SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Data Protection Act''.

SEC. 2. DATA SECURITY.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended by inserting after section 605B (15 U.S.C. 1681c-2)
the following:

``SEC. 605C. DATA SECURITY AT CONSUMER REPORTING AGENCIES.

    ``(a) Definitions.--In this section--
            ``(1) the term `affected individual' means an individual,
        the sensitive personal information of whom is lost, stolen, or
        accessed without authorization because of a data breach;
            ``(2) the term `appropriate committees of Congress' means--
                    ``(A) the Committee on the Judiciary of the Senate;
                    ``(B) the Committee on Banking, Housing, and Urban
                Affairs of the Senate;
                    ``(C) the Committee on the Judiciary of the House
                of Representatives; and
                    ``(D) the Committee on Financial Services of the
                House of Representatives;
            ``(3) the term `covered action' means an action that
        restricts the legal rights available to a consumer, including--
                    ``(A) requiring the consumer to--
                            ``(i) waive the right of the consumer to--
                                    ``(I) file a civil action in an
                                appropriate court; or
                                    ``(II) bring, or participate in, a
                                class action; or
                            ``(ii) engage in settlement negotiations
                        before bringing an action under subsection
                        (c)(3); and
                    ``(B) offering a financial inducement in exchange
                for the consumer waiving any right of the consumer;
            ``(4) the term `credit freeze'--
                    ``(A) except as provided in subparagraph (B), means
                a restriction placed on the consumer report of a
                consumer at the request of the consumer, or a personal
                representative of the consumer, that prohibits a
                consumer reporting agency from releasing the consumer
                report for any purpose; and
                    ``(B) with respect to the consumer report of a
                consumer, shall not apply to the use of the consumer
                report by--
                            ``(i) a person, or a subsidiary, affiliate,
                        agent, subcontractor, or assignee of the
                        person, with which the consumer has, or before
                        assignment had, an account, contract, or
                        debtor-creditor relationship for the purposes
                        of--
                                    ``(I) reviewing the active account;
                                or
                                    ``(II) collecting the financial
                                obligation owed on the account,
                                contract, or debt;
                            ``(ii) any person acting under a court
                        order, warrant, or subpoena;
                            ``(iii) a Federal, State, or local
                        government or an agent or assignee of a
                        Federal, State, or local government;
                            ``(iv) any person for the sole purpose of
                        providing a credit monitoring or identity theft
                        protection service to which the consumer has
                        subscribed;
                            ``(v) any person for the purpose of
                        providing a consumer with a copy of the
                        consumer report, credit score, or educational
                        credit score of the consumer upon request by
                        the consumer;
                            ``(vi) any person or entity for insurance
                        purposes, including use in setting or adjusting
                        a rate, adjusting a claim, or underwriting; and
                            ``(vii) any person acting under an
                        authorization from a consumer to use the
                        consumer report of the consumer for employment
                        purposes;
            ``(5) the term `data breach' means the loss, theft, or
        other unauthorized access, other than access that is incidental
        to the scope of employment, of data containing sensitive
        personal information, in electronic or printed form, that
        results in the potential compromise of the confidentiality or
        integrity of the data; and
            ``(6) the term `sensitive personal information' means, with
        respect to an individual, information--
                    ``(A) about the individual relating to the
                education, financial transactions, medical history,
                criminal history, or employment history of the
                individual; and
                    ``(B) that can be used to distinguish or trace the
                identity of the individual, including the name, social
                security number, date and place of birth, mother's
                maiden name, and biometric records of the individual.
    ``(b) Data Breaches at Consumer Reporting Agencies.--With respect
to a data breach at a consumer reporting agency, the consumer reporting
agency--
            ``(1) subject to paragraph (2), shall notify--
                    ``(A) not later than 2 days after the date on which
                the consumer reporting agency discovers the data
                breach--
                            ``(i) the Federal Trade Commission;
                            ``(ii) the Bureau; and
                            ``(iii) appropriate law enforcement and
                        intelligence agencies, as identified by the
                        Secretary of Homeland Security; and
                    ``(B) not later than 3 days after the date on which
                the consumer reporting agency discovers the data
                breach, and as quickly and efficiently as is
                practicable, each affected individual with respect to
                the data breach;
            ``(2) may receive an extension of the 2-day deadline
        described in paragraph (1)(A) or the 3-day deadline described
        in paragraph (1)(B) if the Federal Trade Commission and the
        intelligence agencies identified under paragraph (1)(A)(iii)
        determine that there is a national security concern that
        requires granting such an extension;
            ``(3) shall, upon request by any affected individual with
        respect to the data breach, provide, without charge to the
        affected individual and during the lifetime of the affected
        individual--
                    ``(A) a credit freeze, including the cost relating
                to imposing, lifting, or permanently removing a credit
                freeze, with respect to the consumer report of the
                affected individual at any consumer reporting agency
                described in section 603(p); and
                    ``(B) credit monitoring services for the affected
                individual at any consumer reporting agency described
                in section 603(p); and
            ``(4) shall, in consultation with the Bureau, establish a
        consumer assistance unit--
                    ``(A) that shall--
                            ``(i) be carried out, and paid for, by the
                        consumer reporting agency; and
                            ``(ii) provide assistance, free of charge
                        and for a period of 10 years beginning on the
                        date on which the consumer reporting agency
                        submits the notifications required under
                        paragraph (1)(A), to any affected individual
                        who wants to dispute an item in the file of the
                        affected individual that was entered into that
                        file after the date on which the data breach
                        occurred; and
                    ``(B) with respect to which the consumer reporting
                agency shall, as soon as practicable after the date on
                which the consumer assistance unit is established,
                notify each affected individual with respect to the
                data breach by mail and e-mail.
    ``(c) Enforcement.--
            ``(1) In general.--Subject to subtitle B of the Consumer
        Financial Protection Act of 2010 (12 U.S.C. 5511 et seq.), the
        Federal Trade Commission or the Bureau may bring a civil action
        to recover a civil penalty in an appropriate district court of
        the United States against any person that negligently,
        knowingly, or willingly causes a data breach at a consumer
        reporting agency.
            ``(2) Penalty amount.--
                    ``(A) In general.--In a successful action brought
                under paragraph (1), the person against which the
                action is brought shall be liable for a civil penalty
                of not more than--
                            ``(i) $2,500 for each affected individual
                        with respect to the data breach caused by the
                        person; and
                            ``(ii) $25,000,000 in total.
                    ``(B) Considerations.--In determining the amount of
                a civil penalty in a successful action brought under
                paragraph (1), the court shall consider, with respect
                to the person against which the action is brought--
                            ``(i) the degree of culpability of the
                        person;
                            ``(ii) any history of similar prior conduct
                        by the person;
                            ``(iii) the ability of the person to pay;
                            ``(iv) the effect of the penalty on the
                        ability of the person to continue to do
                        business; and
                            ``(v) any other factor as justice may
                        require.
            ``(3) Private cause of action.--
                    ``(A) Definition.--In this paragraph, the term
                `actual loss' means the total cost to an affected
                individual as a result of a data breach at a consumer
                reporting agency, including--
                            ``(i) the costs incurred by the affected
                        individual--
                                    ``(I) in responding to the data
                                breach; and
                                    ``(II) as a result of--
                                            ``(aa) reviewing accounts
                                        of the affected individual for
                                        fraudulent charges;
                                            ``(bb) closing accounts of
                                        the affected individual that
                                        may have been compromised by
                                        the data breach; and
                                            ``(cc) imposing credit
                                        freezes and obtaining credit
                                        monitoring services; and
                            ``(ii) any revenue lost, or cost or
                        consequential damage incurred, by the affected
                        individual relating to the interruption of the
                        ability of the affected individual to obtain
                        credit.
                    ``(B) Cause of action.--
                            ``(i) In general.--An affected individual
                        may bring an action in an appropriate district
                        court of the United States against any person
                        that negligently, knowingly, or willingly
                        caused a data breach at a consumer reporting
                        agency in which the sensitive personal
                        information of the affected individual was
                        lost, stolen, or accessed without
                        authorization.
                            ``(ii) Damages.--In a successful action
                        brought by an affected individual under clause
                        (i), the affected individual may recover--
                                    ``(I) the greater of--
                                            ``(aa) the actual loss to
                                        the affected individual with
                                        respect to the data breach
                                        described in that clause; or
                                            ``(bb) $1,000 in liquidated
                                        damages;
                                    ``(II) punitive damages, as the
                                court may allow; and
                                    ``(III) the costs of the action,
                                together with reasonable attorney's
                                fees, as determined by the court.
    ``(d) Review of Compliance With Standards for Safeguarding Customer
Information.--
            ``(1) Definition.--In this subsection, the term `covered
        person' has the meaning given the term in section 1002 of the
        Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).
            ``(2) Examination.--The Bureau may examine any consumer
        reporting agency that is a covered person subject to
        supervision under section 1024 of the Consumer Financial
        Protection Act of 2010 (12 U.S.C. 5514) for compliance by that
        agency with the standards established by the Federal Trade
        Commission under section 501(b) of the Gramm-Leach-Bliley Act
        (15 U.S.C. 6801(b)).
    ``(e) Protection of Legal Rights of Consumers.--A consumer
reporting agency may not take a covered action--
            ``(1) as a condition of providing any service or product
        to, or on behalf of, a consumer; and
            ``(2) that relates to the rights of a consumer after a data
        breach at the consumer reporting agency in which the sensitive
        personal information of the consumer is lost, stolen, or
        accessed without authorization.
    ``(f) Annual Study and Report.--
            ``(1) In general.--Beginning in the first full year after
        the date of enactment of this section, and annually thereafter,
        the Bureau and the Federal Trade Commission, in consultation
        with the Attorney General, shall conduct a study regarding the
        costs to affected individuals from data breaches at consumer
        reporting agencies, including--
                    ``(A) the economic costs to those affected
                individuals;
                    ``(B) the effects on--
                            ``(i) the ability of those affected
                        individuals to obtain credit and housing; and
                            ``(ii) the reputations of those affected
                        individuals; and
                    ``(C) the costs relating to the emotional and
                psychological stress of those affected individuals from
                having the sensitive personal information of those
                affected individuals lost, stolen, or accessed without
                authorization.
            ``(2) Submission to congress.--Not later than 30 days after
        the date on which each study conducted under paragraph (1) is
        completed, the Bureau and the Federal Trade Commission shall
        submit to the appropriate committees of Congress a report that
        contains the results of the study.
            ``(3) Contents.--Each study conducted under paragraph (1)
        and each report submitted under paragraph (2) shall contain a
        survey of affected individuals who were contacted for the
        purposes of conducting the study.
            ``(4) Authority.--In conducting any study under paragraph
        (1), the Bureau, the Federal Trade Commission, and the Attorney
        General may compel a consumer reporting agency to disclose
        nonproprietary information.
    ``(g) Rule of Construction.--Nothing in this section may be
construed as modifying, limiting, or superseding any provision of State
law if the protection that the provision of State law provides to
consumers is greater than the protection provided to consumers under
this section.''.
    (b) Technical and Conforming Amendment.--The table of contents for
the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended by
inserting after the item relating to section 605B the following:

