Jim Jeffords

Mr. JEFFORDS

Mr. JEFFORDS. I move to lay that motion on the table. The motion to lay on the table was agreed to.

Mr. JEFFORDS. Mr. President, I thank my good friend and Senator from Massachusetts. I deeply appreciate the cooperation we have had today. We moved along well. We are well on our way. I look forward to seeing the wonderful cooperation that we will have as we proceed on this bill. I look forward to seeing you all again in the morning.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I ask unanimous consent that the Senate now proceed to a period of morning business, with Members permitted to speak therein for up to 10 minutes each.

Mr. JEFFORDS. I yield the floor. I suggest the absence of a quorum.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I make a point of order a quorum is not present. Mr. President, I ask unanimous consent that that time be charged to Senator Wellstone.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I object to further consideration of this measure at this time.

Mr. JEFFORDS. Mr. President, another bill is at the desk due for its second reading. I ask it be read.

Mr. JEFFORDS

Mr. JEFFORDS. Certainly.

Mr. JEFFORDS. This morning the Senate will resume consideration of the motion to proceed to S. 280, the Education Flexibility Partnership Act. There are 4 hours remaining for debate on the motion to proceed, with Senator Wellstone to control 3 hours 30 minutes and Senator Jeffords or his designee in control of the remaining 30 minutes. Under a previous order, at the conclusion or yielding back of debate time, the Senate will proceed to vote on the motion to proceed. If the motion is adopted, the Senate will begin consideration of the bill itself, with amendments being offered and debated during today's session. Therefore, Members should expect votes throughout Wednesday's session. I thank my colleagues for their attention. Mr. President, I make a point of order that a quorum is not present.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, Senate Standing Rule XXVI requires each committee to adopt rules to govern the procedures of the Committee and to publish those rules in the Congressional Record of the first year of each Congress. On January 20, 1999, the committee on Health, Education, Labor, and Pensions held a business meeting during which the members of the Committee unanimously adopted rules to govern the procedures of the Committee. Consistent with Standing Rule XXVI, today I am submitting for printing in the Congressional Record a copy of the Rules of the Senate Committee on Health, Education, Labor, and Pensions.\1\ --------------------------------------------------------------------------- \1\ Pursuant to S. Res. 20, Committee on Labor and Human Resources name was changed to Committee on Health, Education, Labor, and Pensions on January 19, 1999. --------------------------------------------------------------------------- The rules follow: Rules of the Committee on Health, Education, Labor, and Pensions (As adopted in executive session January 20, 1999) Rule 1.--Subject to the provisions of rule XXVI, paragraph 5, of the Standing Rules of the Senate, regular meetings of the committee shall be held on the second and fourth Wednesday of each month, at 10:00 a.m., in room SD-430, Dirksen Senate Office Building. The chairman may, upon proper notice, call such additional meetings as he may deem necessary. Rule 2.--The chairman of the committee or of a subcommittee, or if the chairman is not present, the ranking majority member present, shall preside at all meetings. Rule 3.--Meetings of the committee or a subcommittee, including meetings to conduct hearings, shall be open to the public except as otherwise specifically provided in subsections (b) and (d) of rule 26.5 of the Standing Rules of the Senate. Rule 4.--(a) Subject to paragraph (b), one-third of the membership of the committee, actually present, shall constitute a quorum for the purpose of transacting business. Any quorum of the committee which is composed of less than a majority of the members of the committee shall include at least one member of the majority and one member of the minority. (b) A majority of the members of the subcommittee, actually present, shall constitute a quorum for the purpose of transacting business: provided, no measure or matter shall be ordered reported unless such majority shall include at least one member of the minority who is a member of the subcommittee. If, at any subcommittee meeting, a measure or matter cannot be ordered reported because of the absence of such a minority member, the measure or matter shall lay over for a day. If the presence of a member of the minority is not then obtained, a majority of the members of the subcommittee, actually present, may order such measure or matter reported. (c) No measure or matter shall be ordered reported from the committee or a subcommittee unless a majority of the committee or subcommittee is actually present at the time such action is taken. Rule 5.