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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Cooperative 
Antiterrorism Act of 2002''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The use of terrorism is detestable and an illegitimate 
        means of political expression.
            (2) International terrorist organizations pose a direct 
        threat to the United States, and this threat is becoming more 
        acute and more difficult to prevent.
            (3) The threat from international terrorism is made far 
        more dangerous by the proliferation of chemical, biological, 
        and radiological weapons and the means to produce those 
        weapons.
            (4) The prosecution of the war against international 
        terrorist organizations must continue until those organizations 
        and the threat they pose to the people and interests of the 
        United States are eliminated.
            (5) The United States can only win the war on terrorism if 
        it receives cooperation from other countries and entities.
            (6) Protecting the United States homeland and United States 
        interests overseas from terrorism is of the highest priority in 
        the foreign relations of the United States.
            (7) Cooperation in the global war against international 
        terrorism must be a primary focus of United States foreign 
        relations, United States assistance, and international security 
        relations.
            (8) Winning the war on terrorism requires cooperation from 
        the international community, especially in the areas of 
        preventing the financing of terror, sharing information on 
        international terror networks, eliminating terror cells, and in 
        preventing the promotion of anti-Americanism and the 
        glorification of terrorism in state-owned media and state-
        controlled schools.
            (9) The promotion of terrorism, intolerance, and virulent 
        anti-Americanism in state-owned media and state-controlled 
        education systems is abhorrent and poses a long-term threat to 
        the safety and security of the United States as well as the 
        community of nations.
            (10) All countries and entities must be encouraged to 
        cooperate in the global war on international terrorism.
            (11) Many foreign governments and entities are doing little 
        to counter proterrorist and prointolerance messages to mass 
        audiences, including to school age children.
            (12) Countries providing direct or indirect assistance to 
        international terrorist organizations undermine the direct 
        security interests of the United States.
            (13) Countries demonstrating indifference to or providing 
        actual endorsement of international terror as a legitimate 
        political tool make a direct threat to the security interests 
        of the United States.
            (14) The National Commission on Terrorism established by 
        section 591 of the Foreign Operations Export Financing, and 
        Related Programs Appropriations Act, 1999, as enacted by Public 
        Law 105-277 (112 Stat. 2681-210), concluded that the United 
        States should strengthen its efforts to discourage the broad 
        range of assistance that countries provide to international 
        terrorists.
            (15) The National Commission on Terrorism further 
        recommends that the President make more effective use of 
        authority to designate foreign governments as ``not fully 
        cooperative'' with the United States counterterrorism efforts.
            (16) United States assistance programs and the transfer of 
        United States Munitions List items are a critical tool of 
        United States foreign policy and winning the global war on 
        terrorism.
            (17) Countries receiving United States assistance and the 
        export of items on the United States Munitions List must be 
        obligated to support the global war on international terror.
            (18) Several existing laws, including the USA Patriot Act 
        of 2001, the Antiterrorism and Effective Death Penalty Act of 
        1996, the Foreign Assistance Act of 1961, the Arms Export 
        Control Act, and the Export Administration Act of 1979 (or 
        successor statute), prohibit the provision of United States 
        assistance, and the licensing for export of items on the United 
        States Munitions List, to countries supporting terror or not 
        fully cooperating in antiterror efforts of the United States. 
        These laws should be expanded to include the definition of 
        ``fully cooperative in the global war against international 
        terrorism'' set forth in this Act, including preventing 
        promotion of terror in state-owned and controlled media and 
        educational systems.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States that--
            (1) no United States assistance may be provided to any 
        foreign country or entity that is not making a maximum effort 
        to be fully cooperative in the global war against international 
        terrorism; and
            (2) no license for export of an item on the United States 
        Munitions List to a country or entity may be issued if that 
        country or entity is not making a maximum effort to be fully 
        cooperative in the war against international terrorism.

SEC. 4. PROHIBITION ON UNITED STATES ASSISTANCE AND COMMERCIAL ARMS 
              EXPORTS.