``605C. Data security at consumer reporting agencies.''.

Summary: Consumer Data Protection Act This bill amends the Fair Credit Reporting Act to direct a consumer reporting agency experiencing a data breach to: (1) notify the Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), other appropriate law enforcement agencies, and affected individuals. (2) provide affected individuals with free credit freezes and credit monitoring services. And (3) establish a consumer assistance unit. The bill also establishes legal enforcement provisions concerning data breaches at consumer reporting agencies. The CFPB may examine a consumer reporting agency to assess compliance with personal information protection laws.

Consumer Data Protection Act


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Flood Insurance Program
Commitment to Policyholders and Reform Act of 2005''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the amount of the flood insurance claims resulting from
        Hurricane Katrina and Hurricane Rita will likely exceed the
        aggregate amount of all claims previously paid in the history
        of the national flood insurance program, and will require an
        increase in the program's borrowing authority;
            (2) flood insurance policyholders have a legitimate
        expectation that they will receive fair and timely compensation
        for losses covered under their policies;
            (3) substantial flooding has occurred, and will likely
        occur again, outside of the areas designated as the 100-year
        floodplain;
            (4) to adequately and correctly assess potential flood
        damage and losses in all areas on the United States, the
        national flood insurance program will need to update its flood
        maps with the latest technology;
            (5) the maximum coverage limits for flood insurance
        policies should be increased to reflect inflation and the
        increased cost of housing;
            (6) significant reforms to the national flood insurance
        program required in the Bunning-Bereuter-Blumenauer Flood
        Insurance Reform Act of 2004 have yet to be implemented; and
            (7) despite reforms required in the Bunning-Bereuter-
        Blumenauer Flood Insurance Reform Act of 2004, the national
        flood insurance program requires a modernized and updated
        administrative model to ensure that the people of the United
        States have continued access to flood insurance.
    (b) Purposes.--The purposes of this Act are--
            (1) to protect the integrity of the national flood
        insurance program by fully funding existing legal obligations
        expected by existing policyholders who have paid policy
        premiums in return for flood insurance coverage;
            (2) to increase incentives for homeowners and communities
        to participate in the national flood insurance program and to
        improve oversight to ensure full participation in the program
        for owners of properties for which such participation is
        mandatory;
            (3) to increase awareness of homeowners of flood risks and
        improve the quality of information regarding such risks
        provided to homeowners; and
            (4) to better mitigate future flood damage risks through a
        combination of enhanced protective measures, property
        elevation, and buyouts of flood-prone properties.

SEC. 3. STUDY REGARDING MANDATORY PURCHASE REQUIREMENT FOR 500-YEAR
              FLOODPLAIN AND REPORTS REGARDING FLOOD MAP MODERNIZATION.

    (a) Study Regarding Mandatory Purchase Requirement for 500-Year
Floodplain.--
            (1) In general.--The Comptroller General of the United
        States shall conduct a study regarding the impact,
        effectiveness, and feasibility of amending the provisions of
        the Flood Disaster Protection Act of 1973 regarding the
        properties that are subject to the mandatory flood insurance
        coverage purchase requirements under such Act to extend such
        requirements to all properties located in the 500-year
        floodplain.
            (2) Issues.--The study under this subsection shall assess--
                    (A) the regulatory, financial and economic impacts
                of extending such requirements on the costs of
                homeownership, the actuarial soundness of the national
                flood insurance program, the Federal Emergency
                Management Agency, local communities, insurance
                companies, and local land use;
                    (B) the effectiveness of extending such
                requirements in protecting homeowners from financial
                loss and in protecting the financial soundness of the
                national flood insurance program, and the effectiveness
                of extending such requirements in comparison with
                providing for more effective enforcement of existing
                mandatory flood insurance purchase requirements;
                    (C) the feasibility of extending such requirements
                taking into consideration the need for identifying and
                mapping the 500-year floodplain;
                    (D) any liability on the part of lenders to comply
                with or enforce such extended requirements;
                    (E) any burdens on building officials and flood
                plain managers to implement such requirements in the
                expanded area;
                    (F) any increased burden on the Federal Emergency
                Management Agency to make determinations on exemptions
                to the floodplain and approval of local decisions;
                    (G) the effects of extending such requirements on
                existing policy holders of flood insurance coverage for
                properties located in the 100-year floodplain,
                including the effects on continued compliance and
                premium rates; and
                    (H) the effects of extending such requirements on
                the ability of homeowners to make renovations to their
                homes.
            (3) Report.--The Comptroller General shall submit a report
        to the Congress regarding the results and conclusions of the
        study under this subsection not later than the expiration of
        the 6-month period beginning on the date of the enactment of
        this Act.
    (b) Annual Flood Map Modernization Reports and Certification of
Completion.--
            (1) In general.--During the period that ends upon the
        completion by the Director of the Federal Emergency Management
        Agency of the updating and modernization of all floodplain
        areas and flood-risk zones, the Director shall submit a report
        annually to the Congress describing the extent to which such
        updating and modernization has been completed. Upon the
        completion of such updating, the Director shall submit to the
        Congress, and cause to be published in the Federal Register, a
        report certifying such completion.
            (2) Timing.--The first report under this subsection shall
        be submitted not later than June 30, 2006, and successive
        reports required under this subsection during the period
        referred to in paragraph (1) shall be submitted not later than
        June 30 of each year during such period.

