

(a) Access to Private Property.--Nothing in this title
shall be construed to--
(1) require any private property owner to permit public
access (including Federal, State, or local government access)
to such private property; and

[[Page S13938]]

(2) modify any provision of Federal, State, or local law
with regard to public access to or use of private lands.
(b) Liability.--Nothing in this title shall be construed to
create any liability, or to have any effect on any liability
under any other law, of any private property owner with
respect to any persons injured on such private property.
(c) Recognition of Authority to Control Land Use.--Nothing
in this title shall be construed to modify any authority of
Federal, State, or local governments to regulate land use.
(d) Participation of Private Property Owners.--Nothing in
this title shall be construed to require the owner of any
private property located in the Highlands region to
participate in the land conservation, financial, or technical
assistance or any other programs established under this
title.
(e) Purchase of Lands or Interests in Lands From Willing
Sellers Only.--Funds appropriated to carry out this title
shall be used to purchase lands or interests in lands only
from willing sellers.

TITLE XI--MISCELLANEOUS PROVISIONS

SEC. 1101. FOREST INVENTORY AND MANAGEMENT.

Section 17 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2101 note; Public Law 95313) is amended to
read as follows:

``SEC. 17. FOREST INVENTORY AND MANAGEMENT.

``(a) In General.--The Secretary shall carry out a program
using geospatial and information management technologies
(including remote sensing imaging and decision support
systems) to inventory, monitor, characterize, assess, and
identify forest stands and potential forest stands on--
``(1) units of the National Forest System; and
``(2) private forest land, with the consent of the owner of
the land.
``(b) Means.--The Secretary shall carry out the program
through the use of--
``(1) remote sensing technology of the National Aeronautics
and Space Administration and the United States Geological
Survey;
``(2) emerging geospatial capabilities in research
activities;
``(3) validating techniques, including coordination and
reconciliation with existing data through field verification,
using application demonstrations; and
``(4) integration of results into pilot operational
systems.
``(c) Issues To Be Addressed.--In carrying out the program,
the Secretary shall address issues including--
``(1) early detection, identification, and assessment of
environmental threats (including insect, disease, invasive
species, fire, acid deposition, and weather-related risks and
other episodic events);
``(2) loss or degradation of forests;
``(3) degradation of the quality forest stands caused by
inadequate forest regeneration practices;
``(4) quantification of carbon uptake rates;
``(5) management practices that focus on preventing further
forest degradation; and
``(6) characterization of vegetation types, density, fire
regimes, post-fire effects, and condition class.
``(d) Early Warning System.--In carrying out the program,
the Secretary shall develop a comprehensive early warning
system for potential catastrophic environmental threats to
forests to increase the likelihood that forest managers will
be able to--
``(1) isolate and treat a threat before the threat gets out
of control; and
``(2) prevent epidemics, such as the American chestnut
blight in the first half of the twentieth century, that could
be environmentally and economically devastating to forests.
``(e) Administration.--To carry out this section, the
Secretary shall--
``(1) designate a facility within Forest Service Region 8
that--
``(A) is best-suited to take advantage of existing
resources to coordinate and carry out the program through the
means described in subsection (b); and
``(B) will address the issues described in subsection (c),
with a particular emphasis on hardwood forest stands in the
Eastern United States; and
``(2) designate a facility in the Ochoco National Forest
headquarters within Forest Service Region 6 that will address
the issues described in subsection (c), with a particular
emphasis on coniferous forest stands in the Western United
States.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.

SEC. 1102. PROGRAM FOR EMERGENCY TREATMENT AND REDUCTION OF
NONNATIVE INVASIVE PLANTS.

(a) Definitions.--In this section:
(1) Interface community.--The term ``interface community''
has the meaning given the term in the notice published at 66
Fed. Reg. 751 (January 4, 2001) (including any subsequent
revision to the notice).
(2) Intermix community.--The term ``intermix community''
has the meaning given the term in the notice published at 66
Fed. Reg. 751 (January 4, 2001) (including any subsequent
revision to the notice).
(3) Plant.--The term ``plant'' includes--
(A) a tree;
(B) a shrub; and
(C) a vine.
(4) Program.--The term ``program'' means the program for
emergency treatment and reduction of nonnative invasive
plants established under subsection (b)(1).
(5) Secretaries.--The term ``Secretaries'' means the
Secretary of Agriculture and the Secretary of the Interior,
acting jointly.
(b) Establishment.--
(1) In general.--The Secretaries shall establish a program
for emergency treatment and reduction of nonnative invasive
plants to provide to State and local governments and
agencies, conservation districts, tribal governments, and
willing private landowners grants for use in carrying out
hazardous fuel reduction projects to address threats of
catastrophic fires that have been determined by the
Secretaries to pose a serious threat to--
(A) property;
(B) human life; or
(C) the ecological stability of an area.
(2) Coordination.--In carrying out the program, the
Secretaries shall coordinate with such Federal agencies,
State and local governments and agencies, and conservation
districts as are affected by projects under the program.
(c) Eligible Land.--A project under the program shall--
(1) be carried out only on land that is located--
(A) in an interface community or intermix community; or
(B) in such proximity to an interface community or intermix
community as would pose a significant risk in the event of
the spread of a fire disturbance event from the land
(including a risk that would threaten human life or property
in proximity to or within the interface community or intermix
community), as determined by the Secretaries;
(2) remove fuel loads determined by the Secretaries, a
State or local government, a tribal government, or a private
landowner to pose a serious threat to--
(A) property;
(B) human life; or
(C) the ecological stability of an area; and
(3) involve the removal of nonnative invasive plants.
(d) Use of Funds.--Funds made available for a project under
the program shall be used only for--
(1) the removal of plants or other potential fuels that
are--
(A) adjacent to or within the wildland urban interface; or
(B) adjacent to a municipal watershed, river, or water
course;
(2) the removal of erosion structures that impede the
removal of nonnative plants; or
(3) the replanting of native vegetation to reduce the
reestablishment of nonnative invasive plants in a treatment
area.
(e) Revolving Fund.--
(1) In general.--In the case of a grant provided to a
willing owner to carry out a project on non-Federal land
under this section, the owner shall deposit into a revolving
fund established by the Secretaries any proceeds derived from
the sale of timber or biomass removed from the non-Federal
land under the project.
(2) Use.--The Secretaries shall use amounts in the
revolving fund to make additional grants under this section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, to remain available until expended.