--With the approval of the chairman of the committee or subcommittee, one member thereof may conduct public hearings other than taking sworn testimony. Rule 6.--Proxy voting shall be allowed on all measures and matters before the committee or a subcommittee if the absent member has been informed of the mater on which he is being recorded and has affirmatively requested that he be so recorded. While proxies may be voted on a motion to report a measure or matter from the committee, such a motion shall also require the concurrence of a majority of the members who are actually present at the time such action is taken. The committee may poll any matters of committee business as a matter of unanimous consent; provided that every member is polled and every poll consists of the following two questions: (1) Do you agree or disagree to poll the proposal; and (2) Do you favor or oppose the proposal. Rule 7.--There shall be prepared and kept a complete transcript or electronic recording adequate to fully record the proceedings of each committee or subcommittee meeting or conference whether or not such meetings or any part thereof is closed pursuant to the specific provisions of subsections (b) and (d) of rule 26.5 of the Standing Rules of the Senate, unless a majority of said members vote to forgo such a record. Such records shall contain the vote cast by each member of the committee or subcommittee on any question on which a ``yea and nay'' vote is demanded, and shall be available for inspection by any committee member. The clerk of the committee, or the clerk's designee, shall have the responsibility to make appropriate arrangements to implement this rule. Rule 8.--The committee and each subcommittee shall undertake, consistent with the provisions of rule XXVI, paragraph 4, of the Standing rules of the Senate, to issue public announcement of any hearing it intends to hold at least one week prior to the commencement of such hearing. Rule 9.--The committee or a subcommittee shall, so far as practicable, require all witnesses heard before it to file written statements of their proposed testimony at least 24 hours before a hearing, unless the chairman and the ranking minority member determine that there is good cause for failure to so file, and to limit their oral presentation to brief summaries of their arguments. The presiding officer at any hearing is authorized to limit the time of each witness appearing before the committee or a subcommittee. The committee or a subcommittee shall, as far as practicable, utilize testimony previously taken on bills and measures similar to those before it for consideration. Rule 10.--Should a subcommittee fail to report back to the full committee on any measure within a reasonable time, the chairman may withdraw the measure from such subcommittee and report that fact to the full committee for further disposition. Rule 11.--No subcommittee may schedule a meeting or hearing at a time designated for a hearing or meeting of the full committee. No more than one subcommittee executive meeting may be held at the same time. Rule 12.--It shall be the duty of the chairman in accordance with section 133(c) of the Legislative Reorganization Act of 1946, as amended, to report or cause to be reported to the Senate, any measure or recommendation approved by the committee and to take or cause to be taken, necessary steps to bring the matter to a vote in the Senate. Rule 13.--Whenever a meeting of the committee or subcommittee is closed pursuant to the provisions of subsection (b) or (d) of rule 26.5 of the Standing Rules of the Senate, no person other than members of the committee, members of the staff of the committee, and designated assistants to members of the committee shall be permitted to attend such closed session, except by special dispensation of the committee or subcommittee or the chairman thereof. Rule 14.--The chairman of the committee or a subcommittee shall be empowered to adjourn any meeting of the committee or a subcommittee if a quorum is not present within fifteen minutes of the time schedule for such meeting. Rule 15.--Whenever a bill or joint resolution repealing or amending any statute or part thereof shall be before the committee or a subcommittee for final consideration, the clerk shall place before each member of the committee or subcommittee a print of the statute or the part or section thereof to be amended or replaced showing by stricken-through type, the part or parts to be omitted and in italics, the matter proposed to be added, if a member makes a timely request for such print. Rule 16.--An appropriate opportunity shall be given the minority to examine the proposed text of committee reports prior to their filing or publication. In the event there are supplemental, minority, or additional view, and appropriate opportunity shall be given the majority to examine the proposed text prior to filing or publication. Rule 17.