SEC. 4. ENFORCEMENT.

    Paragraph (5) of section 102(f) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a) is amended--
            (1) by striking ``$350'' and inserting ``$2,000''; and
            (2) by striking the last sentence.

SEC. 5. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.

    (a) Appeals Process.--As directed in section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011
note), the Director of the Federal Emergency Management Agency is again
directed to, not later than 90 days after the date of the enactment of
this Act, establish an appeals process through which holders of a flood
insurance policy may appeal the decisions, with respect to claims,
proofs of loss, and loss estimates relating to such flood insurance
policy as required by such section.
    (b) Minimum Training and Education Requirements.--The Director of
the Federal Emergency Management Agency is directed to enforce the
minimum training and education requirements for all insurance agents
who sell flood insurance policies that have been established under the
notice published September 1, 2005 (70 Fed. Reg. 52117) pursuant to
section 207 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform
Act of 2004 (42 U.S.C. 4011 note).
    (c) Mitigation Programs.--Not later than the expiration of the 30-
day period beginning on the date of the enactment of this Act, the
Director of the Federal Emergency Management Agency shall issue
regulations necessary to implement the amendments made by sections 102,
103, 104, and 105 of the Bunning-Bereuter-Blumenauer Flood Insurance
Reform Act of 2004 (118 Stat. 714 et seq.).
    (d) Report.--Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the Director of the
Federal Emergency Management Agency shall submit a report to the
Congress describing the implementation of each provision of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public
Law 108-264) and identifying each regulation, order, notice, and other
material issued by the Director in implementing each such provision.

SEC. 6. MAXIMUM COVERAGE LIMITS.

    Subsection (b) of section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and
        inserting ``$335,500'';
            (2) in paragraph (3), by striking ``$100,000'' and
        inserting ``$135,000''; and
            (3) in paragraph (4), by striking ``$500,000'' each place
        such term appears and inserting ``$670,700''.

SEC. 7. COVERAGE FOR ADDITIONAL LIVING EXPENSES AND BUSINESS
              INTERRUPTION.

    Subsection (b) of section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) in the case of any residential property, each renewal
        or new contract for flood insurance coverage shall provide not
        less than $1,000 aggregate liability per dwelling unit for any
        necessary increases in living expenses incurred by the insured
        when losses from a flood make the residence unfit to live in,
        which coverage shall be available only at chargeable rates that
        are not less than the estimated premium rates for such coverage
        determined in accordance with section 1307(a)(1);
            ``(7) in the case of any residential property, coverage for
        additional living expenses described in paragraph (6) shall be
        made available to every insured upon renewal and every
        applicant in excess of the limits provided in paragraph (6) in
        such amounts and at such rates as the Director shall establish,
        except that such chargeable rates shall not be less than the
        estimated premium rates for such coverage determined in
        accordance with section 1307(a)(1); and
            ``(8) in the case of any commercial property, optional
        coverage for losses resulting from any partial or total
        interruption of the insured's business caused by damage to, or
        loss of, such property from a flood shall be made available to
        every insured upon renewal and every applicant, except that--
                    ``(A) for purposes of such coverage, losses shall
                be determined based on the profits the covered business
                would have earned, based on previous financial records,
                had the flood not occurred; and
                    ``(B) such coverage shall be made available only at
                chargeable rates that are not less than the estimated
                premium rates for such coverage determined in
                accordance with section 1307(a)(1).''.

SEC. 8. INCREASE IN BORROWING AUTHORITY.

    (a) Borrowing Authority.--The first sentence of subsection (a) of
section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)), as amended by the National Flood Insurance Program Enhanced
Borrowing Authority Act of 2005 (Public Law 109-65; 119 Stat. 1998), is
amended by striking ``$3,500,000,000'' and inserting
``$22,000,000,000''.
    (b) FEMA Report.--Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the Director
of the Federal Emergency Management Agency shall submit a report to the
Congress setting forth a plan for repaying any amounts borrowed
pursuant to increase in borrowing authority authorized under the
amendments made by subsection (a).

SEC. 9. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND POLICY
              LANGUAGE.

    Not later than the expiration of the 3-month period beginning on
the date of the enactment of this Act, the Director of the Federal
Emergency Management Agency shall--
            (1) issue regulations, and revise any materials made
        available by such Agency, to clarify the applicability of
        replacement cost coverage under the national flood insurance
        program;
            (2) revise any regulations, forms, notices, guidance, and
        publications relating to the full cost of repair or replacement
        under the replacement cost coverage to more clearly describe
        such coverage to flood insurance policyholders and information
        to be provided by such policyholders relating to such coverage,
        and to avoid providing misleading information to such
        policyholders; and
            (3) revise the language in standard flood insurance
        policies under such program regarding rating and coverage
        descriptions in a manner that is consistent with language used
        widely in other homeowners and property and casualty insurance
        policies, including such language regarding classification of
        buildings, basements, crawl spaces, detached garages,
        enclosures below elevated buildings, and replacement costs.

SEC. 10. FEMA REPORTS ON FINANCIAL STATUS OF INSURANCE PROGRAM.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C.
4027) is amended--
            (1) in the section heading, by striking ``REPORT TO THE
        PRESIDENT'' and inserting ``REPORTS'';
            (2) in subsection (a), by striking ``In General'' and
        inserting ``Biennial Report to President'' ; and
            (3) by adding at the end the following new subsection:
    ``(c) Semiannual Reports to Congress on Financial Status.--Not
later than June 30 and December 31 of each year, the Director shall
submit a report to the Congress regarding the financial status of the
national flood insurance program under this title. Each such report
shall describe the financial status of the National Flood Insurance
Fund and current and projected levels of claims, premium receipts,
expenses, and borrowing under the program.''.

SEC. 11. NOTICE OF AVAILABILITY OF FLOOD INSURANCE IN RESPA GOOD FAITH
              ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the
end the following new sentence: ``Each such good faith estimate shall
include a conspicuous statement that flood insurance coverage for
residential real estate is generally available under the National Flood
Insurance Program whether or not the real estate is located in an area
having special flood hazards and that, to obtain such coverage, a home
owner or purchaser should contact a hazard insurance provider.''.

SEC. 12. ELIGIBILITY OF PROPERTY DEMOLITION AND REBUILDING FOR
              MITIGATION ASSISTANCE PROGRAM.

    Subparagraph (B) of section 1366(e)(5) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is amended by
inserting before the semicolon at the end the following: ``, or the
demolition and rebuilding of structures located in such areas to at
least Base Flood Elevation or any higher elevation required by any
local ordinance''.

SEC. 13. AUTHORIZATION OF ADDITIONAL FEMA STAFF.

    Notwithstanding any other provision of law, the Director of the
Federal Emergency Management Agency may employ such additional staff of
such Agency as may be necessary to carry out all of the
responsibilities of the Director pursuant to this Act and the
amendments made by this Act. There are authorized to be appropriated to
Director such sums as may be necessary for costs of employing such
additional staff.