SEC. 1103. USDA NATIONAL AGROFORESTRY CENTER.

(a) In General.--Section 1243 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note;
Public Law 101-624) is amended--
(1) by striking the section heading and inserting the
following:

``SEC. 1243. USDA NATIONAL AGROFORESTRY CENTER.'';

and
(2) in subsection (a)--
(A) by striking ``Semiarid'' and inserting ``USDA
National''; and
(B) by striking ``Semiarid'' and inserting ``USDA
National''.
(b) Program.--Section 1243(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C. 1642 note;
Public Law 101-624) is amended--
(1) by inserting ``local governments, community
organizations, the Institute of Tropical Forestry and the
Institute of Pacific Islands Forestry of the Forest
Service,'' after ``entities,'';
(2) in paragraph (1), by striking ``on semiarid lands'';
(3) in paragraph (3), by striking ``from semiarid land'';
(4) by striking paragraph (4) and inserting the following:
``(4) collect information on the design, installation, and
function of forested riparian and upland buffers to--
``(A) protect water quality; and
``(B) manage water flow;'';
(5) in paragraphs (6) and (7), by striking ``on semiarid
lands'' each place it appears;
(6) by striking paragraph (8) and inserting the following:
``(8) provide international leadership in the worldwide
development and exchange of agroforestry practices;'';
(7) in paragraph (9), by striking ``on semiarid lands'';
(8) in paragraph (10), by striking ``and'' at the end;
(9) in paragraph (11), by striking the period at the end
and inserting a semicolon; and
(10) by adding at the end the following:

[[Page S13939]]

``(12) quantify the carbon storage potential of
agroforestry practices such as--
``(A) windbreaks;
``(B) forested riparian buffers;
``(C) silvopasture timber and grazing systems; and
``(D) alley cropping; and
``(13) modify and adapt riparian forest buffer technology
used on agricultural land for use by communities to manage
stormwater runoff.''.

SEC. 1104. UPLAND HARDWOODS RESEARCH CENTER.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall
establish an Upland Hardwood Research Center.
(b) Location.--The Secretary of Agriculture shall locate
the Research Center in an area that, as determined by the
Secretary of Agriculture, would best use and study the upland
hardwood resources of the Ozark Mountains and the South.
(c) Duties.--The Upland Hardwood Research Center shall, in
conjunction with the Southern Forest Research Station of the
Department of Agriculture--
(1) provide the scientific basis for sustainable management
of southern upland hardwood forests, particularly in the
Ozark Mountains and associated mountain and upland forests;
and
(2) conduct research in all areas to emphasize practical
application toward the use and preservation of upland
hardwood forests, particularly--
(A) the effects of pests and pathogens on upland hardwoods;
(B) hardwood stand regeneration and reproductive biology;
(C) upland hardwood stand management and forest health;
(D) threatened, endangered, and sensitive aquatic and
terrestrial fauna;
(E) ecological processes and hardwood ecosystem
restoration; and
(F) education and outreach to nonindustrial private forest
landowners and associations.
(d) Research.--In carrying out the duties under subsection
(c), the Upland Hardwood Research Center shall--
(1) cooperate with the Center for Bottomland Hardwood
Research of the Southern Forest Research Station of the
Department of Agriculture, located in Stoneville,
Mississippi; and
(2) provide comprehensive research in the Mid-South region
of the United States, the Upland Forests Ecosystems Unit of
the Southern Forest Research Station of the Department of
Agriculture, located in Monticello, Arkansas.
(e) Participation of Private Landowners.--The Secretary of
Agriculture shall encourage and facilitate the participation
of private landowners in the program under this section.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,500,000 for
each fiscal year.

SEC. 1105. EMERGENCY FUEL REDUCTION GRANTS.

