Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 104 CONGRESS, FIRST SESSION

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E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, TUESDAY, DECEMBER 5, 1995 No. 192 House of Representatives

The House met at 12:30 p.m. and was It is very important that we do that, Solastine is an old Aristide friend, sort called to order by the Speaker pro tem- but, of course, the elections have to be of a political hack, and has been head pore [Mr. EVERETT]. full, fair, free, democratic elections. of the palace guard, and it is not ex- f There is no indication that the elec- pected that he is going to be able to tions are indeed going to be full, fair, bring either professionalism or inde- DESIGNATION OF THE SPEAKER or free. In fact, most of the opposition pendence to the national police. PRO TEMPORE parties are boycotting the election. The final problem that I point to this The SPEAKER pro tempore laid be- There is virtually no campaigning morning is we just have had a cancella- fore the House the following commu- going on, with the exception of one tion of a business delegation from nication from the Speaker: party, which is the chosen party of the Haiti. Haiti desperately needs more in- WASHINGTON, DC, present President, and it is impossible vestment and business. The Haitians December 5, 1995. to underestimate, in my view, the dam- who were coming here on a mission I hereby designate the Honorable TERRY age done by the parliamentary elec- this week to talk to American legisla- EVERETT to act as Speaker pro tempore on tions that basically caused the loyal tors and businessmen about how to do this day. opposition to lose faith in the system that have canceled their trip because of NEWT GINGRICH, and refuse to participate in it. the heightened tensions between the Speaker of the House of Representatives. The second disturbing area has to do United States and Haitian Govern- f with these elections, and that is, it ap- ments and because of the situation in MORNING BUSINESS pears that some of our taxpayers’ dol- Haiti, which they describe as ‘‘inoppor- lars that are being financed as aid to tune.’’ Inopportune is a euphemism for The SPEAKER. Pursuant to the Haiti are indeed going into the chosen we are scared to death, we are closing order of the House of May 12, 1995, the campaign of the party of the President our business, there is no security, there Chair will now recognize Members from there. There appear to be some unac- is a lot of corruption, and there is lists submitted by the majority and counted moneys in significant much to be done. These are problems minority leaders for morning hour de- amounts, and there is only one cam- we need to look more into before we bates. The Chair will alternate recogni- paign in evidence, and it is a very well spend more tax dollars. I thank you. I tion between the parties, with each funded, lavishly orchestrated cam- look for a report from the White House party limited to not to exceed 30 min- paign. The indications are, certainly on this. utes, and each Member except the ma- the rumors are strong and we have had f jority and minority leaders limited to no denials, that those are U.S. tax dol- not to exceed 5 minutes. lars that are running that campaign DRACONIAN IMPACTS OF The Chair recognizes the gentleman and providing for all those banners and PROPOSED BUDGET from Florida [Mr. GOSS] for 3 minutes. T-shirts that are springing up around The SPEAKER pro tempore. Under f the country that is so poor that many the Speaker’s announced policy of May people do not have T-shirts or food or 12, 1995, the gentleman from New Jer- DIFFICULTIES IN HAITI medicine or other things they need. sey [Mr. PALLONE] is recognized during Mr. GOSS. Mr. Speaker, I come to But these campaign shirts seem to be morning business for 5 minutes. the well today to speak about the pros- getting out there. Mr. PALLONE. Mr. Speaker, as we pects for democracy in Haiti, an area It appears also as we read reports in know, negotiations continue, or at where we have a great deal of invest- Miami that some of our tax dollars are least we hope they are going to con- ment. I am sorry to report that the being used to lobby ourselves. I suspect tinue, over the budget, with this Re- news is even more dismal, there is we will be hearing more on that as oth- publican budget that has passed the more deterioration in the signs that we ers look into those allegations that are House of Representatives and the Sen- are getting toward democracy. We are being made about tax dollars that are ate, which President Clinton wisely not, and there are some four particular going to lawyers and lobbyists in our says he cannot accept, and so negotia- disturbing areas we need to have more own country. tions are going on to try to see if the information from the executive branch The third area of concern is we have President can come to an agreement on. a new chief of the national police, with the Republican leadership in the First, we apparently are going to which is the group supposed to provide Congress. have elections on December 17 for the the stability in Haiti once our troops I just wanted to spend a little time new President in the country of Haiti. leave in February. It turns out Colonel today putting what I call a human face

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H 13931 H 13932 CONGRESSIONAL RECORD — HOUSE December 5, 1995 on some of the numbers. We talk about will be available will be about 28-per- don’t speak English. In just 5 years, the budget, and I have said over and cent less under this Republican pro- that number will increase to 40 million. over again we need to make sure that posal block granted to the States than English is a foreign language for one in whatever is resolved with the budget, what is available now under Medicaid. seven Americans. that Medicare is preserved, that Medic- What that means is a lot of States For most of our Nation’s history, aid is preserved, that those programs simply will not cover people under America gave the children of immi- are not cut in order to finance tax Medicaid. They will make no cat- grants a precious gift—an education in breaks for the wealthy, and also that egorizations of who is covered and who the English language. As each new we are concerned with environmental is not, and that means a lot of low-in- wave of immigrants arrived on these priorities and education priorities. come people will not have access to shores, our public school system I just wanted to give some informa- health care. taught their sons and daughters Eng- tion about numbers and how some of We also estimate that about 330,000 lish, so they could claim their place in those priorities transfer into real people could be denied nursing home the American dream. terms and into the effects on the aver- coverage, because right now Medicaid What are we doing for these new age American, particularly with regard pays for most nursing home care and Americans today? Instead of a first- to Medicare and Medicaid. essentially guarantees nursing home rate education in English, our bilingual The Republican-proposed budget cuts coverage for those seniors who cannot education programs are consigning an Medicare by $270 billion and increases afford to pay for nursing home care pri- entire generation of new Americans— costs on beneficiaries. In effect, these vately. That is all gone. There is no unable to speak, understand, and use cuts increase direct and indirect costs guarantee of nursing home care any- English effectively—to a second-class on Medicare beneficiaries, on our sen- more, because, again if the States de- future. ior citizens, placing a huge financial cide they do not want to provide for This tragedy has human faces. Let burden on seniors and people with dis- certain categories of people, they sim- me tell you about two people’s experi- abilities. ply will not. ences which will illustrate the impact If you look at it, the cuts in the Med- If you look at where the tax breaks of our failed bilingual education pro- icare Program alone basically are are going under the Republican programs. I’ve never heard the problems $1,700 per beneficiary, per senior citi- posal at the same time, the tax breaks with bilingual education more poign- zen, by the year 2002, and premiums for are mostly going for the well-to-do. antly put than in the words of Ernesto those seniors increase to $89 per month Nearly half of the benefits under the Ortiz, a foreman on a south Texas in 2002, an annual increase of about $440 Republican tax package, about 48 per- ranch who said: ‘‘My children learn per couple. cent, go to the top 12 percent of fami- Spanish in school so they can become If you also look at the amount of lies, those of incomes of $100,000 or busboys and waiters. I teach them Eng- money that is going to be available to more. If you are actually making less lish at home so they can become doc- Medicare by reference to the amount of than $30,000 a year, you are probably tors and lawyers.’’ Ernesto understands money that would be available for going to end up paying more in taxes that English is the language of oppor- someone who is getting health care in because the earned income tax credit tunity in the country. He understands the private sector, the $270 billion Med- that goes to a lot of working low-in- that denying his children a good edu- icare cut would limit spending per come people is cut severely. So a lot of cation in English will doom them to a Medicare beneficiary to a rate that is people who are making less than $30,000 limited—as opposed to limitless—fu- more than 20 percent below the pro- a year and who are working essentially ture. jected private insurance per person are going to be paying more taxes in- Bilga Abramova also understands growth rate over the next 7 years. So stead of less. this simple truth. Bilga is a 35-year-old Medicare now will not be keeping up Last, I wanted to talk about the im- Russian refugee who has entered a with the amount of money that is pact of this Republican budget on the church lottery three times in an at- available for those who are paying for environment. It funds enforcement of tempt to win 1 of 50 coveted spaces in their health insurance privately. public health and environmental safe- a free, intensive English class offered Even more important, right now guards 25-percent less than what we by her local parish. Her pleas in Rus- Medicaid pays for the Medicare pre- have now. sian speak volumes about the plight of miums, coinsurance, and deductibles So, again, the environmental prior- all too many immigrants: ‘‘I need to for people who are below 100 percent ities are essentially downgraded, and win,’’ she said. ‘‘Without English, I poverty. In other words, a lot of low-in- we hope that the President is able to cannot begin a new life.’’ come senior citizens have their part B negotiate a better budget bill to pre- The ultimate paradox about our com- premium covered by Medicaid. They do serve these priorities. mitment to bilingual education in this not have to pay coinsurance and they f country is that Bilga and others like do not have to pay deductibles. her all across the country are on wait- Well, all that is gone under the Re- MAKING ENGLISH THE OFFICIAL ing lists for intensive English classes publican proposal. So all those people LANGUAGE OF THE UNITED while we spend $8 billion a year teach- now would have to take that money STATES ing children in their native language. out of their pocket. Of course, they The SPEAKER pro tempore. Under You’ve heard from parents like cannot afford to do so, because they the Speaker’s announced policy of May Ernesto Ortiz and how they feel about are in fact low income. 12, 1995, the gentleman from Wisconsin bilingual education. Even teachers op- What we are going to see happen [Mr. ROTH] is recognized during morn- pose these programs. A recent survey under these Republican Medicare cuts ing business for 3 minutes. of 1,000 elementary and secondary is essentially quality and access for a Mr. ROTH. Mr. Speaker, the Senate teachers found that 64 percent of these lot of senior citizens will suffer. When Governmental Affairs Committee pre- teachers disapproved of bilingual edu- you get to Medicaid, it is even worse, pares to hold hearings tomorrow on the cation programs and favored intensive because Medicaid right now is an enti- issue of making English our official English instruction instead. tlement program for low-income peo- language. One of the issues that heav- Even longtime defenders of these pro- ple, whether they be seniors, children, ily dominates that debate is this issue grams are starting to change their pregnant women, the disabled, what- of bilingual education, which was tune. The California Board of Edu- ever. started as part of the Great Society cation approved a new policy last Under this Republican proposal, Program back in 1968 and has grown month in which they abandoned their there no longer is any guaranteed and mushroomed to the juggernaut preference for bilingual education pro- health car for those low-income people that it is today. I wish to put this prob- grams. under Medicaid. Instead, a block grant lem into a proper perspective. This year marks the 27th year of bi- goes to the States and we estimate Mr. Speaker, a quick look at some lingual education programs. For more that about a 28-percent cut will be startling facts will tell us all we need and more people, that is 27 years too available. The amount of money that to know. Today, 32 million Americans long. It is time to take a fresh look at December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13933 this problem. Bilingual education has centrations of ciguatera poisoning WARD MARKEY, and the gentleman from had 27 years and billions of dollars to exist are found in the reefs and marine California, Congressman PETE STARK, prove that it accomplished what it said life of the Republic of the Marshall Is- and myself introduced a bill, H.R. 2529, it would do in 1968: teach children Eng- lands and of French Polynesia? that places up to an 800-percent duty lish quickly and effectively. Too many Mr. Speaker, may I remind my colon all French beaujolais wine imported people lose sight of the fact that the leagues and the American people there to this country. With each nuclear ex- real issue here is how to help children is a direct correlation between nuclear plosion, the price of French wine shall and newcomers who don’t know Eng- tests that were conducted in the Mar- escalate. People should not buy French lish and who need to assimilate. shall Islands by our own Government wine to protest France’s testing. I ask Let us not forget about Ernesto Ortiz and the nuclear tests now being con- my colleagues and the American people and his children, about Bilga ducted by the French Government in to support us in this effort, and to send Abramova and other new Americans French Polynesia. The point is, Mr. President Chirac a strong message: Nu- like them. While a Senate committee Speaker, ciguatera poisoning is heavily clear testing and nuclear bomb explo- will discuss this issue for the first time concentrated in the fish and marine sions are no longer relevant in our tomorrow, Ernesto and Bilga have al- life of these two areas of the Pacific, world today. ready given us their testimony on bi- and there is a tremendous need right I submit, Mr. Speaker, when are we lingual education, in words and in im- now to examine this serious by product going to stop this madness, in that we ages. We must not lose sight of the fact of nuclear testing which poisons the continue to justify ourselves by saying that this is not just an abstract public very food we depend upon from the Pa- this is the only way that we are going to defend ourselves, by having a nu- policy issue; bilingual education and cific Ocean. clear deterrent capability. Mr. Speak- our national language policies have Mr. Speaker, we do not need to exer, this is the height of contradiction. real world consequences. When our plode more nuclear bombs to see if it We outlaw germ warfare, we outlaw policies fail, the failures have names does harm to human beings. chemical warfare, but we don’t touch and faces attached to them. When our b 1245 nuclear warfare, the most destructive policies serve to divide rather than warfare in existence. This the height of unite us, the rips appear in the very The two nuclear bombs that were dropped on the residents of the cities of hypocrisy, Mr. Speaker. The height of fabric of the American Nation. Don’t hypocrisy. underestimate this issue’s importance. Hiroshima and Nagasaki some 50 years ago killed and vaporized some 290,000 Mr. Speaker, I include for the This is an issue that can affect the RECORD articles on the European Com- very future of new Americans and men, women, and children in Japan during World War II. Mr. Speaker, munity’s reaction to the bombings. America itself. [From the Washington Times, Nov. 20, 1995] f while the international community looks on, France continues to defy the TEST CRITICS RILE PARIS OUTRAGE OVER FRANCE’S NU- concerns of millions of people around CHIRAC CANCELS SUMMITS WITH ITALY, CLEAR TESTING PROGRAM IN the world, continues to explode their BELGIUM SOUTH PACIFIC nuclear bombs not in or anywhere near (By Pierre-Yves Glass) France, but some 14,000 miles away PARIS.—French nuclear tests in the Pacific The SPEAKER pro tempore. Under have blown open a rift between France and the Speaker’s announced policy of May from Paris. most of its European partners. For Paris, 12, 1995, the gentleman from American Mr. Speaker, I submit here is a clas- their criticism of the blasts amounted to be- Samoa [Mr. FALEOMAVAEGA] is recog- sic example of a so-called democracy trayal. nized during morning business for 5 that so desperately wants and desires Angered by their support of a U.N. resolu- minutes. respect and preeminence as a super- tion condemning French nuclear tests, Presi- power in Europe, they are pursuing nu- dent Jacques Chirac on Friday abruptly can- Mr. FALEOMAVAEGA. Mr. Speaker, celed planned summits with the leaders of I rise again today to express my out- clear weapons development at the ex- Belgium and Italy. rage and dismay with the continuation pense of the lives and safety of some Paris justified its action, saying the posi- of France’s willful disregard for the 200,000 French citizens living in French tions of those states and eight other Euro- millions of human lives that may be se- Polynesia. Mr. Speaker, how does one pean Union members didn’t ‘‘correspond to riously at risk because of its nuclear justify the Chirac government’s explod- our idea of European solidarity.’’ ing more nuclear bombs when over 60 By joining 85 other nations in condemning testing program in the South Pacific. France, those 10 EU states broke a decades- France has now exploded four nuclear percent of France’s public is opposed to old tradition of backing a fellow EU member bombs in addition to 166 nuclear bombs nuclear testing? How about the 200,000 when it deemed its actions essential to its that have already been exploded, filling French citizens who will be directly national interests. the landscape in and outside of the impacted if nuclear contamination But their act could be a reminder to Mr. Moruroa Atoll in French Polynesia. breaks out from the atolls, where the Chirac that the EU has 15 states and isn’t It may not be now, Mr. Speaker, but tests now are being conducted? just a club run by its most powerful members—France, Germany and Britain. within the next 10 years when the Is it fair, Mr. Speaker, for President The French have to understand that their French Government is no longer Chirac of France to conclude that the partners in the European Union have opin- around in this part of the world, when lives of 200,000 French citizens living in ions on an initiative on which they have not the Moruroa Atoll finally starts to French Polynesia are deemed expend- been consulted,’’ Belgian Prime Minister break apart, the horrors of France’s able for the sake of France to become Jean-Luc Dehaene said Saturday. nuclear testing contamination will in- a preeminent force in Europe? Is it also France has responded to world outrage by fair, Mr. Speaker, that President insisting its series of six underground nu- fuse itself into the fish and other living clear blasts in French Polynesia this fall are organisms in our Pacific marine envi- Chirac has now determined that the essential to ensure the viability of its nu- ronment. If by some accident of nature safety of some 28 million people living clear arsenal. Government sources said the this atoll starts to break up because of in the Pacific region is also deemed ex- fourth detonation would take place within serious volcanic or earthquake disturb- pendable so as to promote France’s nu- the coming days. ances in or around the ocean floor, clear capabilities? In the name of fair- Paris has pledged to sign a testban treaty what then, Mr. Speaker? ness and equity, Mr. Speaker, what next spring after completing the tests. The United States, Britain and Russia all have The French Government certainly right does President Chirac have to im- adhered to a moratorium on nuclear testing. does not have the capability to clean pose the hazards of nuclear contamina- A U.N. commission’s resolution Thursday up the environmental nightmare sure tion on millions of people in the Pa- ‘‘strongly deplored’’ continued nuclear tests to result, and perhaps our own country cific who are not subject to French by France and China—without naming the may have to commit resources to clean control? Mr. Speaker, I am not one to countries—and demanded the General As- up the mess. defend China’s nuclear testing pro- sembly call for a stop to them. Among the EU’s 15 members, only Brit- Mr. Speaker, do our colleagues and gram, but at least they test within ain—the bloc’s other nuclear power—voted the American people realize that sci- their own backyard. with France against the resolution. Ger- entists have verified that the two areas Mr. Speaker, recently the gentleman many, Spain and Greece—usually staunch of the Pacific where considerable con- from Massachusetts, Congressman ED- French allies—abstained. H 13934 CONGRESSIONAL RECORD — HOUSE December 5, 1995 The resolution was supported by all other declines in Japan, the Netherlands and other to its socialist modernization program,’’ the EU members—Austria, Belgium, Denmark, anti-nuclear nations. document said. ‘‘As long as there is no seri- Finland, Ireland, Italy, Luxembourg, Por- ous threat to China’s sovereignty or secu- tugal, Sweden and the Netherlands. [From the New York Times, Nov. 17, 1995] rity, China will not increase its defense Paris wants to offset U.S. domination of CHINA REBUKES FOUR OTHER NUCLEAR spending substantially or by a big margin. It NATO by creating a more independent EU POWERS ON ARMS CONTROL will never threaten nor invade any other defense system. It interpreted the vote by 10 (By Patrick E. Tyler) country.’’ EU countries condemning the French blasts f as a slap in the face. BEIJING, Nov. 16.—Issuing a major policy The vote of the 10 EU naysayers ‘‘goes statement on arms control, China tonight PRESIDENT SHOULD SEEK SUP- counter to [European] solidarity just as ev- sharply rebuked the United States, Russia, PORT OF THE PEOPLE AND eryone proclaims support for a firmer Euro- Britain and France for continuing to develop THEIR REPRESENTATIVES BE- ‘‘nuclear weapons and outer space weapons, pean defense,’’ former Premier Edouard FORE SENDING UNITED STATES Balladur said. including guided missile defense systems’’ while seeking in some cases to deny the TROOPS TO BOSNIA [From the Honolulu Advertiser, Nov. 24, 1995] peaceful use of nuclear technology to the de- The SPEAKER pro tempore. Under veloping world. SALES OF FRENCH BEAUJOLAIS HIT BY ANTI- the Speaker’s announced policy of May The policy document, issued by the official NUCLEAR BOYCOTT 12, 1995, the gentleman from North New China News Agency, said the world’s POLITICS OF TESTS IN S. PACIFIC SOUR THE NEW major nuclear powers ‘‘on the one hand, vie Carolina [Mr. FUNDERBURK] is recog- VINTAGE with one another in dumping their advanced nized during morning business for 5 It has evolved into one of the most hal- weapons on the international market, even minutes. lowed annual rituals in France, a moment using weapons transfers as a means to inter- Mr. FUNDERBURK. Mr. Speaker, as when bleak autumn blues are swept away by fere in other nations domestic affairs.’’ thousands of American soldiers prepare an ocean of fruity red wine spilling out of ‘‘On the other,’’ it continued, ‘‘they resort to depart for a cold winter in Bosnia, southern Burgundy amid a boisterous chorus to discriminative anti-proliferation and two things are lacking in the White heard around the world: arms control measures, directing the spear- House’s preparation for its plunge into Le beaujolais nouveau has arrived! head of arms control at the developing coun- the Balkan nightmare; an appreciation The yearly rush to ship the stuff to every tries.’’ corner of the globe at the stroke of midnight Without mentioning Taiwan, the document for the Constitution of the United on the third Thursday in November is one of implicitly warned Washington that Beijing States and the unique relationship France’s great marketing coups. The unpre- regards continuing arms sales to the island which exists between constitutional tentious wine, bottled just weeks after the as interference in China’s internal affairs. government and the American mili- grape harvest, produces sneers from con- For the first time, the policy declaration tary. noisseurs but more than $100 million a year also appeared to express China’s formal op- Mr. Speaker, the Founders did not for growers. position to an American proposal to deploy haphazardly assign responsibility for Alas, this year’s vintage is already produc- ballistic missile defense systems in Asia to placing American soldiers in the line of ing a horrendous hangover. Foreign sales protect Japan and American military forces have dropped precipitously in many markets, there, principally against North Korea. fire. Most of these men were veterans largely because of consumer boycotts over Beijing fears that such a missile defense sys- of either the French and Indian War or France’s decision to resume nuclear testing tem could undermine Chinese strategic nu- the Revolution or both. They are deter- in the South Pacific. clear forces, which were developed to hold mined never to commit the Army and The United States is an exception: sales American, Japanese and Russian targets at Navy without the full backing and are solid in Les Etats Unis, including Ha- risk of retaliation in any nuclear conflict. faith of the American people. As Alex- waii, where wine merchants say it would be Chinese officials were alarmed when Presi- ander Hamilton implied in the Federal- a crime to let politics interfere with dent Clinton and President Boris N. Yeltsin ist Papers, the military of the new imbibing. signed a communique´ in May saying Wash- ‘‘They are all fanatics,’’ R. Field Wine Co. ington and Moscow should cooperate in de- United States was to be an instrument managing partner Tim Learmont says of veloping ballistic missile defenses. of the people and not of the Govern- those who would forgo le beau for le bombe. In a larger context, China’s policy presen- ment. The protest, Learmont says, is misplaced. tation was made to a world and regional au- The Founders understood that before ‘‘A lot of the people that grow the wine are dience that is very much concerned with fun- Americans are committed to battle, themselves opposed to nuclear testing. They damental security questions in Asia. They the Commander in Chief must have the are punishing the wrong people, and they are include the rising military tensions between backing of the people, the people’s rep- punishing themselves by boycotting the China and Taiwan; the territorial conflicts resentatives, and the military itself. wine.’’ in the South China Sea, where there are rich A few years ago, former Secretary of In fact, Learmont said, sales in his Hono- deposits of oil, and China’s competition with lulu shop at Ward Centre appear to be Japan for regional dominance. The role of Defense Caspar Weinberger laid out a brisker this year than last, with 12 cases sold American forces in Asia is connected to each six point plan designed to thwart the in less than a week, and only 24 more cases one of these issues. ambitions of any President who might here or on the way. China’s policy statement may have also attempt to reserve for himself military Learmont attributes the sales, at $13.99 a been timed in part to blunt the international powers which the Constitution places bottle with discounts for six or more bottles, criticism that will resume when Beijing det- clearly with the people and the people’s to the ‘‘fresh, clean’’ quality of the new vin- onates its expected third underground nu- representatives. The fifth of Wein- clear warhead this year, part of a final series tage, ‘‘with a lot of strawberry character to berger’s six points was that: ‘‘* * * be- it. of tests leading up to the conclusion in 1996 ‘‘This nouveau is much better than last of a nuclear test ban treaty, which China has fore the United States commits combat year,’’ Learmont says. ‘‘Of course,’’ he grins, pledged to sign. Preparations at the Lop Nor forces abroad, there must be some rea- ‘‘we say that every year.’’ testing range in the far west of China have sonable assurance that we will have But in Japan and Scandinavia, where anti- been observed by American reconnaissance the support of the American people and nuclear protests are popular, beaujolais sales satellites, foreign diplomats here say. their elected Representatives in the have fallen by more than 30 percent, accord- Concerning its own nuclear cooperation Congress.’’ ing to the French winegrowers’ union. In with such countries as Iran and Pakistan, The distinguished military historian Germany, bar customers are asking to pay both of which have nuclear weapons pro- Col. Harry Summers notes that Wein- for the thrill not of drinking beaujolais but grams, the document pledged that China of smashing the bottles. would combat the spread of weapons of mass berger’s theory was not new. It is ‘‘Politics never mixes well with wine,’’ said destruction. But it asserted, ‘‘There must clearly found in the writings of James Franck Duboeuf, who operates France’s big- not be a double standard whereby anti-nu- Madison. Madison, as Summers notes, gest wine-exporting empire with his father, clear proliferation is used as a pretext to clearly believed that there was a moral Georges, known as the ‘‘King of Beaujolais,’’ limit or retard the peaceful use of nuclear imperative that those Americans from their base in Romaneche-Thorins. energy by developing nations.’’ whose sons’ lives are put in danger ‘‘Banning the bomb and nuclear testing China defended its level of military spend- ‘‘must clearly have a say in their de- may be worthy causes, but to stop buying ing, which has increased about 50 percent, wine is not the best way to achieve those taking inflation into account, since the late ployment.’’ goals,’’ Duboeuf said in a telephone inter- 1980’s, according to estimates by Central In- Article I, section 8 of the Constitu- view. telligence Agency. tion gives to the Congress the power to But even new markets such as Brazil, ‘‘China needs a peaceful environment in provide and pay for the common de- China and Singapore have not offset sharp order to be able to devote itself completely fense. Constitutionally, the President December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13935 can do absolutely nothing unless the news, and I am quoting. ‘‘A paralyzing over the fight between the executive Congress appropriates the money for dispute over school vouchers has so di- and the Congress of the United States. the military’s use. It was precisely vided Republicans that some are con- They understand that to be a worthy that restraint on the warmaking power cerned the District will not receive an fight that has to be fought out, but which forced Bill Clinton to abandon annual spending bill for the first time surely no one believes that we should his disastrous adventure in Somalia. since the advent of home rule.’’ be punished by disallowing us the flexi- Mr. Speaker, coming to Congress I say to my GOP colleagues who are bility to spend our own money. after a decision has been made to en- in charge now, every year for 40 years Mr. Speaker, there are over-obliga- gage in full scale military operations that the Democrats were in charge, tion prospects out there because if we abroad is an affront to the Constitu- they got 13 appropriations out. It is are given a 1-month CR, there are man- tion and a threat to our soldiers. I now the GOP’s responsibility to get 13 dates such as AFDC. There are man- don’t care what Bill Clinton pollsters appropriations out, including the Dis- dates such as payroll. We cannot guar- tell him. The momentous issue of war trict’s. Instead, what we have brewing antee we will get through those man- and peace is too dangerous to be left to is a major constitutional fight on the dates. Free the District appropriation. one publicity hungry chief executive. back of the weakest of the 13 appro- f To paraphrase a great military mind, priations, the smallest of the 13 appro- DEAD BROKE ‘‘Bosnia is the wrong war, in the wrong priations—the D.C. appropriations. place, at the wrong time.’’ Bill Clinton, I ask my colleagues, is it fair to hold The SPEAKER pro tempore. Under who spent his college and Oxford years up our appropriation over a fight, a the Speaker’s announced policy of May tearing down the American military constitutional fight, over vouchers for 12, 1995, the gentleman from Virginia and damning his country overseas obvi- private and religious schools? This is a [Mr. WOLF] is recognized during morn- ously learned nothing from his experi- worthy question, but it deserves a ing business for 5 minutes. Mr. WOLF. Mr. Speaker, I want to ences during Vietnam. It is long past hearing. It deserves exposure, major bring to the House’s attention a front time that he read the simple but pow- exposure, if my colleagues mean to de- page article from the December 3, 1995, erful words of the Constitution. He part from 200 years of American his- Minneapolis edition of the Star Trib- must either get the people on his side tory. or pull out now. Instead, we are told, again in the une title, ‘‘Dead Broke,’’ about how f Washington Times this morning, that gamblers are killing themselves, bank- rupting their families, and costing the gentleman from Vermont [Mr. JEF- FREE THE DISTRICT OF COLUMBIA Minnesota millions. Let me read from FORDS] currently holds the votes to APPROPRIATION this compelling article: bury any voucher program under a fili- The SPEAKER pro tempore. Under buster. Imagine filibustering our ap- In less than a decade, legalized gambling in the Speaker’s announced policy of May Minnesota has created a broad new class of propriation over matters that have 12, 1995, the gentlewoman from the Dis- addicts, victims and criminals whose activi- nothing to do with the District. This trict of Columbia [Ms. NORTON] is rec- ties are devastating families and costing tax- proposal on vouchers and on edu- ognized during morning business for 5 payers and businesses millions of dollars. cational reform was meant to help us. Thousands have ruined themselves finan- minutes. It is hurting us now very much. Get it cially, some have committed crimes, and a Ms. NORTON. Mr. Speaker, we are 11 handful have killed themselves. Thousands days before another possible shutdown off our backs. If the GOP wants to do this, if they more will live for years on the edge of bank- of the Federal and the District Govern- ruptcy, sometimes working two or three jobs ment and I am forced to come to the want to help us, let them do it the to pay off credit-card debt. right way and not hold up money that floor of the House every day trying to The Star Tribune said these people keep this from happening, at least in the District needs desperately simply include Minnesotans such as: the District. I recognize now that there to run the city. We already have an Catherine Avina of St. Paul, an as- will probably be at least a short-term agreement on the amount of our appro- sistant attorney general who killed CR, so that 10 days before Christmas priation. It involves a cut, by the way. herself with an overdose of there is not a Federal Government So everything is in order except an ex- antidepressants after a 4-day gambling shutdown, but I hope to impress upon traneous issue involving vouchers. binge. The mother of three had been my colleagues that a short-term CR There is also an abortion issue. But fired just a few days earlier, and left will not help the District much because the issue that is really holding our debts of more than $7,000 and $600 in it is a city and not a Federal agency. money up, threatening to shut the city bounced checks. As we saw from the starts and stops down, threatening to put us on short- John Lee, a 19-year-old St. Paul col- of preparing for the last shutdown, it term continuing resolutions, is not an lege student who lost $8,000 in two does not help a city to give it a short- issue affecting the 600,000 people I rep- nights at a casino. He returned home, term CR. I ask my colleagues to put resent. They deserve better. They de- kicked down the door to his apartment, themselves in the position of my con- serve a whole lot better. put the barrel of a shotgun to his head, stituents, who have paid their taxes, According to the Washington Times, and killed himself. who are second per capita in Federal Mr. Speaker, ‘‘Longtime observers and Lam Ha of Blaine, a father of two and taxes in the United States, and their those involved in the process say nego- waiter at a restaurant. Last year, he money is up here in the appropriations. tiating a District spending bill is often and his wife filed for bankruptcy pro- Eighty percent of it is their money, tough, but the House and the Senate tection with a $76,000 debt, much of it and there is the possibility that the have always worked out their dif- on 25 credit cards. They listed gam- Congress would shut down on their ferences in one sitting.’’ We are having bling losses of $40,000 in 1994 alone, money, or put them on a CR on their the third sitting today and we are no- more than their joint annual income. money. where near to a solution on whether or Reva Wilkinson of Cedar, who is in Tomorrow, the gentleman from Vir- not 600,000 people, many of them the prison for embezzling more than ginia, Chairman TOM DAVIS, has agreed hardest working people one could ever $400,000 from the Guthrie Theater to to a hearing on a bill that would allow find, will get their own money out of support her habit. Her case cost tax- the District to spend its own money in the Congress. payers more than $100,000 to inves- the case of government shutdowns, re- Our money should not be up here in tigate, prosecute, and adjudicate. membering that we are not HUD or the first place. There was a whole revo- According to the article, the costs of HHS—we are a city, like the cities my lution over charging people taxes with- gambling include the following: 38,000 colleagues represent. We are caught in out allowing them to have a say in how probable addicted gamblers in Min- the middle of someone else’s fight. The to spend their own money. The 80 per- nesota; 100,000 people with increasing District is in grave financial stress. It cent I am talking about was raised in gambling problems; 6 confirmed gam- is important to let us out so that we the District of Columbia from District bling related suicides; more than 140 can continue to rebuild this city. taxpayers. Most Americans do not confirmed suicide attempts since 1992; Mr. Speaker, this morning’s Wash- know that. My constituents know it. more than 1,000 people per year declar- ington Times reports some distressing They are tired of being held up here ing bankruptcy; $400,000 per year in H 13936 CONGRESSIONAL RECORD — HOUSE December 5, 1995 welfare benefits withdrawn from casino Mr. Speaker, I include in the RECORD fast as those without casinos. The median ATM’s and $200 to $300 million in esti- immediately following my statement change in counties with casinos was a 39 per- mated annual social costs—taxes, lost an Associated Press article which sum- cent increase, compared with an 18 percent wages, and debts. marizes the three-page Star Tribune increase in non-casino counties, the paper said. The article also reported that some special report, as follows: In Sunday’s report, the newspaper listed $39,000 a month in welfare benefits MINNEAPOLIS.—Legalized gambling in Min- several indicators of the scope of Min- from Hennepin and Ramsey counties is nesota has created a new class of addicts, nesota’s gambling problem. Among them: being withdrawn from automatic teller victims and criminals, devastating families More gamblers are going bankrupt. It said machines in casinos. In September, and costing taxpayers and businesses mil- there is evidence that more than 1,000 people there were 769 withdrawals of public- lions of dollars, a published report says. a year are filing for bankruptcy protection According to the report in Sunday’s Star in cases involving gambling losses. assistance benefits using cash ma- Tribune, thousands of Minnesotans have ru- chines at Mystic Lake Casino in Prior Gamblers are committing suicide. The ined themselves financially, some have com- newspaper found six people with gambling Lake. Seventeen pawn shops have mitted crimes, and a handful have killed problems who had committed suicide since opened near casinos in the State. Sev- themselves because of gambling problems. 1991, five of them in the past two years. At eral owners said they get 50 percent of Thousands more will live for years on the least 140 gamblers have attempted suicide, it their business from gamblers. edge of bankruptcy, sometimes working two said. The real numbers are probably much Ten years ago, there was one Gam- or three jobs to pay off high-interest credit- higher, it said. blers Anonymous group meeting in the card debts, the newspaper said. Credit counselors are seeing increasing Political leaders acknowledge they know State. Today, there are 49. Calls to the numbers of gamblers with seemingly insur- little about the problem, or about the social mountable debts. State Compulsive Gambling Hotline costs of problem gambling such as debt, doubled from 1992 to 1994, reaching Some $39,000 a month in welfare benefits crime and suicides, the Star Tribune said. from Hennepin and Ramsey counties is being nearly 500 per month. ‘‘The social costs really haven’t been as- withdrawn from automatic teller machines Between 1988 when the first of the sessed very accurately, and they certainly in casinos. In September, there were 769 State’s 17 casinos began operating and haven’t been quantified at this point,’’ said withdrawals of public-assistance benefits 1994, counties with casinos saw the Assistant Attorney General Alan Gilbert, a using cash machines at Mystic Lake Casino crime rate rise twice as fast as those member of the state Advisory Council on in Prior Lake. without casinos. The median change in Gambling. ‘‘But I think common sense tells Ten years ago, there was one Gamblers counties with casinos was a 39-percent you that there has to be some adverse ef- Anonymous group meeting in the state. fects. . . . We just don’t know the extent of increase, compared with an 18-percent Today, there are 49. it.’’ Calls to the state Compulsive Gambling increase in noncasino counties. Minnesota’s problem gamblers are mostly And, in the face of rising crime, path- Hotline doubled from 1992 to 1994, reaching middle-class people whose appetite for wa- nearly 500 per month. ological gambling, increased bank- gering grew from office football pools or ruptcies, and broken families, what are church bingo to pulltabs, racetracks, lotter- f political leaders doing? The Star Trib- ies and casinos when state and federal gov- b 1300 une says they have been silent mostly ernments began, legalizing them in the mid- because there is a lack of credible in- 1980s, the newspaper said. BALANCED BUDGET DEBATE IS A The Star Tribune said they include Min- QUESTION OF PRIORITIES formation on the subject. The article nesotans such as: said: Catherine Avina of St. Paul, an assistant The SPEAKER pro tempore. Under Political leaders—even those who have attorney general who killed herself with an the Speaker’s announced policy of May taken an interest in gambling issues—ac- overdose of antidepressants after a four-day 12, 1995, the gentlewoman from Colo- knowledge they know little about the prob- gambling binge. The mother of three had rado [Mrs. SCHROEDER] is recognized lem. There has been no comprehensive study been fired just a few days earlier, and left during morning business for 5 minutes. of the social costs—the debt, crime, and sui- debts of more than $7,000 and $600 in bounced Mrs. SCHROEDER. Mr. Speaker, I cides associated with gambling. The state checks. am here to talk about the budget. The does not know what kind of treatment John Lee, a 19-year-old St. Paul college works, or how successful the programs it student who lost $8,000 in two nights at a ca- budget. Now, first of all, all of the ap- funds have been. sino. He returned home, kicked down the propriations bills were due on Septem- Assistant Attorney General Alan Gil- door to his apartment, put the barrel of a ber 30. A year ago at this time, we had bert, a member of the State Advisory shotgun to his head and killed himself. them all done, they were all signed and Council on Gambling, and ‘‘But I think Lam Ha of Blaine, a father of two and that was the end of it. waiter at a restaurant. Last year, he and his common sense tells you that there has So, we are now 66 days after the date wife filed for bankruptcy protection with a that they were all due, and they are to be some adverse effects. * * * We $76,000 debt, much of it on 25 credit cards. just don’t know the extent of it.’’ They listed gambling losses of $40,000 in 1994 not done yet. We are still operating Mr. Speaker, public officials in Min- alone more than their joint annual income. under this temporary thing. We had nesota are not alone. Public officials in Reva Wilkinson of Cedar, who is in prison one government shutdown that was, I Virginia, Louisiana, and States across for embezzling more than $400,000 from the think, an absolute debacle, in which America don’t have the information Guthrie Theater to support her habit. Her the Federal taxpayers paid $700 million they need to make informed decisions case cost taxpayers more than $100,000 to in- more and got less, because they paid vestigate, prosecute and adjudicate. about gambling policy. for people to be at work and they were The newspaper said even conservative esti- not at work. They wanted to be at That is why I have introduced, and mate of the social costs of problem gambling 126 Members of the House have cospon- suggest that it costs Minnesotans more than work, but they were not allowed to be sored, H.R. 497, the National Gambling $200 million per year in taxes, lost income, at work. Impact and Policy Commission Act. bad debts and crime. An estimated $4.1 bil- Mr. Speaker, that is really nuts. We This legislation would charge a blue- lion is legally wagered in the state each are looking very much again at wheth- ribbon panel with the duty of looking year, it said. er or not we are going to have another at all the social costs described by the Two independent surveys last year esti- one of these in 10 days, or are we going Star Tribune so that America’s policy- mated that the number of people who have to punt it until after the holidays and experienced significant problems because of makers and citizens know what the im- gambling doubled from 1990 to 1994 and now start this whole thing after the begin- pact of legalized gambling may be. exceeds 100,000. One of those studies also con- ning of the new year? Mr. Speaker, the House Judiciary cluded that there are about 38,000 people in What in the world happened between Committee ordered H.R. 497 reported the state with serious gambling addictions. last year and this year that has got us by voice vote and the report could be The problem has taken a toll on a larger- running round and round and round, filed as early as this week. I urge mem- scale level as well. In a report today, the screaming, yelling and hollering and bers who have not yet cosponsored to newspaper said the 14 Minnesota counties looking like a third-rate ‘‘I-don’t- cosponsor this important legislation so with casinos in them are experiencing a sig- know-what,’’ but we certainly do not nificantly faster growth in the crime rate we can rationally determine whether than are counties without casinos. look like any superpower legislature. or not, as the Star Tribune headline Between 1988 when the first of the state’s Mr. Speaker, this has been a pathetic puts it, America is going ‘‘Dead 17 casinos began operating and 1994, counties performance. I think taxpayers are Broke.’’ with casinos saw the crime rate rise twice as angry with everybody in Washington. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13937 The reason it has been so hard to un- American family would agree with that bers, many from the other side of the derstand this is because the budget is decision. aisle, who say that is too soon; we need something that everybody’s eyes glaze Mr. Speaker, do you think there is 10 years or 9 years or 8 years. I think 7 over the minute we mention it. any American family that would say to years is too long and I think Uncle Mr. Speaker, there is all sorts of the young people sitting at the table Sam needs a credit counselor, someone rhetoric going around. I see people trying to go to college, ‘‘Well, that is who would shake some sense into our wearing the button ‘‘2002,’’ like one it. We are pulling the plug on you?’’ I heads and say, ‘‘You need to balance side is going to balance in the year 2002 don’t think so. Nor do I think they the budget now.’’ and the other side is not. That is would do it to the elderly, nor do I Mr. Speaker, I think as a nation we wrong. The issue is not are we going to think they would do it to anyone, just have become addicted to spending balance the budget 7 years out; the to send extra tax money to their rich money. We expect to get services with- issue is how are we going to balance uncle. That is what this is about. out paying for them. I learned long ago the budget 7 years out? Who wins? Who f that there is no such thing as a free loses? That is going to determine what NOT WHETHER TO BALANCE THE lunch. We as a nation have to learn kind of a country we are. that. If we want services, we have to Mr. Speaker, I think this debate is BUDGET, BUT HOW TO BALANCE THE BUDGET pay for them. If we are not willing to more important than any other debate pay for them, then we had better go we are going to have, because it is real- The SPEAKER pro tempore. Under without the services. That applies ly going to set the country on a course the Speaker’s announced policy of May across the board. for the next century. We are talking 12, 1995, the gentleman from Michigan As I said, I was trying to put politics 2002, the next century. What kind of a [Mr. EHLERS] is recognized during aside here and just deal with the facts. country are we going to be? We say, morning business for 5 minutes. I would say that too many people in ‘‘Well, what are we? We are America. Mr. EHLERS. Mr. Speaker, Just as the debate here, and between the Con- What is America? America is the flag. the previous speaker did, I wish to gress and the White House, have gotten What is the flag? The flag is America.’’ speak about the budget deficit. How- into political discussions. Let us break out of that circle. What ever, contrary to what the previous does America mean, and what does the speaker did, I wish to put politics aside The President, for example, tried to flag mean, and what do we stand for, and just talk about some of the facts use Medicare to defeat our continuing and how do we invest our tax dollars? that are involved. resolution and scare the elderly about The huge fight between the two dif- Mr. Speaker, we currently have a na- what might happen to Medicare. Some ferent sides of this aisle is whether or tional debt which, within a week or Members on the other side of the aisle not we are going to have to whack two, will exceed $5 trillion, or more continue their refrain about cutting away at that budget right, left, and than three times the amount of the an- Medicare to pay for tax cuts for the sundry to do this tax cut; to do this tax nual revenues of the United States of rich. We just saw an example of that. cut for the top 1 percent of America’s America. But, Mr. Speaker, I am also going to families. See, if we do this tax cut, the Furthermore, over the past several fault the Republicans, because I per- top 1 percent is going to be like win- years we have had budget deficits in sonally think that a number of things ning the lottery. They are going to get the neighborhood of $200 billion or that we are seeking to cut are being $13,628, if they make over $600,000 a more a year and, in general, they have cut too severely, and other things that year. We know how they need it. They been greater than 10 percent of the an- are not being cut should be cut or are having trouble buying all the new nual revenues of the United States of should be cut more than they are. I fancy presents they want. America. think all sides have to work together Mr. Speaker, to do that, we are going Let us break that down into human and recognize the overwhelming nature to raise the taxes of the lowest 20 per- terms, as the gentlewoman from Colo- of the budget deficit, and recognize cent and, boy, the next 20 percent they rado [Mrs. SCHROEDER] just did. That that this has to be our top priority. are going to get a whole $39 back. I am means that each and every man, That is why I am delighted that we sure they are wondering right now how woman, and child in the United States were able to reach agreement with the to spend it. Then the next 20 percent is owes $19,000 as their share of the Fed- White House that we will, indeed, bal- going to get $226 back. This is not eral debt. Every man, woman, and ance the budget in 7 years and that we going to mean anything to the average child in this country. Every American will, indeed, work on this together. American family; especially when we child born comes into this world with a Mr. Speaker, we have to do more turn around and figure out what we debt of $19,000. than just reach agreement that we will have to cut out of the budget to get Currently, each of us, every man, do it. We have to work on the details. this money to fund this tax rebate. woman, and child in the United States, This House of Representatives has Again, that all sounds like Washing- pays $1,000 per year, roughly, in inter- spent most of this year working on tonian blabberty-blab. Let me try to est alone on the national debt. In other that specific issue: preparing a budget put it on a family level. Let us assume words, of the amount of money paid in that will achieve balance in 7 years. I an American family is sitting around taxes to the Federal Government, am proud of the work that has been their table working on the family roughly $1,000 per capita goes to cover done in this Chamber and in the Sen- budget for the next year, and assume the interest. ate. We have sent that bill to the Presi- they had too much debt, that they put Mr. Speaker, I pointed out a week or dent. He has said he will veto it, and I too much on that plastic card that two ago that if any one of us as a fam- suspect he will. tempts us all every single day, and now ily owed an amount of money three they have got to figure out how they times or greater than our annual aver- But then, Mr. Speaker, comes the get rid of that debt. So, they are look- age income, and continued to spend 10 real work. Not simply posturing to the ing at every member sitting at the percent more than our annual income, public and saying we are going to in- table. What are the decisions going to and we went to a credit counselor be- jure the elderly by cutting Medicare, be? Where do they cut back? cause our credit cards had been cut off which in fact we are not, but rather we Mr. Speaker, do you think there is an and we could not get any further loans, have to sit down together and nego- American family around that would and we went to a credit counselor and tiate in good faith and say, ‘‘Look, we say to the children, the 4- to 5-year- said that we would like to balance our have agreed to balance the budget in 7 olds, ‘‘We are going to have to take you budget, but we wanted 7 years to do it, years and the question is not whether out of Head Start?’’ ‘‘That is it. It is a credit counselor would say, ‘‘You are or not we should; the question is how nice, but you are not even going to get crazy. You are in trouble. You have to we are going to do it and what we are to start, much less finish school.’’ That balance your budget this year.’’ going to cut.’’ is exactly what we are talking about Yet, Mr. Speaker, we as a Congress Mr. Speaker, that is going to take a doing, throwing thousands of kids out are proposing to balance the budget in very detailed and active and well-in- of Head Start. I do not think any 7 years and there are a number of Mem- tentioned debate in the weeks ahead. H 13938 CONGRESSIONAL RECORD — HOUSE December 5, 1995 CONSUMER REPORTS LABELS GOP gress is taking us back to a time when In a sorely troubled world, filled with MEDICAID PROPOSAL BUM DEAL it was commonplace for Americans to all too much hatred, violence, and FOR AMERICAN FAMILIES lose their homes and their life savings human misery, we pray to You, dear The SPEAKER pro tempore. Under to ensure that their husbands, wives, or God, for divine guidance; such guidance the Speaker’s announced policy of May parents had adequate nursing home is needed for all of us, in and out of 12, 1995, the gentlewoman from Con- care.’’ She is right, this policy is government, as we work toward a bet- necticut [Ms. DELAURO] is recognized wrong. ter day for all mankind. We pray to during morning business for 5 minutes. Yesterday, I met with people in my You, our Father, who taught us to love Ms. DELAURO. Mr. Speaker, I would district who have parents in nursing our neighbors and to seek peace, to just say to the prior speaker that, in homes. They told me that these imbue us with both the wisdom and the fact, that credit counselor would say, changes would be devastating to their will to apply Your teachings in rela- ‘‘You are crazy.’’ Crazy that in a dif- attempts to take care of their parents tions between nations as well as be- ficult time economically for our coun- in their old age. tween individuals. Let us reflect on the try, that we are about to provide a $245 Jack and Patricia D’Urso of Bran- enormous power available to mankind, billion tax break for the wealthiest ford, CT, have seven children and two power which we may use for good or Americans. That is a free lunch for the parents, both in nursing homes. With- evil, to build or to destroy. It is ours to wealthiest Americans. out the help of Medicaid, they don’t choose: life or death. May we be in- Mr. Speaker, we have spent a lot of know how they would care for their spired by the prophetic message, ‘‘Not time in this Congress talking about the parents. While comfortable in their re- by might, nor by power, but by My cuts in Medicare contained in the GOP tirement, they simply do not have the spirit, saith the Lord of Hosts,’’ and budget. Democrats believe that those resources to pay approximately $80,000 thereby choose life. Amen. cuts go too far, too fast and would be a year to pay for long-term care of two f harmful to the 37 million seniors who parents. THE JOURNAL rely on Medicare for their basic health Zelda Cooper of Hamden, CT, has two care. parents receiving nursing home care. The SPEAKER. The Chair has exam- But, it isn’t just Medicare cuts which She could not believe that Congress ined the Journal of the last day’s pro- threaten the health security of our sen- would consider ending the guaranteed ceedings and announces to the House ior citizens. The proposed budget also coverage that her family relies on and his approval thereof. makes deep cuts in Medicaid which put has no idea how she would care for her Pursuant to clause 1, rule I, the Jour- seniors and their families at risk. parents should they be forced out of nal stands approved. Last week, the Consumers Union, their nursing home. f better known as the publisher of Now, my Republican colleagues have PLEDGE OF ALLEGIANCE. Consumer Reports, warned that the made much ado of late about losing Medicaid overhaul would add signifi- their message on the budget. They the- The SPEAKER. Will the gentleman cant new financial burdens on hus- orize that the American people aren’t from Georgia [Mr. BARR] come forward bands, wives, and adult children of with them because they haven’t heard and lead the House in the Pledge of Al- nursing home residents that could the Republican message. The opposite legiance. force families into poverty. The group is true. The message is coming through Mr. BARR led the Pledge of Alle- estimates that the $163 billion in pro- loud and clear to the American people. giance as follows: posed cuts will cause hundreds and In fact, the more the American people I pledge allegiance to the Flag of the thousands of nursing home residents to know, the less they like the Gingrich United States of America, and to the Repub- lose their Medicaid coverage. budget. lic for which it stands, one nation under God, We all know Consumer Reports as It’s not a bad message that is hurting indivisible, with liberty and justice for all. the publication that tells us if we’re Republicans, it’s bad policy. It is bad f getting a good deal or a bum deal on a policy to ask families to hawk their WELCOME TO RABBI BERGER new car or a new computer. This time, homes to pay for the nursing home (Mr. DEUTSCH asked and was given they’ve looked at the Republican Med- care for loved ones. It is bad policy to permission to address the House for 1 icaid proposal from a consumer’s point impoverish middle-income families to minute to revise and extend his re- of view and have declared it a bum deal balance the budget. That’s why marks.) for American families. Consumer Reports has labeled the GOP Mr. DEUTSCH. Mr. Speaker, it gives Currently, Medicaid covers 60 percent Medicaid proposal is a bum deal for me great pleasure to introduce Rabbi of nursing home patients nationwide. American families. Motty Berger who gave the opening The average cost of nursing home care f is approximately $38,000 a year. With- prayer of today’s session of the House out Medicaid, nursing home care would b 1315 of Representatives. I was fortunate be beyond the reach of middle-income enough to meet Rabbi Berger several RECESS Americans. years ago at the College of Jewish According to the Consumers Union, The SPEAKER pro tempore (Mr. EV- Studies in Jerusalem where my wife families of nursing home residents can ERETT). Pursuant to clause 12 of rule I, and I enrolled in one of his courses on expect the following changes if these the Chair declares the House in recess Jewish philosophy. During a time of Medicaid changes are approved: until 2 p.m. today. tremendous transition in the Jewish Adult children may be held finan- Accordingly (at 1 o’clock and 20 min- community, I found Rabbi Berger to be cially liable for the nursing home bills utes p.m.), the House stood in recess an extremely perceptive speaker on of their parents. until 2 p.m. topics surrounding the heritage of the Family assets including homes may f Jewish people. He talked passionately be sold or seized by Medicaid liens. about his desire to promote the con- No one is guaranteed Medicaid nurs- b 1400 tinuity of Jewish traditions and values. Rabbi Berger was born and raised in ing home eligibility; States may set AFTER RECESS unreasonably low income levels so that the United States and after graduating thousands of people will be denied help The recess having expired, the House high school attended Ner Israel Rab- in paying the high costs of nursing was called to order by the Speaker at 2 binical School in Baltimore. After home care. p.m. completing his rabbinical studies, he Families may be forced to spend f went on to teach Jewish philosophy in their life savings for long-term care of Jerusalem and became extremely ac- a loved one. PRAYER tive with the Aish HaTorah organiza- A representative from the National Rabbi Motty Berger, Aish HaTorah tion. This yeshiva has dedicated itself Senior Citizens Law Center, Patricia Yeshiva, Jerusalem, offered the follow- to creating a warm environment that Nemore, said of these changes: ‘‘Con- ing prayer: promotes Jewish unity. With that said, December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13939 it is a tremendous honor to welcome sonal or property damages for which suit December 5, 1995, the Members of the Major- Rabbi Motty Berger. may be brought under the Federal tort ity Private Calendar Objectors Committee claims procedure; third, those authorizing have agreed that during the 104th Congress, f the construction of a bridge across a navi- they will consider only those bills which DISPENSING WITH CALL OF gable stream, or fourth, those authorizing have been on the Private Calendar for a pe- the correction of a military or naval record. riod of seven (7) days, excluding the day the PRIVATE CALENDAR This ban afforded some temporary relief bill is reported and the day the calendar is Mr. SENSENBRENNER. Mr. Speak- but was soon offset by the rising postwar and called. Reports must be available to the Ob- er, I ask unanimous consent that the cold war flood for private immigration bills. jectors for three (3) calendar days. call of the Private Calendar scheduled The 82nd Congress passed 1,023 Private Laws, It is agreed that the majority and minority for today be dispensed with. as compared with 594 Public Laws. The 88th clerks will not submit to the Objectors any Congress passed 360 Private Laws compared bills which do not meet this requirement. The SPEAKER pro tempore (Mr. EV- with 666 Public Laws. This policy will be strictly enforced except ERETT). Is there objection to the re- Under rule XXIV, clause six, the Private during the closing days of a session when the quest of the gentleman from Wiscon- Calender is called the first and third Tuesday House rules are suspended. sin? of each month. The consideration of the Pri- This agreement was entered into by: The There was no objection. vate Calendar bills on the first Tuesday is gentleman from Wisconsin (Mr. Sensen- mandatory unless dispensed with by a two- brenner), the gentleman from North Carolina f thirds vote. On the third Tuesday, however, (Mr. Coble), the gentleman from Virginia AGREEMENT BETWEEN REPUB- recognition for consideration of the Private (Mr. Goodlatte), the gentleman from Vir- LICAN AND DEMOCRATIC OFFI- Calendar is within the discretion of the ginia (Mr. Boucher), the gentleman from Speaker and does not take precedence over Maryland (Mr. Mfume), and the gentlelady CIAL OBJECTORS RELATIVE TO other privileged business in the House. from Connecticut (Mrs. DeLauro). PROCEDURES FOR CONSIDER- On the first Tuesday of each month, after I feel confident that I speak from my col- ATION OF PRIVATE CALENDAR disposition of business on the Speaker’s leagues when I request all Members to enable Mr. SENSENBRENNER. Mr. Speak- table for reference only, the Speaker directs us to give the necessary advance consider- the call of the Private Calendar. If a bill er, I ask unanimous consent that at ation to private bills by not asking that we called is objected to by two or more Mem- depart from the above agreement unless ab- this point in the RECORD there be in- bers, it is automatically recommitted to the solute necessary. serted an agreement between the three Committee reporting it. No reservation of F. JAMES SENSENBRENNER, Republican and three Democratic offi- objection is entertained. Bills unobjected to JR. cial objectors to the Private Calender are considered in the House in the Commit- HOWARD COBLE. relative to procedures used for the con- tee of the Whole. BOB GOODLATTE. sideration of the Private Calendar dur- On the third Tuesday of each month, the RICK BOUCHER. same procedure is followed with the excep- KWEISI MFUME. ing the 104th Congress. tion that omnibus bills embodying bills pre- The SPEAKER pro tempore. Is there ROSA DELAURO. viously rejected have preference and are in f objection to the request of the gen- order regardless of objection. tleman from Wisconsin? Such omnibus bills are read by paragraph, ANNOUNCEMENT BY THE SPEAKER There was no objection. and no amendments are entertained except PRO TEMPORE to strike out or reduce amounts or provide The text of the agreement is as fol- The SPEAKER pro tempore. The lows: limitations. Matter so stricken out shall not be again included in an omnibus bill during Chair will entertain 20 1-minute Mr. SENSENBRENNER. Mr. Speaker, I would that session. Debate is limited to motions al- speeches on each side. like to take this opportunity to set forth lowable under the rule and does not admit f some of the history behind, as well as de- motions to strike out the last word or res- scribe the workings of the Private Calendar. ervation of objections. The rules prohibit the DO THE RIGHT THING: BALANCE I hope this might be of some value to the Speaker from recognizing Members for state- THE BUDGET IN 7 YEARS Members of this House, especially our newer ments or for requests for unanimous consent (Mr. TIAHRT asked and was given colleagues. for debate. Omnibus bills so passed are there- Of the five House Calendars, the Private upon resolved in their component bills, permission to address the House for 1 Calendar is the one to which all Private Bills which are engrossed separately and disposed minute and to revise and extend his re- are referred. Private Bills deal with specific of as if passed separately. marks.) individuals, corporations, institutions, and Private Calendar bills unfinished on one Mr. TIAHRT. Mr. Speaker, the Presi- so forth, as distinguished from public bills Tuesday go over to the next Tuesday on dent has refused to negotiate a bal- which deal with classes only. which such bills are in order and are consid- anced budget, just 17 days after signing Of the 108 laws approved by the First Con- ered before the call of bills subsequently on gress, only 5 were Private Laws. But their an agreement to balance the budget in the calendar. Omnibus bills follow the same 7 years. There are three plans out number quickly grew as the wars of the new procedure and go over to the next Tuesday Republic produced veterans and veterans’ on which that class of business is again in there: His plan, which did not get one widows seeking pensions and as more citi- order. When the previous question is ordered vote in the Senate, went down 96 to 0; zens came to have private claims and de- on a Private Calendar bill, the bill comes up then the Democrat Coalition plan, mands against the Federal Government. The for disposition on the next legislative day. which did get some votes and does bal- 49th Congress, 1885 to 1887, the first Congress Mr. Speaker, I would also like to describe ance in 7 years; but the best plan is the for which complete workload and output to the newer Members the Official Objectors data is available—passed 1,031 Private Laws, Republican plan. system the House has established to deal The reason I believe so is because it as compared with 434 Public Laws. At the with the great volume of Private Bills. turn of the century the 56th Congress passed The Majority Leader and the Minority has the discipline of a balanced budget. 