[Pages S734-S741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mrs. FEINSTEIN (for herself and Mr. Martinez):
S. 2595. A bill to create a national licensing system for residential
mortgage loan originators, to develop minimum standards of conduct to
be enforced by State regulators, and for other purposes; to the
Committee on Banking, Housing, and Urban Affairs.
Mrs. FEINSTEIN. Mr. President, I rise today on behalf of myself and
Senator Martinez to introduce legislation that takes a major step
forward in curbing the abusive lending practices which contributed to
the subprime mortgage crisis. With foreclosures at record levels, the
housing market in steady decline, a global credit crunch, and the
economy nearing recession, it is imperative that we act quickly to
restore confidence in the American dream of home ownership.
Our legislation will eliminate bad actors from the mortgage business,
and require that brokers and lenders meet minimum national standards
which ensure they are professional, competent, and trustworthy.
First, it would create a comprehensive database of all residential
mortgage loan originators. This includes mortgage brokers and lenders,
as well as loan officers of national banks and their subsidiaries.
Second, it would establish national licensing standards to ensure
that mortgage brokers and lenders are trained in legal aspects of
lending, ethics, and consumer protection.
Our bill is similar to H.R. 3012, introduced in the House by
Representative Spencer Bachus, the Ranking Member of the House
Committee on Financial Services. The national licensing concept for
loan originators has enjoyed bipartisan support and was included in the
comprehensive mortgage reform bill, H.R. 3915, which recently passed
the House.
A combination of low interest rates and sophisticated mortgage
products, among other factors, helped increase home ownership to record
levels just 3 years ago.
Subprime and exotic mortgages allowed millions of Americans--many
with little or no down payment and questionable credit--to purchase
homes by using adjustable-rate products with low initial monthly
payments.
There was explosive growth in the use of these sub-prime loans: in
just 2 years, from 2004 to 2006, the number of subprime mortgages in
California increased 110 percent, from 273,000 to 573,000--29.4 percent
of total mortgages in the State.
While the majority of lenders and brokers offered these mortgages in
a responsible fashion, many others relied upon predatory lending
tactics to place unsuspecting borrowers in mortgages they could not
afford. Competitive pressures and lax oversight resulted in loans of
increasingly poor quality being written.
To make matters worse, consumers were not adequately protected from
bad actors in the mortgage industry.
The FBI recently reported that complaints of mortgage fraud have
skyrocketed over the last few years.
In 2003, the number of suspicious activity reports reviewed by the
FBI economic crimes unit numbered 3,000. The number of mortgage fraud
complaints increased to 48,000 last year, representing a jump of 1500
percent.
Most mortgage brokers and non-bank lenders are only lightly regulated
by State agencies. Standards of accountability have not kept pace with
the increasing sophistication of the mortgage industry.
As adjustable-rate mortgages reset to higher rates, many American
families find themselves in homes they can no longer afford. The
percentage of homeowners currently behind on their mortgage payments is
at its highest level in 21 years.
Mr. President, 2.2 million homeowners filed for foreclosure last year
and many lenders have gone out of business or sought bankruptcy
protection.
It is projected that as many as 2 million Americans will be forced to
file for foreclosure before this crisis abates, representing $160
billion in lost equity. The Center for Responsible Lending has
projected that one out of every five subprime loans issued between 2005
and 2006 will fail.
California has been especially hard hit. Mr. President, 5 of the 10
metropolitan areas with the highest foreclosure rate in the Nation are
in California. The foreclosure rate in California is roughly twice the
national average, with 1 foreclosure filing for every 258 households in
the State.
Lenders repossessed 84,375 California homes last year, a sixfold
increase from 12,672 in 2006. Default notices--the initial step in the
foreclosure process--increased 143 percent between 2006 and 2007,
rising from 104,977 in 2006 to 254,824 in 2007. In San Diego County
alone, foreclosures were up 353 percent in 2007.
According to the FBI economic crimes unit, California has been
identified as one of the top 10 ``mortgage fraud hot spots'' in the
Nation.
American families are hurting, and Californians are at the center of
the storm. With close to 500,000 adjustable-rate mortgages scheduled to
reset in California over the next 2 years, the situation is likely to
worsen in 2008.
The subprime mortgage crisis has threatened both the global economy
and the American dream of home ownership. Accountability, professional
standards, and oversight must be enhanced for everyone in the mortgage
industry.
This bill will make it so, and will help to ensure such a crisis
never happens again.
Specifically, the S.A.F.E. Mortgage Licensing Act would require that
all residential mortgage loan originators are licensed, providing
fingerprints, a summary of work experience, and consent for a
background check to authorities.
Additionally, minimum criteria are established that individuals must
meet to obtain a license, including: no felony

[[Page S735]]

convictions; no similar license revoked; a demonstrated record of
financial responsibility; successful completion of education
requirements, 20 hours of approved courses, to include at least 3 hours
related to Federal laws, 4 hours on ethics and consumer protection in
mortgage lending, and 2 hours on the subprime mortgage marketplace;
and, passage of a written exam, the exam must be at least 100 questions
and a minimum score of 75 percent is required to pass.
The Federal Reserve, Treasury, and Federal Deposit Insurance
Corporation must also register all residential mortgage loan
originators employed by national banks.
Lastly, State regulators must develop a satisfactory licensing system
within 1 year following enactment of this legislation.
If this does not occur, the Housing and Urban Development Secretary
is empowered to develop the national registry and license, generating
revenue for its implementation through fees to license applicants.
The subprime mortgage crisis is wreaking havoc on American homeowners
and the national economy. The damage is truly staggering--more than 2
million foreclosure filings last year and another 2 million expected
before this year is over.
Many Americans simply cannot keep pace with adjustable-rate mortgages
that are resetting, and some were steered into these obligations by
unscrupulous actors.
It is essential that this body take action to address some of the
factors that got us here.
This legislation does not assign blame, but rather provides a
workable solution to protect homebuyers and begin to restore confidence
in the American dream of homeownership.
I hope that my colleagues will join us in moving this important bill
through the Senate quickly.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2595

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Secure and
Fair Enforcement for Mortgage Licensing Act of 2008'' or
``S.A.F.E. Mortgage Licensing Act of 2008''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes and methods for establishing a mortgage licensing
system and registry.
Sec. 3. Definitions.
Sec. 4. License or registration required.
Sec. 5. State license and registration application and issuance.
Sec. 6. Standards for State license renewal.
Sec. 7. System of registration administration by Federal banking
agencies.
Sec. 8. Secretary of Housing and Urban Development backup authority to
establish a loan originator licensing system.
Sec. 9. Backup authority to establish a nationwide mortgage licensing
and registry system.
Sec. 10. Fees.
Sec. 11. Background checks of loan originators.
Sec. 12. Confidentiality of information.
Sec. 13. Liability provisions.
Sec. 14. Enforcement under HUD backup licensing system.
Sec. 15. Preemption of State law.
Sec. 16. Reports and recommendations to Congress.
Sec. 17. Study and reports on defaults and foreclosures

SEC. 2. PURPOSES AND METHODS FOR ESTABLISHING A MORTGAGE
LICENSING SYSTEM AND REGISTRY.