    (a) United States Assistance.--No United States assistance, other 
than humanitarian assistance and cooperative nonproliferation and 
counterproliferation programs, may be provided to any country or entity 
if the President determines that such country or entity is not making a 
maximum effort to be fully cooperative in the global war against 
international terrorism.
    (b) Commercial Arms Exports.--No license for the export of an item 
on the United States Munitions List to any country or entity may be 
issued if the President determines that such country or entity is not 
making a maximum effort to be fully cooperative in the global war 
against international terrorism.

SEC. 5. REQUIREMENT FOR AN ANNUAL REPORT.

    (a) Requirement for Report.--The President, in consultation with 
the Secretary of State, the Secretary of the Treasury, the 
Administrator of the United States Agency for International 
Development, and the Director of Central Intelligence, shall prepare an 
annual report that--
            (1) lists each country or entity for which the President 
        has determined that there is credible evidence that such 
        country or entity is not being fully cooperative in the global 
        war against international terrorism under section 4; and
            (2) describes for each country or entity listed under 
        paragraph (1)--
                    (A) the specific failures of each country or entity 
                to be fully cooperative in the global war on 
                international terrorism;
                    (B) the reasons why such country or entity is not 
                fully cooperative;
                    (C) the efforts being made by the United States 
                Government to promote greater adherence by such 
                countries or entities with the global war on 
                international terrorism; and
                    (D) any removal of a country or entity from the 
                list in paragraph (1).
    (b) Dissemination.--The report required by this section shall--
            (1) be submitted to Congress every year by December 31; and
            (2) not be classified, except that the report may contain a 
        classified addendum, if necessary.

SEC. 6. PRESIDENTIAL WAIVER.

    United States assistance or exports prohibited by section 4 may be 
provided to a country or entity described in that section if the 
President--
            (1) determines that permitting such assistance or exports 
        is essential to the national security interests of the United 
        States; and
            (2) not later than 15 days before permitting such 
        assistance or exports, furnishes a report describing the United 
        States assistance or exports to be provided to the appropriate 
        committees of Congress.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Expression of support for terrorism against the united 
        states.--The term ``expression of support for terrorism against 
        the United States'' means actions or expressions that are 
        designed to provoke anti-American action, especially of a 
        violent nature, or to glorify the use of violence against 
        citizens or government officials of the United States.
            (2) Fully cooperative in the global war against 
        international terrorism.--The term ``fully cooperative in the 
        global war against international terrorism'' means a country or 
        entity that is--
                    (A) preventing the financing of terrorism, 
                including preventing--
                            (i) direct financial payments to any 
                        terrorist organization;
                            (ii) any terrorist organization or any 
                        entity supporting a terrorist organization from 
                        receiving financial services such as brokering, 
                        lending, or transferring currency or credit;
                            (iii) any person from soliciting funds or 
                        items of value for a terrorist group; and
                            (iv) any humanitarian or other 
                        nongovernmental organization from providing 
                        financial support to terrorist organizations;
                    (B) sharing intelligence information with the 
                United States, including--
                            (i) releasing information to the United 
                        States related to any terrorist organization;
                            (ii) cooperating in investigations 
                        conducted by the United States; and
                            (iii) providing, to the extent possible, 
                        individuals suspected of or supporting 
                        terrorist organizations to United States 
                        investigators; and
                    (C) acting against terrorist organizations, 
                including--
                            (i) preventing terrorist organizations from 
                        committing or inciting to commit terrorist acts 
                        against the United States or its interests 
                        overseas;
                            (ii) preventing terrorist organizations 
                        from operating safe houses or providing 
                        transportation, communication, false 
                        documentation, identification, weapons 
                        (including chemical, biological, or 
                        radiological weapons), explosives, or training 
                        to terrorists; and
                            (iii) in the cases of a country--
                                    (I) investigating suspected 
                                terrorists within its national 
                                territory;
                                    (II) enforcing international 
                                agreements and United Nations Security 
                                Council Resolutions against terrorism; 
                                and
                                    (III) curbing any domestic 
                                expression of support for terrorism 
                                against the United States and its 
                                allies in state-owned media, state-
                                sanctioned gatherings, state-governed 
                                religious institutions, and state-
                                sanctioned school and textbooks.
            (3) Humanitarian assistance.--The term ``humanitarian 
        assistance'' means any humanitarian goods and services, 
        including foodstuffs, medicines, and health assistance 
        programs.
            (4) Terrorist organization.--The term ``terrorist 
        organization'' means an organization designated as a foreign 
        terrorist organization by the Secretary of State under section 
        219 of the Immigration and Nationality Act (8 U.S.C. 1189).
            (5) United states assistance.--The term ``United States 
        assistance'' means--
                    (A) any assistance under the Foreign Assistance Act 
                of 1961 (including programs under title IV of chapter 
                2, relating to the Overseas Private Investment 
                Corporation);
                    (B) sales, or financing on any terms, under the 
                Arms Export Control Act;
                    (C) the provision of agricultural commodities, 
                other than food, under the Agricultural Trade 
                Development and Assistance Act of 1954; and
                    (D) financing under the Export-Import Bank Act of 
                1945.
            (6) United states munitions list.--The term ``United States 
        Munitions List'' means the defense articles and defense 
        services controlled by the President under section 38 of the 
        Arms Export Control Act (22 U.S.C. 2778).
International Cooperative Antiterrorism Act of 2002 - Prohibits the provision of U.S. assistance (except humanitarian assistance and cooperative nonproliferation and counterproliferation programs), or the issuance of a license for the export of an item on the U.S. Munitions List, to any country or entity that the President has determined is not making a maximum effort to be fully cooperative in the global war against international terrorism. Authorizes the President to waive the requirements of this Act in the national security interests of the United States.