Summary: National Flood Insurance Program Commitment to Policyholders and Reform Act of 2005 - Directs the Comptroller General to study and report to Congress on whether the mandatory flood insurance coverage purchase requirements of the Flood Disaster Protection Act of 1973 should extend to properties located in the 500-year floodplain. Requires the Director of the Federal Emergency Management Agency (FEMA) to report annually to Congress on the extent to which updating and modernization of all floodplain areas and flood-risk zones has been completed. Amends the Flood Disaster Protection Act of 1973 to: (1) increase from $350 to $2,000 the civil monetary penalty for mortgage lender failures to require flood insurance. And (2) eliminate the $100,000 cap on the total amount of such penalties assessed against any single regulated lending institution or enterprise during any calendar year. Requires the FEMA Director to: (1) establish an appeals process through which holders of a flood insurance policy may appeal decisions on claims, proofs of loss, and loss estimates relating to such flood insurance policy. (2) enforce the minimum training and education requirements for insurance agents who sell certain flood insurance policies. (3) issue regulations to implement specified requirements of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004. And (4) identify for Congress each regulation, order, notice, and other material issued by the Director to implement each provision of such Act. Amends the National Flood Insurance Act of 1968 to increase the maximum flood insurance coverage limits for residential property. Prescribes coverage of additional living expenses and business interruption. Increases from $3.5 billion to $22 billion the borrowing authority vested in the Director. Requires the Director to report to Congress a plan for repaying any amounts borrowed pursuant to such increase. Instructs the Director to: (1) issue regulations and revise materials to clarify replacement cost coverage under the national flood insurance program. And (2) revise regulations, forms, notices, guidance, and publications regarding the full cost of repair or replacement under the replacement cost coverage to more clearly describe such coverage and to avoid providing misleading information to policyholders. Requires the Director to report semi-annually to Congress on the financial status of the national flood insurance program. Amends the Real Estate Settlement Procedures Act of 1974 to require a good faith estimate to include a conspicuous statement that flood insurance coverage for residential real estate is generally available under the National Flood Insurance Program whether or not the real estate is located in an area having special flood hazards and that, to obtain such coverage, a home owner or purchaser should contact a hazard insurance provider. Amends the National Flood Insurance Act of 1968 to include among eligible mitigation plan activities the demolition and rebuilding of structures located in areas having special flood hazards to at least Base Flood Elevation or any higher elevation required by any local ordinance. Authorizes the Director to employ additional FEMA staff.

To restore the financial solvency of the national flood insurance program, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Spouses Residency Relief
Act''.

SEC. 2. GUARANTEE OF RESIDENCY FOR SPOUSES OF MILITARY PERSONNEL FOR
              VOTING PURPOSES.

    (a) In General.--Section 705 of the Servicemembers Civil Relief Act
(50 U.S.C. App. 595) is amended--
            (1) by striking ``For'' and inserting the following:
    ``(a) In General.--For'';
            (2) by adding at the end the following new subsection:
    ``(b) Spouses.--For the purposes of voting for any Federal office
(as defined in section 301 of the Federal Election Campaign Act of 1971
(2 U.S.C. 431)) or a State or local office, a person who is absent from
a State because the person is accompanying the person's spouse who is
absent from that same State in compliance with military or naval orders
shall not, solely by reason of that absence--
            ``(1) be deemed to have lost a residence or domicile in
        that State, without regard to whether or not the person intends
        to return to that State;
            ``(2) be deemed to have acquired a residence or domicile in
        any other State; or
            ``(3) be deemed to have become a resident in or a resident
        of any other State.''; and
            (3) in the section heading, by inserting ``and spouses of
        military personnel'' before the period at the end.
    (b) Clerical Amendment.--The table of contents in section 1(b) of
such Act (50 U.S.C. App. 501) is amended by striking the item relating
to section 705 and inserting the following new item:

``Sec. 705. Guarantee of residency for military personnel and spouses
                            of military personnel.''.
    (c) Application.--Subsection (b) of section 705 of such Act (50
U.S.C. App. 595), as added by subsection (a) of this section, shall
apply with respect to absences from States described in such subsection
(b) on or after the date of the enactment of this Act, regardless of
the date of the military or naval order concerned.

SEC. 3. DETERMINATION FOR TAX PURPOSES OF RESIDENCE OF SPOUSES OF
              MILITARY PERSONNEL.

    (a) In General.--Section 511 of the Servicemembers Civil Relief Act
(50 U.S.C. App. 571) is amended--
            (1) in subsection (a)--
                    (A) by striking ``A servicemember'' and inserting
                the following:
            ``(1) In general.--A servicemember''; and
                    (B) by adding at the end the following:
            ``(2) Spouses.--A spouse of a servicemember shall neither
        lose nor acquire a residence or domicile for purposes of
        taxation with respect to the person, personal property, or
        income of the spouse by reason of being absent or present in
        any tax jurisdiction of the United States solely to be with the
        servicemember in compliance with the servicemember's military
        orders if the residence or domicile, as the case may be, is the
        same for the servicemember and the spouse.'';
            (2) by redesignating subsections (c), (d), (e), and (f) as
        subsections (d), (e), (f), and (g), respectively;
            (3) by inserting after subsection (b) the following new
        subsection:
    ``(c) Income of a Military Spouse.--Income for services performed
by the spouse of a servicemember shall not be deemed to be income for
services performed or from sources within a tax jurisdiction of the
United States if the spouse is not a resident or domiciliary of the
jurisdiction in which the income is earned because the spouse is in the
jurisdiction solely to be with the servicemember serving in compliance
with military orders.''; and
            (4) in subsection (d), as redesignated by paragraph (2)--
                    (A) in paragraph (1), by inserting ``or the spouse
                of a servicemember'' after ``The personal property of a
                servicemember''; and
                    (B) in paragraph (2), by inserting ``or the
                spouse's'' after ``servicemember's''.
    (b) Application.--Subsections (a)(2) and (c) of section 511 of such
Act (50 U.S.C. App. 571), as added by subsection (a) of this section,
and the amendments made to such section 511 by subsection (a)(4) of
this section, shall apply with respect to any return of State or local
income tax filed for any taxable year beginning with the taxable year
that includes the date of the enactment of this Act.

SEC. 4. SUSPENSION OF LAND RIGHTS RESIDENCY REQUIREMENT FOR SPOUSES OF
              MILITARY PERSONNEL.

    (a) In General.--Section 508 of the Servicemembers Civil Relief Act
(50 U.S.C. App. 568) is amended in subsection (b) by inserting ``or the
spouse of such servicemember'' after ``a servicemember in military
service''.
    (b) Application.--The amendment made by subsection (a) shall apply
with respect to servicemembers in military service (as defined in
section 101 of such Act (50 U.S.C. App. 511)) on or after the date of
the enactment of this Act.

Summary: Military Spouses Residency Relief Act - Amends the Servicemembers Civil Relief Act to prohibit, for purposes of voting for a federal, state, or local office, deeming a person to have lost a residence or domicile in a state, acquired a residence or domicile in any other state, or become a resident in or of any other state solely because the person is absent from a state because the person is accompanying the person's spouse who is absent from the state in compliance with military or naval orders. Prohibits a servicemember's spouse from either losing or acquiring a residence or domicile for purposes of taxation because of being absent or present in any US tax jurisdiction solely to be with the servicemember in compliance with the servicemember's military orders if the residence or domicile is the same for the servicemember and the spouse. Prohibits a spouse's income from being considered income earned in a tax jurisdiction if the spouse is not a resident or domiciliary of such jurisdiction when the spouse is in that jurisdiction solely to be with a servicemember serving under military orders. Suspends land rights residency requirements for spouses accompanying servicemembers serving under military orders.