In order to increase uniformity, reduce regulatory burden,
enhance consumer protection, and reduce fraud, the States,
through the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators, are
hereby encouraged to establish a Nationwide Mortgage
Licensing System and Registry for the residential mortgage
industry that accomplishes all of the following objectives:
(1) Provides uniform license applications and reporting
requirements for State-licensed loan originators.
(2) Provides a comprehensive licensing and supervisory
database.
(3) Aggregates and improves the flow of information to and
between regulators.
(4) Provides increased accountability and tracking of loan
originators.
(5) Streamlines the licensing process and reduces the
regulatory burden.
(6) Enhances consumer protections and supports anti-fraud
measures.
(7) Provides consumers with easily accessible information,
offered at no charge, utilizing electronic media, including
the Internet, regarding the employment history of, and
publicly adjudicated disciplinary and enforcement actions
against, loan originators.

SEC. 3. DEFINITIONS.

For purposes of this Act, the following definitions shall
apply:
(1) Federal banking agencies.--The term ``Federal banking
agencies'' means the Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, the Director
of the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance
Corporation.
(2) Depository institution.--The term ``depository
institution'' has the same meaning as in section 3 of the
Federal Deposit Insurance Act, and includes any credit union.
(3) Loan originator.--
(A) In general.--The term ``loan originator''--
(i) means an individual who--

(I) takes a residential mortgage loan application;
(II) assists a consumer in obtaining or applying to obtain
a residential mortgage loan; or
(III) offers or negotiates terms of a residential mortgage
loan, for direct or indirect compensation or gain, or in the
expectation of direct or indirect compensation or gain;

(ii) includes any individual who represents to the public,
through advertising or other means of communicating or
providing information (including the use of business cards,
stationery, brochures, signs, rate lists, or other
promotional items), that such individual can or will provide
or perform any of the activities described in clause (i);
(iii) does not include any individual who is not otherwise
described in clause (i) or (ii) and who performs purely
administrative or clerical tasks on behalf of a person who is
described in any such clause.
(iv) does not include a person or entity that only performs
real estate brokerage activities and is licensed or
registered in accordance with applicable State law, unless
the person or entity is compensated by a lender, a mortgage
broker, or other loan originator or by any agent of such
lender, mortgage broker, or other loan originator.
(B) Other definitions relating to loan originator.--For
purposes of this subsection, an individual ``assists a
consumer in obtaining or applying to obtain a residential
mortgage loan'' by, among other things, advising on loan
terms (including rates, fees, other costs), preparing loan
packages, or collecting information on behalf of the consumer
with regard to a residential mortgage loan.
(C) Administrative or clerical tasks.--The term
``administrative or clerical tasks'' means the receipt,
collection, and distribution of information common for the
processing or underwriting of a loan in the mortgage industry
and communication with a consumer to obtain information
necessary for the processing or underwriting of a residential
mortgage loan.
(D) Real estate brokerage activity defined.--The term
``real estate brokerage activity'' means any activity that
involves offering or providing real estate brokerage services
to the public, including--
(i) acting as a real estate agent or real estate broker for
a buyer, seller, lessor, or lessee of real property;
(ii) listing or advertising real property for sale,
purchase, lease, rental, or exchange;
(iii) providing advice in connection with sale, purchase,
lease, rental, or exchange of real property;
(iv) bringing together parties interested in the sale,
purchase, lease, rental, or exchange of real property;
(v) negotiating, on behalf of any party, any portion of a
contract relating to the sale, purchase, lease, rental, or
exchange of real property (other than in connection with
providing financing with respect to any such transaction);
(vi) engaging in any activity for which a person engaged in
the activity is required to be registered or licensed as a
real estate agent or real estate broker under any applicable
law; and
(vii) offering to engage in any activity, or act in any
capacity, described in clause (i), (ii), (iii), (iv), (v), or
(vi).
(4) Loan processor or underwriter.--
(A) In general.--The term ``loan processor or underwriter''
means an individual who performs clerical or support duties
at the direction of and subject to the supervision and
instruction of--
(i) a State-licensed loan originator; or
(ii) a registered loan originator.
(B) Clerical or support duties.--For purposes of
subparagraph (A), the term ``clerical or support duties'' may
include--
(i) the receipt, collection, distribution, and analysis of
information common for the processing or underwriting of a
residential mortgage loan; and
(ii) communicating with a consumer to obtain the
information necessary for the processing or underwriting of a
loan, to the extent that such communication does not include
offering or negotiating loan rates or terms, or counseling
consumers about residential mortgage loan rates or terms.
(5) Nationwide mortgage licensing system and registry.--The
term ``Nationwide Mortgage Licensing System and Registry''
means a mortgage licensing system developed and maintained by
the Conference of State Bank Supervisors and the American

[[Page S736]]

Association of Residential Mortgage Regulators for the State
licensing and registration of State-licensed loan originators
and the registration of registered loan originators or any
system established by the Secretary under section 9.
(6) Registered loan originator.--The term ``registered loan
originator'' means any individual who--
(A) meets the definition of loan originator and is an
employee of a depository institution or a wholly-owned
subsidiary of a depository institution; and
(B) is registered with, and maintains a unique identifier
through, the Nationwide Mortgage Licensing System and
Registry.
(7) Residential mortgage loan.--The term ``residential
mortgage loan'' means any loan primarily for personal,
family, or household use that is secured by a mortgage, deed
of trust, or other equivalent consensual security interest on
a dwelling (as defined in section 103(v) of the Truth in
Lending Act) or residential real estate upon which is
constructed or intended to be constructed a dwelling (as so
defined).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(9) State-licensed loan originator.--The term ``State-
licensed loan originator'' means any individual who--
(A) is a loan originator;
(B) is not an employee of a depository institution or any
wholly-owned subsidiary of a depository institution; and
(C) is licensed by a State or by the Secretary under
section 8 and registered as a loan originator with, and
maintains a unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
(10) Subprime mortgage.--The term ``subprime mortgage''
means a residential mortgage loan--
(A) that is secured by real property that is used or
intended to be used as a principal dwelling;
(B) that is typically offered to borrowers having weakened
credit histories and reduced repayment capacity, as measured
by lower credit scores, debt-to-income ratios, and other
relevant criteria; and
(C) the characteristics of which may include--
(i) low initial payments based on a fixed introductory rate
that expires after a short period and then adjusts to a
variable index rate plus a margin for the remaining term of
the loan;
(ii) very high or no limits on how much the payment amount
or the interest rate may increase (referred to as ``payment
caps'' or ``rate caps'') on reset dates;
(iii) limited or no documentation of the income of the
borrower;
(iv) product features likely to result in frequent
refinancing to maintain an affordable monthly payment; and
(v) substantial prepayment penalties or prepayment
penalties that extend beyond the initial fixed interest rate
period.
(11) Unique identifier.--The term ``unique identifier''
means a number or other identifier that--
(A) permanently identifies a loan originator; and
(B) is assigned by protocols established by the Nationwide
Mortgage Licensing System and Registry and the Federal
banking agencies to facilitate electronic tracking of loan
originators and uniform identification of, and public access
to, the employment history of and the publicly adjudicated
disciplinary and enforcement actions against loan
originators.