SECTION 1. CLASS SIZE DEMONSTRATION GRANTS.

    Subpart 3 of part D of title V of the Higher Education Act of 1965 
(20 U.S.C. 1109 et seq.) is amended to read as follows:

              ``Subpart 3--Class Size Demonstration Grants

``SEC. 561. PURPOSE.

    ``It is the purpose of this subpart to provide grants to State 
educational agencies to enable such agencies to determine the benefits, 
in various school settings, of reducing class size on the educational 
performance of students and on classroom management and organization.

``SEC. 562. PROGRAM AUTHORIZED.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary shall award grants, on a 
        competitive basis, to State educational agencies to pay the 
        Federal share of the costs of conducting demonstration projects 
        that demonstrate methods of reducing class size that may 
        provide information meaningful to other State educational 
        agencies and local educational agencies.
            ``(2) Federal share.--The Federal share shall be 50 
        percent.
    ``(b) Reservation.--The Secretary may reserve not more than 5 
percent of the amount appropriated under section 565A for each fiscal 
year to carry out the activities described in section 565.
    ``(c) Selection Criteria.--The Secretary shall make grants to State 
educational agencies on the basis of--
            ``(1) the need and the ability of a State educational 
        agency to reduce the class size of an elementary school or 
        secondary school served by such agency;
            ``(2) the ability of a State educational agency to furnish 
        the non-Federal share of the costs of the demonstration project 
        for which assistance is sought;
            ``(3) the ability of a State educational agency to continue 
        the project for which assistance is sought after the 
        termination of Federal financial assistance under this subpart; 
        and
            ``(4) the degree to which a State educational agency 
        demonstrates in the application submitted pursuant to section 
        564 consultation in program implementation and design with 
        parents, teachers, school administrators, and local teacher 
        organizations, where applicable.
    ``(d) Priority.--In awarding grants under this subpart, the 
Secretary shall give priority to demonstration projects that involve 
at-risk students in the earliest grades, including educationally or 
economically disadvantaged students, students with disabilities, and 
limited English proficient students.
    ``(e) Grants Must Supplement Other Funds.--A State educational 
agency shall use the Federal funds received under this subpart to 
supplement and not supplant other Federal, State, and local funds 
available to the State educational agency to carry out the purpose of 
this subpart.