1,498 Private Laws and 443 Public Laws—a Leader each appoint three Members to serve It will balance in 7 years. It is the right better than three to one ratio. as Private Calendar Objectors during a Con- thing to do. We will never get there un- Private bills were referred to the Commit- gress. The Objectors are on the Floor ready less we have the discipline. tee on the Whole House as far back as 1820, to object to any Private Bill which they feel Second, it deals with the tough issues and a calendar of private bills was estab- is objectionable for any reason. Seated near like welfare reform. We believe it is the lished in 1839. These bills were initially them to provide technical assistance are the right thing for people to work for what brought before the House by special orders, majority and minority legislative clerks. but the 62nd Congress changed this produce Should any Member have a doubt or ques- they get, and not just get a handout, so by its rule XXIV, clause six which provided tions about a particular Private Bill, he or they can believe in themselves. We for the consideration of the Private Calendar she can get assistance from objectors, their trust States like Kansas to do what is in lieu of special orders. This rule was clerks, or from the Member who introduced right for those truly in need. amended in 1932, and then adopted in its the bill. The Republican plan also trusts par- present form on March 22, 1935. The great volume of private bills and the ents by giving them a $500 per child tax A determined effort to reduce the private desire to have an opportunity to study them break. It allows them to spend money bill workload of the Congress was made in carefully before they are called on the Pri- on their children rather than the Gov- the Legislative Reorganization Act of 1946. vate Calendar has caused the six objectors to Section 131 of that Act banned the introduc- agree upon certain ground rules. The rules ernment. It will strengthen families tion or the consideration of four types of pri- limit consideration of bills placed on the Pri- and it is the right thing to do. vate bills: first, those authorizing the pay- vate Calendar only shortly before the cal- Mr. Speaker, let us do the right thing ment of money for pensions; second, for per- endar is called. This agreement adopted on for our country, for ourselves, and for H 13940 CONGRESSIONAL RECORD — HOUSE December 5, 1995 our children. Let us balance the budget for 1 minute and to revise and extend Forty years later, those signs that I in 7 years. her remarks.) saw growing up in the rural south, f Mrs. THURMAN. Mr. Speaker, for those signs that said colored men, the Florida Gators, it’s 12 down and 1 white men, colored women, white AMERICAN PEOPLE HAVE THE to go. women, colored waiting, white waiting, RIGHT TO FACTS ABOUT ETHICS That’s right, after thrashing the Ar- are gone. INVESTIGATION INTO SPEAKER’S kansas Razorbacks 34 to 3 for a South- We have witnessed what I like to call TIES TO GOPAC eastern Conference three-peat, the a nonviolent revolution in America. It (Mr. BONIOR asked and was given fighting Gators from the University of is a time and a period that we will permission to address the House for 1 Florida will be meeting the Nebraska never go back to, but we must never minute and to revise and extend his re- Cornhuskers in the Fiesta Bowl on forget. marks.) January 2 to settle the question of who On the occasion of this important an- Mr. BONIOR. Mr. Speaker, the Hart- is the No. 1 team in the Nation. niversary, I want to pay tribute to the ford Courant says that the Ethics Com- Guess whom I’ll be rooting for? leaders of that struggle, to Rosa Parks mittee investigation of Speaker GING- The undefeated Gators, led by the and to my late great mentor Dr. Mar- RICH has ‘‘the foul odor of cover-up.’’ tactical brilliance of coach Steve Spur- tin Luther King, Jr. How much longer is the Ethics Com- rier and the pinpoint accuracy of quar- We have come a long way toward mittee going to let this charade con- terback Danny Wuerffel, stomped 12 achieving what Dr. King called the ‘‘be- tinue? opponents during this record year. The We now know that four members of loved community’’, but we still have a Gator offense left their opponents daz- long way to go. Let us, on this anniver- the Ethics Committee—including the zled and befuddled, while the defense chairwoman herself—have ties to sary, rededicate ourselves to building a did the rest. truly inter-racial democracy in Amer- GOPAC. The same GOPAC which fi- Never before have the University of ica. For in truth, we are one nation, nanced the Speaker’s own campaigns Florida Fighting Gators played for a one people, one house, the American to the tune of $250,000 a year. national championship. To all the dedi- House. The evidence against Speaker GING- cated coaches and gifted athletes of the RICH is so damning that last week, two 1995 University of Florida football f of the three Republicans at the FEC team—and on behalf of the proud alum- IT IS TIME FOR PRESIDENT CLIN- voted to make their evidence public. ni, congratulations on an already his- TON TO GET SERIOUS ABOUT Mr. Speaker, I am here today to call toric year. BALANCING THE BUDGET on the chairwoman and the members of And look out Nebraska, cause the the Ethics Committee to fully disclose (Mr. CHABOT asked and was given Gators will be growling again in the Fi- permission to address the House for 1 their ties to GOPAC. And I am calling esta Bowl. on the Speaker himself to release the minute and to revise and extend his re- f names of past GOPAC donors and remarks.) lease the list of past GOPAC expenses. LET THE BEST TEAM WIN Mr. CHABOT. Mr. Speaker, President Mr. Speaker, if you’ve got nothing to (Mr. CHRISTENSEN asked and was Clinton has said time and time again hide, you’ve got nothing to be afraid of. given permission to address the House that he supports a balanced Federal But if you keep dragging your feet, the for 1 minute and to revise and extend budget. True, he has never actually American people have a right to ask: his remarks.) proposed such a plan, but because of what are you trying to hide? Mr. CHRISTENSEN. Mr. Speaker, I the Balanced Budget Act passed by this f cannot let go unchallenged a laying Congress, he has now got an opportunity to walk the walk, not merely AMERICAN PEOPLE WANT A BAL- down of the gauntlet like that from my talk the talk. ANCED BUDGET AND NOT CHAR- friend, the gentlewoman from Florida The President made a start last ACTER ASSASSINATION [Mrs. THURMAN]. As a Cornhusker and a month when he agreed with this Con- (Mr. HAYWORTH asked and was proud supporter of Tom Osborne and the next Heisman trophy winner, gress to balance the budget in 7 years. given permission to address the House Of course, the very next day, his chief for 1 minute.) Tommie Frazier, we are looking forward to our January 2 meeting with of staff, Leon Panetta, told the Amer- Mr. HAYWORTH. Mr. Speaker, I lis- ican people that they should not read tened with great interest to my friend, the third Florida team in 3 years. To refresh the memory of the gentle- too much into that. But, Mr. Speaker, the minority whip, trying to whip this I am willing to take the President at body into a rage with an editorial from woman from Florida, 2 years ago we his word, even if his own chief of staff the Hartford Courant. It is interesting, lost to Florida State. Last year we apparently does not. Mr. Speaker, to hear really the poster beat the University of Miami for the Mr. Speaker, the Congress has boy of American liberal journalism, national championship. This year we brought to the negotiating table a de- Bob Woodward, on ‘‘Meet the Press’’ are looking forward to repeating our tailed balanced budget proposal. The this weekend, saying in effect that all national claim to that trophy. We are of these chargers were trumped up, anxious to have at our helm, a Florida President thus far has brought only that there was no reason to attack the individual from Bradenton, FL, press releases. The President can ac- Speaker on any of these things. Tommie Frazier, who we are all hoping cept our plan, or he can tell us how In fact what we see, Mr. Speaker, is will win that Heisman trophy award. much more he wants to spend and just a minority so bereft of ideas, so unwill- It is going to be a fun game. I will see where he is going to find the money to ing to come to the table, so unwilling my colleague in Florida, and we look pay for it. to address the central question, which forward to a great, great game. Let the With a Federal debt at nearly $5 tril- is balancing this budget in 7 years, best team win. lion, it is time for the President to get that they will try any tactic of char- f off the dime. Mr. President, let us work acter assassination, any exaggeration, together to balance the budget. FORTY YEARS AGO TODAY anything to avoid the point. f (Mr. LEWIS of Georgia asked and was Mr. Speaker, the American people VOTE AGAINST H.R. 2099, VA–HUD want it now, they want it simply, they given permission to address the House for 1 minute.) AND INDEPENDENT AGENCIES want us to face up to the challenges APPROPRIATIONS ACT they put us here to face up to. They Mr. LEWIS of Georgia. Mr. Speaker, want us to balance the budget and not 40 years ago today, December 5, 1955, (Mr. FLAKE asked and was given to engage in character assassination. the Montgomery bus boycott began permission to address the House for 1 f after Rosa Parks refused to give up her minute and to revise and extend his re- seat and move to the back of the bus. marks.) GATORS SCORE SEC THREE-PEAT It marked the beginning of a long and Mr. FLAKE. Mr. Speaker, while I (Mrs. THURMAN asked and was difficult struggle toward equal rights would like to commend the conferees given permission to address the House and civil rights in this Nation. on their efforts to increase funding for December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13941 veteran medical care, I must rise in op- b 1415 need to save NATO by getting knee position to H.R. 2099, the VA–HUD and BOEING MOVES TO MEXICO deep in Bosnia. Yet, while it’s preach- Independent Agencies Appropriations ing about saving NATO, it is champion- Act. (Mr. TRAFICANT asked and was ing the cause of an avowed Marxist to Mr. Speaker, in its current form, this given permission to address the House be NATO Secretary General. bill eliminates two programs which for 1 minute and to revise and extend Last week, the Clinton administra- promoted comprehensive and effective his remarks.) tion approved the selection of Javier economic growth in disadvantaged Mr. TRAFICANT. Mr. Speaker, ear- Solana, Spain’s Foreign Minister to communities—the community develop- lier this year American workers in the lead NATO at this supposedly critical ment financial institutions and the Boeing Seattle plant won awards and time. Mr. Speaker, let me tell you economic development initiative fund. trophies for worker productivity. Thir- about Mr. Solana. He has spent his life ty days after the speeches and the tro- Through these programs, low-income attacking NATO and the United phies, Boeing is moving to Mexico; individuals were given the opportunity States. He led the Socialist Worker’s 2,000 more livable wage jobs down the to start their own businesses, small Party campaign to impose communism chute. children benefited from community on Spain. He is an ally and admirer of The facts: Boeing paid $18 per hour centers that kept them off the streets Fidel Castro. He is virulently anti- labor wage in Seattle. Boeing will now after school, families gained access to American and represents a country pay 76 cents an hour labor wage in safe and affordable housing and good which is not even part of NATO’s mili- Mexico. And if you really want to spill business was generated for America’s tary command. your Wheaties, ladies and gentlemen, financial services industry. Mr. Speaker, Bill Clinton’s argument Mexico has yet to purchase one Boeing Mr. Speaker, by eliminating these that NATO will crumble in Bosnia jet. Beam me up, Mr. Speaker. programs, we are launching a double without American troops is silly on its The trade deficit is at a record. assault on poor communities. In es- face, but to promote the likes of Javier Japan and China are literally raping sence, we no longer reward those indi- Solana when American lives are on the our shores. If you want to get a job in viduals who take responsibility for im- line is nothing short of outrageous. If this country, move to Mexico. The big- proving themselves and creating a bet- this is what Bill Clinton thinks of gest export for NAFTA has been Amer- ter life for their children; while, we si- NATO, then the NATO’s ‘charter isn’t ican jobs. Shame, Congress. Shame for multaneously remove incentives for fi- worth the paper it’s written on and it turning your back on the American nancial institutions to invest in these certainly isn’t worth the life of one sin- workers. What will be left? A couple communities as well. gle American soldier. more McDonald’s jobs. Think about it. Mr. Speaker, we need to commend f f programs such as the CDFI and EDI fund because they do offer low-income ANTITERRORISM LEGISLATION BALANCED BUDGET ACT OF 1995 individuals a hand-up, not a hand-out, (Mr. BARR asked and was given per- (Mr. LEWIS of Kentucky asked and which I am sure my colleagues on both mission to address the House for 1 was given permission to address the sides of the aisle can appreciate. minute.) House for 1 minute and to revise and I would urge my colleagues to con- Mr. BARR. Mr. Speaker, I am very extend his remarks.) sider the long-term effect that this dis- happy to appear today as a member of Mr. LEWIS of Kentucky. Mr. Speak- investment in America’s urban commu- the Committee on the Judiciary and a er, it’s been more than 2 weeks since nities will have on this Nation’s econ- Member of this body very concerned President Clinton promised to balance omy. With that said, I hope my col- about antiterrorism legislation that the budget in 7 years. He still doesn’t league will join me in voting against gives Government the tools it needs have a plan, but don’t worry America, H.R. 2099. yet respects the rights of all of our there is a solution. citizens here to report to this House It’s called the Balanced Budget Act f that we have worked out through the of 1995. It’s a 7-year plan to balance the yeoman efforts of the gentleman from budget and ensure a bright future for PRESIDENT SHOULD SIGN Illinois [Mr. HYDE] of the Committee our children and it’s waiting for the BALANCED BUDGET on the Judiciary a piece of legislation President’s signature. that we intended to bring to the floor (Mr. BALLENGER asked and was I know, I know, Mr. and Mrs. Amer- of this House very shortly and that given permission to address the House ica, you’ve heard all about the draco- goes a long way toward giving the Gov- for 1 minute.) nian cuts in this bill. But the Balanced ernment the tools that it needs within Budget Act increases spending by more Mr. BALLENGER. Mr. Speaker, I am the bounds of civil liberties, yet does than $2.5 trillion during the next 7 no great defender of the Washington not represent a vast expansion of Fed- years. Medicare spending increases 62 press corps, but let me share this quote eral electronic surveillance power and percent, Medicaid spending increases 43 from this week’s Newsweek magazine: intrusive technique and does not erode percent, student loan spending in- Unfortunately, the White House isn’t yet the very strict separation between creases 49 percent. truly bargaining. President Clinton has en- military and domestic law enforcement Mr. Speaker, the President has it dorsed a balanced budget but has flagrantly by weakening posse comitatus. misrepresented the GOP budget. He say it easy. We’ve already done the work. All would ‘‘destroy’’ Medicare. This is an absurd I would like to report to the House he has to do is sign on the dotted line description of a program whose spending that we will have before us a piece of and he has helped save the next genera- would grow 62 percent by 2002. He says that legislation that will indeed strengthen tion. Mr. Speaker, I hope he does the ‘‘deep’’ education cuts would ‘‘undermine’’ our Government’s hand to protect us right thing—I hope the President signs schools. But the budget barely touches the against acts of terrorism yet is very the Balanced Budget Act of 1995. largest education program—guaranteed col- mindful of the civil liberties that all of lege loans—and all Federal aid to public us, both individually and collectively, f schools provides only 7 percent of their enjoy and should enjoy in this country. spending. BALANCE THE BUDGET NOW f Newsweek is absolutely right. The (Mr. BARTLETT of Maryland asked President has only paid lipservice to NATO and was given permission to address balancing the budget. While he tries to (Mr. FUNDERBURK asked and was the House for 1 minute and to revise portray the Republican budget as dra- given permission to address the House and extend his remarks.) conian and mean-spirited, he offers no for 1 minute.) Mr. BARTLETT of Maryland. Mr. plan of his own. Mr. FUNDERBURK. Mr. Speaker, the Speaker, Americans want Congress and Instead of lipservice, the President Clinton administration is a constant the President to balance the budget should sign the balanced budget that is source of amazement. It is ringing and they want a plan now, not next now sitting on his desk. alarm bells about how American boys year. H 13942 CONGRESSIONAL RECORD — HOUSE December 5, 1995 A public opinion survey of 7,200 reg- fair budget plan to do just that. How- Maybe Republican leaders should not istered voters show that when Ameri- ever, the President says he does not be negotiating with the administration cans are given the truth, they over- like our plan. Well, if that is the case, to balance the budget in 7 years. Let whelmingly favor the Republican pro- where is his plan? Let him put his plan President Clinton keep his contract posal to balance the budget in 7 years. on the bargaining table. That is nego- with the American people and show us Eighty-six percent believe ‘‘The tiating in good faith. how he would balance the budget in 2 President and Congress should deal Let me repeat that. If the President years. with the budget issue now’’ compared does not like our plan to balance the Of course, we’d have more confidence to 9 percent who feel the issue should budget, then he should produce his own that the President meant what he said be put off until after next year’s elec- plan to balance the budget, not this. if he had any plan to balance the budg- tion. His budget has deficits in the range of et. Seventy-one percent believe that the $200 billion well into the next century. The Federal Government should not President and Congress should submit The American people are tired of all spend more than it collects, for two a 7-year balanced budget scored by the the cheap political talk coming out of reasons: First, it will help the economy nonpartisan Congressional Budget Of- the White House, the political postur- and the American people. Second, it fice. ing, the demagoguery. They want to will help President Clinton keep his The Congress did this long ago. see action. They want to see how the word. Mr. Speaker, the Congress and the President proposes to balance the f American people are eager to see the budget. BALANCING THE BUDGET President’s plan to balance the budget Mr. Speaker, it has been 17 days so in 7 years. How else can we negotiate? far. We are still waiting for the Presi- (Mr. CHRYSLER asked and was given It’s been 15 days since the President dent’s balanced budget plan. How many permission to address the House for 1 agreed to do this. The deadline is next more days will we have to wait until he minute.) Friday. Where’s the President’s 7 year keeps his promise and signs a budget? Mr. CHRYSLER. Mr. Speaker, Con- balanced budget? f gress and the President are now in the f midst of