SEC. 4. LICENSE OR REGISTRATION REQUIRED.

(a) In General.--An individual may not engage in the
business of a loan originator without first--
(1) obtaining and maintaining, through an annual renewal--
(A) a registration as a registered loan originator; or
(B) a license and registration as a State-licensed loan
originator; and
(2) obtaining a unique identifier.
(b) Loan Processors and Underwriters.--
(1) Supervised loan processors and underwriters.--A loan
processor or underwriter who does not represent to the
public, through advertising or other means of communicating
or providing information (including the use of business
cards, stationery, brochures, signs, rate lists, or other
promotional items), that such individual can or will perform
any of the activities of a loan originator shall not be
required to be a State-licensed loan originator or a
registered loan originator.
(2) Independent contractors.--A loan processor or
underwriter may not work as an independent contractor unless
such processor or underwriter is a State-licensed loan
originator or a registered loan originator.

SEC. 5. STATE LICENSE AND REGISTRATION APPLICATION AND
ISSUANCE.

(a) Background Checks.--In connection with an application
to any State for licensing and registration as a State-
licensed loan originator, the applicant shall, at a minimum,
furnish to the Nationwide Mortgage Licensing System and
Registry information concerning the applicant's identity,
including--
(1) fingerprints for submission to the Federal Bureau of
Investigation, and any governmental agency or entity
authorized to receive such information for a State and
national criminal history background check; and
(2) personal history and experience, including
authorization for the System to obtain--
(A) an independent credit report obtained from a consumer
reporting agency described in section 603(p) of the Fair
Credit Reporting Act; and
(B) information related to any administrative, civil or
criminal findings by any governmental jurisdiction.
(b) Issuance of License.--The minimum standards for
licensing and registration as a State-licensed loan
originator shall include the following:
(1) The applicant has never had a loan originator or
similar license revoked in any governmental jurisdiction.
(2) The applicant has never been convicted of, or pled
guilty or nolo contendere to, a felony in a domestic,
foreign, or military court.
(3) The applicant has demonstrated financial
responsibility, character, and general fitness such as to
command the confidence of the community and to warrant a
determination that the loan originator will operate honestly,
fairly, and efficiently within the purposes of this Act.
(4) The applicant has completed the pre-licensing education
requirement described in subsection (c).
(5) The applicant has passed a written test that meets the
test requirement described in subsection (d).
(c) Pre-Licensing Education of Loan Originators.--
(1) Minimum educational requirements.--In order to meet the
pre-licensing education requirement referred to in subsection
(b)(4), a person shall complete at least 20 hours of
education approved in accordance with paragraph (2), which
shall include at least--
(A) 3 hours of Federal law and regulations;
(B) 3 hours of ethics, which shall include instruction on
fraud, consumer protection, and fair lending issues; and
(C) 2 hours of training related to lending standards for
the subprime mortgage marketplace.
(2) Approved educational courses.--For purposes of
paragraph (1), pre-licensing education courses shall be
reviewed, and approved by the Nationwide Mortgage Licensing
System and Registry.
(3) Limitation and standards.--
(A) Limitation.--To maintain the independence of the
approval process, the Nationwide Mortgage Licensing System
and Registry shall not directly or indirectly offer pre-
licensure educational courses for loan originators.
(B) Standards.--In approving courses under this section,
the Nationwide Mortgage Licensing System and Registry shall
apply reasonable standards in the review and approval of
courses.
(d) Testing of Loan Originators.--
(1) In general.--In order to meet the written test
requirement referred to in subsection (b)(5), an individual
shall pass, in accordance with the standards established
under this subsection, a qualified written test developed by
the Nationwide Mortgage Licensing System and Registry and
administered by an approved test provider.
(2) Qualified test.--A written test shall not be treated as
a qualified written test for purposes of paragraph (1)
unless--
(A) the test consists of a minimum of 100 questions; and
(B) the test adequately measures the applicant's knowledge
and comprehension in appropriate subject areas, including--
(i) ethics;
(ii) Federal law and regulation pertaining to mortgage
origination;
(iii) State law and regulation pertaining to mortgage
origination; and
(iv) Federal and State law and regulation, including
instruction on fraud, consumer protection, subprime mortgage
marketplace, and fair lending issues.
(3) Minimum competence.--
(A) Passing score.--An individual shall not be considered
to have passed a qualified written test unless the individual
achieves a test score of not less than 75 percent correct
answers to questions.
(B) Initial retests.--An individual may retake a test 3
consecutive times with each consecutive taking occurring in
less than 14 days after the preceding test.
(C) Subsequent retests.--After 3 consecutive tests, an
individual shall wait at least 14 days before taking the test
again.
(D) Retest after lapse of license.--A State-licensed loan
originator who fails to maintain a valid license for a period
of 5 years or longer shall retake the test, not taking into
account any time during which such individual is a registered
loan originator.
(e) Mortgage Call Reports.--Each mortgage licensee shall
submit to the Nationwide Mortgage Licensing System and
Registry reports of condition, which shall be in such form
and shall contain such information as the Nationwide Mortgage
Licensing System and Registry may require.

SEC. 6. STANDARDS FOR STATE LICENSE RENEWAL.

(a) In General.--The minimum standards for license renewal
for State-licensed loan originators shall include the
following:
(1) The loan originator continues to meet the minimum
standards for license issuance.
(2) The loan originator has satisfied the annual continuing
education requirements described in subsection (b).
(b) Continuing Education for State-Licensed Loan
Originators.--

[[Page S737]]

(1) In general.--In order to meet the annual continuing
education requirements referred to in subsection (a)(2), a
State-licensed loan originator shall complete at least 8
hours of education approved in accordance with paragraph (2),
which shall include at least--
(A) 3 hours of Federal law and regulations;
(B) 2 hours of ethics, which shall include instruction on
fraud, consumer protection, and fair lending issues; and
(C) 2 hours of training related to lending standards for
the subprime mortgage marketplace.
(2) Approved educational courses.--For purposes of
paragraph (1), continuing education courses shall be
reviewed, and approved by the Nationwide Mortgage Licensing
System and Registry.
(3) Calculation of continuing education credits.--A State-
licensed loan originator--
(A) may only receive credit for a continuing education
course in the year in which the course is taken; and
(B) may not take the same approved course in the same or
successive years to meet the annual requirements for
continuing education.
(4) Instructor credit.--A State-licensed loan originator
who is approved as an instructor of an approved continuing
education course may receive credit for the originator's own
annual continuing education requirement at the rate of 2
hours credit for every 1 hour taught.
(5) Limitation and standards.--
(A) Limitation.--To maintain the independence of the
approval process, the Nationwide Mortgage Licensing System
and Registry shall not directly or indirectly offer any
continuing education courses for loan originators.
(B) Standards.--In approving courses under this section,
the Nationwide Mortgage Licensing System and Registry shall
apply reasonable standards in the review and approval of
courses.

SEC. 7. SYSTEM OF REGISTRATION ADMINISTRATION BY FEDERAL
BANKING AGENCIES.