(a) In General.--The Secretary of Agriculture shall
establish an emergency fuel reduction grant program under
which the Secretary shall provide grants to State and local
agencies to carry out hazardous fuel reduction projects
addressing threats of catastrophic fire that pose a serious
threat to human life, as determined by the Forest Service.
(b) Eligible Projects.--To be eligible to be carried out
with a grant under the program, a hazardous fuel reduction
project shall--
(1) be surrounded by or immediately adjacent to the
boundary of a national forest;
(2) be determined to be of paramount urgency, as indicated
by declarations to that effect by both local officials and
the Governor of the State in which in the project is to be
carried out; and
(3) remove fuel loading that poses a serious threat to
human life, as determined by the Forest Service.
(c) Uses of Grants.--A grant under the program may be used
only--
(1) to remove trees, shrubs, or other potential fuel
adjacent to a primary evacuation route;
(2) to remove trees, shrubs, or other potential fuel that
are adjacent to an emergency response center, emergency
communication facility, or site designated as a shelter-in-
place facility; or
(3) to conduct an evacuation drill or preparation.
(d) Revolving Fund.--
(1) In general.--In the case of a grant under the program
that is used to carry out a project on private or county
land, the grant recipient shall deposit in a revolving fund
maintained by the Secretary any proceeds from the sale of
timber or biomass as a result of the project.
(2) Use.--The Secretary shall use amounts in the revolving
fund to make other grants under this section, without further
appropriation.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Agriculture to carry
out this section $50,000,000 for each fiscal year.

SEC. 1106. EASTERN NEVADA LANDSCAPE COALITION.

(a) In General.--(1) The Secretary of Agriculture and the
Secretary of the Interior are authorized to make grants to
the Eastern Nevada Landscape Coalition for the study and
restoration of rangeland and other lands in Nevada's Great
Basin in order to help assure the reduction of hazardous
fuels and for related purposes.
(2) Notwithstanding sections 6301 through 6308 of title 31,
United States Code, the Director of the Bureau of Land
Management shall enter into a cooperative agreement with the
Eastern Nevada Landscape Coalition for the Great Basin
Restoration Project, including hazardous fuels and mechanical
treatments and related work.
(b) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

SEC. 1107. SENSE OF CONGRESS REGARDING ENHANCED COMMUNITY
FIRE PROTECTION.

It is the sense of Congress to reaffirm the importance of
enhanced community fire protection program, as described in
section 10A of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2106c) (as added by section 8003(b) of the
Farm Security and Rural Investment Act of 2002 (Public Law
107-171; 116 Stat. 473)).

SEC. 1108. COLLABORATIVE MONITORING.

(a) In General.--The Secretaries shall establish a
collaborative monitoring, evaluation, and accountability
process in order to assess the positive or negative
ecological and social effects of a representative sampling of
projects implemented pursuant to title I and section 404 of
this Act. The Secretaries shall include diverse stakeholders,
including interested citizens and Indian tribes, in the
monitoring and evaluation process.
(b) Means.--The Secretaries may collect monitoring data
using cooperative agreements, grants or contracts with small
or micro-businesses, cooperatives, nonprofit organizations,
Youth Conservation Corps work crews or related partnerships
with State, local, and other non-Federal conservation corps.
(c) Funds.--Funds to implement this section shall be
derived from hazardous fuels operations funds.

SEC. 1109. BEST-VALUE CONTRACTING.

To conduct a project under this division, the Secretaries
may use best value contracting criteria in awarding contracts
and agreements. Best-value contracting criteria includes--
(1) the ability of the contractor to meet the ecological
goals of the projects;
(2) the use of equipment that will minimize or eliminate
impacts on soils; and
(3) benefits to local communities such as ensuring that the
byproducts are processed locally.

SEC. 1110. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE
PROGRAM; FOREST LEGACY PROGRAM.

(a) Suburban and Community Forestry and Open Space
Program.--The Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101 et seq.) is amended by adding at the end the
following:

``SEC. 21. SUBURBAN AND COMMUNITY FORESTRY AND OPEN SPACE
PROGRAM.

``(a) Definitions.--In this section:
``(1) Committee.--The term `Committee' means a State Forest
Stewardship Coordinating Committee established under section
19(b).
``(2) Eligible entity.--The term `eligible entity' means a
unit of local government or a nonprofit organization that--
``(A) the Secretary determines, in accordance with the
criteria established under subsection (c)(1)(A)(ii)(II) is
eligible to receive a grant under subsection (c)(2); and
``(B) the State forester, in consultation with the
Committee, determines--
``(i) has the abilities necessary to acquire and manage
interests in real property; and
``(ii) has the resources necessary to monitor and enforce
any terms applicable to the eligible project.
``(3) Eligible project.--The term `eligible project' means
a fee purchase, easement, or donation of land to conserve
private forest land identified for conservation under
subsection (c)(1)(A)(ii)(I).
``(4) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(5) Nonprofit organization.--The term `nonprofit
organization' means any organization that is--
``(A) described in section 501(c) of the Internal Revenue
Code of 1986; and
``(B) exempt from taxation under 501(a) of the Internal
Revenue Code of 1986.
``(6) Private forest land.--The term `private forest land'
means land that is--
``(A) capable of producing commercial forest products; and
``(B) owned by--
``(i) a private entity; or
``(ii) an Indian tribe.
``(7) Program.--The term `program' means the Suburban and
Community Forestry and Open Space Program established by
subsection (b).
``(8) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.
``(b) Establishment.--
``(1) In general.--There is established within the Forest
Service a program to be known as the `Suburban and Community
Forestry and Open Space Program'.
``(2) Purpose.--The purpose of the program is to provide
assistance to eligible entities to carry out eligible
projects in States in which less than 25 percent of the land
is owned by the United States to--

[[Page S13940]]

``(A) conserve private forest land and maintain working
forests in areas threatened by significant suburban sprawl or
by conversion to nonforest uses; and
``(B) provide communities a means by which to address
significant suburban sprawl.
``(c) Grant Program.--
``(1) Identification of eligible private forest land.--
``(A) Criteria.--
``(i) National criteria.--The Secretary shall establish
national eligibility criteria for the identification of
private forest land that may be conserved under this section.
``(ii) State criteria.--The State forester, in consultation
with the Committee, shall, based on the criteria established
under clause (i), and subject to the approval of the
Secretary, establish criteria for--

``(I) the identification, subject to subparagraph (B), of
private forest land in each State that may be conserved under
this section; and
``(II) the identification of eligible entities.