To amend the Servicemembers Civil Relief Act to guarantee the equity of spouses of military personnel with regard to matters of residency, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Turkey Free Trade
Agreement Act of 1999''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Republic of Turkey (in this Act referred to as
        ``Turkey'') has played an important strategic, political, and
        economic role in Europe, Asia, and the Middle East since its
        founding in 1923 by Mustafa Kemal ``Ataturk'' following the
        collapse of the 600-year Ottoman Empire.
            (2) The friendship shared between the United States and
        Turkey dates to the late 18th century and was consecrated by
        the Treaty of Commerce and Navigation between the United States
        and the Ottoman Empire in 1830.
            (3) The United States reaffirmed its relationship with
        Turkey by entering into the Treaty of Commerce and Navigation
        of 1929.
            (4) The United States and Turkey have subsequently entered
        into over 60 treaties, memoranda of understanding, and other
        agreements on a broad range of issues, including a bilateral
        investment treaty (1986), a bilateral tax treaty (1998), and a
        trade and investment framework agreement (1999), as evidence of
        their strong friendship.
            (5) Turkey is located in the strategic corridor between
        Europe and Asia, bordering the Black Sea and the Mediterranean
        Sea.
            (6) Turkey has been a strategic partner of the United
        States since it joined the allies at the end of World War II.
            (7) The strategic alliance between Turkey and the United
        States was cemented by--
                    (A) the agreement of July 12, 1947 implementing the
                Truman doctrine;
                    (B) Turkey's membership in the North Atlantic
                Treaty Organization (NATO) in 1952; and
                    (C) the United States-Turkey Agreement for
                Cooperation on Defense and Economy of 1980.
            (8) Turkey is also an important industrialized economy and
        was a founding member of the Organization for Economic
        Cooperation and Development (OECD) and the United Nations.
            (9) Turkey has made significant progress since the 1980's
        in liberalizing its economy and integrating with the global
        economy.
            (10) Turkey has joined other nations in advocating an open
        trading system through its membership in the General Agreement
        on Tariffs and Trade and the World Trade Organization.
            (11) Despite the deep friendship between the United States
        and Turkey, their trading relationship remains small.
            (12) In 1998, United States merchandise exports to Turkey
        reached $3,500,000,000.
            (13) In 1998, United States imports from Turkey totaled
        $2,500,000,000 or less than 0.3 percent of United States total
        imports.
            (14) A free trade agreement between the United States and
        Turkey would greatly benefit both the United States and Turkey
        by expanding their commercial ties.

SEC. 3. NEGOTIATING OBJECTIVES FOR A UNITED STATES-TURKEY FREE TRADE
              AGREEMENT.

    The overall trade negotiating objectives of the United States with
respect to a United States-Turkey Free Trade Agreement are to obtain--
            (1) more open, equitable, and reciprocal market access
        between the United States and Turkey; and
            (2) the reduction or elimination of barriers and other
        trade-distorting policies and practices that inhibit trade
        between the United States and Turkey.

SEC. 4. NEGOTIATION OF A UNITED STATES-TURKEY FREE TRADE AGREEMENT.

    (a) In General.--Subject to sections 5 and 6, the President is
authorized to enter into an agreement described in subsection (c). The
provisions of section 151(c) of the Trade Act of 1974 (19 U.S.C.
2191(c)) shall apply with respect to a bill to implement such agreement
if such agreement is entered into on or before December 31, 2005.
    (b) Tariff Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim--
                    (A) such modification or continuation of any
                existing duty,
                    (B) such continuance of existing duty-free or
                excise treatment, or
                    (C) such additional duties
        as the President determines to be required or appropriate to
        carry out the trade agreement described in subsection (c).
            (2) Limitations.--No proclamation may be made under
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of
                duty that does not exceed 5 percent ad valorem on the
                date of enactment of this Act) to a rate which is less
                than 50 percent of the rate of such duty that applies
                on such date of enactment;
                    (B) provides for a reduction of duty on an article
                to take effect on a date that is more than 10 years
                after the first reduction that is proclaimed to carry
out a trade agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that
                applied on the date of enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in
                subparagraph (B), the aggregate reduction in the rate
                of duty on any article which is in effect on any day
                pursuant to a trade agreement entered into under
                paragraph (1) shall not exceed the aggregate reduction
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or
                        a reduction of one-tenth of the total
                        reduction, whichever is greater, had taken
                        effect on the effective date of the first
                        reduction proclaimed under paragraph (1) to
                        carry out such agreement with respect to such
                        article; and
                            (ii) a reduction equal to the amount
                        applicable under clause (i) had taken effect at
                        1-year intervals after the effective date of
                        such first reduction.
                    (B) Exemption from staging.--No staging under
                subparagraph (A) is required with respect to a rate
                reduction that is proclaimed under paragraph (1) for an
                article of a kind that is not produced in the United
                States. The United States International Trade
                Commission shall advise the President of the identity
                of articles that may be exempted from staging under
                this subparagraph.
            (4) Rounding.--If the President determines that such action
        will simplify the computation of reductions under paragraph
        (3), the President may round an annual reduction by the lesser
        of--
                    (A) the difference between the reduction without
                regard to this paragraph and the next lower whole
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or
        increase that may not be proclaimed by reason of paragraph (2)
        may take effect only if a provision authorizing such reduction
        or increase is included within an implementing bill provided
        for under section 6(c) and that bill is enacted into law.
    (c) Agreement Described.--An agreement described in this subsection
means a bilateral agreement between the United States and Turkey that
provides for the reduction and ultimate elimination of tariffs and
nontariff barriers to trade and the eventual establishment of a free
trade agreement between the United States and Turkey.

SEC. 5. CONSULTATIONS WITH CONGRESS ON NEGOTIATIONS OF A UNITED STATES-
              TURKEY FREE TRADE AGREEMENT.

    Before entering into any trade agreement under section 4 (including
immediately before initialing an agreement), the President shall
consult closely and on a timely basis on the nature of the agreement
and the extent to which it will achieve the purposes of this Act with--
            (1) the Committee on Ways and Means of the House of
        Representatives and the Committee on Finance of the Senate;
            (2) the congressional advisers for trade policy and
        negotiations appointed under section 161 of the Trade Act of
        1974 (19 U.S.C. 2211); and
            (3) each other committee of the House of Representatives
        and the Senate, and each joint committee of Congress, which has
        jurisdiction over legislation involving subject matters that
        would be affected by the trade agreement.

SEC. 6. IMPLEMENTATION OF UNITED STATES-TURKEY FREE TRADE AGREEMENT.

    (a) Notification and Submission.--Any agreement entered into under
section 4 shall enter into force with respect to the United States if
(and only if)--
            (1) the President, at least 60 calendar days before the day
        on which the President enters into the trade agreement,
        notifies the House of Representatives and the Senate of the
        President's intention to enter into the agreement, and promptly
        thereafter publishes notice of such intention in the Federal
        Register;
            (2) within 60 calendar days after entering into the
        agreement, the President submits to Congress a description of
        those changes to existing laws that the President considers
        would be required in order to bring the United States into
        compliance with the agreement;
            (3) after entering into the agreement, the President
        submits a copy of the final legal text of the agreement,
        together with--
                    (A) a draft of an implementing bill described in
                subsection (c);
                    (B) a statement of any administrative action
                proposed to implement the trade agreement; and
                    (C) the supporting information described in
                subsection (b); and
            (4) the implementing bill is enacted into law.
    (b) Supporting Information.--The supporting information required
under subsection (a)(3)(C) consists of--
            (1) an explanation as to how the implementing bill and
        proposed administrative action will change or affect existing
        law; and
            (2) a statement--
                    (A) asserting that the agreement makes progress in
                achieving the objectives of this Act; and
                    (B) setting forth the reasons of the President
                regarding--
                            (i) how and to what extent the agreement
                        makes progress in achieving the objectives
                        referred to in subparagraph (A);
                            (ii) whether and how the agreement changes
                        provisions of an agreement previously
                        negotiated;
                            (iii) how the agreement serves the
                        interests of United States commerce; and
                            (iv) any proposed administrative action.
    (c) Bills Qualifying for Trade Agreement Approval Procedures.--The
provisions of section 151 of the Trade Act of 1974 apply to an
implementing bill submitted pursuant to subsection (b) that contains
only--
            (1) provisions that approve a trade agreement entered into
        under section 4 that achieves the negotiating objectives set
        forth in section 3 and the statement of administrative action
        (if any) proposed to implement such trade agreement;
            (2) provisions that are--
                    (A) necessary to implement such agreement; or
                    (B) otherwise related to the implementation,
                enforcement, and adjustment to the effects of such
                trade agreement; and
            (3) provisions necessary for purposes of complying with
        section 252 of the Balanced Budget and Emergency Deficit
        Control Act of 1985 in implementing the applicable trade
        agreement.