(a) Development.--
(1) In general.--The Federal banking agencies shall
jointly, through the Federal Financial Institutions
Examination Council, develop and maintain a system for
registering employees of depository institutions or
subsidiaries of depository institutions as registered loan
originators with the Nationwide Mortgage Licensing System and
Registry. The system shall be implemented before the end of
the 1-year period beginning on the date of the enactment of
this Act.
(2) Registration requirements.--In connection with the
registration of any loan originator who is an employee of a
depository institution or a wholly-owned subsidiary of a
depository institution with the Nationwide Mortgage Licensing
System and Registry, the appropriate Federal banking agency
shall, at a minimum, furnish or cause to be furnished to the
Nationwide Mortgage Licensing System and Registry information
concerning the employees's identity, including--
(A) fingerprints for submission to the Federal Bureau of
Investigation, and any governmental agency or entity
authorized to receive such information for a State and
national criminal history background check; and
(B) personal history and experience, including
authorization for the Nationwide Mortgage Licensing System
and Registry to obtain information related to any
administrative, civil or criminal findings by any
governmental jurisdiction.
(b) Coordination.--
(1) Unique identifier.--The Federal banking agencies,
through the Financial Institutions Examination Council, shall
coordinate with the Nationwide Mortgage Licensing System and
Registry to establish protocols for assigning a unique
identifier to each registered loan originator that will
facilitate electronic tracking and uniform identification of,
and public access to, the employment history of and publicly
adjudicated disciplinary and enforcement actions against loan
originators.
(2) Nationwide mortgage licensing system and registry
development.--To facilitate the transfer of information
required by subsection (a)(2), the Nationwide Mortgage
Licensing System and Registry shall coordinate with the
Federal banking agencies, through the Financial Institutions
Examination Council, concerning the development and
operation, by such System and Registry, of the registration
functionality and data requirements for loan originators.
(c) Consideration of Factors and Procedures.--In
establishing the registration procedures under subsection (a)
and the protocols for assigning a unique identifier to a
registered loan originator, the Federal banking agencies
shall make such de minimis exceptions as may be appropriate
to paragraphs (1)(A) and (2) of section 4(a), shall make
reasonable efforts to utilize existing information to
minimize the burden of registering loan originators, and
shall consider methods for automating the process to the
greatest extent practicable consistent with the purposes of
this Act.

SEC. 8. SECRETARY OF HOUSING AND URBAN DEVELOPMENT BACKUP
AUTHORITY TO ESTABLISH A LOAN ORIGINATOR
LICENSING SYSTEM.

(a) Back up Licensing System.--If, by the end of the 1-year
period, or the 2-year period in the case of a State whose
legislature meets only biennially, beginning on the date of
the enactment of this Act or at any time thereafter, the
Secretary determines that a State does not have in place by
law or regulation a system for licensing and registering loan
originators that meets the requirements of sections 5 and 6
and subsection (d) of this section, or does not participate
in the Nationwide Mortgage Licensing System and Registry, the
Secretary shall provide for the establishment and maintenance
of a system for the licensing and registration by the
Secretary of loan originators operating in such State as
State-licensed loan originators.
(b) Licensing and Registration Requirements.--The system
established by the Secretary under subsection (a) for any
State shall meet the requirements of sections 5 and 6 for
State-licensed loan originators.
(c) Unique Identifier.--The Secretary shall coordinate with
the Nationwide Mortgage Licensing System and Registry to
establish protocols for assigning a unique identifier to each
loan originator licensed by the Secretary as a State-licensed
loan originator that will facilitate electronic tracking and
uniform identification of, and public access to, the
employment history of and the publicly adjudicated
disciplinary and enforcement actions against loan
originators.
(d) State Licensing Law Requirements.--For purposes of this
section, the law in effect in a State meets the requirements
of this subsection if the Secretary determines the law
satisfies the following minimum requirements:
(1) A State loan originator supervisory authority is
maintained to provide effective supervision and enforcement
of such law, including the suspension, termination, or
nonrenewal of a license for a violation of State or Federal
law.
(2) The State loan originator supervisory authority ensures
that all State-licensed loan originators operating in the
State are registered with Nationwide Mortgage Licensing
System and Registry.
(3) The State loan originator supervisory authority is
required to regularly report violations of such law, as well
as enforcement actions and other relevant information, to the
Nationwide Mortgage Licensing System and Registry.
(e) Temporary Extension of Period.--The Secretary may
extend, by not more than 12 months, the 1-year or 2-year
period, as the case may be, referred to in subsection (a) for
the licensing of loan originators in any State under a State
licensing law that meets the requirements of sections 5 and 6
and subsection (d) if the Secretary determines that such
State is making a good faith effort to establish a State
licensing law that meets such requirements, license mortgage
originators under such law, and register such originators
with the Nationwide Mortgage Licensing System and Registry.
(f) Limitation on HUD-Licensed Loan Originators.--Any loan
originator who is licensed by the Secretary under a system
established under this section for any State may not use such
license to originate loans in any other State.
(g) Contracting Authority.--The Secretary may enter into
contracts with qualified independent parties, as necessary to
efficiently fulfill the obligations of the Secretary under
this Section.

SEC. 9. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE
LICENSING AND REGISTRY SYSTEM.

If at any time the Secretary determines that the Nationwide
Mortgage Licensing System and Registry is failing to meet the
requirements and purposes of this Act for a comprehensive
licensing, supervisory, and tracking system for loan
originators, the Secretary shall establish and maintain such
a system to carry out the purposes of this Act and the
effective registration and regulation of loan originators.

SEC. 10. FEES.

The Federal banking agencies, the Secretary, and the
Nationwide Mortgage Licensing System and Registry may charge
reasonable fees to cover the costs of maintaining and
providing access to information from the Nationwide Mortgage
Licensing System and Registry, to the extent that such fees
are not charged to consumers for access to such system and
registry.

SEC. 11. BACKGROUND CHECKS OF LOAN ORIGINATORS.

(a) Access to Records.--Notwithstanding any other provision
of law, in providing identification and processing functions,
the Attorney General shall provide access to all criminal
history information to the appropriate State officials
responsible for regulating State-licensed loan originators to
the extent criminal history background checks are required
under the laws of the State for the licensing of such loan
originators.
(b) Agent.--For the purposes of this section and in order
to reduce the points of contact which the Federal Bureau of
Investigation may have to maintain for purposes of subsection
(a), the Conference of State Bank Supervisors or a wholly
owned subsidiary may be used as a channeling agent of the
States for requesting and distributing information between
the Department of Justice and the appropriate State agencies.

SEC. 12. CONFIDENTIALITY OF INFORMATION.