a great debate about bal- USING HONEST NUMBERS ancing the budget. The President has THE TRUTH ABOUT THE BUDGET (Mr. NORWOOD asked and was given at one time or another promised to im- (Mr. TAYLOR of Mississippi asked permission to address the House for 1 plement many of the items contained and was given permission to address minute.) in Congress’ Balanced Budget Act that the House for 1 minute.) Mr. NORWOOD. Mr. Speaker, we is now on his desk. Mr. TAYLOR of Mississippi. Mr. have passed a budget that will be in He said he wanted serious welfare re- Speaker, the previous speaker, my balance in 7 years using honest num- form. He said he wanted to balance the friend from Maryland, said the Amer- bers. Medicare spending will increase budget in 7 years. And he also said that ican people want to know the truth by 62 percent. Medicaid spending will he wanted to give tax relief to working, about the Balanced Budget Act of 1995. increase by 43 percent. Student loan middle-class American families. I think they deserve it. spending will increase by 48.5 percent. But yet he persists in saying that the The Balanced Budget Act of 1995 will School lunch spending will increase by Republicans only want to give tax borrow $296 billion for the next fiscal 37 percent. Mr. Speaker, we are $5 tril- breaks to the rich. This is pure fan- year budget. It will borrow $118 billion lion in debt. We are allowing programs tasy. from trust funds such as the Social Se- to continue to grow. We are making a This chart clearly shows that the curity trust fund that is supposed to be responsible effort to balance our budg- vast overwhelming majority of our $500 set aside to protect senior citizens So- et for the sake of our children and per-child tax credit goes to those mak- cial Security payments in the future. grandchildren’s future. ing less than $75,000. In fact, 89 percent The Balanced Budget Act of 1995 will What do we have from the President of this tax break goes to the middle go on to borrow $75 billion and give and other liberal Democrats? Nothing. class. most of that money away in tax breaks Distortions. Misrepresentations. We Mr. Speaker, the President should for America’s wealthiest 12 percent. have a plan to balance the budget; all end the scare tactics, sign the Balanced I am glad my friend from Maryland they have is talk. Budget Act, and give tax relief to wants to know the truth, and I have Mr. Speaker, some people would rath- working families. just given it to him. I hope the gener talk about balancing the budget. f tleman from Ohio [Mr. KASICH], and I Some people don’t want to make the PROTECT THE ENVIRONMENT hope all the Members of this body will hard choices. Some people just don’t correct the things that I just brought want to balance the budget. Mean- (Mr. RICHARDSON asked and was to our attention, because that is cer- while, we are working to protect the given permission to address the House tainly not a balanced budget by any- future for our children, to give them a for 1 minute and to revise and extend one’s scoring. chance for the American dream. That his remarks.) f is what we were elected to do. Mr. RICHARDSON. Mr. Speaker, we f should make sure that we reach agree- WAITING FOR THE PRESIDENT’S ment on the Interior bill, the environ- BUDGET HELP THE PRESIDENT KEEP HIS mental bill. The House has rejected (Mr. RIGGS asked and was given per- WORD this extremist measure and, now that mission to address the House for 1 (Mr. SMITH of Texas asked and was the American people have spoken, that minute.) given permission to address the House we want to have mining reform, that Mr. RIGGS. Mr. Speaker, I draw your for 1 minute and to revise and extend we want to stop logging in the Tongass, attention to this particular chart here. his remarks.) that we want to deal with our parks in As of today, it has been 1,280 days since Mr. SMITH of Texas. Mr. Speaker, a sensible way, that it makes sense to candidate Clinton promised a national perhaps the current budget negotia- come back with a moderate bill that audience on ‘‘Larry King Live,’’ ‘‘I tions should be terminated. They un- the President can sign. Many times the would present a 5-year plan if elected dermine the President’s ability to keep House has said to those that want to President to balance the budget.’’ It his word to the American people. gut the environment, we do not want has been 17 days, not 16, 17 days since In June 1992, then candidate Bill that. We want you to reach agreement the President promised in writing to Clinton said he would balance the on this issue. sign a bill by the end of this year that budget in 5 years. ‘‘I would present a 5- We are making progress on this, but balances the budget in 7 years using year plan to balance the budget,’’ he let us put this appropriation bill to honest numbers. pledged to the voters. That means he bed. There are so many appropriations We Republicans have done our job. will have to balance the budget by 1997, bills that have not been dealt with that We have sent the President a detailed 2 years from now. are still in controversy, that at least December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13943 this one, where the American people SEC. 2. TIME PERIOD FOR LAND EXCHANGE. authority previously granted to the are behind bipartisan efforts of our side (a) EXTENSION.—The last sentence of sub- Park Service to conduct land ex- and moderate Republicans to reach section (d) of the first section of the Act en- changes with private owners and the titled ‘‘An Act to authorize the establish- agreement, let us proceed with this bill ment of the Big Thicket National Preserve Forest Service at the Big Thicket Na- at least as a start. The American peo- in the State of Texas, and for other pur- tional Preserve. These exchanges will ple want to protect the environment. poses’’, approved October 11, 1974 (16 U.S.C. add critical acreage to the park unit. f 698(d)), is amended by striking out ‘‘two Because of the lack of progress by the years after date of enactment’’ and inserting respective agencies, this legislation is PERMISSION FOR SUNDRY COM- ‘‘five years after the date of enacment’’. necessary to facilitate expansion of the MITTEES AND THEIR SUB- (b) INDEPENDENT APPRAISAL.—Subsection Big Thicket National Preserve as man- COMMITTEES TO SIT TODAY (d) of the first section of such Act (16 U.S.C. dated by the 103d Congress. DURING 5-MINUTE RULE 698(d)) is further amended by adding at the end the following: ‘‘The Secretary, in consid- Mr. WILSON has worked cooperatively Mr. SMITH of Texas. Mr. Speaker, I ering the values of the private lands to be ex- with the committee and the agencies ask unanimous consent that the fol- changed under this subsection, shall consider to find a way to promptly facilitate lowing committees and their sub- independent appraisals submitted by the this noncontroversial land exchange. committees be permitted to sit today owners of the private lands.’’. This legislation will extend the dead- while the House is meeting in the Com- (c) LIMITATION.—Subsection (d) of the first section of such Act (16 U.S.C. 698(d)), as line for completion of these exchanges mittee of the Whole House under the 5- by 3 years or until July 1, 1998. Because minute rule. amended by subsection (b), is further amended by adding at the end the following: ‘‘The we are interested in these exchanges Committee on Banking and Financial authority to exchange lands under this sub- occurring in a prompt manner, this bill Services, Committee on Commerce, section shall expire on July 1, 1998.’’. will also terminate the authority of Committee on Economic and Edu- SEC. 3. REPORTING REQUIREMENT. the Park Service to conduct this ex- cational Opportunities, Committee on Not later than six months after the date of change if the new deadline is not met. Transportation and Infrastructure, and the enactment of this Act and every six Moreover, there is a requirement that Permanent Select Committee on Intel- months thereafter until the earlier of the the agencies report back to the com- ligence. consummation of the exchange or July 1, 1998, the Secretary of the Interior and the mittee every 6 months on the progress It is my understanding that the mi- of the exchange. Last, included in the nority has been consulted and that Secretary of Agriculture shall each submit a report to the Committee on Resources of the text is the authorization to complete a there is no objection to these requests. House of Representatives and the Committee very minor exchange necessary to pro- The SPEAKER pro tempore (Mr. EV- on Energy and Natural Resources of the Sen- vide emergency access to an inholder ERETT). Is there objection to the re- ate concerning the progress in consummat- in times of flooding. This will exchange quest of the gentleman from Texas? ing the land exchange authorized by the 3.76 acres of private lands for 2.38 acres There was no objection. amendments made by Big Thicket National of park lands. This is a noncontrover- f Preserve Addition Act of 1993 (Public Law 103–46). sial exchange supported by both the ANNOUNCEMENT BY THE SPEAKER SEC. 4. LAND EXCHANGE IN LIBERTY COUNTY, landowner and the Park Service. PRO TEMPORE TEXAS. I urge my colleagues to support H.R. The SPEAKER pro tempore. Pursu- If, within one year after the date of the en- 826 for the betterment of the Big actment of this Act— Thicket National Preserve. ant to the provisions of clause 5 of rule (1) the owners of the private lands de- I, the Chair announces that he will scribed in subsection (b)(1) offer to transfer postpone further proceedings today on all their right, title, and interest in and to b 1430 each motion to suspend the rules on such lands to the Secretary of the Interior, which a recorded vote or the yeas and and Mr. Speaker, I reserve the balance of nays are ordered or on which the vote (2) Liberty County, Texas, agrees to accept my time. the transfer of the Federal lands described in Mr. RICHARDSON. Mr. Speaker, I is objected to under clause 4 of rule subsection (b)(2), XV. yield myself such time as I may the Secretary shall accept such offer of pri- consume. Such rollcall votes, if postponed, will vate lands and, in exchange and without ad- be taken after the debate has conditional consideration, transfer to Liberty (Mr. RICHARDSON asked and was cluded on all motions to suspend the County, Texas, all right, title, and interest given permission to revise and extend rules. of the United States in and to the Federal his remarks.) f lands described in subsection (b)(2). Mr. RICHARDSON. Mr. Speaker, I (b) LANDS DESCRIBED.— rise in support of H.R. 826, introduced BIG THICKET NATIONAL (1) PRIVATE LANDS.—The private lands de- by my good friend and colleague, Rep- PRESERVE LAND EXCHANGE scribed in this paragraph are approximately 3.76 acres of lands located in Liberty County, resentative CHARLIE WILSON. It is a dis- Mr. HANSEN. Mr. Speaker, I move to Texas, as generally depicted on the map enti- appointment that the Big Thicket Na- suspend the rules and pass the bill tled ‘‘Big Thicket Lake Estates Access—Pro- tional Preserve land exchanges that (H.R. 826) to extend the deadline for the posed’’. were previously authorized have not completion of certain land exchanges (2) FEDERAL LANDS.—The Federal lands de- been completed. Representative WIL- involving the Big Thicket National scribed in this paragraph are approximately SON introduced H.R. 826 to extend the Preserve in Texas, as amended. 2.38 acres of lands located in Menard Creek deadline for completion of these ex- The Clerk read as follows: Corridor Unit of the Big Thicket National Preserve, as generally depicted on the map changes. I am gold to see that the bill H.R. 826 referred to in paragraph (1). extends the time period. However, it Be it enacted by the Senate and House of Rep- (c) ADMINISTRATION OF LANDS ACQUIRED BY appears that the gun is being put to the resentatives of the United States of America in THE UNITED STATES.—The lands acquired by head of the National Park Service to Congress assembled, the Secretary under this section shall be get the land exchanges completed, SECTION 1. FINDINGS. added to and administered as part of the when it does not appear that the Na- The Congress finds that— Menard Creek Corridor Unit of the Big tional Park Service is the problem in Thicket National Preserve. (1) under the Big Thicket National Pre- getting the exchanges done. I hope that serve Addition Act of 1993 (Public Law 103– The SPEAKER pro tempore. Pursu- 46), Congress increased the size of the Big ant to the rule, the gentleman from the committee amendment’s triggering Thicket National Preserve through author- Utah [Mr. HANSEN] and the gentleman mechanism will not be necessary and ized land exchanges; from New Mexico [Mr. RICHARDSON] that these exchanges can be completed (2) such land exchanges were not con- will each be recognized for 20 minutes. quickly. summated by July 1, 1995, as required by The Chair recognizes the gentleman I would also note, Mr. Speaker, that Public Law 103–46; and the committee amendment includes an (3) failure to consummate such land ex- from Utah [Mr. HANSEN]. changes by the end of the three-year exten- Mr. HANSEN. Mr. Speaker, I yield additional land exchange that had not sion provided by this Act will necessitate myself such time as I may consume. been previously discussed. I understand further intervention and direction from Con- Mr. Speaker, H.R. 826, sponsored by that this small exchange is one the Na- gress concerning such land exchanges. Mr. WILSON of Texas, would extend the tional Park Service supports and that H 13944 CONGRESSIONAL RECORD — HOUSE December 5, 1995 it is dependent on a third party making AMENDING THE DOUG BARNARD, FLAKE, the ranking member of the sub- available lands that the National Park JR.—1996 ATLANTA CENTENNIAL committee; and Representative FRANK Service wants. I have no objection to OLYMPIC GAMES COMMEMORA- of Massachusetts have provided their this particular exchange, with the un- TIVE COIN ACT strong support for this legislation, and derstanding that it is one that the Na- Mr. CASTLE. Mr. Speaker, I move to I am very appreciative of their efforts. tional Park Service supports and that suspend the rules and pass the bill I must also acknowledge the valued it can and will be carried out properly. (H.R. 2336) to amend the Doug Barnard, input and support of Representatives Mr. Speaker, H.R. 826 will facilitate Jr.—1996 Atlanta Centennial Olympic BARR, LUCAS, and METCALF of the sub- the acquisition of lands within the Big Games Commemorative Coin Act, and committee. Thicket National Preserve that have for other purposes. Mr. Speaker, the Subcommittee on significant environmental and rec- The Clerk read as follows: Domestic and International Monetary Policy of the House Banking and Fi- reational values. This is a worthy ef- H.R. 2336 fort that Representative WILSON has nancial Services Committee has pri- Be it enacted by the Senate and House of Rep- mary jurisdiction over the commemo- been working on for years. I support resentatives of the United States of America in the bill, as amended, and urge its adop- Congress assembled, rative coin programs of the U.S. Mint. This legislation is supported by the At- tion by the House. SECTION 1. CHANGES IN COIN SPECIFICATIONS. Mr. WILSON. Mr. Speaker, today the House Section 102 of the Doug Barnard, Jr.—1996 lanta Committee, the U.S. Mint, the will consider H.R. 826, a bill to extend the Atlanta Centennial Olympic Games Com- Citizens Commemorative Coin Advi- deadline for the completion of certain land ex- memorative Coin Act (91 U.S.C. 5112 note) is sory Committee [CCCAC], and the changes involving the Big Thicket National amended— Georgia congressional delegation. Preserve in Texas. (1) in the table at the end of subsection Mr. Speaker, H.R. 2336 amends the (a)— mintage levels in section 102 of the 1996 As you know, under the Big Thicket National (A) by striking ‘‘Not more than 175,000 each Atlanta Olympic Games Commemora- Preserve Addition Act of 1993, Public Law of 2 coins of different designs’’ and inserting tive Coin Act. The maximum 1996 mint- 103±46, Congress increased the size of the ‘‘2 coins of different designs, in quantities ing of the two gold coins, previously Big Thicket National Preserve through certain not to exceed 175,000 of each design’’; and (B) by striking ‘‘Not more than 300,000 each authorized for 600,000 for both, is re- authorized land exchanges. duced to a total of 250,000. The 1996 Unfortunately, the land exchanges were not of 2 coins of different designs’’ and inserting ‘‘2 coins of different designs, in quantities minting of $1 silver coins is reduced consummated by the July 1, 1995 deadline as not to exceed 100,000 of the first design and from 4 million total of four designs to required by law, hence the need for my bill not to exceed 150,000 of the second design’’; a sum total of 1.7 million. Half-dollar H.R. 826. This legislation merely extends the (2) in the table at the end of subsection coins, originally slated for a minting of original deadline to July 1, 1998, thus provid- (b)— 10 million, are reduced to 8 million ing the appropriate congressional authoriza- (A) by striking ‘‘Not more than 750,000 each over 2 years. These reductions are nection. of 4 coins of different designs’’ and inserting ‘‘4 coins of different designs, in quantities essary for the success of the program. Assurances have been given by officials of not to exceed 750,000 of each design’’; and Mr. Speaker, this bill is supported by the U.S. Department of Agriculture, the U.S. (B) by striking ‘‘Not more than 1,000,000 the people and groups that will be di- Department of the Interior, and the private each of 4 coins of different designs’’ and in- rectly affected; namely, the Atlanta landowners involved, that the land exchanges serting ‘‘4 coins of different designs, in quan- Committee, the people of Georgia, and will be successfully completed by July 1, 1998. tities not to exceed 350,000 of each of the first the Citizens Commemorative Coin Ad- I urge my colleagues to support this bill. 2 designs, and not to exceed 500,000 of each of visory Committee. They realize that the remaining 2 designs’’; and unless the rate of sales are increased, Mr. HANSEN. Mr. Speaker, I have no (3) by striking subsection (c) and inserting further requests for time, and I yield the following: the Atlanta Olympic commemorative back the balance of my time. ‘‘(c) HALF DOLLAR CLAD COINS.— coin program will not achieve its po- Mr. RICHARDSON. Mr. Speaker, I ‘‘(1) SPECIFICATIONS.—The Secretary shall tential. By lowering the mintage lev- have no further requests for time, and issue not more than 8,000,000 half dollar els, collector interest should be stimu- I yield back the balance of my time. coins, each of which shall— lated, and the overall program would ‘‘(A) weight 11.34 grams; be enhanced. This bill is necessary for The SPEAKER pro tempore. The ‘‘(B) have a diameter of 30.61 millimeters; question is on the motion offered by the success of the Atlanta Olympic ‘‘(C) be minted to the specifications for coin program, and I urge its immediate the gentleman from Utah [Mr. HANSEN] half dollar coins under section 5112(b) of title that the House suspend the rules and 31, United States Code; and adoption. pass the bill, H.R. 826, as amended. ‘‘(D) contain an inscription of the year Mr. Speaker, I reserve the balance of ‘1995’ or ‘1996’, as the Secretary determines my time. The question was taken; and (two- Mr. FLAKE. Mr. Speaker, I yield my- thirds having voted in favor thereof) to be appropriate. ‘‘(2) DESIGNS.—Coins issued under para- self such time as I may consume. the rules were suspended and the bill, graph (1) shall be of 4 designs selected in ac- Mr. Speaker, I rise today in support as amended, passed. cordance with this Act in such quantities as of H.R. 2336, a measure to amend the The title of the bill was amended so the Secretary determines to be appro- Doug Barnard, Jr. 1996 Atlanta Centen- as to read: ‘‘A bill to extend the dead- priate.’’. nial Olympic Games Commemorative line for the completion of certain land The SPEAKER pro tempore. Pursu- Coin Act. The Georgia delegation, in exchanges involving the Big Thicket ant to the rule, the gentleman from bipartisan cooperation, has sponsored National Preserve in Texas, and for Delaware [Mr. CASTLE] will be recog- this bill which will protect the integ- other purposes’’. nized for 20 minutes, and the gen- rity of the commemorative process. A motion to reconsider was laid on tleman from New York [Mr. FLAKE] More importantly, however, the bill the table. will be recognized for 20 minutes. will ensure the integrity of the Atlanta The Chair recognizes the gentleman games next summer. f from Delaware [Mr. CASTLE]. Mr. Speaker, the Atlanta Centennial Mr. CASTLE. Mr. Speaker, I yield Olympic Games will be a milestone for GENERAL LEAVE myself such time as I may consume. both peace and sport. The games rep- Mr. Speaker, today I rise in support resent the largest peacetime event in Mr. HANSEN. Mr. Speaker, I ask of H.R. 2336, a measure that lowers the world history, and in the tradition of unanimous consent that all Members minting levels of the Atlanta Olympia Olympic competition, the games will may have 5 legislative days within commemorative coins. I am grateful to become the beacon of 100 years of good- which to revise and extend their re- enjoy the support of Representative will and sportsmanship. marks on H.R. 826, the bill just passed. JAMES A. LEACH, chairman of the Com- Currently, Olympic coin sales are The SPEAKER pro tempore. Is there mittee on Banking and Financial Serv- lagging, and to put it bluntly, Congress objection to the request of the gen- ices. On the other side of the aisle, has authorized too many coins. Today, tleman from Utah? Representative GONZALEZ, former com- however, we will allow the American There was no objection. mittee chairman; Representative public to contribute to the success of December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13945 this event by encouraging collectors to [ACOG], the United States Mint, and also acknowledge the original author purchase United States 1996 Olympic the numismatic community. In fact, by of this act, one of my predecessors coins. lowering the mintage on the gold and from Georgia’s 10th District, Rep- Purchases of Olympic coins provide silver coins, ACOG and the U.S. Mint resentative Doug Barnard. the public its best chance to display have responded to those in the numis- My friend Doug Barnard was first support for the U.S. Olympic team and matic community who have said that elected in 1978 and served until 1992 and the Atlanta centennial Olympic games. the mintage levels are too high. They was a consistent voice for fiscal re- In return for its support, the American believe that by lowering the mintage straint. He was a boll weevil Democrat public gets valuable, historic, and sen- levels, the value of the coins will in- who served his district and his country timental mementos. crease and the numismatics will take a well. He supports the action that I Mr. Speaker, by purchasing Olympic second look at purchasing these coins. hope the House will take today in pass- coins, we will allow our athletes to go In addition, H.R. 2336 would lower the ing this legislation. for the gold. To support that goal, four mintage levels for the 1995 and 1996 All of us in Georgia look forward to official coins are now available as fol- clad coins from 10,000,000 to 8,000,000, hosting the world in 1996 and are lows: and would provide the mint the flexi- pleased that there will be U.S.