``(B) Conditions for eligible private forest land.--Private
forest land identified for conservation under subparagraph
(A)(ii)(I) shall be land that--
``(i) is located in a State in which less than 25 percent
of the land is owned by the United States; and
``(ii) as determined by the State forester, in consultation
with the Committee and subject to the approval of the
Secretary--

``(I) is located in an area that is affected, or threatened
to be affected, by significant suburban sprawl, taking into
account housing needs in the area; and
``(II) is threatened by present or future conversion to
nonforest use.

``(2) Grants.--
``(A) Eligible projects.--
``(i) In general.--In carrying out this section, the
Secretary shall award competitive grants to eligible entities
to carry out eligible projects.
``(ii) Public access.--Eligible entities are encouraged to
provide public access to land on which an eligible project is
carried out.
``(B) Application; stewardship plan.--An eligible entity
that seeks to receive a grant under this section shall submit
to the State forester--
``(i) at such time and in such form as the Secretary shall
prescribe, an application for the grant (including a
description of any private forest land to be conserved using
funds from the grant and a description of the extent of the
threat of conversion to nonforest use); and
``(ii) a stewardship plan that describes the manner in
which--

``(I) any private forest land to be conserved using funds
from the grant will be managed in accordance with this
section;
``(II) the stewardship plan will be implemented; and
``(III) the public benefits to be achieved from
implementation of the stewardship plan.

``(C) Assessment of need.--With respect to an application
submitted under subparagraph (B), the State forester shall--
``(i) assess the need for preserving suburban forest land
and open space and containing suburban sprawl in the State,
taking into account the housing needs of the area in which
the eligible project is to be carried out; and
``(ii) submit to the Secretary--

``(I) the application submitted under subparagraph (B); and
``(II) the assessment of need.

``(D) Approval or disapproval.--
``(i) In general.--Subject to clause (ii), as soon as
practicable after the date on which the Secretary receives an
application under subparagraph (C)(ii) or a resubmission
under subclause (II)(bb)(BB), the Secretary shall--

``(I) review the application; and
``(II)(aa) award a grant to the applicant; or
``(bb)(AA) disapprove the application; and
``(BB) provide the applicant a statement that describes the
reasons why the application was disapproved (including a
deadline by which the applicant may resubmit the
application).

``(ii) Considerations; priority.--In awarding grants under
this section, the Secretary shall--

``(I) consider the need for the eligible project based on
the assessment of need submitted under subparagraph (C) and
subject to any criteria under paragraph (1); and
``(II) give priority to applicants that propose to fund
eligible projects that promote--