--(a) The committee, or any subcommittee, may issue subpoenas, or hold hearings to take sworn testimony or hear subpoenaed witnesses, only if such investigative activity has been authorized by majority vote of the committee. (b) For the purpose of holding a hearing to take sworn testimony or hear subpoenaed witnesses, three members of the committee or subcommittee shall constitute a quorum: provided, with the concurrence of the chairman and ranking minority member of the committee or subcommittee, a single member may hear subpoenaed witnesses or take sworn testimony. (c) the committee may, by a majority vote, delegate the authority to issue subpoenas to the chairman of the committee or a subcommittee, or to any member designated by such chairman. Prior to the issuance of each subpoena, the ranking minority member of the committee or subcommittee, and any other member so requesting, shall be notified regarding the identity of the person to whom it will be issued and the nature of the information sought and its relationship to the authorized investigative activity, except where the chairman of the committee or subcommittee, in consultation with the ranking minority member, determines that such notice would unduly impede the investigation. All information obtained pursuant to such investigative activity shall be made available as promptly as possible to each member of the committee requesting same, or to any assistant to a member of the committee, designated by such member in writing, but the use of any such information is subject to restrictions imposed by the rules of the Senate. Such information, to the extent that it is relevant to the investigation shall, if requested by a member, be summarized in writing as soon as practicable. Upon the request of any member, the chairman of the committee or subcommittee shall call an executive session to discuss such investigative activity or the issuance of any subpoena in connection therewith. (d) Any witness summoned to testify at a hearing, or any witness giving sworn testimony, may be accompanied by counsel of his own choosing who shall be permitted, while the witness is testifying, to advise him of his legal rights. (e) No confidential testimony taken or confidential material presented in an executive hearing, or any report of the proceedings of such an executive hearing, shall be made public, either in whole or in part or by way of summary, unless authorized by a majority of the members of the committee or subcommittee. Rule 18.--Presidential nominees shall submit a statement of their background and financial interests, including the financial interests of their spouse and children living in their household, on a form approved by the committee which shall be sworn to as to its completeness and accuracy. The committee form shall be in two parts-- (I) information relating to employment, education and background of the nominee relating to the position to which the individual is nominated, and which is to be made public; and, (II) information relating to financial and other background of the nominee, to be made public when the committee determines that such information bears directly on the nominee's qualifications to hold the position to which the individual is nominated. Information relating to background and financial interests (parts I and II) shall not be required of (a) candidates for appointment and promotion in the Public Health Service Corps; and (b) nominees for less than full-time appointments to councils, commissions or boards when the committee determines that some or all of the information is not relevant to the nature of the position. Information relating to other background and financial interests (part II) shall not be required of any nominee when the committee determines that it is not relevant to the nature of the position. Committee action on a nomination, including hearings or meetings to consider a motion to recommend confirmation, shall not be initiated until at least five days after the nominee submits the form required by this rule unless the chairman, with the concurrence of the ranking minority member, waives this waiting period. Rule 19.--Subject to statutory requirements imposed on the committee with respect to procedure, the rules of the committee may be changed, modified, amended or suspended at any time; provided, not less than a majority of the entire membership so determine at a regular meeting with due notice, or at a meeting specifically called for that purpose. Rule 20.--In addition to the foregoing, the proceedings of the committee shall be governed by the Standing Rules of the Senate and the provisions of the Legislative Reorganization Act of 1946, as amended.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I would like to announce for information of the Senate and the public that a hearing of the Subcommittee on Employment, Safety, and Training, Senate Committee on Health, Education, Labor, and Pensions, will be held on Thursday, March 4, 1999, 9:30 a.m., in SD-430 of the Senate Dirksen Building. The subject of the hearing is ``the New SAFE Act.'' For further information, please call the committee, 202/224-5375. committee on small business