-minted First, a gold $5 coin; bility to mint more of the popular clad coins to commemorate this historic Second, two silver dollars; and coins, for example basetball and base- event. I thank my friend Mr. BARR for Third, and one nonprecious half-dol- ball. his diligent work on this legislation lar. I believe that with this flexibility the and I urge its adoption. These are the first of 16 various coins general public sales will also increase. Mr. FLAKE. Mr. Speaker, I yield my- to be issued by the Mint in support of It is important to recognize the 1996 self such time as I may consume. the 1996 games. The attractive coins Olympic Coin Program is not in trou- Mr. Speaker, I would like to thank will capture the grace of gymnastics, ble or faltering. Sales for the 1995 the gentleman from Delaware [Mr. the speed and strength of track and Olympic coins are strong especially in CASTLE], the chairman of the commit- field, and the certain excitement of the international community. Unfortu- tee, for the means by which he has dream team 2 as the United States nately Olympic coin sales to the U.S. brought this bill forward. I think all of reaches for gold in basketball. I there- numismatic community have not been us know that the Olympics are not fore encourage the American public, as good as anticipated. With this legis- only important for America, but they and my colleagues, to embrace this op- lation we expect to build on the well- are important for world peace. portunity, and to cherish these sym- established success of the Olympic I would also like to thank the gen- bols of peace and sportsmanship. I en- Coin Program. tleman from Georgia [Mr. BARR]. He courage unanimous support for this As seen by other legislation before has driven this process extremely well. bill, and I strongly support our Olym- the House this Congress is in the proc- I thank the gentleman for the kind of pic effort in Atlanta next summer. ess of reigning in and reforming com- cooperation that all of our staffs have Mr. Speaker, I reserve the balance of memorative coin programs. H.R. 2336 is shared in making sure that this par- my time. consistent with those efforts. A suc- ticular commemorative coin legisla- Mr. CASTLE. Mr. Speaker, I yield cessful coin program is good for the tion not only will get to the floor, but such time as he may consume to the Federal budget and good for the Amer- out of the House. gentleman from Georgia [Mr. BARR]. ican taxpayer. More importantly, I think all of us Mr. BARR. Mr. Speaker, I want to Again, Mr. Speaker, this legislation are focused on the Olympics in 1996, take a moment to thank Mr. CASTLE, makes changes to the Atlanta Centen- knowing that this is one of the places the chairman of the Subcommittee on nial Olympic Coin Program, and does where we can remove all the walls and Domestic and International Monetary not create a new commemorative coin barriers that separates us, and come Policy and his staff for working with program. This is very simply a tech- together with the spirit of peace and me and my staff in moving this impor- nical change to an already existing love, a spirit of sharing and caring for tant legislation to consideration by the program. one another. full House. I would like to recognize Mr. FLAKE. Mr. Speaker, I yield my- Mr. Speaker, I have no further speak- the efforts of Mr. FLAKE and Mr. FRANK self such time as I may consume. ers, and I yield back the balance of my in support of this bill, and would also Mr. Speaker, I wish to commend the time. like to commend the Atlanta Commit- gentleman from Texas [Mr. GONZALEZ], b 1445 tee on the Olympic Games [ACOG] for the ranking member of the full Com- their hard work on the Olympic Com- mittee on Banking and Financial Serv- Mr. CASTLE. Mr. Speaker, I would memorative Coin Program and the ices, who has spent a great deal of time like to echo the words of the distin- Olympic games as a whole. ACOG has in giving not only support to, but help- guished ranking member of this com- done the State of Georgia proud, in ing to shape this piece of legislation. mittee, the gentleman from New York fact the entire country should be proud Mr. Speaker, I reserve the balance of [Mr. FLAKE]. He has been a tremendous of their efforts and we look forward to my time. pleasure to work with throughout my the fruits of their labor next summer. Mr. CASTLE. Mr. Speaker, I yield tenure as the chairman of this sub- Mr. Speaker, H.R. 2336 is critical to the myself such time as I may consume. committee. Hopefully, we will have as continued success of the 1996 Olympic Mr. Speaker, let me just add that the much peace in the world as we have Commemorative Coin Program. gentleman from Georgia [Mr. BARR] had in our subcommittee in terms of As we consider this legislation, I has been tremendously helpful in the getting things done. want to make it clear at the outset: formulation of this legislation and The gentleman has been very helpful This legislation does not create a new watching over it very carefully. The in resolving problems. There was a commemorative coin program. Instead gentleman calls me constantly on it, problem here, as was pointed out to us it reduces the mintage of an existing and I appreciate that. He kept us on by the two speakers from Georgia and program, and provides flexibility to the the straight and narrow. other individuals, with the Atlanta mint to print a greater ratio of the Mr. Speaker, I yield such time as he Olympic Committee, and we recognized more popular general sale coins. When may consume to the gentleman from it. The sales are strong, but with some this program was initiated the mintage Georgia [Mr. NORWOOD], who has been changes in tailoring in what we were level was set to conduct the most ag- concerned about this legislation. doing, it was felt that we could move gressive Olympic Coin Program ever. Mr. NORWOOD. Mr. Speaker, I thank ahead. We were able to address that, With the reduction in mintage, the pro- the chairman for yielding me time. and we did it in a way that will be ben- gram will still be aggressive, however Mr. Speaker, I feel strongly that we eficial to everybody, and I am pleased we are allowing a greater potential for should pass H.R. 2336. The 1996 Summer to have the opportunity to be here to success. Olympic Games in Atlanta is a great help present that. H.R. 2336 is supported by the Altanta event for both my State and this Na- Mr. LEWIS of Georgia. Mr. Speaker, I would Committee on the Olympic Games tion, but with this legislation I want to like to thank my colleague from Georgia for H 13946 CONGRESSIONAL RECORD — HOUSE December 5, 1995 the work he has done on this bill. As he has marks and include extraneous material by the organization, of all such payments to said, it is a simple, noncontroversial bill to help on H.R. 2336, the bill just passed. the organization beginning in the first fiscal the 1996 Olympic games. The SPEAKER pro tempore. Is there year of the organization in which any such I am proud to represent the city of Atlanta, objection to the request of the gen- amount is received and continuing until all amounts received by such organization from tleman from Delaware? which will host the 1996 games. I know many the fund with respect to such surcharges are of my colleagues on both sides of the aisle There was no objection. fully expended or placed in trust. have supported this effort. I would like to f ‘‘(B) MINIMUM REQUIREMENTS FOR ANNUAL thank all my colleagues for their hard work COMMEMORATIVE COIN AUTHOR- AUDITS.—At a minimum, each audit of a des- and their support. I believe that the 1996 ignated recipient organization pursuant to IZATION AND REFORM ACT OF Olympics, when we celebrate the 100th anni- subparagraph (A) shall report— 1995 versary of the games, will be the best Olym- ‘‘(i) the amount of payments received by pics ever. Mr. CASTLE. Mr. Speaker, I move to the designated recipient organization from This bill governs the production of com- suspend the rules and pass the bill the fund during the fiscal year of the organization for which the audit is conducted memorative coins for the 1996 games. These (H.R. 2614) to reform the commemorative coin programs of the U.S. Mint in which are derived from the proceeds of any coins will commemorate an Olympics that will surcharge imposed on the sale of any numis- highlight the best of Atlanta, GA and the Unit- order to protect the integrity of such matic item; ed States. We will witness the largest coming programs and prevent losses of Govern- ‘‘(ii) the amount expended by the des- together in history of people of different na- ment funds, to authorize the U.S. Mint ignated recipient organization from the pro- tions, religions, and heritage. The Olympics to mint and issue platinum and gold ceeds of such surcharges during the fiscal not only celebrate athletic accomplishment, bullion coins, and for other purposes. year of the organization for which the audit they celebrate diversity, peace, and our ability The Clerk read as follows: is conducted; and to overcome our differences and unite as a H.R. 2614 ‘‘(iii) whether all expenditures by the designated recipient organization during the fis- people. We all can learn something from the Be it enacted by the Senate and House of Rep- cal year of the organization for which the Olympic message. resentatives of the United States of America in audit is conducted from the proceeds of such I urge my colleagues' support for H.R. 2336. Congress assembled, surcharges were for authorized purposes. Mr. GONZALEZ. Mr. Speaker, I rise in sup- SECTION 1. SHORT TITLE. ‘‘(C) RESPONSIBILITY OF ORGANIZATION TO port of H.R. 2336, legislation which amends This Act may be cited as the ‘‘Commemo- ACCOUNT FOR EXPENDITURES OF SURCHARGES.— the Doug Barnard, Jr.Ð1996 Atlanta Centen- rative Coin Authorization and Reform Act of Each designated recipient organization nial Olympic Games Commemorative Coin 1995’’. which receives any payment from the fund of Act. TITLE I—COMMEMORATIVE COIN any amount derived from the proceeds of any This bill was introduced by Congressman PROGRAM REFORM surcharge imposed on the sale of any numismatic item shall take appropriate steps, as a BOB BARR, a member of the Banking Commit- SEC. 101. RECOVERY OF MINT EXPENSES RE- QUIRED BEFORE PAYMENT OF SUR- condition for receiving any such payment, to tee from the State of Georgia. He is joined CHARGES TO ANY RECIPIENT ORGA- ensure that the receipt of the payment and today by his Democratic and Republican col- NIZATION. the expenditure of the proceeds of such sur- leagues from the Peach State in cosponsoring (a) CLARIFICATION OF LAW RELATING TO DE- charge by the organization in each fiscal H.R. 2336, a bill to significantly change the POSIT OF SURCHARGES IN THE NUMISMATIC year of the organization can be accounted for marketing strategy for the sale of Olympic PUBLIC ENTERPRISE FUND.—Section 5134(c)(2) separately from all other revenues and ex- commemorative coins. Revenues from the of title 31, United States Code, is amended by penditures of the organization. sale of these coins will be used to support the inserting ‘‘, including amounts attributable ‘‘(D) SUBMISSION OF AUDIT REPORT.—Not to any surcharge imposed with respect to the later than 90 days after the end of any fiscal Olympic games in Atlanta. sale of any numismatic item’’ before the pe- year of a designated recipient organization Unfortunately, the projected sale of the riod. for which an audit is required under subpara- coins does not appear to be as successful as (b) CONDITIONS ON PAYMENT OF SURCHARGES graph (A), the organization shall— anticipated when we first considered the TO RECIPIENT ORGANIZATIONS.—Section 5134 ‘‘(i) submit a copy of the report to the Sec- Olympic coin program. Today we take correc- of title 31, United States Code, is amended by retary of the Treasury; and tive measures that make good marketing adding at the end the following new sub- ‘‘(ii) make a copy of the report available to sense and should result in a restructured coin section: the public. program to maximize profits for the Olympic ‘‘(f) CONDITIONS ON PAYMENT OF SUR- ‘‘(E) USE OF SURCHARGES FOR AUDITS.—Any CHARGES TO RECIPIENT ORGANIZATIONS.— designated recipient organization which re- Committee. ‘‘(1) PAYMENT OF SURCHARGES.—Notwith- ceives any payment from the fund of any I commend the chairman of the Banking standing any other provision of law, no amount derived from the proceeds of any Subcommittee on domestic and international amount derived from the proceeds of any surcharge imposed on the sale of any numis- monetary policy, Chairman MICHAEL CASTEL, surcharge imposed on the sale of any numismatic item may use the amount received to and the ranking Democratic member of the matic item shall be paid from the fund to pay the cost of an audit required under sub- subcommittee, Congressman Floyd Flake, for any designated recipient organization un- paragraph (A). their work in bringing this bill to the floor in a less— ‘‘(F) WAIVER OF PARAGRAPH.—The Sec- timely fashion. ‘‘(A) all numismatic operation and pro- retary of the Treasury may waive the appli- Mr. CASTLE. Mr. Speaker, I ask for gram costs allocable to the program under cation of any subparagraph of this paragraph which such numismatic item is produced and to any designated recipient organization for unanimous support for the legislation sold have been recovered; and any fiscal year after taking into account the and I yield back the balance of my ‘‘(B) the designated recipient organization amount of surcharges which such organiza- time. submits an audited financial statement tion received or expended during such year. The SPEAKER pro tempore (Mr. EV- which demonstrates to the satisfaction of ‘‘(G) NONAPPLICABILITY TO FEDERAL ENTI- ERETT). The question is on the motion the Secretary of the Treasury that, with re- TIES.—This paragraph shall not apply to any offered by the gentleman from Dela- spect to all projects or purposes for which Federal agency or department or any inde- ware [Mr. CASTLE], that the House sus- the proceeds of such surcharge may be used, pendent establishment in the executive pend the rules and pass the bill, H.R. the organization has raised funds from pri- branch which receives any payment from the vate sources for such projects and purposes fund of any amount derived from the pro- 2336. in an amount which is equal to or greater ceeds of any surcharge imposed on the sale of The question was taken; and (two- than the maximum amount the organization any numismatic item. thirds having voted in favor thereof) may receive from the proceeds of such sur- ‘‘(H) AVAILABILITY OF BOOKS AND the rules were suspended and the bill charge. RECORDS.—An organization which receives was passed. ‘‘(2) ANNUAL AUDITS.— any payment from the fund of any amount A motion to reconsider was laid on ‘‘(A) ANNUAL AUDITS OF RECIPIENTS RE- derived from the proceeds of any surcharge the table. QUIRED.—Each designated recipient organiza- imposed on the sale of any numismatic item tion which receives any payment from the shall provide, as a condition for receiving f fund of any amount derived from the pro- any such payment, to the Inspector General GENERAL LEAVE ceeds of any surcharge imposed on the sale of of the Department of the Treasury or the any numismatic item shall provide, as a con- Comptroller General of the United States, Mr. CASTLE. Mr. Speaker, I ask dition for receiving any such amount, for an upon the request of such Inspector General unanimous consent that all Members annual audit, in accordance with generally or the Comptroller General, all books, may have 5 legislative days within accepted government auditing standards by records, and workpapers belonging to or used which to revise and extend their re- an independent public accountant selected by the organization, or by any independent December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13947 public accountant who audited the organiza- ‘‘(3) LEGAL TENDER.—The coins minted Mr. Speaker, today I rise in support tion in accordance with subparagraph (A), under this subsection shall be legal tender, of H.R. 2614, a measure that protects which may relate to the receipt or expendi- as provided in section 5103 of title 31, United the American taxpayer and maintains ture of any such amount by the organization. States Code. the integrity of the U.S. Mint’s coin ‘‘(3) USE OF AGENTS OR ATTORNEYS TO INFLU- ‘‘(4) NUMISMATIC ITEMS.—For purposes of programs. I am grateful to enjoy the ENCE COMMEMORATIVE COIN LEGISLATION.—No section 5134 of title 31, United States Code, portion of any payment from the fund to any all coins minted under this subsection shall support of Representative JAMES designated recipient organization of any be considered to be numismatic items. LEACH, chairman of the Committee on amount derived from the proceeds of any ‘‘(5) DESIGNATIONS AND INSCRIPTIONS.—On Banking and Financial Services. On surcharge imposed on the sale of any numis- each coin minted under this subsection, the other side of the aisle, Representa- matic item may be used, directly or indi- there shall be— tive GONZALEZ, former committee rectly, by the organization to compensate ‘‘(A) a designation of the value of the coin chairman, Representative FLAKE, the any agent or attorney for services rendered and the weight of the platinum content of ranking member of the subcommittee, to support or influence in any way legisla- the coin; Representatives MALONEY, WATT, and tive action of the Congress relating to such ‘‘(B) an inscription of the year in which the numismatic item. coin is minted or issued; and FRANK of Massachusetts have provided ‘‘(4) DESIGNATED RECIPIENT ORGANIZATION ‘‘(C) inscriptions of the words ‘Liberty’, ‘In their strong support for this legisla- DEFINED.—For purposes of this subsection, God We Trust’, ‘United States of America’, tion, and I appreciate their efforts. I the term ‘designated recipient organization’ and ‘E Pluribus Unum’. would also like to acknowledge the val- means any organization designated, under ‘‘(6) SALE PRICE.— uable input and support of Representa- any provision of law, as the recipient of any ‘‘(A) BULLION.—The bullion versions of the tives BARR, LUCAS, KELLY, NEY, FOX, surcharge imposed on the sale of any numis- coins issued under this Act shall be sold by and METCALF of the subcommittee. matic item.’’. the Secretary at a price equal to the sum Representative JOHN OLVER, although (c) SCOPE OF APPLICATION.—The amend- of— ments made by this section shall apply with ‘‘(i) the market value of the bullion at the not a committee member, has also pro- respect to the proceeds of any surcharge im- time of the sale; and vided immeasurable support and gener- posed on the sale of any numismatic item ‘‘(ii) the cost of minting, marketing, and ous guidance in bringing this bill to which are deposited in the Numismatic Pub- distributing the coins (including labor, ma- the floor today. lic Enterprise Fund after the date of the en- terials, dies, use of machinery, and pro- Mr. Speaker, the Subcommittee on actment of this Act. motional and overhead expenses). Domestic and International Monetary (d) REPEAL OF EXISTING RECIPIENT REPORT ‘‘(B) PROOF VERSIONS.—Proof versions of Policy has primary jurisdiction over REQUIREMENT.—Section 303 of Public Law the coins issued under this Act may be sold the Commemorative Coin Programs of 103—186 (31 U.S.C. 5112 note) is hereby re- by the Secretary at a price equal to the sum pealed. of— the U.S. Mint. This legislation reforms SEC. 102. CITIZENS COMMEMORATIVE COIN ADVI- ‘‘(i) the cost of designing and issuing the those programs following recommenda- SORY COMMITTEE. coins (including labor, materials, dies, use of tions by the administration and the (a) FIXED TERMS FOR MEMBERS.—Section machinery, overhead expenses, marketing, Citizens Commemorative Coin Advi- 5135(a)(4) of title 31, United States Code, is and shipping); and sory Committee [CCCAC], received amended to read as follows: ‘‘(ii) a reasonable profit. both in testimony before the sub- ‘‘(4) TERMS.—Each member appointed ‘‘(7) BULK SALES.—The Secretary may under clause (i) or (iii) of paragraph (3)(A) committee on July 12, 1995, and in make bulk sales of the coins issued under shall be appointed for a term of 4 years.’’. CCCAC’s First Annual Report to Con- this subsection at a reasonable discount.’’. (b) CHAIRPERSON.—Section 5135(a) of title gress, released in November, 1994. This (b) TECHNICAL AND CONFORMING AMEND- 31, United States Code, is amended by adding MENT.—Section 5112(j)(1) of title 31, United bill also addresses the concerns of the at the end the following new paragraph: States Code, is amended by inserting ‘‘, (i), numismatic collectors, who purchase 90 ‘‘(6) CHAIRPERSON.—The Chairperson of the or (k)’’ after ‘‘subsection (e)’’. percent of commemorative coin issues. Advisory Committee shall be elected by the members of the Advisory Committee from SEC. 202. AMERICAN EAGLE GOLD COINS AU- No longer will the saturation of the THORIZED TO BE PRODUCED IN 2 market threaten the value of their col- among such members.’’. OR MORE DESIGNS, WEIGHTS, DIAM- SEC. 104. COMMEMORATIVE CIRCULATING COIN ETERS, OR FINENESSES SIMULTA- lections, nor with they be the sole sup- PROGRAM. NEOUSLY. port for beneficiary causes of uncertain (a) IN GENERAL.—The Citizens Commemo- Section 5112(i)(4) of title 31, United States popularity. rative Coin Advisory Committee shall de- Code, is amended by adding at the end the Title I, which covers Commemorative velop a recommendation for a multiyear following new subparagraph: Coin Program Reform, amends section commemorative coin program involving the ‘‘(C) CONTINUED MINTING TO STATUTORY 5134 of U.S.C. title 31, and prohibits dis- circulating coins of the United States which SPECIFICATIONS AFTER DETERMINATION TO would supersede other commemorative coin bursement of surcharges to recipient MINT COINS TO CHANGED SPECIFICATIONS.—Not- organizations unless and until all Mint programs for the years the commemorative withstanding any other provision of this sec- circulating coin program is in effect. tion, the Secretary may continue to mint costs for that coin have been fully re- (b) REPORT TO CONGRESS.