(a) System Confidentiality.--Except as otherwise provided
in this section, any requirement under Federal or State law
regarding the privacy or confidentiality of any information
or material provided to the Nationwide Mortgage Licensing
System and Registry or a system established by the Secretary
under section 9, and any privilege

[[Page S738]]

arising under Federal or State law (including the rules of
any Federal or State court) with respect to such information
or material, shall continue to apply to such information or
material after the information or material has been disclosed
to the system. Such information and material may be shared
with all State and Federal regulatory officials with mortgage
industry oversight authority without the loss of privilege or
the loss of confidentiality protections provided by Federal
and State laws.
(b) Nonapplicability of Certain Requirements.--Information
or material that is subject to a privilege or confidentiality
under subsection (a) shall not be subject to--
(1) disclosure under any Federal or State law governing the
disclosure to the public of information held by an officer or
an agency of the Federal Government or the respective State;
or
(2) subpoena or discovery, or admission into evidence, in
any private civil action or administrative process, unless
with respect to any privilege held by the Nationwide Mortgage
Licensing System and Registry or the Secretary with respect
to such information or material, the person to whom such
information or material pertains waives, in whole or in part,
in the discretion of such person, that privilege.
(c) Coordination With Other Law.--Any State law, including
any State open record law, relating to the disclosure of
confidential supervisory information or any information or
material described in subsection (a) that is inconsistent
with subsection (a) shall be superseded by the requirements
of such provision to the extent State law provides less
confidentiality or a weaker privilege.
(d) Public Access to Information.--This section shall not
apply with respect to the information or material relating to
the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, loan
originators that is included in Nationwide Mortgage Licensing
System and Registry for access by the public.

SEC. 13. LIABILITY PROVISIONS.

The Secretary, any State official or agency, any Federal
banking agency, or any organization serving as the
administrator of the Nationwide Mortgage Licensing System and
Registry or a system established by the Secretary under
section 9, or any officer or employee of any such entity,
shall not be subject to any civil action or proceeding for
monetary damages by reason of the good-faith action or
omission of any officer or employee of any such entity, while
acting within the scope of office or employment, relating to
the collection, furnishing, or dissemination of information
concerning persons who are loan originators or are applying
for licensing or registration as loan originators.

SEC. 14. ENFORCEMENT UNDER HUD BACKUP LICENSING SYSTEM.

(a) Summons Authority.--The Secretary may--
(1) examine any books, papers, records, or other data of
any loan originator operating in any State which is subject
to a licensing system established by the Secretary under
section 8; and
(2) summon any loan originator referred to in paragraph (1)
or any person having possession, custody, or care of the
reports and records relating to such loan originator, to
appear before the Secretary or any delegate of the Secretary
at a time and place named in the summons and to produce such
books, papers, records, or other data, and to give testimony,
under oath, as may be relevant or material to an
investigation of such loan originator for compliance with the
requirements of this Act.
(b) Examination Authority.--
(1) In general.--If the Secretary establishes a licensing
system under section 8 for any State, the Secretary shall
appoint examiners for the purposes of administering such
section.
(2) Power to examine.--Any examiner appointed under
paragraph (1) shall have power, on behalf of the Secretary,
to make any examination of any loan originator operating in
any State which is subject to a licensing system established
by the Secretary under section 8 whenever the Secretary
determines an examination of any loan originator is necessary
to determine the compliance by the originator with this Act.
(3) Report of examination.--Each examiner appointed under
paragraph (1) shall make a full and detailed report of
examination of any loan originator examined to the Secretary.
(4) Administration of oaths and affirmations; evidence.--In
connection with examinations of loan originators operating in
any State which is subject to a licensing system established
by the Secretary under section 8, or with other types of
investigations to determine compliance with applicable law
and regulations, the Secretary and examiners appointed by the
Secretary may administer oaths and affirmations and examine
and take and preserve testimony under oath as to any matter
in respect to the affairs of any such loan originator.
(5) Assessments.--The cost of conducting any examination of
any loan originator operating in any State which is subject
to a licensing system established by the Secretary under
section 8 shall be assessed by the Secretary against the loan
originator to meet the Secretary's expenses in carrying out
such examination.
(c) Cease and Desist Proceeding.--
(1) Authority of secretary.--If the Secretary finds, after
notice and opportunity for hearing, that any person is
violating, has violated, or is about to violate any provision
of this Act, or any regulation thereunder, with respect to a
State which is subject to a licensing system established by
the Secretary under section 8, the Secretary may publish such
findings and enter an order requiring such person, and any
other person that is, was, or would be a cause of the
violation, due to an act or omission the person knew or
should have known would contribute to such violation, to
cease and desist from committing or causing such violation
and any future violation of the same provision, rule, or
regulation. Such order may, in addition to requiring a person
to cease and desist from committing or causing a violation,
require such person to comply, or to take steps to effect
compliance, with such provision or regulation, upon such
terms and conditions and within such time as the Secretary
may specify in such order. Any such order may, as the
Secretary deems appropriate, require future compliance or
steps to effect future compliance, either permanently or for
such period of time as the Secretary may specify, with such
provision or regulation with respect to any loan originator.
(2) Hearing.--The notice instituting proceedings pursuant
to paragraph (1) shall fix a hearing date not earlier than 30
days nor later than 60 days after service of the notice
unless an earlier or a later date is set by the Secretary
with the consent of any respondent so served.
(3) Temporary order.--Whenever the Secretary determines
that the alleged violation or threatened violation specified
in the notice instituting proceedings pursuant to paragraph
(1), or the continuation thereof, is likely to result in
significant dissipation or conversion of assets, significant
harm to consumers, or substantial harm to the public interest
prior to the completion of the proceedings, the Secretary may
enter a temporary order requiring the respondent to cease and
desist from the violation or threatened violation and to take
such action to prevent the violation or threatened violation
and to prevent dissipation or conversion of assets,
significant harm to consumers, or substantial harm to the
public interest as the Secretary deems appropriate pending
completion of such proceedings. Such an order shall be
entered only after notice and opportunity for a hearing,
unless the Secretary determines that notice and hearing prior
to entry would be impracticable or contrary to the public
interest. A temporary order shall become effective upon
service upon the respondent and, unless set aside, limited,
or suspended by the Secretary or a court of competent
jurisdiction, shall remain effective and enforceable pending
the completion of the proceedings.
(4) Review of temporary orders.--
(A) Review by secretary.--At any time after the respondent
has been served with a temporary cease-and-desist order
pursuant to paragraph (3), the respondent may apply to the
Secretary to have the order set aside, limited, or suspended.
If the respondent has been served with a temporary cease-and-
desist order entered without a prior hearing before the
Secretary, the respondent may, within 10 days after the date
on which the order was served, request a hearing on such
application and the Secretary shall hold a hearing and render
a decision on such application at the earliest possible time.
(B) Judicial review.--Within--
(i) 10 days after the date the respondent was served with a
temporary cease-and-desist order entered with a prior hearing
before the Secretary; or
(ii) 10 days after the Secretary renders a decision on an
application and hearing under paragraph (1), with respect to
any temporary cease-and-desist order entered without a prior
hearing before the Secretary,

the respondent may apply to the United States district court
for the district in which the respondent resides or has its
principal place of business, or for the District of Columbia,
for an order setting aside, limiting, or suspending the
effectiveness or enforcement of the order, and the court
shall have jurisdiction to enter such an order. A respondent
served with a temporary cease-and-desist order entered
without a prior hearing before the Secretary may not apply to
the court except after hearing and decision by the Secretary
on the respondent's application under subparagraph (A).
(C) No automatic stay of temporary order.--The commencement
of proceedings under subparagraph (B) shall not, unless
specifically ordered by the court, operate as a stay of the
Secretary's order.
(5) Authority of the secretary to prohibit persons from
serving as loan originators.--In any cease-and-desist
proceeding under paragraph (1), the Secretary may issue an
order to prohibit, conditionally or unconditionally, and
permanently or for such period of time as the Secretary shall
determine, any person who has violated this Act or
regulations thereunder, from acting as a loan originator if
the conduct of that person demonstrates unfitness to serve as
a loan originator.
(d) Authority of the Secretary To Assess Money Penalties.--
(1) In general.--The Secretary may impose a civil penalty
on a loan originator operating in any State which is subject
to licensing system established by the Secretary under
section 8, if the Secretary finds, on the record after notice
and opportunity for hearing, that such loan originator has
violated or failed to comply with any requirement of

[[Page S739]]

this Act or any regulation prescribed by the Secretary under
this Act or order issued under subsection (c).
(2) Maximum amount of penalty.--The maximum amount of
penalty for each act or omission described in paragraph (1)
shall be $5,000 for each day the violation continues.