Mr. JEFFORDS. Mr. President, I would like to announce for information of the Senate and the public that a hearing of the Senate Committee on Health, Education, Labor and Pensions, Subcommittee on Aging will be held on Wednesday, March 3, 1999, 9:30 a.m., in SD-430 of the Senate Dirksen Building. The subject of the hearing is Older Americans Act: Oversight and Overview. For further information, please call the committee, 202/224-5375. committee on health, education, labor, and Pensions

Mr. JEFFORDS. Mr. President, I would like to announce for information of the Senate and the public that a hearing of the Senate Committee on Health, Education, Labor, and Pensions will be held on Tuesday, March 2, 1999, 9:30 a.m., in SD-430 of the Senate Dirksen Building. The subject of the hearing is Medical Necessity: From Theory to Practice. For further information, please call the committee, 202/224-5375. committee on indian affairs

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, most small businesses in Vermont rely on electronic systems to operate. Many of these businesses are looking to the Year 2000 with apprehension or outright despair. Small businesses rely on microprocessors for manufacturing equipment, telecommunications for product delivery, and the mainstay of data storage--computer chips. These businessmen and women are concerned about the financial effects of the Year 2000 Computer Bug will have on their efforts to remedy the problem, as well as those after-effects caused by system failures. This is why I firmly believe that the quick enactment of Senator Bond's bill, S. 314, the Small Business Year 2000 Readiness Act should be a top priority for Congress. The legislation will go a long way toward providing vitally needed loans for the nation's small businesses. This bill serves three purposes: first, it will authorize the U.S. Small Business Administration (SBA) to expand its guaranteed loan program so eligible small businesses have the means to continue operating successfully after January 1, 2000. Second, the bill will allow small businesses to use Y2K loan proceeds to offset economic injury sustained after the year 2000 as a result of Y2K problems. Third, the legislation will highlight those potential vulnerabilities small businesses face from Y2K so small businessmen and women understand the risks involved. Unfortunately, while many small businesses are well aware of the Y2K Millennium Bug, recent surveys indicate that a significant proportion of them do not plan on taking action because they do not believe it is a serious enough threat. This bill will raise awareness of Y2K risks so small businesses who may face problems will choose to upgrade their hardware and software computer systems. As costs of doing so could be prohibitive for small businesses the legislation will meet the financial needs of small businesses by ensuring access to guaranteed SBA loans. The operation of this legislation will remain the same as the current SBA loan program, where the agency guarantees the principal amount of a loan made by a private lender to assist new small businesses seeking to correct Y2K computer problems. Those lenders currently participating in the SBA's 7(a) business loan program will also be able to participate in the Y2K loan program by accessing additional guaranteed loan funds. Mr. President, I commend the efforts of Chairman Bond on this legislation and I hope for its quick enactment. While this legislation will not eradicate the potential effects Y2K may have on electronic systems, it will at least ensure that resources are available to those small businesses who try to protect themselves from the threat, or recuperate following a Y2K-related difficulty.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I rise today to introduce the ``American Financial Institutions Privacy Act of 1999.'' This legislation will delay the implementation of the ``Know Your Customer'' regulations proposed by the federal banking agencies. Additionally, this legislation would require these agencies to perform a comprehensive study, to be submitted to Congress in 180 days, on the privacy, freedom of association and economic issues implicated by these regulations. Only with Congressional authorization will these regulations be allowed to take effect. These regulations mandate that banks identify each customer, find out the normal source and use of his or her funds and then watch transactions in the account to see if they deviate from ``normal'' and ``expected'' patterns. If the unexpected transactions seem ``suspicious'' banks are required under current law to report them to the Suspicious Activity Reporting System, a federal database that can be searched by the Internal Revenue Service, bank regulators, the FBI and other federal agencies. Mr. President, I have heard from my constituents expressing great concern over the privacy implications of these regulations, and I think a resolution recently adopted by the Vermont House best expresses the concerns of Vermonters. The resolution states, ``. . .the regulation will result in a substantial invasion of privacy and an illegal search in violation of innocent customers' rights. . . .'' I will include a complete copy of this resolution in the Record. The stated purpose behind these rules is to guard the banking system against harm from those who would launder money from drugs and other criminal activities. This is an admirable goal and one that is important in our continuing battle against crime. However, these regulations have moved beyond just a tool