—The Citizens and issue coins in accordance with the speci- covered. With both previous and cur- Commemorative Coin Advisory Committee fications contained in paragraphs (7), (8), (9), rent programs, surcharges were dis- shall submit a report to the Congress before and (10) of subsection (a) and paragraph bursed as coins were sold, at times put- the end of the 6-month period beginning on (1)(A) of this subsection at the same time the the date of the enactment of this Act on the ting Government moneys at risk. It is Secretary is minting and issuing other coins recommendations developed by the commit- our hope that this will also help to under this subsection in accordance with tee pursuant to subsection (a), together with keep in check the marketing costs, un- such specifications, varieties, quantities, such recommendations for legislative or ad- dertaken by the Mint, that have been designations, and inscriptions as the Sec- ministrative action as the committee deter- retary may determine to be appropriate.’’. requested by recipient organizations. mines to be necessary or appropriate with re- The maximum surcharge disburse- spect to such recommendations. TITLE III—MINT MANAGERIAL STAFFING ment to a recipient organization is REFORM TITLE II—PLATINUM AND GOLD BULLION limited to the amount received from COINS SEC. 301. MODERNIZATION OF THE MANAGE- MENT STRUCTURE. separate fund raising by that organiza- SEC. 201. PLATINUM COINS. Section 5131 of title 31, United States Code, tion. No longer will organizations de- (a) IN GENERAL.—Section 5112 of title 31, pend exclusively on surcharges for United States Code, is amended by adding at is amended— the end the following new subsection: (1) by striking subsection (c); and funding projects. This reform will in- ‘‘(k) PLATINUM COINS.— (2) by redesignating subsection (d) as sub- sure that beneficiary organizations are ‘‘(1) IN GENERAL.—Notwithstanding any section (c). not simply created to receive the pro- other provision of law, the Secretary of the The SPEAKER pro tempore. Pursu- ceeds of commemorative coins but re- Treasury may mint and issue platinum coins ant to the rule, the gentleman from quires that they demonstrate an ade- in such quantity and of such variety as the Delaware [Mr. CASTLE] and the gen- quate and independent measure of pub- Secretary determines to be appropriate. tleman from New York [Mr. FLAKE] lic support. ‘‘(2) SPECIFICATIONS.—Platinum coins Annual audits will be required of the minted under this subsection shall meet such will be recognized for 20 minutes each. specifications with respect to diameter, The Chair recognizes the gentleman recipient organizations, with an ac- weight, design, and fineness as the Sec- from Delaware [Mr. CASTLE]. counting of all surcharge moneys and retary, in the Secretary’s discretion, may Mr. CASTLE. Mr. Speaker, I yield verification of the authorized use of prescribe from time to time. myself such time as I may consume. surcharge moneys. In addition, title I H 13948 CONGRESSIONAL RECORD — HOUSE December 5, 1995 forbids any recipient organization from My fellow colleagues, you would be Our colleague, Congressman MICHAEL CAS- using surcharges for lobbying activi- amazed at the intensity of the debate TLE of Delaware, introduced this bill and, as ties, thereby maintaining the original on this issue. All those in favor of new chairman of the Banking Committee's Domes- purpose of the surcharge moneys. coins, and those who vehemently op- tic and International Monetary Policy Sub- Title I shortens the length of service pose them, continually execute over- committee, chaired a markup of the bill which for members of the CCCAC to a term of whelming lobbying campaigns. The re- resulted in a unanimous vote for this legisla- 4 years, and allows for the election of a sult is that the Banking Committee al- tion. chairperson by and from committee ways has a broad spectrum of opinions This important legislation provides critical remembers. This makes for a better re- as to which coins deserve to be inform of our Nation's commemorative coin pro- flection of the appointing administra- cluded in the Mint’s commemorative gram. The reforms contained in this bill have tion and does not extend the ap- series. been suggested and endorsed by the adminis- pointees’ mandate far beyond it. H.R. As political favors, and with good in- tration and the Mint's Citizens Commemorative 2614 calls for the CCCAC to develop rec- tentions, Members of Congress contin- Coin Advisory Committee. Among some of the ommendations for a multiyear Com- ually introduce new coin legislation. more noteworthy changes are provisions that memorative Coin Program, along the Consequently, the Banking Committee, disallow payment of any surcharges resulting lines of the popular bicentennial quar- and the Mint have drowned in a sea of from the sale of the coins until and unless the ter. No surcharges are collected on this commemoratives. The net result is cost to the U.S. Mint for the coin has been re- type of commemorative, which makes that Congress has burdened the Mint covered. In addition, the organization which the hobby of coin collecting affordable with numerous coins which diminish receives the surcharge must submit audited fi- and accessible to the broadest public. the Mint’s capacity to mint regular nancial statements showing receipts of dona- Title II permits the issuance of coins, and which further cause the tions from private sources greater than the po- plantium and gold bullion coins by Mint to operate at a higher cost. tential proceeds of coin surcharges. amending section 5112 of U.S.C. title 31. The numismatic community also has Further, the recipient organization will be re- The Secretary of the Treasury would problems with the current state of af- quired to submit an annual audit of all sur- have the authority to determine the fairs in the commemorative process. charge payments indicating all revenues and quantity, variety, and physical speci- The onslaught of commemoratives has expenditures and verification that all expendi- the negative effect of decreasing the fications of these coins. The price tures were for authorized purposes. For exam- value of coins to the collector. This in would be that of the bullion plus cost ple, because of this bill, surcharge moneys for turn discourages purchases, and leaves of manufacture, with a reasonable prof- a program to build a memorial could not be the Mint holding the proverbial ‘‘bag’’ it added for proof versions. Minting of used for the general support of the sponsoring in that it is stuck with coins it cannot two or more designs of the American organization. Eagle gold coins, with specifications sell. H.R. 2614 mends this process. By In summary, Mr. Speaker, in our vote today, determined by the Secretary, would be making clear that we will give primary we will ensure the financial integrity of the allowed. consideration to recommendations commemorative coin program. Passage of Title III eliminates, at the adminis- from the Citizens Commemorative Coin H.R. 2614 will reinforce the public's con- tration’s request, nine political posi- Advisory Committee, and by requiring fidence in the program and I commend Chair- tions not filled by the current adminis- stringent audits, we will ensure integ- man CASTLE and the ranking Democratic tration. member of the subcommittee, Congressman Mr. Speaker, H.R. 2614 goes a long rity in the process. Furthermore, by requiring that the Mint recover its costs FLOYD FLAKE, for their work in bringing this bill way toward correcting problems that before surcharges are released to recip- to the floor today. threatened to destroy the Commemora- ient groups, we will protect the vital I urge an ``aye'' vote. tive Coin Program. Commemorative fiscal interest of the Government. Mr. FLAKE. Mr. Speaker, I yield coins are a benefit, not only to numis- Finally, Mr. Speaker, this legislation back the balance of my time. matic enthusiasts and the recipient or- authorizes the minting of platinum and Mr. CASTLE. Mr. Speaker, I yield ganizations but also by reaffirming our gold bullion coins. Again this will en- back the balance of my time. history, to our Nation as a whole. This courage increased purchases, and opens The SPEAKER pro tempore. The bill links public funding of special a new competitive market for precious question is on the motion offered by projects to demonstrated private sup- metal coins. It is my hope that this bill the gentleman from Delaware [Mr. port, and discourages groups from de- passes with unanimous support. CASTLE] that the House suspend the manding superfluous coins. It prevents Mr. Speaker, I reserve the balance of rules and pass the bill, H.R. 2614. the further abuse of the coin collecting my time. The question was taken; and (two- community by groups lacking general Mr. CASTLE. Mr. Speaker, no rec- thirds having voted in favor thereof) public support. This bill must be passed ognition other than, again, to thank the rules were suspended and the bill if the Commemorative Coin Program is the gentleman from New York [Mr. was passed. to survive and even flourish in the cur- FLAKE] for the work he has done. This A motion to reconsider was laid on rent environment with reduced levels particular piece of legislation did take the table. of demand. I urge its immediate adop- some dealings with various groups and f tion. individuals in order to work out some GENERAL LEAVE Mr. Speaker, I reserve the balance of of the differences, and we were able to my time. do so. Mr. CASTLE. Mr. Speaker, I ask Mr. FLAKE. Mr. Speaker, I yield my- If the gentleman is prepared to yield unanimous consent that all Members self such time as I may consume. back, I am as well. may have 5 legislative days within Mr. Speaker, I would first like to Mr. FLAKE. Mr. Speaker, I yield my- which to revise and extend their re- congratulate the gentleman from Dela- self 1 minute to thank the gentleman marks and include extraneous material ware [Mr. CASTLE] and his staff for from Delaware [Mr. CASTLE] and his on H.R. 2614, the bill just passed. working diligently this year on a num- staff. Again, this really is a great sub- The SPEAKER pro tempore. Is there ber of coin-related issues. Moreover, I committee Domestic and International objection to the request of the gen- join with him today in support of H.R. Monetary Policy. The gentleman from tleman from Delaware? 2614, which will make minor, but vital, Delaware [Mr. CASTLE] and I have been There was no objection. changes in our process of minting com- able to have an excellent relationship. f memorative coins. Our staffs relate excellently, and that Mr. Speaker, in the past, I have sup- is the reason we can bring bills to the HOPEWELL TOWNSHIP ported various types of legislation to floor and move them so easily. INVESTMENT ACT OF 1995 mint commemorative coins. Since as- Mr. GONZALEZ. Mr. Speaker, I strongly Mr. GILCHREST. Mr. Speaker, I suming the role of ranking member on recommend that all Members of the House of move to suspend the rules and pass the the authorizing committee, however, I Representatives today vote to pass H.R. 2416, bill (H.R. 308) to provide for the con- have become more aware of the crisis the Commemorative Coin Authorization and veyance of certain lands and improve- in the commemorative coin process. Reform Act of 1995. ments in Hopewell Township, PA, to a December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13949 nonprofit organization known as the (A) South 14 degrees, 01 minute, 54 seconds west of Pittsburgh International Air- Beaver County Corporation for Eco- West, 56.94 feet to a point. port, and is improved primarily by a nomic Development to provide a site (B) Thence by a curve to the right having concrete block building of 43,000 square for economic development. a radius of 225.00 feet for an arc distance of feet containing warehouse space. As of 207.989 feet to a point. The Clerk read as follows: (C) Thence South 66 degrees, 59 minutes, 45 September 23, 1993, the property was H.R. 308 seconds West, 192.08 feet to a point on the designated as surplus and placed on Be it enacted by the Senate and House of Rep- southern boundary of Lot No. 1, which line is GSA’s surplus property inventory. resentatives of the United States of America in also the line dividing Lot No. 1 from lands The Beaver County Corporation for Congress assembled, now or formerly, of Frank and Catherine Economic Development, in cooperation SECTION 1. SHORT TITLE. Wutter. with Hopewell Township, plans to uti- This Act may be cited as the ‘‘Hopewell (3) Thence by the same, South 75 degrees, lize this property as the centerpiece of Township Investment Act of 1995’’. 01 minutes, 00 seconds West, 1,351.23 feet to a a Hopewell Aliquippa Airport indus- SEC. 2. CONVEYANCE OF LAND. point at the place of beginning. trial park and thereby promote eco- (c) DATE OF CONVEYANCE.—The date of the (a) ADMINISTRATOR OF GENERAL SERVICES.— nomic development and create needed Subject to sections 3 and 4, the Adminis- conveyance of property required under subsection (a) shall be not later than the 90th jobs for the people of Hopewell Town- trator of General Services (hereinafter in ship. This property was originally used this Act referred to as the ‘‘Administrator’’) day following the date of the enactment of shall convey, without compensation, to a this Act. in light manufacturing. It was acquired nonprofit organization known as the ‘‘Beaver (d) CONVEYANCE TERMS.— in 1981 by the Federal Government as a County Corporation for Economic Develop- (1) TERMS AND CONDITIONS.—The convey- staging center for emergency—mine— ment’’ all right, title, and interest of the ance of property required under subsection operations under the Mine Safety and United States in and to those pieces or par- (a) shall be subject to such terms and condi- Health Administration of the Depart- tions as may be determined by the Adminis- cels of land in Hopewell Township, Penn- ment of Labor. Hopewell Township, in sylvania, described in subsection (b), to- trator to be necessary to safeguard the interests of the United States. Such terms and anticipation of this Federal facility, gether with all improvements thereon and invested $225,000 in infrastructure im- appurtenances thereto. The purpose of the conditions shall be consistent with the terms conveyance is to provide a site for economic and conditions set forth in this Act. provements. The facility, however, development in Hopewell Township. (2) QUITCLAIM DEED.—The conveyance of never opened, and has sat vacant for (b) PROPERTY DESCRIPTION.—The land re- property required under subsection (a) shall over 14 years. This community has lost ferred to in subsection (a) is the parcel of be by quitclaim deed. over $250,000 in tax revenue from the land in the township of Hopewell, county of SEC. 3. LIMITATION ON CONVEYANCE. Federal jobs that were committed to Beaver, Pennsylvania, bounded and described No part of any land conveyed under section this facility, and the economy has lost as follows: 2 may be used, during the 30-year period be- over $21 million in lost wages because (1) Beginning at the southwest corner at a ginning on the date of conveyance, for any of the Government’s decision not to point common to Lot No. 1, same plan, lands purpose other than economic development. now or formerly of Frank and Catherine live up to a commitment. Returning SEC. 4. REVERSIONARY INTEREST. this property to productive use is fit- Wutter, and the easterly right-of-way line of (a) IN GENERAL.—The property conveyed Pennsylvania Legislative Route No. 60 (Bea- under section 2 shall revert to the United ting and appropriate. ver Valley Expressway); thence proceeding States on any date in the 30-year period be- I strongly urge all Members to sup- by the easterly right-of-way of Pennsylvania ginning on the date of such conveyance on port this measure. Legislative Route No. 60 by the following which the property is used for a purpose b 1500 three courses and distances: other than economic development. (A) North 17 degrees, 14 minutes, 20 seconds (b) ENFORCING REVERSION.—The Adminis- Mr. Speaker, I reserve the balance of West, 213.10 feet to a point. trator shall perform all acts necessary to en- my time. (B) North 72 degrees, 45 minutes, 40 seconds force any reversion of property to the United Mr. TRAFICANT. Mr. Speaker, I East, 30.00 feet to a point. States under this section. yield such time as he may consume to (C) North 17 degrees, 14 minutes, 20 seconds (c) INVENTORY OF PUBLIC BUILDINGS SERV- the gentleman from Minnesota [Mr. West, 252.91 feet to a point; on a line dividing ICE.—Property that reverts to the United OBERSTAR], the distinguished ranking Lot No. 1 from the other part of Lot No. 1, States under this section shall be under the said part now called Lot No. 5, same plan; member of the Committee on Trans- control of the General Services Administra- portation and Infrastructure. thence by last mentioned dividing line, tion. North 78 degrees, 00 minutes, 00 seconds (Mr. OBERSTAR asked and was given East; 135.58 to a point, a cul-de-sac on Indus- The SPEAKER pro tempore. Pursu- permission to revise and extend his re- trial Drive; thence by said cul-de-sac and the ant to the rule, the gentleman from marks.) southerly side of Industrial Drive by the fol- Maryland [Mr. GILCHREST] and the gen- Mr. OBERSTAR. Mr. Speaker, I lowing courses and distances; tleman from Ohio [Mr. TRAFICANT] will thank the gentleman from Ohio [Mr. (i) By a curve to the right having a radius each be recognized for 20 minutes. TRAFICANT], the distinguished ranking of 100.00 feet for an arc distance of 243.401 The Chair recognizes the gentleman member of the subcommittee, and com- feet to a point. (ii) Thence by a curve to the right having from Maryland, [Mr. GILCHREST]. pliment him, and the gentleman from a radius of 100.00 feet for an arc distance of Mr. GILCHREST. Mr. Speaker, I Maryland [Mr. GILCHREST], for the 86.321 feet to a point. yield myself such time as I may splendid work they have done on this (iii) Thence by 78 degrees, 00 minutes, 00 consume. whole series of legislation we bring to seconds East, 777.78 feet to a point. Mr. Speaker, I rise in strong support the House floor this afternoon. They (iv) Thence, North 12 degrees, 00 minutes, of H.R. 308, a bill to provide for the are important bills and in a coopera- 00 seconds West, 74.71 feet to a point. conveyance of certain lands and im- (v) Thence by a curve to the right, having tive fashion, they bring to the House a radius of 50.00 feet for an arc distance of provements in Hopewell Township, PA, very sound legislation, including this 78.54 feet to a point. to a nonprofit organization known as particular bill to transfer surplus prop- (vi) Thence North 78 degrees, 00 minutes, 00 the Beaver County Corporation for erty in Hopewell Township, to an orga- seconds East, 81.24 feet to a point. Economic Development. nization known as the Beaver County (vii) Thence by a curve to the right, having The Hopewell Township Investment Corporation for Economic Develop- a radius of 415.00 feet for an arc distance of Act of 1995 was introduced in Congress ment. 140.64 feet to a point. for the purpose of making certain prop- Mr. Speaker, the significance of this (viii) Thence, South 82 degrees, 35 minutes, 01 second East, 125.00 feet to a point. erty productive for the benefit of the action is that this will provide an op- (ix) Thence, South 7 degrees, 24 minutes, 59 Hopewell community. This legislation portunity to create jobs, jobs in Beaver seconds West, 5.00 feet to a point. will accomplish this by directing GSA County, an area that I have traveled to (x) Thence by a curve to the right, having to transfer this property, at no cost, to in the past and know quite well, having a radius of 320.00 feet for an arc distance of the Beaver County Corporation for eco- seen the unemployment, the severe dis- 256.85 feet to a point. nomic development, a nonprofit cor- location in this area of the steel valley, (xi) Thence by a curve to the right having poration certified by the Common- a radius of 50.00 feet for an arc distance of the whole steel county to which my 44.18 feet to a point on the northerly side of wealth of Pennsylvania. district in northeastern Minnesota is Airport Road. The property is 15.94 acres of narrow tied. (2) Thence by the northerly side thereof by shaped land which runs in east-west di- We produce the taconite, or steel ore, the following: rection, approximately 7 miles north- to produce this basic building block of H 13950 CONGRESSIONAL RECORD — HOUSE December 5, 1995