``(aa) the preservation of suburban forest land and open
space;
``(bb) the containment of suburban sprawl;
``(cc) the sustainable management of private forest land;
``(dd) community involvement in determining the objectives
for eligible projects that are funded under this section; and
``(ee) community and school education programs and
curricula relating to sustainable forestry.
``(3) Cost sharing.--
``(A) In general.--The amount of a grant awarded under this
section to carry out an eligible project shall not exceed 50
percent of the total cost of the eligible project.
``(B) Assurances.--As a condition of receipt of a grant
under this section, an eligible entity shall provide to the
Secretary such assurances as the Secretary determines are
sufficient to demonstrate that the share of the cost of each
eligible project that is not funded by the grant awarded
under this section has been secured.
``(C) Form.--The share of the cost of carrying out any
eligible project described in subparagraph (A) that is not
funded by a grant awarded under this section may be provided
in cash or in kind (including a donation of land).
``(d) Use of Grant Funds for Purchases of Land or
Easements.--
``(1) Purchases.--
``(A) In general.--Except as provided in subparagraph (B),
funds made available, and grants awarded, under this section
may be used to purchase private forest land or interests in
private forest land (including conservation easements) only
from willing sellers at fair market value.
``(B) Sales at less than fair market value.--A sale of
private forest land or an interest in private forest land at
less than fair market value shall be permitted only on
certification by the landowner that the sale is being entered
into willingly and without coercion.
``(2) Title.--Title to private forest land or an interest
in private forest land purchased under paragraph (1) may be
held, as determined appropriate by the Secretary, by--
``(A) a State;
``(B) a unit of local government; or
``(C) a nonprofit organization.
``(3) Termination of easement.--
``(A) In general.--Except as provided in subparagraph (B),
all right, title, and interest of a unit of local government
or nonprofit organization in and to a conservation easement
shall terminate and vest in the State if the State determines
that--
``(i) the unit of local government or nonprofit
organization is unable or unwilling to enforce the terms of
the conservation easement; or
``(ii) the conservation easement has been modified in a way
that is inconsistent with the purposes of the program.
``(B) Conveyance to another unit of local government or
nonprofit organization.--If the State makes a determination
under subparagraph (A), the State may convey or authorize the
unit of local government or nonprofit organization to convey
the conservation easement to another unit of local government
or nonprofit organization.
``(e) Administrative Costs.--The State, on approval of the
Secretary and subject to any regulations promulgated by the
Secretary, may use amounts made available under subsection
(g) to pay the administrative costs of the State relating to
the program.
``(f) Report.--The Secretary shall submit to Congress a
report on the eligible projects carried out under this
section in accordance with section 8(c) of the Forest and
Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C.
1606(c)).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) $50,000,000 for fiscal year 2004; and
``(2) such sums as are necessary for each fiscal year
thereafter.''.
(b) Forest Legacy Program.--Section 7 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103c) is
amended--
(1) in subsection (c), by striking the last sentence;
(2) in subsection (i), by striking ``subsection (b)'' and
inserting ``this section'';
(3) in subsection (j)(1), by inserting ``(other than by
donation)'' after ``acquired'';
(4) in subsection (k)(2), by striking ``the United States
or its'' and inserting ``the United States, a State, or other
entity, or their''; and
(5) in subsection (l), by adding at the end the following:
``(3) State authorization.--
``(A) Definition of state forester.--The term `State
forester' has the meaning given the term in section 4(k).
``(B) In general.--Notwithstanding subsection (c) and
paragraph (2)(B), the Secretary shall, on request by a State,
authorize the State to allow a qualified organization (as
defined in section 170(h)(3) of the Internal Revenue Code of
1986) and that is organized for at least 1 of the purposes
described in section 170(h)(4)(A) of that Code, using amounts
granted to a State under this paragraph, to acquire 1 or more
conservation easements to carry out the Forest Legacy Program
in the State.
``(C) Eligibility.--To be eligible to acquire and manage
conservation easements under this paragraph, a qualified
organization described in subparagraph (B) shall, as
determined by the Secretary, acting through the State
forester, demonstrate the abilities necessary to acquire,
monitor, and enforce interests in forest land consistent with
the Forest Legacy Program and the assessment of need for the
State.
``(D) Monitoring and enforcement.--
``(i) In general.--A qualified organization that acquires a
conservation easement under this paragraph shall be
responsible for monitoring and enforcing the terms of the
conservation easement and any of the costs of the qualified
organization associated with such monitoring and enforcement.
``(ii) Contingent rights.--If a qualified organization that
acquires a conservation easement under this paragraph fails
to enforce the terms of the conservation easement, as
determined by the State, the State or the Secretary shall
have the right to enforce the terms of the conservation
easement under Federal or State law.
``(iii) Amendments.--Any amendments to a conservation
easement that materially affect the terms of the conservation
easement shall be subject to approval by the Secretary or the
State, as appropriate.

[[Page S13941]]

``(E) Termination of easement.--
``(i) In general.--Except as provided in clause (ii), all
right, title, and interest of a qualified organization
described in subparagraph (B) in and to a conservation
easement shall terminate and vest in the State or a qualified
designee if the State determines that--

``(I) the qualified organization fails to enforce the terms
of the conservation easement;
``(II) the conservation easement has been modified in a way
that is inconsistent with the purposes of the Forest Legacy
Program or the assessment of need for the State; or
``(III) the conservation easement has been conveyed to
another person (other than to a qualified organization).

``(ii) Conveyance to another qualified organization.--If
the State makes a determination under clause (i), the State
may convey or authorize the qualified organization to convey
the conservation easement to another qualified organization.
``(F) Implementation.--The Secretary, acting through the
State forester, shall implement this paragraph in accordance
with the assessment of need for the State as approved by the
Secretary.''.

SEC. 1111. WILDLAND FIREFIGHTER SAFETY.

(a) Definition of Secretary.--In this section, the term
``Secretary'' means--
(1) the Secretary of Agriculture, with respect to land of
the National Forest System described in section 3(1)(A); and
(2) the Secretary of the Interior, with respect to public
lands described in section 3(1)(B).
(b) Firefighter Safety and Training Budget.--The Secretary
shall--
(1) track funds expended for firefighter safety and
training programs and activities; and
(2) include a line item for such expenditures in each
budget request submitted after the date of enactment of this
Act.
(c) Annual Report to Congress.--The Secretaries shall, on
an annual basis, jointly submit to Congress a report on the
implementation and efficacy of wildland firefighter safety
and training programs and activities.--
(d) Safety Qualification of Private Contractors.--
(1) In general.--The Secretaries shall ensure that any
Federal contract or agreement entered into with a private
entity for wildland firefighting services requires the entity
to provide firefighter training that is consistent with
qualification standards established by the National Wildfire
Coordinating Group.
(2) Compliance.--The Secretaries shall develop a program to
monitor and enforce compliance with the requirements of
paragraph (1).

SEC. 1112. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY
ADJUSTMENT.

(a) In General.--The boundaries of the Green Mountain
National Forest are modified to include all parcels of land
depicted on the forest maps entitled ``Green Mountain
Expansion Area Map I'' and ``Green Mountain Expansion Area
Map II'', each dated February 20, 2002, which shall be on
file and available for public inspection in the Office of the
Chief of the Forest Service, Washington, District of
Columbia.
(b) Management.--Federally owned land delineated on the
maps acquired for National Forest purposes shall continue to
be managed in accordance with the laws (including
regulations) applicable to the National Forest System.
(c) Land and Water Conservation Fund.--For the purposes of
section 7 of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460-9), the boundaries of the Green Mountain
National Forest, as adjusted by this division, shall be
considered to be the boundaries of the national forest as of
January 1, 1965.