used to combat crime and into the realm where the government needs to know all of your personal, financial information. This is an unacceptable change. Mr. President, the study is a necessary part of this legislation and will give Congress the factual basis to evaluate the effects of this regulation on people's privacy and freedom of association, as well as its economic implications. These facts will allow Congress to properly evaluate the regulations and reach a final determination on the regulation's ultimate fate. The study will also give the federal banking agencies time to consider clarifications to the regulations, or rescind them. I would encourage all of my colleagues to join me as cosponsors of the American Financial Institutions Privacy Act of 1999 and help stop this privacy infringement on all Americans. Mr. President, I ask unanimous consent that the text of the resolution be printed in the Record.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I rise today to introduce the ``American Financial Institutions Privacy Act of 1999.'' This legislation will delay the implementation of the ``Know Your Customer'' regulations proposed by the federal banking agencies. Additionally, this legislation would require these agencies to perform a comprehensive study, to be submitted to Congress in 180 days, on the privacy, freedom of association and economic issues implicated by these regulations. Only with Congressional authorization will these regulations be allowed to take effect. These regulations mandate that banks identify each customer, find out the normal source and use of his or her funds and then watch transactions in the account to see if they deviate from ``normal'' and ``expected'' patterns. If the unexpected transactions seem ``suspicious'' banks are required under current law to report them to the Suspicious Activity Reporting System, a federal database that can be searched by the Internal Revenue Service, bank regulators, the FBI and other federal agencies. Mr. President, I have heard from my constituents expressing great concern over the privacy implications of these regulations, and I think a resolution recently adopted by the Vermont House best expresses the concerns of Vermonters. The resolution states, ``. . .the regulation will result in a substantial invasion of privacy and an illegal search in violation of innocent customers' rights. . . .'' I will include a complete copy of this resolution in the Record. The stated purpose behind these rules is to guard the banking system against harm from those who would launder money from drugs and other criminal activities. This is an admirable goal and one that is important in our continuing battle against crime. However, these regulations have moved beyond just a tool used to combat crime and into the realm where the government needs to know all of your personal, financial information. This is an unacceptable change. Mr. President, the study is a necessary part of this legislation and will give Congress the factual basis to evaluate the effects of this regulation on people's privacy and freedom of association, as well as its economic implications. These facts will allow Congress to properly evaluate the regulations and reach a final determination on the regulation's ultimate fate. The study will also give the federal banking agencies time to consider clarifications to the regulations, or rescind them. I would encourage all of my colleagues to join me as cosponsors of the American Financial Institutions Privacy Act of 1999 and help stop this privacy infringement on all Americans. Mr. President, I ask unanimous consent that the text of the resolution be printed in the Record.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, yesterday I introduced legislation, which is, basically, now pending, to allow certain Medicare-eligible veterans to go to Veterans' Administration facilities for their care and to allow the Veterans' Administration to bill Medicare for those services, just as a private provider would do. Seventeen of my colleagues joined Senator Rockefeller, Senator Specter, and myself in introducing the Veterans Equal Access to Medicare Act, S. 445. It is this legislation that Senator Rockefeller now offers as an amendment to this bill, and I support him. America's veterans and the Veterans Health Administration are eager to launch this demonstration project which establishes up to 10 demonstration sites around the country where this policy would be tested. The Department of Defense is currently running a very similar demonstration project for military retirees, and the Veterans' Administration is anxious to do the same for veterans. Allowing veterans to take their Medicare eligibility to a Veterans' Administration building gives them greater flexibility in choosing their care provider. This is good for veterans. It makes good sense, and it would allow the Veterans' Administration to get reimbursed for the care it would provide above and beyond those veterans it is currently treating. This legislation is budget neutral and is limited in scope, capping Medicare trust fund payments to the Veterans' Administration at $50 million per year for 3 years, payments that would otherwise go to private-sector providers. Mr. President, veterans want the option of getting their Medicare- covered care at the VA. The VA wants the option. And we ought to move expeditiously to get this demonstration project underway. I hope my colleagues will support this amendment. Mr. President, I yield the floor. Mr. LEVIN addressed the Chair.