SEC. 7. CONSIDERATION OF IMPLEMENTING BILL.

    (a) Congressional Consideration of Implementing Bill.--When the
President submits to Congress a bill to implement the trade agreement
as described in section 6(c), the bill shall be introduced and
considered pursuant to the provisions of section 151 of the Trade Act
of 1974 (19 U.S.C. 2191).
    (b) Conforming Amendments.--Section 151 of the Trade Act of 1974
(19 U.S.C. 2191) is amended--
            (1) in subsection (b)(1), by inserting ``section 6 of the
        United States-Turkey Free Trade Agreement Act of 1999'' after
        ``the Omnibus Trade and Competitiveness Act of 1988,''; and
            (2) in subsection (c)(1), by inserting ``or under section 6
        of the United States-Turkey Free Trade Agreement Act of 1999,''
        after ``the Uruguay Round Agreements Act,''.

Summary: Authorizes the President to enter into a bilateral agreement between the United States and Turkey that provides for the reduction and ultimate elimination of tariffs and nontariff barriers to trade and the eventual establishment of a free trade agreement between the two countries. Requires the President to consult with Congress before entering into any trade agreement under this Act. Sets forth congressional procedures for consideration of implementing legislation with respect to a United States-Turkey Free Trade Agreement.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Technological Resource to Assist
Criminal Enforcement (TRACE) Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to increase public safety by assisting law enforcement
        in solving more gun-related crimes and offering prosecutors
        evidence to link felons to gun crimes through ballistics
        technology;
            (2) to provide for ballistics testing of all new firearms
        for sale to assist in the identification of firearms used in
        crimes;
            (3) to require ballistics testing of all firearms in
        custody of Federal agencies to assist in the identification of
        firearms used in crimes; and
            (4) to add ballistics testing to existing firearms
        enforcement programs.

SEC. 3. DEFINITION OF BALLISTICS.

    Section 921(a) of title 18, United States Code, is amended by
adding at the end the following:
    ``(36) The term `ballistics' means a comparative analysis of fired
bullets and cartridge casings to identify the firearm from which
bullets and cartridge casings were discharged, through identification
of the unique markings that each firearm imprints on bullets and
cartridge casings.''.

 SEC. 4. TEST FIRING AND AUTOMATED STORAGE OF BALLISTICS RECORDS.

    (a) Amendment.--Section 923 of title 18, United States Code, is
amended by adding at the end the following:
    ``(m)(1) In addition to the other licensing requirements under this
section, a licensed manufacturer or licensed importer shall--
            ``(A) test fire firearms manufactured or imported by such
        licensees as specified by the Attorney General by regulation;
            ``(B) prepare ballistics images of the fired bullet and
        cartridge casings from the test fire;
            ``(C) make the records available to the Attorney General
        for entry in a computerized database; and
            ``(D) store the fired bullet and cartridge casings in such
        a manner and for such a period as specified by the Attorney
        General by regulation.
    ``(2) Nothing in this subsection creates a cause of action against
any Federal firearms licensee or any other person for any civil
liability except for imposition of a civil penalty under this section.
    ``(3)(A) The Attorney General shall assist firearm manufacturers
and importers in complying with paragraph (1) by--
            ``(i) acquiring, installing, and upgrading ballistics
        equipment and bullet and cartridge casing recovery equipment to
        be placed at or near the sites of licensed manufacturers and
        importers;
            ``(ii) hiring or designating sufficient personnel to
        develop and maintain a database of ballistics images of fired
        bullets and cartridge casings, research, and evaluation;
            ``(iii) providing education about the role of ballistics as
        part of a comprehensive firearm crime reduction strategy;
            ``(iv) providing for the coordination among Federal, State,
        and local law enforcement and regulatory agencies and the
        firearm industry to curb firearm-related crime and illegal
        firearm trafficking; and
            ``(v) taking other necessary steps to make ballistics
        testing effective.
    ``(B) The Attorney General shall--
            ``(i) establish a computer system through which State and
        local law enforcement agencies can promptly access the
        ballistics records stored under this subsection, as soon as
        such a capability is available; and
            ``(ii) require training for all ballistics examiners.
    ``(4) The Attorney General shall conduct mandatory ballistics
testing of all firearms obtained or in the possession of their
respective agencies.
    ``(5) Not later than 3 years after the date of enactment of this
subsection, and annually thereafter, the Attorney General shall submit
to the Committees on the Judiciary of the Senate and the House of
Representatives a report regarding the implementation of this section,
including--
            ``(A) the number of Federal and State criminal
        investigations, arrests, indictments, and prosecutions of all
        cases in which access to ballistics records, provided under the
        system established under this section and under similar systems
        operated by any State, served as a valuable investigative tool
        in the prosecution of gun crimes;
            ``(B) the extent to which ballistics records are accessible
        across jurisdictions; and
            ``(C) a statistical evaluation of the test programs
        conducted pursuant to paragraph (4).
    ``(6) There are authorized to be appropriated to the Department of
Justice $20,000,000 for each of the fiscal years 2004 through 2007, to
carry out this subsection, to be used to--
            ``(A) install ballistics equipment and bullet and cartridge
        casing recovery equipment;
            ``(B) establish sites for ballistics testing;
            ``(C) pay salaries and expenses of necessary personnel; and
            ``(D) conduct related research and evaluation.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and
        (3), the amendment made by subsection (a) shall take effect on
        the date on which the Attorney General, in consultation with
        the Board of the National Integrated Ballistics Information
        Network, certifies that the ballistics system used by the
        Department of Justice is sufficiently developed to support
        mandatory ballistics testing of new firearms.
            (2) Ballistics testing.--Section 923(m)(1) of title 18,
        United States Code, as added by subsection (a), shall take
        effect 2 years after the date of enactment of this Act.
            (3) Effective on date of enactment.--Section 923(m)(4) of
        title 18, United States Code, as added by subsection (a), shall
        take effect on the date of enactment of this Act.

SEC. 5. PRIVACY RIGHTS OF LAW-ABIDING CITIZENS.

    Ballistics information of individual guns in any form or database
established by this Act may not be used for prosecutorial purposes
unless law enforcement officials have a reasonable belief that a crime
has been committed and that ballistics information would assist in the
investigation of that crime.