SEC. 1113. PUERTO RICO KARST CONSERVATION.

(a) Short Title.--This section may be cited as the ``Puerto
Rico Karst Conservation Act of 2003''.
(b) Findings.--Congress finds that--
(1) in the Karst Region of the Commonwealth of Puerto Rico
there are--
(A) some of the largest areas of tropical forests in Puerto
Rico, with a higher density of tree species than any other
area in the Commonwealth; and
(B) unique geological formations that are critical to the
maintenance of aquifers and watersheds that constitute a
principal water supply for much of the Commonwealth;
(2) the Karst Region is threatened by development that, if
unchecked, could permanently damage the aquifers and cause
irreparable damage to natural and environmental assets that
are unique to the United States;
(3) the Commonwealth has 1 of the highest population
densities in the United States, which makes the protection of
the Karst Region imperative for the maintenance of the public
health and welfare of the citizens of the Commonwealth;
(4) the Karst Region--
(A) possesses extraordinary ecological diversity, including
the habitats of several endangered and threatened species and
tropical migrants; and
(B) is an area of critical value to research in tropical
forest management; and
(5) coordinated efforts at land protection by the Federal
Government and the Commonwealth are necessary to conserve the
environmentally critical Karst Region.
(c) Purposes.--The purposes of this section are--
(1) to authorize and support conservation efforts to
acquire, manage, and protect the tropical forest areas of the
Karst Region, with particular emphasis on water quality and
the protection of the aquifers that are vital to the health
and wellbeing of the citizens of the Commonwealth; and
(2) to promote cooperation among the Commonwealth, Federal
agencies, corporations, organizations, and individuals in
those conservation efforts.
(d) Definitions.--In this section:
(1) Commonwealth.--The term ``Commonwealth'' means the
Commonwealth of Puerto Rico.
(2) Forest legacy program.--The term ``Forest Legacy
Program'' means the program established under section 7 of
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c).
(3) Fund.--The term ``Fund'' means the Puerto Rico Karst
Conservation Fund established by subsection (f).
(4) Karst region.--The term ``Karst Region'' means the
areas in the Commonwealth generally depicted on the map
entitled ``Karst Region Conservation Area'' and dated March
2001, which shall be on file and available for public
inspection in--
(A) the Office of the Secretary, Puerto Rico Department of
Natural and Environmental Resources; and
(B) the Office of the Chief of the Forest Service.
(5) Land.--The term ``land'' includes land, water, and an
interest in land or water.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(e) Conservation of the Karst Region.--
(1) Federal cooperation and assistance.--In furtherance of
the acquisition, protection, and management of land in and
adjacent to the Karst Region and in implementing related
natural resource conservation strategies, the Secretary may--
(A) make grants to and enter into contracts and cooperative
agreements with the Commonwealth, other Federal agencies,
organizations, corporations, and individuals; and
(B) use all authorities available to the Secretary,
including--
(i) the Forest and Rangeland Renewable Resources Research
Act of 1978 (16 U.S.C. 1641 et seq.);
(ii) section 1472 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3318);
and
(iii) section 12 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a).
(2) Funding sources.--The activities authorized by this
subsection may be carried out using--
(A) amounts in the Fund;
(B) amounts in the fund established by section 4(b) of the
Forest and Rangeland Renewable Resources Research Act of 1978
(16 U.S.C. 1643(b));
(C) funds appropriated from the Land and Water Conservation
Fund;
(D) funds appropriated for the Forest Legacy Program; and
(E) any other funds made available for those activities.
(3) Management.--
(A) In general.--Land acquired under this subsection shall
be managed, in accordance with the Forest and Rangeland
Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et
seq.), in a manner to protect and conserve the water quality
and aquifers and the geological, ecological, fish and
wildlife, and other natural values of the Karst Region.
(B) Failure to manage as required.--In any deed, grant,
contract, or cooperative agreement implementing this
subsection and the Forest Legacy Program in the Commonwealth,
the Secretary may require that, if land acquired by the
Commonwealth or other cooperating entity under this section
is sold or conveyed in whole or part, or is not managed in
conformity with subparagraph (A), title to the land shall, at
the discretion of the Secretary, vest in the United States.
(4) Willing sellers.--Any land acquired by the Secretary in
the Karst Region shall be acquired only from a willing
seller.
(5) Relation to other authorities.--Nothing in this
subsection--
(A) diminishes any other authority that the Secretary may
have to acquire, protect, and manage land and natural
resources in the Commonwealth; or
(B) exempts the Federal Government from Commonwealth water
laws.
(f) Puerto Rico Karst Conservation Fund.--
(1) Establishment.--There is established in the Treasury an
interest-bearing account to be known as the ``Puerto Rico
Karst Conservation Fund''.
(2) Credits to fund.--There shall be credited to the Fund--
(A) amounts appropriated to the Fund;
(B) all amounts donated to the Fund;
(C) all amounts generated from the Caribbean National
Forest that would, but for this paragraph, be deposited as
miscellaneous receipts in the Treasury of the United States,
but not including amounts authorized by law for payments to
the Commonwealth or authorized by law for retention by the
Secretary for any purpose;
(D) all amounts received by the Administrator of General
Services from the disposal of surplus real property in the
Commonwealth under subtitle I of title 40, United States
Code; and
(E) interest derived from amounts in the Fund.