Mr. JEFFORDS

Mr. JEFFORDS. That does, and I appreciate your cooperation as well as the cooperation your staff has shown in allowing us to proceed.

Mr. JEFFORDS. That is correct, I will not offer that amendment.

Mr. JEFFORDS. Mr. President, I ask unanimous consent the reading of the amendments be dispensed with.

Mr. JEFFORDS. Mr. President, I have long been a strong advocate for a well-educated American work-force. Vermont's quality of life is related closely to the educational opportunities available to her citizens. Education is a cornerstone of our healthy economy. These same notions apply with similar effect to our men and women in the military. Modern, technologically advanced systems and complex missions depend on the skills and wisdom of well-educated personnel. S. 4 modestly enhances the educational opportunities for our men and women on active duty. It should do the same for the members of our Guard and Reserve. This bill is appropriately named ``Soldiers', Sailors', Airmen's and Marines' Bill of Rights.'' It is appropriate because use of the term ``Bill of Rights'' invariably suggests the concepts of fairness and equity. Perhaps Secretary of Defense William Cohen had this in the back of his mind in September of 1997 when he instructed the Department of Defense to eliminate ``all residual barriers, structural and cultural'' to effective integration of the Guard, Reserve and Active Components into a ``seamless Total Force.'' Precisely one year later his Deputy, John Hamre, looked back to that day and observed: We have made great progress integrating our active and Reserve forces into one team, trained and ready for the 21st century. Our military leaders are getting the message. Structural and cultural barriers that reduce readiness and impede interoperability between active and Reserve personnel are gradually being eliminated. We must now assess the progress we have made, acknowledge those barriers to integration that still exist, and, most importantly, set our plans into motion. If these wise words are to have full effect we must work to rectify an oversight in S. 4, which, as written, enhances educational benefits for a portion of our seamless Total Force but neglects the remainder. Consequently, to promote parity among all components of our military Senator Landrieu and I are offering the following two amendments: The First: Allow members of the Guard and Reserve the ability to accelerate payments of educational assistance in the same manner currently provided in S. 4 to the Active Duty military. The Second: Allow members of the Guard and Reserve who have served at least ten years in the Selected Reserve, an eligibility period of five years after separation from the military to use their entitlement to educational benefits. (Active duty military members have a ten year period.) Just a few weeks ago, four Reserve Component members lost their lives when their KC-135 went down in Germany while flying active duty missions for the Air Force. Death did not discriminate between Active and Reserve Components. Nor should S. 4. The opportunity to face this ultimate risk will only increase as we place greater demands on our Guard and Reserve units to participate in our global missions. Since Operation Desert Storm the pace of operations has swelled by more than 300% for the Guard alone and is widely expected to climb higher. We all know the value of the Guard and Reserve for missions close to home. In Vermont they saved our citizens from the drastic effects of record setting ice storms last winter. Recently, other units helped with hurricanes in Florida, North Carolina and South Carolina. They assist our citizens during droughts and blizzards. They enrich our communities with Youth Challenge programs and they conduct an ongoing war on drugs. Just last year we added protection of the U.S. from weapons of mass destruction to that list, and the list keeps growing. It is now time to bring their educational benefits in balance. As many of you know, I believe in the value of life-long learning to our society. Access to continuing education has become an essential component to one's advancement through all stages of modern careers. S. 4 modestly improves this access for our brave men and women on active duty. It should do the same for our Guard and Reserves. I urge my colleagues to help bring parity, equity and fairness to the educational opportunities available to all components of our military. The Guard and Reserve have been called upon increasingly to contribute to the Total Force. They face similar challenges to recruiting and retention. They should have similar access to educational opportunities. Mr. President, I send two amendments to the desk.