SEC. 15. PREEMPTION OF STATE LAW.

Nothing in this Act may be construed to preempt the law of
any State, to the extent that such State law provides greater
protection to consumers than is provided under this Act.

SEC. 16. REPORTS AND RECOMMENDATIONS TO CONGRESS.

(a) Annual Reports.--Not later than 1 year after the date
of enactment of this Act, and annually thereafter, the
Secretary shall submit a report to Congress on the
effectiveness of the provisions of this Act, including
legislative recommendations, if any, for strengthening
consumer protections, enhancing examination standards, and
streamlining communication between all stakeholders involved
in residential mortgage loan origination and processing.
(b) Legislative Recommendations.--Not later than 6 months
after the date of enactment of this Act, the Secretary shall
make recommendations to Congress on legislative reforms to
the Real Estate Settlement Procedures Act of 1974, that the
Secretary deems appropriate to promote more transparent
disclosures, allowing consumers to better shop and compare
mortgage loan terms and settlement costs.

SEC. 17. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.

(a) Study Required.--The Secretary shall conduct an
extensive study of the root causes of default and foreclosure
of home loans, using as much empirical data as is available.
(b) Preliminary Report to Congress.--Not later than 6
months after the date of enactment of this Act, the Secretary
shall submit to Congress a preliminary report regarding the
study required by this section.
(c) Final Report to Congress.--Not later than 12 months
after the date of enactment of this Act, the Secretary shall
submit to Congress a final report regarding the results of
the study required by this section, which shall include any
recommended legislation relating to the study, and
recommendations for best practices and for a process to
provide targeted assistance to populations with the highest
risk of potential default or foreclosure.
______

By Mr. LUGAR:
S. 2597. A bill to authorize the extension of nondiscriminatory
treatment (normal trade relations treatment) to the products of
Moldova; to the Committee on Finance.
Mr. LUGAR. Mr. President, I rise today to introduce legislation
designed to extend permanent normal trade relations to Moldova. Moldova
is still subject to the provisions of the Jackson-Vanik amendment to
the Trade Act of 1974, which sanctions nations for failure to comply
with freedom of emigration requirements. This bill would repeal
permanently the application of Jackson-Vanik to Moldova.
Moldova is a small country located between Ukraine and Romania.
Throughout the Cold War it was a part of the Soviet Union. It gained
its independence from the Soviet Union on August 27, 1991. The U.S. has
supported Moldova in its journey toward democracy and sovereignty.
The U.S. enjoys good relations with Moldova and has encouraged
Moldovan efforts to integrate with Euro-Atlantic institutions. Moldova
is an active participant in Guam, Georgia, Ukraine, Azerbaijan and
Moldova, a group of countries that has recently concluded a new trade
agreement with the EU.
Since declaring independence from the Soviet Union in 1992, Moldova
has enacted a series of democratic and free market reforms. In 2001,
Moldova became a member of the World Trade Organization. Until the U.S.
terminates application of Jackson-Vanik on Moldova, the U.S. will not
benefit from Moldova's market access commitments nor can it resort to
WTO dispute resolution mechanisms. While all other WTO members
currently enjoy these benefits, the U.S. does not.
The Republic of Moldova has been evaluated every year and granted
normal trade relations with the U.S. through annual presidential
waivers from the effects of Jackson-Vanik. The Moldovan constitution
guarantees its citizens the right to emigrate and this right is
respected in practice. Most emigration restrictions were eliminated in
1991 and virtually no problems with emigration have been reported in
the 16 years since independence. More specifically, Moldova does not
impose emigration restrictions on members of the Jewish community.
Synagogues function openly and without harassment. As a result, the
Administration finds that Moldova is in full compliance with Jackson-
Vanik's provisions.
Since declaring independence from the Soviet Union in 1992, Moldova
has enacted a series of democratic and free market reforms.
Parliamentary elections in 2005 and local elections in 2007 generally
complied with international standards for democratic elections. Moldova
has also contributed constructively towards a resolution of the long-
standing separatist conflict in the country's Transniestria region,
most recently by proposing a series of confidence-building measures and
working groups.
The U.S. and Moldova have established a strong record of achievement
in security cooperation. In 1997 the Nunn-Lugar Cooperative Threat
Reduction Program responded to a Moldovan request for assistance. The
U.S. purchased and secured 14 nuclear-capable MiG-29Cs from Moldova.
These fighter aircraft were built by the former Soviet Union to launch
nuclear weapons. Moldova expressed concern that these aircraft were
unsecure due to the lack of funds and equipment necessary to ensure
they were not stolen or smuggled out of the country. Specifically,
emissaries from Iran had shown great interest and had attempted to
acquire the aircraft. These planes were not destroyed. They were
disassembled and shipped to Wright Patterson Air Force Base because
they can be used by American experts for research purposes.
Moldova has made small, but important, troop contributions in Iraq.
These contributions include significant demining capabilities and
contingents of combat troops. I am pleased that the U.S. remains
prepared to assist in weapons and ammunition disposal and force
relocation assistance to help deal with the costs of military
realignments in Moldova and to assist with military downsizing and
reforms.
One of the areas where we can deepen U.S.-Moldovan relations is
bilateral trade. In light of its adherence to freedom of emigration
requirements, compliance with threat reduction and cooperation in the
global war on terrorism, the products of Moldova should not be subject
to the sanctions of Jackson-Vanik. The U.S. must remain committed and
engaged in assisting Moldova in pursuing economic and development
reforms. The government in Chisinau still has important work to do in
these critical areas. The support and encouragement of the U.S. and the
international community will be key to encouraging the Government of
Moldova to take the necessary steps to initiate reform. The permanent
waiver of Jackson-Vanik and establishment of permanent normal trade
relations will be the foundation on which further progress in a
burgeoning economic and energy partnership can be made.
I am hopeful that my colleagues will join me in supporting this
important legislation. It is essential that we act promptly to bolster
this important relationship and promote stability in this region.
______