``SEC. 563. PROGRAM REQUIREMENTS.

    ``(a) Annual Competition.--In each fiscal year, the Secretary shall 
announce the factors to be examined in a demonstration project assisted 
under this subpart. Such factors may include--
            ``(1) the magnitude of the reduction in class size to be 
        achieved;
            ``(2) the level of education in which the demonstration 
        projects shall occur;
            ``(3) the form of the instructional strategy to be 
        demonstrated; and
            ``(4) the duration of the project.
    ``(b) Random Techniques and Appropriate Comparison Groups.--
Demonstration projects assisted under this subpart shall be designed to 
utilize randomized techniques or appropriate comparison groups.

``SEC. 564. APPLICATION.

    ``(a) In General.--In order to receive a grant under this subpart, 
a State educational agency shall submit an application to the Secretary 
that is responsive to the announcement described in section 563(a), at 
such time, in such manner, and containing or accompanied by such 
information as the Secretary may reasonably require.
    ``(b) Duration.--The Secretary shall encourage State educational 
agencies to submit applications under this subpart for a period of 5 
years.
    ``(c) Contents.--Each application submitted under subsection (a) 
shall include--
            ``(1) a description of the objectives to be attained with 
        the grant funds and the manner in which the grant funds will be 
        used to reduce class size;
            ``(2) a description of the steps to be taken to achieve 
        target class sizes, including, where applicable, the 
        acquisition of additional teaching personnel and classroom 
        space;
            ``(3) a statement of the methods for the collection of data 
        necessary for the evaluation of the impact of class size 
        reduction programs on student achievement;
            ``(4) an assurance that the State educational agency will 
        pay, from non-Federal sources, the non-Federal share of the 
        costs of the demonstration project for which assistance is 
        sought; and
            ``(5) such additional assurances as the Secretary may 
        reasonably require.
    ``(d) Sufficient Size and Scope Required.--The Secretary shall 
award grants under this subpart only to State educational agencies 
submitting applications which described projects of sufficient size and 
scope to contribute to carrying out the purpose of this subpart.

``SEC. 565. EVALUATION AND DISSEMINATION.

    ``(a) National Evaluation.--The Secretary shall conduct a national 
evaluation of the demonstration projects assisted under this subpart to 
determine the costs incurred in achieving the reduction in class size 
and the effects of the reductions on results, such as student 
performance in the affected subjects or grades, attendance, discipline, 
classroom organization, management, and teacher satisfaction and 
retention.
    ``(b) Cooperation.--Each State educational agency receiving a grant 
under this subpart shall cooperate in the national evaluation described 
in subsection (a) and shall provide such information to the Secretary 
as the Secretary may reasonably require.
    ``(c) Reports.--The Secretary shall report to Congress on the 
results of the evaluation conducted under subsection (a).
    ``(d) Dissemination.--The Secretary shall widely disseminate 
information about the results of the class size demonstration projects 
assisted under this subpart.

``SEC. 565A. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$15,000,000 for fiscal year 1999 and each of the 4 succeeding fiscal 
years.''.

SEC. 2. PRIVATE SECTOR FUNDING FOR RESEARCH AND DEVELOPMENT BY NASA 
              RELATING TO AIRCRAFT PERFORMANCE.