[[Page S13942]]

(3) Use of fund.--Amounts in the Fund shall be available to
the Secretary until expended, without further appropriation,
to carry out subsection (e).
(g) Miscellaneous Provisions.--
(1) Donations.--
(A) In general.--The Secretary may accept donations,
including land and money, made by public and private
agencies, corporations, organizations, and individuals in
furtherance of the purposes of this subsection.
(B) Conflicts of interest.--The Secretary may accept
donations even if the donor conducts business with or is
regulated by the Department of Agriculture or any other
Federal agency.
(C) Applicable law.--Public Law 95-442 (7 U.S.C. 2269)
shall apply to donations accepted by the Secretary under this
paragraph.
(2) Relation to forest legacy program.--
(A) In general.--All land in the Karst Region shall be
eligible for inclusion in the Forest Legacy Program.
(B) Cost sharing.--The Secretary may credit donations made
under paragraph (1) to satisfy any cost-sharing requirements
of the Forest Legacy Program.
(h) Authorization of Appropriations.--
There are authorized to be appropriated such sums as are
necessary to carry out this section.

SEC. 1114. FARM SECURITY AND RURAL INVESTMENT ACT.

Section 10806(b)(1) of the Farm Security and Rural
Investment Act of 2002 (21 U.S.C. 321d; 116 Stat. 526), is
deemed to have first become effective 15 days after the date
of the enactment of this Act.

SEC. 1115. ENFORCEMENT OF ANIMAL FIGHTING PROHIBITIONS UNDER
THE ANIMAL WELFARE ACT.

(a) In General.--Section 26 of the Animal Welfare Act (7
U.S.C. 2156) is amended--
(1) by redesignating subsections (c) through (h) as
subsections (d) through (i), respectively;
(2) by inserting after subsection (b) the following:
``(c) Sharp Instruments.--It shall be unlawful for any
person to knowingly sell, buy, transport, or deliver in
interstate or foreign commerce a knife, a gaff, or any other
sharp instrument attached, or designed or intended to be
attached, to the leg of a bird for use in an animal fighting
venture.'';
(3) in subsection (e) (as redesignated by paragraph (1)),
by striking ``(c)'' and inserting ``(d)'';
(4) in subsection (f) (as redesignated by paragraph (1))--
(A) by striking ``(a), (b), or (c)'' and inserting ``(a),
(b), (c), or (d)''; and
(B) by striking ``1 year'' and inserting ``2 years'';
(5) by striking subsection (g) (as redesignated by
paragraph (1)) and inserting the following:
``(g) Investigations.--
``(1) In general.--The Secretary or any person authorized
by the Secretary shall make such investigations as the
Secretary considers necessary to determine whether any person
has violated or is violating any provision of this section.
``(2) Assistance.--Through cooperative agreements, the
Secretary may obtain the assistance of the Federal Bureau of
Investigation, the Department of the Treasury, and other law
enforcement agencies of the United States and of State,
tribal, and local governmental agencies in the conduct of an
investigation under paragraph (1).
``(3) Warrants.--
``(A) Issuance.--A judge of the United States, United
States magistrate judge, or judge of a State or tribal court
of competent jurisdiction in the district in which is located
an animal, paraphernalia, instrument, or other property or
thing that there is probable cause to believe was involved,
is about to be involved, or is intended to be involved in a
violation of this section shall issue a warrant to search for
and seize the animal or other property or thing.
``(B) Application; execution.--A United States marshal or
any person authorized under this section to conduct an
investigation may apply for and execute a warrant issued
under subparagraph (A), and any animal, paraphernalia,
instrument, or other property or thing seized under such a
warrant shall be held by the authorized person pending
disposition of the animal, paraphernalia, instrument, or
other property or thing by a court in accordance with this
subsection.
``(4) Storage of animals.--
``(A) In general.--An animal seized by a United States
marshal or other authorized person under paragraph (3) shall
be taken promptly to an animal housing facility in which the
animal shall be stored humanely.
``(B) No facility available.--If there is not available a
suitable animal storage facility sufficient in size to hold
all of the animals involved in a violation, a United States
marshal or other authorized person shall--
``(i) seize a representative sample of the animals for
evidentiary purposes to be transported to an animal storage
facility in which the animals shall be stored humanely; and
``(ii)(I) keep the remaining animals at the location where
the animals were seized;
``(II) provide for the humane care of the animals; and
``(III) cause the animals to be banded, tagged, or marked
by microchip and photographed or videotaped for evidentiary
purposes.
``(5) Care.--While a seized animal is held in custody, a
United States marshal or other authorized person shall ensure
that the animal is provided necessary care (including
housing, feeding, and veterinary treatment).
``(6) Forfeiture.--
``(A) In general.--Any animal, paraphernalia, instrument,
vehicle, money, or other property or thing involved in a
violation of this section shall be liable to be proceeded
against and forfeited to the United States at any time on
complaint filed in any United States district court or other
court of the United States for any jurisdiction in which the
animal, paraphernalia, instrument, vehicle, money, or other
property or thing is found.
``(B) Disposition.--On entry of a judgment of forfeiture, a
forfeited animal shall be disposed of by humane means, as the
court may direct.
``(C) Costs.--Costs incurred by the United States for care
of an animal seized and forfeited under this section shall be
recoverable from the owner of the animal--
``(i) in the forfeiture proceeding, if the owner appears in
the forfeiture proceeding; or
``(ii) in a separate civil action brought in the
jurisdiction in which the owner is found, resides, or
transacts business.
``(D) Claim to property.--
``(i) In general.--The owner, custodian, or other person
claiming an interest in a seized animal may prevent
disposition of the animal by posting, or may be ordered by
any United States district court or other court of the United
States, or by any tribal court, for any jurisdiction in which
the animal is found to post, not later than 10 days after the
animal is seized, a bond with the court in an amount
sufficient to provide for the care of the animal (including
housing, feeding, and veterinary treatment) for not less than
30 days.
``(ii) Renewal.--The owner, custodian, or other person
claiming an interest in a seized animal may renew a bond, or
be ordered to renew a bond, by posting a new bond, in an
amount sufficient to provide for the care of the animal for
at least an additional 30 days, not later than 10 days after
the expiration of the period for which a previous bond was
posted.
``(iii) Disposition.--If a bond expires and is not renewed,
the animal may be disposed of as provided in subparagraph
(A).
``(7) Euthanization.--Notwithstanding paragraphs (1)
through (6), an animal may be humanely euthanized if a
veterinarian determines that the animal is suffering extreme
pain.''; and
______