Summary: Technological Resource to Assist Criminal Enforcement (TRACE) Act - Amends the Brady Handgun Violence Prevention Act to require a licensed manufacturer or importer of firearms to: (1) test fire manufactured or imported firearms as specified by the Attorney General. (2) prepare ballistics images of the fired bullet and cartridge casings. (3) make the records available to the Attorney General for entry into a computerized database. And (4) store the fired bullet and cartridge casings. Directs the Attorney General to assist firearm manufacturers and importers in complying with these requirements by: (1) acquiring, installing, and upgrading ballistics equipment and bullet and cartridge casing recovery equipment. (2) hiring or designating sufficient personnel to develop and maintain a ballistics database, (3) providing education about the role of ballistics. And (4) providing for the coordination among law enforcement, regulatory agencies, and the firearm industry to curb firearm-related crime and illegal firearm trafficking. Requires the Attorney General to: (1) establish a computer system through which State and local law enforcement agencies can promptly access ballistics records, (2) require training for all ballistics examiners. (3) conduct mandatory ballistics testing of all firearms obtained by or in the possession of the Department of Justice. And (4) report to Congress on the implementation of this Act. Prohibits the use of ballistics information of individual guns for prosecutorial purposes unless officials have a reasonable belief that a crime has been committed and that ballistics information would assist in the investigation.

To amend chapter 44 of title 18, United States Code, to require ballistics testing of all firearms manufactured and all firearms in custody of Federal agencies.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fast Track to College Act of 2008''.

SEC. 2. PURPOSE.

    The purpose of this Act is to increase high school graduation rates
and the percentage of students who complete a recognized postsecondary
credential by the age of 26, including among low-income students and
students from other populations underrepresented in higher education.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Dual enrollment program.--The term ``dual enrollment
        program'' means an academic program through which a high school
        student is able simultaneously to earn credit toward a high
        school diploma and a postsecondary degree or certificate.
            (2) Early college high school.--The term ``early college
        high school'' means a high school that provides a course of
        study that enables a student to earn a high school diploma and
        either an associate's degree or one to two years of college
        credit toward a postsecondary degree or credential.
            (3) Educational service agency.--The term ``educational
        service agency'' means an educational service agency as defined
        by section 9101(17) of the Elementary and Secondary Education
        Act of 1965.
            (4) Eligible entity.--The term ``eligible entity'' means a
        local educational agency, which may be an educational service
        agency, in a collaborative partnership with an institution of
        higher education. Such partnership also may include other
        entities, such as a nonprofit organization with experience in
        youth development.
            (5) Institution of higher education.--The term
        ``institution of higher education'' means an institution of
        higher education as defined by section 102 of the Higher
        Education Act of 1965.
            (6) Local educational agency.--The term ``local educational
        agency'' means a local educational agency as defined by section
        9101(26) of the Elementary and Secondary Education Act of 1965.
            (7) Secretary.--The term ``Secretary'' means the Secretary
        of Education.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Early College High Schools.--To support early college high
schools under this Act, there are authorized to be appropriated
$50,000,000 for fiscal year 2009 and such sums as may be necessary for
each of fiscal years 2010 through 2014.
    (b) Other Dual Enrollment Programs.--To support other dual
enrollment programs under this Act, there are authorized to be
appropriated $50,000,000 for fiscal year 2009 and such sums as may be
necessary for each of fiscal years 2010 through 2014.
    (c) Funds Reserved.--The Secretary shall reserve 3 percent of funds
appropriated pursuant to subsection (b) for grants to States under
section 9.

SEC. 5. AUTHORIZED PROGRAM.

    (a) In General.--The Secretary is authorized to award six-year
grants to eligible entities seeking to establish a new or support an
existing early college high school or other dual enrollment program.
    (b) Grant Amount.--A grant under this Act shall not exceed
$2,000,000.
    (c) Matching Requirement.--
            (1) In general.--An eligible entity shall contribute
        matching funds toward the costs of the early college high
        school or other dual enrollment program to be supported under
        this Act, of which not less than half shall be from non-Federal
        sources, which funds shall represent not less than the
        following:
                    (A) 20 percent of the grant amount in the first and
                second years of the grant.
                    (B) 30 percent in the third and fourth years.
                    (C) 40 percent in the fifth year.
                    (D) 50 percent in the sixth year.
            (2) Determination of amount contributed.--The Secretary
        shall allow an eligible entity to satisfy the requirement of
        this subsection through in-kind contributions.
    (d) Supplement, Not Supplant.--An eligible entity shall use a grant
received under this Act only to supplement funds that would, in the
absence of such grant, be made available from non-Federal funds for
support of the activities described in the eligible entity's
application under section 7, and not to supplant such funds.
    (e) Priority.--In awarding grants under this Act, the Secretary
shall give priority to applicants--
            (1) that propose to establish or support an early college
        high school or other dual enrollment program that will serve a
        student population of which 40 percent or more are students
        counted under section 1113(a)(5) of the Elementary and
        Secondary Education Act of 1965; and
            (2) from States that provide assistance to early college
        high schools or other dual enrollment programs, such as
        assistance to defray the costs of higher education, such as
        tuition, fees, and textbooks.
    (f) Geographic Distribution.--The Secretary shall, to the maximum
extent practicable, ensure that grantees are from a representative
cross-section of urban, suburban, and rural areas.

SEC. 6. USES OF FUNDS.

    (a) Mandatory Activities.--An eligible entity shall use grant funds
received under section 7 to support the activities described in its
application, including for the following:
            (1) Planning year.--In the case of a new early college high
        school or dual enrollment program, during the first year of the
        grant--
                    (A) hiring a principal and staff, as appropriate;
                    (B) designing the curriculum and sequence of
                courses in collaboration with at a minimum, teachers
                from the local educational agency and faculty from the
                partner institution of higher education;
                    (C) educating parents and the community about the
                school;
                    (D) recruiting students;
                    (E) liaison activities among partners in the
                eligible entity; and
                    (F) coordinating secondary and postsecondary
                support services, academic calendars, and
                transportation.
            (2) Implementation period.--During the remainder of the
        grant period--
                    (A) academic and social support services, including
                counseling;
                    (B) student recruitment and community education and
                engagement;
                    (C) professional development, including joint
                professional development for secondary school and
                faculty from the institution of higher education; and
                    (D) school design and planning team activities,
                including curriculum development.
    (b) Allowable Activities.--An eligible entity may also use grant
funds received under this Act to otherwise support the activities
described in its application, including, but not limited to--
            (1) purchasing textbooks and equipment that support
        academic programs;
            (2) learning opportunities for students that complement
        classroom experiences, such as internships, career-based
        capstone projects, and opportunities provided under title IV,
        part A, subpart 2, and chapters 1 and 2 of the Higher Education
        Act of 1965;
            (3) transportation;
            (4) planning time for high school and college educators to
        collaborate; and
            (5) data collection, sharing, reporting, and evaluation.

SEC. 7. APPLICATION.