By Mr. DORGAN (for himself, Mr. Bingaman, Mr. Levin, Mr. Kerry,
Ms. Collins, Mr. Lieberman, and Mr. Wyden):
S. 2598. A bill to increase the supply and lower the cost of
petroleum by temporarily suspending the acquisition of petroleum for
the Strategic Petroleum Reserve; to the Committee on Energy and Natural
Resources.
Mr. DORGAN. Mr. President, today I am pleased to introduce the
Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act
of 2007. This bill directs the Secretary of Energy to suspend filling
of the U.S. Strategic Petroleum Reserve, SPR, for 1 year. I appreciate
that Senators Bingaman, Levin, Kerry, Collins, Lieberman, and Wyden
have joined me as original cosponsors of this legislation. This bill
directs the Secretary to stop filling the reserve through direct
purchase, royalty-in-kind or any other measures. The secretary may only
resume filling if the price of a barrel of crude oil drops below $50
per barrel during the remainder of 2008.
The price of a barrel of oil is reaching record highs and global
supplies of oil continue to shrink. During this period of volatile
markets and short supply, it makes no sense to me for the U.S.
Government to continue to take highly valuable crude oil, especially
light sweet crude, off the market to store underground in a reserve
that is at least 96 percent full. Continuing to

[[Page S740]]

``top off'' the Strategic Petroleum Reserve with highly valuable crude
oil is putting upward pressure on oil prices and raising energy prices
for consumers.
I believe that we must take a ``time out'' from filling the reserve
in order to send a signal to the market to reduce rising energy prices
that are hitting American consumers' pocketbooks. Lowering energy costs
will put additional money back into consumers' hands and will help
provide a real stimulus to our economy in my judgment.
Historically, the average price of oil used to fill the Strategic
Petroleum Reserve has been about $27 per barrel. The Administration is
now filling the Reserve with oil that averages over $90 per barrel,
including highly sought after light sweet crude. This is a bad deal for
American taxpayers and consumers.
On January 8, 2008, the Secretary of Energy sent me a letter stating
that our Strategic Petroleum Reserve contains only 57 days of import
protection and that the 50,000 barrels per day they are filling with is
a small amount of the oil used on the global market daily. This is only
part of the story. The fact is that the SPR, combined with our private
oil stocks and refining inventories, total more than 118 days of import
protection. The current levels in our strategic petroleum stocks are
more than adequate to meet our international treaty obligations
requiring 90 days of import protection for all OECD countries. I also
disagree that taking 50,000 barrels per day off the market, especially
light sweet crude, has no impact on energy prices. During the Clinton
administration, Congress signaled that it wanted more than $200 million
sold from the SPR in 1996, the price of oil dropped precipitously in
the market. The market looks at many factors, including our filling of
the SPR. This is another reason we can afford to temporarily suspend
filling the Strategic Petroleum Reserve.
Further, the Energy Policy Act of 2005 provides directional guidance
to expand the Strategic Petroleum Reserve. The provision in law clearly
states that filling the reserve must be achieved ``without incurring
excessive cost or appreciably affecting the price of petroleum products
to consumers.'' I think filling the Strategic Petroleum Reserve in
today's environment is indeed impacting the price of petroleum so that
we must defer filling for now to ease pressure on the market.
Finally, the Congress enacted and the President signed historic
legislation in December 2008--the Energy Independence and Security Act
of 2007. That legislation established a strong foundation to put our
Nation on an alternative energy security pathway. This includes strong
fuel economy standards and an expanded renewable fuels standard.
Conservative estimates provided by the Securing America's Future Energy
Coalition show that the new legislation would reduce net oil imports by
1.75 million barrels per day by 2020, increasing to 2.26 million
barrels per day in 2022 and rising thereafter. These estimates
represent roughly half of the theoretical SPR drawdown capacity of 4.4
million barrels per day. They also increase the number of days of
protection afforded by a given quantity of oil in the SPR. Thus, our
enactment of historic Energy legislation will, over time, increase the
insurance value of the SPR, even if the actual inventory level is
frozen or slightly decreased.
Let me be clear. I believe maintaining a Strategic Petroleum Reserve
is in the economic and national security interests of this country.
However, during this time of record oil prices, rising energy costs for
consumers, economic downturn and tight global oil supplies, the U.S.
Government should suspend taking highly valuable oil off the market to
store underground in the Strategic Petroleum Reserve.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 2598

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Strategic Petroleum Reserve
Fill Suspension and Consumer Protection Act of 2008''.

SEC. 2. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC
PETROLEUM RESERVE.

(a) In General.--Except as provided in subsection (b) and
notwithstanding any other provision of law, during calendar
year 2008, the Secretary of Energy shall suspend acquisition
of petroleum for the Strategic Petroleum Reserve through the
royalty-in-kind program or any other acquisition method.
(b) Resumption.--The Secretary may resume acquisition of
petroleum for the Strategic Petroleum Reserve through the
royalty-in-kind program or any other acquisition method under
subsection (a) not earlier than 30 days after the date on
which the Secretary notifies Congress that the Secretary has
determined that the weighted average price of petroleum in
the United States for the most recent 90-day period is $50 or
less per barrel.
______

By Mr. HARKIN (for himself and Mr. Grassley):
S. 2600. A bill to provide for the designation of a single ZIP code
for Windsor Heights, Iowa; to the Committee on Homeland Security and
Governmental Affairs.
Mr. HARKIN. Mr. President, today I rise with my colleague from Iowa
to introduce a bill to provide the town of Windsor Heights, IA, its own
ZIP code. Currently, the residents of Windsor Heights share three ZIP
codes with surrounding communities, Des Moines, West Des Moines, and
Urbandale. Confusion between the ZIP codes and city boundaries has
caused delays in mail delivery, an increased amount of undelivered
mail, and numerous complaints from frustrated citizens. Each day
sensitive materials, including financial statements, credit cards,
Social Security checks, and passports pass through the mail stream. It
is imperative that residents are able to rely on the safe and timely
delivery of these documents.
The complications from this problem reach beyond mail delivery.
During the recent Iowa Caucuses, residents living in Windsor Heights
Precinct 2 were directed to the wrong address when looking for their
caucus location. Windsor Heights residents who use the 50322 ZIP code--
one which is shared with neighboring Urbandale--were incorrectly
advised that the caucus location was in Urbandale, rather than Windsor
Heights. Furthermore, because insurance rates are based on ZIP codes,
residents pay premiums based on neighboring Des Moines and Urbandale,
rather than Windsor Heights, making it more difficult for providers to
sell car insurance to residents.
City officials have tried in vain for almost 5 years to acquire a ZIP
code for Windsor Heights. It is my hope that the Senate will quickly
act upon this legislation to enable them to do so.
______

By Ms. CANTWELL (for herself and Mrs. Murray):
S. 2601. A bill to require the Secretary of Agriculture to convey to
King and Kittitas Counties Fire District No. 51 a certain parcel of
real property for use as a site for a new Snoqualmie Pass fire and
rescue station; to the Committee on Energy and Natural Resources.
Ms. CANTWELL. Mr. President, today I am introducing the Snoqualmie
Pass Land Conveyance Act, together with Senator Murray. This bill would
transfer an acre and a half of Forest Service land to the King and
Kittitas Counties Fire District No. 51, also known as Snoqualmie Pass
Fire and Rescue. This land would be conveyed at no cost, but would have
to be used by the Fire District specifically for the construction of a
new fire station or it would revert back to the Federal Government.
Snoqualmie Pass Fire and Rescue serves a portion of two counties on
both sides of the Cascade Mountains along Interstate 90, a community of
350 full-time residents that peaks to 1,500 during the ski season.
Additionally, the ski area estimates 20,000 patrons on a busy weekend,
and the Department of Transportation estimates that up to 60,000
vehicles travel through the fire district on a busy day making it the
busiest mountain highway in the country.
This area is also the major transportation corridor for goods and
services between eastern and western Washington. The all-volunteer Fire
Department averages over 300 calls a year with about a 10 percent
annual increase in call volumes, which is more than triple the amount
of calls a typical all-volunteer fire department would respond to in a
year. Mr. Presdient, 84