Mr. JEFFORDS. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. JEFFORDS. Mr. President, I wish to discuss the amendment Senator Cleland and I have proposed. Specifically, we propose allowing our men and women in the Guard and Reserve the opportunity to participate in the Thrift Savings Plan (TSP) in the same manner S. 4 provides to their colleagues on active duty. Allowing members of the Guard and Reserve to participate in the Federal Employees TSP is long overdue and I strongly support the proposal to make it law. This program is good for federal workers and it would benefit members of the Guard and Reserve financially for them to participate in the TSP. Under this system, they would be the sole contributors to their accounts, much like civil servants who are under the old Civil Service Retirement System. Since there would be no federal match to their accounts the cost would be very low to the branches of the military and to the taxpayers, as well. Additional savings in individual accounts will be important to those individuals who serve our Nation in regular, but temporary capacities. The payroll deduction feature of the TSP is an easy way to save. The accounts are managed prudently by the Thrift Savings Board. Participation in the system is high and satisfaction with it is also very high. Those of us on the Health, Education, Labor, and Pension Committees have been spending quite a bit of energy trying to encourage Americans to save more money. As a New Englander, I speak for my constituents when I say that we know a lot about thrift. This is a good amendment that will encourage thrift and I hope my colleagues will support it. Given that our Guard and Reserve are shouldering an increasing share of our world-wide missions, they should have the same savings opportunity that S. 4 gives to the active duty. Now is the time to ensure that our reserve component personnel are not overlooked.

Mr. JEFFORDS

Mr. JEFFORDS. I ask unanimous consent that the Senate proceed to the immediate consideration of H.R. 433, which is at the desk.

Mr. JEFFORDS

Mr. JEFFORDS. Mr. President, I am proud to introduce the Veterans' Equal Access to Medicare Act. This bill will give all our nations' veterans the freedom to choose where they receive their medical care. I am joined by the Chairman and Ranking Member of the Veterans' Affairs Committee, Senators Specter and Rockefeller, as well as Senators Thurmond, Murkowski, Campbell, Craig, Hutchinson, McCain, Snowe, Daschle, Graham, Akaka, Wellstone, Murray, Hollings, Cleland, Landrieu, Johnson, and my friend and colleague from Vermont, Senator Leahy. Known to some as ``Medicare Subvention,'' this legislation will authorize the Department of Veterans Affairs (VA) to set up 10 pilot sites around the country where Medicare-eligible Veterans could get Medicare-covered services at a Veterans hospital. The VA would then be reimbursed at a slightly reduced rate for provision of those services. Many Medicare-eligible veterans want to receive their care at a VA facility. This bill would allow certain veterans that option. My legislation would implement a pilot project that is eagerly sought by both the Veterans Administration and the Veterans Service Organizations. Veterans want the right to choose where they get their Medicare-covered services. Many of them would like to go to a Veterans Administration facility where they would feel more comfortable. We want to make that option possible for those who have given so much of themselves in service to their country. Our legislation starts with a 10-site demonstration project, limiting total Medicare reimbursements to $50 million annually. The VA is required to maintain its current level of effort, and provisions in the bill prevent it from shifting any current costs to the Medicare Trust Fund. In the event that the demonstration project in any way increased Medicare's costs, the VA would reimburse Medicare for these costs and suspend or terminate the program. An independent auditor would monitor the demonstration project annually and make reports to Congress on its findings. A final report to Congress three and a half years after commencement of the project from the Secretaries of Veterans Affairs and Health and Human Services would recommend whether to terminate, continue or expand the program. Almost two years ago, Senator Rockefeller and I successfully included similar legislation in the 1997 Balanced Budget Reconciliation Act. The full Senate endorsed this measure. Unfortunately, our amendment was later dropped in conference. But we feel strongly that now is the time to enact this legislation. Veterans want and deserve this option, and the VA should be allowed to become a Medicare provider. The Department of Health and Human Services and the Veterans Administration have already reached an agreement on how such a program would be implemented. It's time for us to give this project the green light. In 1997 the Department of Defense Medicare Subvention program alleviated what our country's military retirees call a ``lockout'' from the military health care system. This bill will finish the job by allowing all our veterans access to the best and most appropriate health care facility of their choosing. Our nation's veterans deserve no less. I look forward to working with the Senate Finance Committee, Secretary West and the Administration, the Veterans Service Organizations and my colleagues here and in the House to get this legislation signed into law this year.