    (a) In General.--To receive a grant under section 4(a) or (b), an
eligible entity shall submit to the Secretary an application at such
time, in such manner, and including such information as the Secretary
determines to be appropriate.
    (b) Contents of Application.--At a minimum, the application
described in subsection (a) shall include a description of--
            (1) the early college high school's or other dual
        enrollment program's budget;
            (2) each partner in the eligible entity and its experience
        with early college high schools or other dual enrollment
        programs, key personnel from each partner and their
        responsibilities for the early college high school or dual
        enrollment program, and how the eligible entity will work with
        secondary and postsecondary teachers, other public and private
        entities, community-based organizations, businesses, and labor
        organizations to ensure that students will be prepared to
        succeed in postsecondary education and employment, which may
        include the development of an advisory board;
            (3) how the eligible entity will target and recruit at-risk
        youth, including those at risk of dropping out of school, first
        generation college students, and students from populations
        described in section 1111(b)(2)(C)(v)(II) of the Elementary and
        Secondary Education Act of 1965;
            (4) a system of student supports including, but not limited
        to, small group activities, tutoring, literacy and numeracy
        skill development in all academic disciplines, parental
        outreach, extended learning time, and college readiness
        activities, such as early college academic seminars and
        counseling;
            (5) in the case of an early college high school, how a
        graduation and career plan will be developed, consistent with
        State graduation requirements, for each student and reviewed
        each semester;
            (6) how parents or guardians of dually enrolled students
        will be informed of their academic performance and progress
        and, subject to paragraph (5), involved in the development of
        their career and graduation plan;
            (7) coordination between the institution of higher
        education and the local educational agency, including regarding
        academic calendars, provision of student services, curriculum
        development, and professional development;
            (8) how the eligible entity will ensure that teachers in
        the early college high school or other dual enrollment program
        receive appropriate professional development and other
        supports, including to enable them to help English-language
        learners, students with disabilities, and students from diverse
        cultural backgrounds to succeed;
            (9) learning opportunities for students that complement
        classroom experiences, such as internships, career-based
        capstone projects, and opportunities provided under title IV,
        part A, subpart 2, and chapters 1 and 2 of the Higher Education
        Act of 1965;
            (10) a plan to ensure that postsecondary credits earned
        will be transferable to, at a minimum, public institutions of
        higher education within the State, consistent with existing
        statewide articulation agreement;
            (11) student assessments and other measurements of students
        achievement including benchmarks for student achievement;
            (12) outreach programs to provide elementary and secondary
        school students, especially those in middle grades, and their
        parents, teachers, school counselors, and principals
        information about and academic preparation for the early
        college high school or other dual enrollment program;
            (13) how the eligible entity will help students meet
        eligibility criteria for postsecondary courses; and
            (14) how the eligible entity will sustain the early college
        high school or other dual enrollment program after the grant
        expires.
    (c) Assurances.--An eligible entity's application under subsection
(a) shall include assurances that--
            (1) in the case of an early college high school, the
        majority of courses offered, including of postsecondary
        courses, will be offered at facilities of the institution of
        higher education;
            (2) students will not be required to pay tuition or fees
        for postsecondary courses;
            (3) postsecondary credits earned will be transcribed upon
        completion of the requisite coursework; and
            (4) faculty teaching postsecondary courses meet the normal
        standards for faculty established by the institution of higher
        education.
    (d) Waiver.--The Secretary may waive the requirement of subsection
(c)(1) upon a showing that it is impractical to apply due to geographic
considerations.

SEC. 8. PEER REVIEW.

    (a) Peer Review of Applications.--The Secretary shall establish
peer review panels to review applications submitted pursuant to section
7 to advise the Secretary regarding such applications.
    (b) Composition of Peer Review Panels.--The Secretary shall ensure
that each peer review panel is not comprised wholly of full-time
officers or employees of the Federal Government and includes, at a
minimum--
            (1) experts in the establishment and administration of
        early college high schools or other dual enrollment programs
        from the high school and college perspective;
            (2) faculty at institutions of higher education and
        secondary school teachers with expertise in dual enrollment;
        and
            (3) experts in the education of at-risk students.

SEC. 9. GRANTS TO STATES.

    (a) In General.--The Secretary is authorized to award six-year
grants to State agencies responsible for secondary or postsecondary
education for efforts to support or establish statewide dual enrollment
programs.
    (b) Application.--To receive a grant under this section, a State
agency shall submit to the Secretary an application at such time, in
such manner, and including such information as the Secretary determines
to be appropriate.
    (c) Contents of Application.--At a minimum, the application
described in subsection (b) shall include--
            (1) how the State will create outreach programs to ensure
        that middle and high school students and their families are
        aware of dual enrollment programs in the State;
            (2) how the State will provide technical assistance to
        local dual enrollment programs as appropriate;
            (3) how the State will ensure the quality of state and
        local dual enrollment programs; and
            (4) such other information as the Secretary determines to
        be appropriate.
    (d) State Activities.--A State receiving a grant under this section
shall use such funds for--
            (1) planning and implementing a statewide strategy for
        expanding access to dual enrollment programs for students who
        are underrepresented in higher education; and
            (2) providing technical assistance to local dual enrollment
        programs.

SEC. 10. REPORTING AND OVERSIGHT.

    (a) Reporting by Grantees.--
            (1) In general.--The Secretary shall establish uniform
        guidelines for all grantees concerning information such
        grantees annually shall report to the Secretary to demonstrate
        a grantee's progress toward achieving the goals of this Act.
            (2) Contents of report.--At a minimum, the report described
        in paragraph (1) shall include, for eligible entities receiving
        funds under section 7, for each category of students described
        in section 1111(h)(1)(C)(i) of the Elementary and Secondary
        Education Act of 1965:
                    (A) The number of students.
                    (B) The percentage of students scoring advanced,
                proficient, basic, and below basic on the assessments
                described in section 1111(b)(3) of the Elementary and
                Secondary Education Act of 1965.
                    (C) The performance of students on other
                assessments or measurements of achievement.
                    (D) The number of secondary school credits earned.
                    (E) The number of postsecondary credits earned.
                    (F) Attendance rate.
                    (G) Graduation rate.
                    (H) Placement in postsecondary education or
                advanced training, in military service, and in
                employment.
    (b) Reporting by the Secretary.--The Secretary annually shall
compile and analyze the information described in subsection (a) and
report it to the Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Education and Labor of the House of
Representatives, which report shall include identification of best
practices for achieving the goals of this Act.
    (c) Monitoring Visits.--The Secretary's designee shall visit each
grantee at least once for the purpose of helping the grantee achieve
the goals of this Act and to monitor the grantee's progress toward
achieving such goals.
    (d) National Evaluation.--Within six months of the appropriation of
funds for this Act, the Secretary shall enter into a contract with an
independent organization to perform an evaluation of the grants awarded
under this Act. Such evaluation shall apply rigorous procedures to
obtain valid and reliable data concerning participants' outcomes by
social and academic characteristics and monitor the progress of
students from high school to and through postsecondary education.
    (e) Technical Assistance.--The Secretary shall provide technical
assistance to eligible entities concerning best practices in early
college high schools and dual enrollment programs and shall disseminate
such best practices among eligible entities and State and local
educational agencies.

SEC. 11. RULES OF CONSTRUCTION.

    (a) Employees.--Nothing in this Act shall be construed to alter or
otherwise affect the rights, remedies, and procedures afforded to the
employees of local educational agencies (including schools) or
institutions of higher education under Federal, State, or local laws
(including applicable regulations or court orders) or under the terms
of collective bargaining agreements, memoranda of understanding, or
other agreements between such employees and their employers.
    (b) Graduation Rate.--A student who graduates from an early college
high school supported under this Act in the standard number of years
for graduation described in the eligible entity's application shall be
considered to have graduated on time for purposes of section
1111(b)(2)(C)(6) of the Elementary and Secondary Education Act of 1965.

Summary: Fast Track to College Act of 2008 - Authorizes the Secretary of Education to award matching six-year grants to local educational agencies (LEAs) that partner with institutions of higher education (IHEs) to establish or support dual enrollment programs, such as early college high schools, that allow high school students to simultaneously earn credit toward a high school diploma and a postsecondary degree or certificate. Gives grant priority to applicants: (1) that propose to establish or support a dual enrollment program for a student body at least 40 of which is impoverished. And (2) from states that provide assistance to dual enrollment programs, such as assistance defraying the costs of higher education. Requires applicants to make assurances that students will not be required to pay tuition or fees for postsecondary courses, and that those courses will be taught by faculty that meet their partner IHE's normal standards. Authorizes the Secretary to award six-year grants to states to: (1) plan and implement statewide strategies to make dual enrollment programs more accessible to students who are underrepresented in postsecondary education. And (2) provide technical assistance to local dual enrollment programs. Directs the Secretary to: (1) contract for an independent evaluation of this Act's programs. And (2) provide technical assistance to LEAs and their partners, and disseminate information concerning best practices in dual enrollment programs.

To authorize the Secretary of Education to make grants to support early college high schools and other dual enrollment programs.