    The Administrator of the National Aeronautics and Space 
Administration may not carry out research and development activities 
relating to the performance of aircraft (including supersonic aircraft 
and subsonic aircraft) unless the Administrator receives payment in 
full for such activities from the private sector.
Amends the Higher Education Act of 1965 to establish a competitive Class Size Demonstration Grants program. 
Directs the Secretary of Education to award such grants to State educational agencies (SEAs) to pay half of the costs of conducting projects that demonstrate methods of reducing class size that may provide information meaningful to other SEAs and local educational agencies (LEAs).  Authorizes the Secretary to reserve up to five percent of funds for this Act for each fiscal year to carry out national evaluation and dissemination activities. 
Sets forth program requirements for:  (1) grant selection criteria; (2) priority for projects that involve at-risk students in the earliest grades, including educationally or economically disadvantaged students, students with disabilities, and limited English proficient students; (3) annual competitions; (4) random techniques and appropriate comparison groups; (5) applications; and (6) sufficient size and scope of projects. 
Directs the Secretary to:  (1) conduct, and report to the Congress on, a national evaluation of such projects to determine the costs incurred in achieving the reduction in class size and the effects of the reductions on results; and (2) widely disseminate information about the results of such projects. 
Authorizes appropriations. 
(Sec. 2) Prohibits the Administrator of the National Aeronautics and Space Administration from carrying out research and development activities relating to the performance of aircraft (including supersonic aircraft and subsonic aircraft) unless the Administrator receives payment in full for such activities from the private sector.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Benefits Claims Prompt 
Payment Act of 2002''.

SEC. 2. PROMPT PAYMENT OF CLAIMS.

    (a) Group Health Plans.--
            (1) Public health service act amendments.--Subpart 2 of 
        part A of title XXVII of the Public Health Service Act is 
        amended by adding at the end the following new section:

``SEC. 2707. PROMPT PAYMENT OF CLAIMS.

    ``(a) In General.--A group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, shall provide for prompt payment of claims submitted for 
health care services or supplies furnished to a participant, 
beneficiary, or enrollee with respect to benefits covered by the plan 
or issuer, in a manner that is no less protective than the provisions 
referred to in subsection (b).
    ``(b) Provisions.--The provisions referred to in this subsection 
are the provisions of section 1842(c)(2) of the Social Security Act (42 
U.S.C. 1395u(c)(2)), as modified as follows:
            ``(1) Alternative interest rate.--Instead of applying the 
        interest rate calculated under section 3902(a) of title 31, 
        United States Code, the interest rate shall be 1 percent of the 
        payment amount due plus, in the case of payments not made 
        within 25 days of the due date, an additional 1 percent 
        interest due for every month the payment is past due.
            ``(2) Coverage of 100 percent of claims.--The reference in 
        such section 1842(c)(2) to `not less than 95 percent of all 
        claims submitted under this part' shall be deemed to be a 
        reference to `100 percent of all claims submitted under the 
        plan or coverage involved'.
    ``(c) Permitting Additional Penalties.--State Insurance 
Commissioners may establish and impose monetary penalties or other 
penalties for failure by a group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, to comply with the provisions referred to in subsection 
(b).''.
            (2) ERISA amendments.--(A) Subpart B of part 7 of subtitle 
        B of title I of the Employee Retirement Income Security Act of 
        1974 is amended by adding at the end the following new section:

``SEC. 714. PROMPT PAYMENT OF CLAIMS.

    ``(a) In General.--A group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, shall provide for prompt payment of claims submitted for 
health care services or supplies furnished to a participant or 
beneficiary with respect to benefits covered by the plan or issuer, in 
a manner that is no less protective than the provisions referred to in 
subsection (b).
    ``(b) Provisions.--The provisions referred to in this subsection 
are the provisions of section 1842(c)(2) of the Social Security Act (42 
U.S.C. 1395u(c)(2)), as modified as follows:
            ``(1) Alternative interest rate.--Instead of applying the 
        interest rate calculated under section 3902(a) of title 31, 
        United States Code, the interest rate shall be 1 percent of the 
        payment amount due plus, in the case of payments not made 
        within 25 days of the due date, an additional 1 percent 
        interest due for every month the payment is past due.
            ``(2) Coverage of 100 percent of claims.--The reference in 
        such section 1842(c)(2) to `not less than 95 percent of all 
        claims submitted under this part' shall be deemed to be a 
        reference to `100 percent of all claims submitted under the 
        plan or coverage involved'.
    ``(c) Permitting Additional Penalties.--State Insurance 
Commissioners may establish and impose monetary penalties or other 
penalties for failure by a group health plan, and a health insurance 
issuer offering health insurance coverage in connection with a group 
health plan, to comply with the provisions referred to in subsection 
(b).''.
            (B) The table of contents in section 1 of such Act is 
        amended by inserting after the item relating to section 713 the 
        following new item:

``Sec. 714. Prompt payment of claims.''.
            (3) Internal revenue code amendments.--
                    (A) In general.--Subchapter B of chapter 100 of the 
                Internal Revenue Code of 1986 is amended--
                            (i) in the table of sections, by inserting 
                        after the item relating to section 9812 the 
                        following new item:

                              ``Sec. 9813. Prompt payment of claims.'';
                            and
                            (ii) by inserting after section 9812 the 
                        following:

``SEC. 9813. PROMPT PAYMENT OF CLAIMS.

    ``(a) A group health plan shall provide for prompt payment of 
claims submitted for health care services or supplies furnished to a 
participant or beneficiary with respect to benefits covered by the 
plan, in a manner that is no less protective than the provisions 
referred to in subsection (b).
    ``(b) Provisions.--The provisions referred to in this subsection 
are the provisions of section 1842(c)(2) of the Social Security Act (42 
U.S.C. 1395u(c)(2)), as modified as follows:
            ``(1) Alternative interest rate.--Instead of applying the 
        interest rate calculated under section 3902(a) of title 31, 
        United States Code, the interest rate shall be 1 percent of the 
        payment amount due plus, in the case of payments not made 
        within 25 days of the due date, an additional 1 percent 
        interest due for every month the payment is past due.
            ``(2) Coverage of 100 percent of claims.--The reference in 
        such section 1842(c)(2) to `not less than 95 percent of all 
        claims submitted under this part' shall be deemed to be a 
        reference to `100 percent of all claims submitted under the 
        plan involved'.
    ``(c) Permitting Additional Penalties.--State Insurance 
Commissioners may establish and impose monetary penalties or other 
penalties for failure by a group health plan to comply with the 
provisions referred to in subsection (b).''.
    (b) Individual Health Insurance.--Part B of title XXVII of the 
Public Health Service Act is amended by inserting after section 2752 
the following new section:

``SEC. 2753. PROMPT PAYMENT OF CLAIMS.

    ``The provisions of section 2707 shall apply to health insurance 
coverage offered by a health insurance issuer in the individual market 
in the same manner as they apply to health insurance coverage offered 
by a health insurance issuer in connection with a group health plan in 
the small or large group market.''.
    (c) Protection of States' Rights.--Any issue relating to prompt 
payment for health care services or supplies that is not governed by 
any provision of law as amended by this section shall be governed by 
otherwise applicable State or Federal law. This section (and the 
provisions amended by this section) does not preempt or supercede any 
law that imposes shorter time frames for payment, greater penalties for 
non-payment, and, in general, provides greater assurances that group 
health plans and health insurance issuers provide for prompt payment of 
claims submitted for health care services or supplies furnished to a 
participant, beneficiary, or enrollee with respect to benefits covered 
by the plan or issuer.
    (d) Effective Dates.--
            (1) Group health plans and group health insurance 
        coverage.--The amendments made by subsection (a) apply with 
        respect to group health plans for plan years beginning on or 
        after January 1, 2003.
            (2) Individual health insurance coverage.--The amendment 
        made by subsection (b) apply with respect to health insurance 
        coverage offered, sold, issued, renewed, in effect, or operated 
        in the individual market on or after such date.

Health Benefits Claims Prompt Payment Act of 2002 - Amends the Employee Retirement Income Security Act of 1974, the Internal Revenue Code, and the Public Health Service Act to require that group and individual health insurance coverage and group health plans provide for prompt payment for health benefits claims.