SA 2069. Mr. AKAKA submitted an amendment intended to be proposed by
him to the bill S. 1753, to amend the Fair Credit Reporting Act in
order to prevent identity theft, to improve the use of and consumer
access to consumer reports, to enhance the accuracy of consumer
reports, to limit the sharing of certain consumer information, to
improve financial education and literacy, and for other purposes; which
was ordered to lie on the table; as follows:

On page 96, after line 25, insert the following:

SEC. 519. THE NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGN TO
ENHANCE THE STATE OF FINANCIAL LITERACY.

(a) In general.--The Commission, as part of any national
strategy, shall develop, implement, and conduct a pilot
national public service multimedia campaign to enhance the
state of financial literacy and education in the United
States.
(b) Program Requirements.--
(1) Public service campaign.--The Commission shall select
and work with an organization that is especially well-
qualified in the distribution of public service campaigns and
has secured private sector funds to produce the pilot
national public service multimedia campaign.
(2) Development of multimedia campaign.--The Commission
shall develop, in consultation with nonprofit, public, or
private organizations, especially those that are well
qualified by virtue of their experience in the field of
financial literacy and education, to develop the financial
literacy national public service multimedia campaign.
(3) Focus of campaign.--The pilot national public service
multimedia campaign shall be consistent with the national
strategy developed by the Commission.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Commission not to exceed $3,000,000
for fiscal years 2004, 2005, and 2006 for the development,
production, and distribution of a pilot national public
service multimedia campaign.
(d) Performance Measures.--The Commission shall develop
measures to evaluate the effectiveness of the pilot national
public service multimedia campaign, as measured by improved
financial decision making among individuals.
(e) Report.--For each fiscal year for which there are
appropriations pursuant to the authorization in subsection
(c), the Commission shall submit a report to the Committee on
Banking, Housing, and Urban Affairs and the Committee on
Appropriations of the Senate and the Committee on Financial
Services and the Committee on Appropriations of the House of
Representatives describing the status and implementation of
the provisions of

[[Page S13943]]

this section and the state of financial literacy in the
United States.
______

SA 2070. Mr. ALEXANDER submitted an amendment intended to be proposed
by him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. REIMBURSEMENT OF LOST STATE REVENUE.

(A) Report.--
(1) OMB.--Not later than November 1 of each year, the
Director of Office of Management and Budget shall report to
the Secretary of the Treasury the State tax revenue amount
for each State and local government that was not received by
that State or local government during the most recent fiscal
year ending September 30 as a result of the Internet Tax
Freedom Act.
(2) CBO.--Not later than November 5 of each year, the
Director of the Congressional Budget Office shall report to
Congress the information required by paragraph (1) and
include an explanation of any differences with the report
submitted under paragraph (1).
(b) Payment.--Not later than November 20 of each year and
subject to appropriations, the Secretary of the Treasury
shall make a payment out of the Treasury to each State in an
amount equal to the amount determined for that State and
local governments in that State under subsection (a)(1). Each
State shall distribute the amounts attributable to local
governments in that State to the local governments.
(c) Appropriation.--There are authorized to be appropriated
such sums as are necessary to carry out this section.
______

SA 2071. Mr. COLEMAN submitted an amendment intended to be proposed
by him to the bill H.R. 2673, making appropriations for Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
for the fiscal year ending September 30, 2004, and for other purposes;
which was ordered to lie on the table; as follows:

On page 79, between lines 7 and 8, insert the following:

SEC. 7__. USE OF ELIGIBLE COMMODITIES.

(a) Availability.--Section 416(b)(1) of the Agricultural
Act of 1949 (7 U.S.C. 1431(b)(1)) is amended in the first
sentence by striking ``1954 and under the Food for Progress
Act of 1985,'' and inserting ``1954 (7 U.S.C. 1721 et seq.),
the Food for Progress Act of 1985 (7 U.S.C. 1736o), and
section 3107 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 1736o-1),''.
(b) McGovern-Dole International Food for Education and
Child Nutrition Program.--Section 3107(l) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-
1(l)) is amended by adding at the end the following:
``(4) Use of eligible commodities.--In addition to other
funds that are available under other provisions of law, the
President may use commodities and funds made available under
section 416(b) of the Agricultural Act of 1949 (7 U.S.C.
1431(b)) to carry out this section (including payment for
transportation of eligible commodities).''.

____________________