[[Page S741]]

percent of those incidents are for non-tax paying residents.
Consequently, the Fire Department has the characteristics of a large
city with the limited resources of a small community.
In recent years, this area has been the scene of major winter
snowstorms, multi-vehicle accidents, and even avalanches. The Fire
District is often the first responder to incidents in the area, which
is prone to rock slides and avalanches and it is not uncommon for this
community to be isolated for hours or even days at a time. Several
thousand people can be stranded at the Pass during those periods when
the Pass is closed and while the Department of Transportation works
quickly to get the roads back open, it can be very taxing on local
resources.
For decades, the Fire District has been leasing its current site from
the Forest Service. They operate out of an aging building that was not
designed to be a fire station. Through their hard work and dedication,
they have served their community ably despite this building's many
shortcomings. However, with traffic on the rise and the need for
emergency services in the area growing, the Fire District needs to move
to a true fire station.
The Fire District has identified a nearby site that would better
serve the public safety needs at the Pass. This location would provide
easy access to the interstate in either direction, reducing emergency
response times. The parcel is on Forest Service property, immediately
adjacent to a freeway interchange, between a frontage road and the
interstate itself. The parcel was formerly a disposal site during
construction of the freeway and is now a gravel lot.
I recognize that the Forest Service does not normally support
conveyances of land free of charge. However, I believe an exception
should be made in this particular circumstance because of the important
public service provided by the Fire District, the heavy traffic and
emergency calls created by nonresidents in the area, the distance of
Snoqualmie Pass from other communities with emergency services, and
because of the high amount of federal land ownership in the area, which
severely limits the local tax base. In fact, the Forest Service has
acquired 20,000 acres in King and Kittitas counties at a cost of more
than $52 million over just the last 10 years.
Passage of this legislation would not guarantee that a new station
would be built. The Fire District would have to work hard to gather the
financing that would be required from State and local sources, as well
as any applicable Federal grants or loans. However, the conveyance of
this site at no cost would help this Fire District hold down the
overall cost of this project.
I am confident this can be done with little or no impact to the
environment. Over the last year, following the introduction of this
legislation in the House of Representatives, H.R. 1285, there were
ongoing discussions in Washington State to address some lingering
issues related to this conveyance. I am pleased those discussions
reached resolution. I am also pleased that discussions with my staff,
Senator Murray's staff, and staff of Energy and Natural Resources
Committee led to an amendment to H.R. 1285 before it passed the House
of Representatives that would better tailor the conveyance to both the
environmental and the emergency response needs at the Pass by reducing
the amount of land to be conveyed from 3 acres to 1.5 acres.
It is my understanding that there are offers of support to construct
a new fire station from state and local officials, and to mitigate any
effects of construction, and I support those efforts. To offset any
potential impacts from construction of a new fire station and to
improve wildlife connectivity at the pass, I encourage the Forest
Service to work in collaboration with state and local officials, the
Cascade Land Conservancy, Snoqualmie Fire District, Sierra Club, and
Conservation Northwest to identify opportunities for off-site habitat
acquisition.
I appreciate the efforts of Senator Murray and my colleagues on the
Energy and Natural Resources Committee to review this issue and bring
this bill forward. I look forward to continuing to work with the
community at the Pass and my colleagues to improve public safety in the
area.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
placed in the Record, as follows:

S. 2601

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Snoqualmie Pass Land
Conveyance Act''.

SEC. 2. LAND CONVEYANCE, NATIONAL FOREST SYSTEM LAND,
KITTITAS COUNTY, WASHINGTON.

(a) Conveyance Required.--The Secretary of Agriculture
(referred to in this section as the ``Secretary'') shall
convey, without consideration, to King and Kittitas Counties
Fire District No. 51 of King and Kittitas Counties,
Washington (referred to in this section as the ``District''),
all right, title, and interest of the United States in and to
a parcel of National Forest System land in Kittitas County,
Washington, consisting of approximately 1.5 acres within the
SW \1/4\ of the SE \1/4\ of sec. 4, T. 22 N., R. 11 E.,
Willamette meridian, for the purpose of permitting the
District to use the parcel as a site for a new Snoqualmie
Pass fire and rescue station.
(b) Reversionary Interest.--
(1) In general.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not
being used in accordance with the purpose of the conveyance
specified in that subsection--
(A) all right, title, and interest in and to the property
shall revert, at the option of the Secretary, to the United
States; and
(B) the United States shall have the right of immediate
entry onto the property.
(2) Determination requirements.--A determination of the
Secretary under this subsection shall be made on the record
after an opportunity for a hearing.
(c) Survey.--
(1) In general.--If necessary, the exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory
to the Secretary.
(2) Cost.--The cost of a survey under paragraph (1) shall
be paid by the District.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers to be appropriate to protect the interests of the
United States.
______

By Mr. SALAZAR:
S. 2602. A bill to amend the Department of the Interior, Environment,
and Related Agencies appropriations Act, 2008, to terminate the
authority of the Secretary of the Treasury to deduct amounts from
certain States; to the Committee on Energy and Natural Resources.
Mr. SALAZAR. Mr. President, I rise today to introduce legislation--a
companion bill will be introduced in the House by my colleagues
Representatives Salazar and Udall--to restore Colorado's share of oil
and gas leasing revenue.
The 2008 Omnibus Appropriations bill includes a provision, requested
by the Bush Administration, to reduce the share of mineral royalties
paid to Colorado and other western states. Specifically, the
administration's proposal to reduce the State's share of mineral
revenues from 50 percent to 48 percent does not serve the taxpayers who
fund the government nor does it serve the states that allow energy
production to happen within their borders. Colorado is blessed with an
abundance of natural resources, including its deposits of oil and
natural gas. Our State's economy benefits from the production of these
resources, and we deserve to continue receiving our fair share of the
revenues.
The administration attempts to justify this reduction as necessary to
defray the administrative costs related to the management of onshore
leasing activity. We believe this assertion is unfounded and oppose any
attempt to take money that is rightfully owed to our State in order to
pay for more Federal bureaucracy. This is money that our state could
use to help mitigate the effects of increased oil and gas drilling
activity and for other important state priorities, such as education
and health care.
Our legislation repeals the administration's money grab and restores
each State's share to its full, coequal 50 percent of mineral leasing
revenues. We cannot allow the Federal government to take oil and gas
leasing revenues intended to help the communities of Colorado. This
language was inserted late into last year's omnibus spending bill and
must be corrected. Our legislation does just that.

____________________