American industry, steel. But as steel Mr. Speaker, I thank the gentleman BUD SHUSTER, Ranking member JIM OBER- has suffered dislocation over the last from Minnesota [Mr. OBERSTAR] for his STAR, and the other members of the Commit- decade and a half, so have the people concern, and the gentleman from Ten- tee on Transportation and Infrastructure for and the communities and the town- nessee [Mr. DUNCAN] helped us last their assistance with my bill, the Hopewell ships. The only way to create job op- year. Staff has done a remarkable job Township Investment Act of 1995 (H.R. 308). portunities to succeed those that have on this. We are really doing God’s work The purpose of this bill is to promote eco- passed from the scene because of the here. nomic development and to create jobs in downsizing of steel is to make property Mr. Speaker, I will not repeat all the Hopewell Township at a site near Aliquippa, available for new businesses to locate things, because I think the gentleman PA. H.R. 308 replaces the Federal Govern- there. from Minnesota and the gentleman ment's caretaker role at the property with local This legislation will achieve that ob- from Maryland have touched the high- initiative that will produce jobs and revenues. jective by requiring the General Serv- lights on the economics of this. But the Specifically, H.R. 308 accomplishes this ices Administration to transfer this gentleman from Minnesota [Mr. OBER- goal by transferring an abandoned Federal fa- land at no cost to the Beaver County STAR] was in Beaver County. Hopewell cility from the General Services Administration Corporation for Economic Develop- Township sits on a hill outside of a to the Beaver County Corporation for Eco- ment. The corporation, in cooperation town called Aliquippa, PA. Back in the nomic Development [CED]. with Hopewell Township, will use this early 1980’s, in 1 day, a 71⁄2-mile long The CED is a nonprofit corporation that has property as the centerpiece for the steel mill shut down and 13,000 people the responsibility for spurring economic devel- Hopewell Aliquippa Airport and Indus- were out of work. In 1 day. opment and bringing new businesses in a por- trial Park to promote economic devel- The main street of this community, tion of my congressional district in western opment and create jobs. once known as Franklin Avenue, is Pennsylvania. Mr. Speaker, wherever we can, we now called Plywood Alley, because the Using 100 percent Commonwealth of Penn- should be alert to opportunities to link stores are boarded shut. Slowly, hope is sylvania funding, the CED has a proven track property transfer to airports, to indus- coming back to the community. What record of transforming rough-cut properties trial park opportunities to create jobs. we are doing today is saying the Fed- into economic development diamonds that cre- We have seen the enormous engine of eral Government has no need for this ate jobs and generate tax revenues. growth that airports represent for job property. The local government has The CED supports this legislation and it will creation in this country. put money into this. We put a quarter mold the Hopewell site from a no job-no tax li- Mr. Speaker, I congratulate the gen- of a million dollars into improving the ability into a job and revenue producing asset. tleman from Pennsylvania [Mr. KLINK] roads and sewers and a lot more work This legislation relinquishes Federal control for the time that he has put in with needs to be done, and rather than al- of the site that has lasted for 14 years. The Hopewell Township and with the Bea- lowing the property to sit vacant and Mine Safety and Health Administration oper- ver County Economic Development not letting anything happen to it, let ated the site initially. Since the late 1980's the Corporation. I know, from 15 years ago, us do the right thing. Let us get it General Services Administration [GSA] has what a splendid organization this is. It back on the tax rolls, get workers sup- been its caretaker. is a high-minded, hard-working, public- porting their families back on this In 1987, the Mine Safety and Health Admin- private cooperation initiative that has property again. istration announced plans to consolidate its worked together to create jobs in this Mr. Speaker, let us fix this building activities by locating additional operations at distressed area. which has holes in the roof. In fact, this site and creating 200 new jobs. At that Mr. Speaker, I am very happy we are September 8, 1994, we had a very tragic time, this site served as the staging area for able to bring this legislation to fru- plane accident. Flight 427 crashed very the Federal Government's response to mine ition today, and I thank the gentleman near this site. The FAA, and others disasters in the eastern United States. for his work and thank the ranking who were investigating, were looking In anticipation of attracting a larger Federal member for his leadership. at using this building to try to recreate presence, Hopewell Township and the Criswell Mr. GILCHREST. Mr. Speaker, I have what happened as they attempt to in- Heights Water District spent $225,000 to up- no additional speakers, and I reserve vestigate this accident. This is a build- grade the site with sewer and road improve- the balance of my time. ing which the Federal Government ments. Mr. TRAFICANT. Mr. Speaker, I owns, and still they could not even use Bowing to pressure from a member of the yield such time as he may consume to the building. other body, the Mine Safety and Health Ad- the gentleman from Pennsylvania [Mr. Mr. Speaker, so much needs to be ministration moved its consolidation to Beck- KLINK], a fine, outstanding representa- done. We cannot ask the municipality ley, WV, and in the process transferred its tive from this area, a friend of mine and the county to continue to put Hopewell operation there. Rather than gaining who is basically the individual who has money into fixing this site if the Fed- a new Federal workforce, our area lost 20 brought this bill forward. eral Government is just going to sit on Federal employees in the consolidation. Mr. Speaker, we passed this bill last it and let this property go to waste. I So as you can see this was a situation year. The other body did not act on will tell my colleagues, when was first where the glass started out half-full, the local- some of these measures, and the gen- elected to office, the businesspeople ity poured its resources into topping off the tleman from Pennsylvania [Mr. KLINK] from Beaver County, who were both glass. Unfortunately, the glass is now empty has done a tremendous job. I want to Republicans and Democrats, came to and riddled with holes. thank him, as an old, fit quarterback, me and asked me about this. In addition to losing $225,000 in site im- for the efforts he has made. Mr. Speaker, I think it is great that provements, the local governmentÐBeaver Mr. KLINK. Mr. Speaker, as an old, in a bipartisan move we come together County, schools and Hopewell TownshipÐ good quarterback, we have taken some as members of the Republican Party have not received one cent in local taxes from hints from the play book of the gen- and Democratic Party today and say, this property. That adds up to a revenue lost tleman from Ohio [Mr. TRAFICANT] and Let us do the right thing and pass H.R. of $18,300 annually or $256,200 over 14 have scrambled around on this and 308. years. avoided being sacked. The Senate did Mr. Speaker, I thank all of the Mem- The consolidation of the Mine Health and not take action on this, but the House bers for their support. I thank the gen- Safety Administration has resulted in an an- unanimously adopted a very similar tleman from Maryland [Mr. GILCHREST] nual payroll at its Beckley, WV, facility of proposal a year ago. and the gentleman from Ohio [Mr. $2.66 million since 1987 or $21.28 million that Mr. Speaker, I really want to take TRAFICANT], and staff, Rick Barnett would have been injected into the economy of time to thank the gentleman from and Susan Brita, and John George from Pennsylvania. Maryland [Mr. GILCHREST] for his my staff has done yeoman’s work on Add up all of these expenses and the Fed- amazing work on this. The gentleman this. eral Government has been responsible for a has consulted with me on this bill as he Mr. Speaker, I urge support for this net loss of $21,761,200 to my area. has seen me throughout the halls of legislation. Currently, the property includes an aban- Congress, making sure we are doing the Mr. Speaker, today I wish to express my doned one-story block building that has gaping right thing. thanks to chairman and fellow Pennsylvanian holes in its roof. Having toured the site, I can December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13951 attest to the fact that the building is dilapidated both sides of the Committee on Trans- neys to Federal Practice and was a and it has become a target for vandals. portation and Infrastructure and the member of the Judicial Ethics Com- The CED has committed as much as $1 mil- subcommittee. I do think that we have mittee. In addition to his tenure as lion to renovate the building by fixing its roof, made large gains and maybe a touch- chief judge for the U.S. district court adding brand new plumbing and wiring as well down pass with our efforts to deal with of Florida, Judge King served as chief as installing a parking lot and improving road the legislative business of the Nation U.S. district judge for the Panama access. in a very cooperative, nonpartisan Canal Zone and as a judge on the U.S. Once the CED takes over the property it will manner. I appreciate the Members on Court of Appeals, compiling over 200 use State funding only and on Federal money that side of the aisle. published opinions. Judge King was infor the building renovation and other improve- With that, Mr. Speaker, I urge an strumental in promoting the construc- ments to ready the property for an industrial ‘‘aye’’ vote on this bill. tion of the new Federal justice build- client. Mr. Speaker, I yield back the balance ing. My bill clears the deck so the CED can use of my time. I urge all Members to support the this site to recruit industry, create jobs, and The SPEAKER pro tempore (Mr. EV- bill. put it back on the tax rolls. This legislation will ERETT). The question is on the motion Mr. Speaker, I reserve the balance of enable the Hopewell Township, rather the offered by the gentleman from Mary- my time. Federal Government, to determine its own land [Mr. GILCHREST] that the House Mr. TRAFICANT. Mr. Speaker, I destiny. suspend the rules and pass the bill, yield such time as he may consume to I want to express my sincere thanks to my H.R. 308. the gentleman from Minnesota [Mr. friends: Public Building and Economic Devel- The question was taken; and (two- OBERSTAR]. opment Subcommittee Chairman WAYNE thirds having voted in favor thereof) Mr. OBERSTAR. Mr. Speaker, I am GILCHREST, ranking member JIM TRAFICANT as the rules were suspended and the bill happy to join my colleagues in support- well as their staff members, Rick Barnett and was passed. ing this legislation and compliment Susan Brita, and John George of my staff for A motion to reconsider was laid on the gentleman from Florida [Mr. HAST- their guidance and stalwart support during the the table. INGS] and the gentlewoman from Flor- bill's hearing and throughout the legislative f ida [Mrs. MEEK] for leading the way on process. this legislation to honor Judge James Mr. Speaker, I urge support for this legisla- JAMES LAWRENCE KING FEDERAL Lawrence King, who has so ably pre- tion. Mr. TRAFICANT. Mr. Speaker, I JUSTICE BUILDING sided over the Court for the Southern yield myself such time as I may Mr. GILCHREST. Mr. Speaker, I District of Florida. consume. move to suspend the rules and pass the Judge King was a native of Florida; Mr. Speaker, I would like to thank bill (H.R. 255) to designate the Federal graduate of the University of Florida; the gentleman from Maryland [Mr. justice building in Miami, FL, as the got his law degree from that institution; served in the U.S. Air Force; GILCHREST] for the fine job he has done ‘‘James Lawrence King Federal Justice in directing this subcommittee and for Building.’’ served in private law practice, and in his fairness and for his address to de- The Clerk read as follows: 1964 was appointed a circuit judge in tail, and for his staff, Rick Barnett, the 11th Judicial Circuit for the State H.R. 255 of Florida. and others, working with Susan Brita Be it enacted by the Senate and House of Rep- on our staff. He continued a very distinguished resentatives of the United States of America in legal career, in 1984, becoming chief Mr. Speaker, this is a worthwhile Congress assembled, bill. This region of the country has judge, and then took senior status in SECTION 1. DESIGNATION. 1991. The Judge is still working a full been decimated. This is a modest step The Federal Justice Building located at 99 taken to try and help individuals to Northeast Fourth Street in Miami, Florida, caseload, as is so characteristic of most help themselves. The ideology of the shall be known and designated as the ‘‘James of our senior judges, that is those who gentleman from Pennsylvania [Mr. Lawrence King Federal Justice Building’’. take senior status, they continue to KLINK] in attempting to forge business SEC. 2. REFERENCES. show up for work every day in their of- and private and public relationships in Any reference in a law, map, regulation, fice and decide on important cases. that particular valley make an awful document, paper, or other record of the Unit- In this particular instance, we are lot of sense. They are beginning to ed States to the Federal building referred to giving fitting tribute to a distinguished make progress and the gentleman is in section 1 shall be deemed to be a reference jurist who deserves this honor for his to the ‘‘James Lawrence King Federal Jus- vision, for his stewardship, and for the starting to impact upon the legislative tice Building’’. aspect here. lasting contribution that he has made Mr. Speaker, I will close by thanking The SPEAKER pro tempore. Pursu- to the body of law in this country, and the gentleman from Minnesota [Mr. ant to the rule, the gentleman from particularly in some of the very, very OBERSTAR]. During his tenure here on Maryland [Mr. GILCHREST] will be rec- complex cases that he handled in the public works, and the work that he has ognized for 20 minutes, and the gen- 11th District. been involved with over the years, for tleman from Ohio [Mr. TRAFICANT] will Mr. Speaker, I am greatly pleased to join my taking time to come to this troubled be recognized for 20 minutes. colleagues, Mr. HASTINGS and Mrs. MEEK of region to learn and understand it. The Chair recognizes the gentleman Florida in supporting H.R. 255, a bill to honor Every one of us in that region want to from Maryland [Mr. GILCHREST]. Judge James Lawrence King of the Southern thank the gentleman from Minnesota Mr. GILCHREST. Mr. Speaker, I District of Florida. for the efforts he has taken over the yield myself such time as I may Judge King, a native Floridian, graduated years to understand our problems. consume. from the University of Florida and in 1953 re- Hopefully, Mr. Speaker, before much Mr. Speaker, I rise in strong support ceived his law degree from that institution. more time passes, we will have the gen- of H.R. 255, a bill to designate the Fed- From 1953 to 1955 he served his country with tleman from Maryland [Mr. eral justice building in Miami, FL, as distinction as a lieutenant in the U.S. Air GILCHREST], the gentleman from Penn- the James Lawrence King Federal Jus- Force. After several years in private law prac- sylvania [Mr. SHUSTER], and others tice Building. Judge King is an es- tice, Judge King was appointed in 1964 Circuit participate as well. teemed and respected U.S. district Judge to the Eleventh Judicial Circuit of the Mr. Speaker, I thank the gentleman judge who advocated improved judicial State of Florida. He was appointed to the Fed- from Pennsylvania [Mr. KLINK] for the administration, and devoted countless eral bench in 1970 and continued his distin- tremendous job that he has done as an hours to the improvement of our jus- guished legal career. In 1984 he became the old pit quarterback. tice system. Among his many accom- Chief Judge, and when his term expired in Mr. GILCHREST. Mr. Speaker, I plishments, Judge King served as 1 of 1991 Judge King took senior status. Today, he yield myself such time as I may 23 members of the Judicial Conference still retains a full caseload. consume. of the United States. He was the Chair- Judge James Lawrence King has exhibited Mr. Speaker, I echo the words of my man of the Conferences’ Implementa- outstanding leadership and dedication to his colleagues in thanking the staff on tion Committee on Admission of Attor- profession. It is fitting and proper to honor H 13952 CONGRESSIONAL RECORD — HOUSE December 5, 1995 Judge King for his vision and effective stew- b 1515 James Lawrence King has earned our sup- ardship by designating the Federal Justice Mr. TRAFICANT. Mr. Speaker, I port, our respect, and our thanks. It would only Building in Miami in his honor. yield myself such time as I may be fitting that Miami's new Federal building, a I urge adoption of H.R. 255. consume. building dedicated to the principles of public Mr. TRAFICANT. Mr. Chairman, I Judge King has enjoyed a long and service and justice, be named for the man yield such time as he may consume to distinguished career, as evidenced by who best exemplifies these ideals, Judge the gentleman from Florida [Mr. HAST- the comments of the gentleman from James Lawrence King. I urge my colleagues INGS], one of the authors of this bill, Minnesota [Mr. OBERSTAR], the gen- to join me in honoring Judge King by support- along with the gentlewoman from Flor- tleman from Maryland [Mr. ing H.R. 255. ida [Mrs. MEEK]. GILCHREST], and the gentleman from Ms. ROS-LEHTINEN. Mr. Speaker, I wish to endorse the naming of the Federal Justice Mr. HASTINGS of Florida. Mr. Florida [Mr. HASTINGS]. Building in Miami, FL in honor of Chief Judge Speaker, I thank the gentleman from He is right now on senior status. He is carrying a full caseload so he is not James Lawrence King. The naming of such a Ohio [Mr. TRAFICANT], my good friend, building is not to be done lightly. We reserve and for his stewardship in allowing this getting that much rest, from what I that honor for those who have given of them- bill to come before the House at this understand. Evidently as a graduate of selves, in an extraordinary manner, to the bet- time. As well, I would like to thank the the University of Florida, he is an indi- terment of their community and the Nation. gentleman from Maryland [Mr. vidual supporter of Steve Spurrier and the Gators, hoping that they will Judge King is such a man. GILCHREST] for the extraordinary work All who have worked with Judge King have that he has put forward, and I also knock off Nebraska. I do not know if he wanted that said been impressed with his leadership and au- thank the gentleman from Minnesota here, but his career has been so out- thority. My husband, Dexter Lehtinen, who [Mr. OBERSTAR], the ranking member standing that it is an honor to bring was the U.S. attorney for south Florida, of the committee. this legislation brought forward by a worked closely with the judge to facilitate the Mr. Speaker, I thank all of these good friend and very fine Representa- speedy administration of justice at a time Members and their staffs, as well as a tive, the gentleman from Florida [Mr. when the problem of drug smuggling was tax- staff member of mine, Ann Jacobs, who HASTINGS], the gentlewoman from ing the court system to the breaking point. My has worked very actively in this par- Florida [Mrs. MEEK], to our committee. husband was impressed with Judge King's ticular matter. With that, I would ask everybody to dedication and commitment to the highest pro- Mr. Speaker, I rise today to express vote ‘‘aye.’’ fessional standards. my support for H.R. 255, legislation to Mrs. MEEK of Florida. Mr. Speaker, I want For a turbulent quarter of century, Judge name the Federal Justice Building in to commend my friend, Congressman ALCEE King served on the Federal bench, but his Miami, FL as the James Lawrence HASTINGS, for introducing the bill before us public service long predates his appointment King Justice Building. today, H.R. 255, which would designate the as a Federal judge. Judge King was a mem- Judge King’s career as a U.S. District Federal building in Miami as the James Law- ber of the Judge Advocate General Corps of Judge, especially his effective and rence King Federal Building. No one deserves the U.S. Air Force. In addition to being a Fed- much praised administration as Chief this honor more than Judge King. eral judge, he has served at every level of the Judge, is exemplary and worthy of Judge James Lawrence King was born in court system of Florida, from circuit judge to honor. Among many accomplishments, Miami in 1927. He attended the University of associate judge of the State district court of Judge King served as 1 of 23 members Florida, earning both his undergraduate and appeals to associate justice of the Florida Su- of the Judicial Conference of the Unit- law degrees. While in school, he first entered preme Court. ed States and as the Chairman of the public life, serving as chairman of a campus Judge King has won respect for his legal Conferences’ Implementation Commit- political party and as a member of the honor scholarship as well as his administrative lead- tee on Admission of Attorneys to Fed- court, the executive council, the president's ership. He is the author of over 200 published eral Practice. He was also a member of cabinet, the hall of fame, and as president of opinions in Federal court and was called on by the Conferences’ Judicial Ethics Com- Florida Blue Key. the late Chief Justice Warren Burger to pre- mittee. After graduation, James King started his side over trials in eight other Federal district Judge King was a Chief U.S. District long record of public service by joining the Air courts. Judge for the Panama Canal Zone and, Force. After 2 years with the Judge Advocate Judge King has also lent his considerable on numerous occasions, as a judge on General's Department, he returned to Miami energy to reforming both the judiciary and the the U.S. Court of Appeals. He has com- Beach to practice law. Soon after that, he was education system. He served on the board of piled over 200 published opinions. Judge appointed circuit judge for the Eleventh Judi- control of the State university system. He has King has been a member of the Judicial cial Circuit of Florida. While serving on the cir- been elected or appointed to various commis- Council of the Eleventh Circuit Admin- cuit court, he was temporarily assigned as a sion and panels charged with the reform of the istrative Conference and a member of justice of the Supreme Court of Florida and to Federal bench. Additionally, he was des- the Long Range Planning Committee the Second, Third, and Fourth District Courts ignated chief judge for the Panama Canal for the Federal Judiciary. of Appeal of Florida. During this time, Judge Zone. King also served as a member of the board of His vision and leadership are responsible, in Of course, the main reason Judge regents of Florida. large part, for this Federal building and, there- King deserves this honor is his dedica- In 1970, James Lawrence King was ap- fore, it is fitting and proper that this structure tion to the new Federal Justice Build- pointed to be a U.S. district judge for the should carry his name. I wholeheartedly ening. While many community leaders Southern District of Florida by President dorse this action. contributed to its construction, no one Nixon. Since then, he has been appointed by Mr. TRAFICANT. Mr. Speaker, I labored more selflessly or provided the Chief Justice to several committees of the yield back the balance of my time. greater leadership than Judge King. Judicial Conference of the United States and Mr. GILCHREST. Mr. Speaker, I, too, For without Judge King acting almost was appointed by Chief Justice Rehnquist to urge support of the bill. I have no fur- as the architect, builder, contractor, be a member of the Long Range Planning ther requests for time, and I yield back and decorator, this building would not Committee for the Federal Judiciary. On sev- the balance of my time. be standing today. eral occasions Judge King was specially des- The SPEAKER pro tempore. The Because of Judge King’s determina- ignated to serve as a judge of the U.S. Court question is on the motion offered by tion and attention to all of the details, of Appeals for the Fifth and Eleventh Circuits. the gentleman from Maryland [Mr. his effective stewardship of the U.S. In 1992, Judge James Lawrence King elect- GILCHREST] that the House suspend the District Court of Florida during his ed to take senior status. Remaining active, he rules and pass the bill, H.R. 255. tenure as Chief Justice, and his proven is on the Eleventh Circuit Judicial Council and The question was taken; and (two- commitment to improving the admin- has recently completed a 7-year term as chief thirds having voted in favor thereof) istration of justice, Judge King is sin- judge of the U.S. District Court for the South- the rules were suspended and the bill gularly worthy of having the new Fed- ern District of Florida. was passed. eral Justice Building named in his For his long, distinguished service to the A motion to reconsider was laid on honor. United States and to our community, Judge the table. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13953

BRUCE R. THOMPSON UNITED public servant and I urge my col- Maryland [Mr. GILCHREST] and the gen- STATES COURTHOUSE AND FED- leagues to support the bill. tleman from Minnesota [Mr. OBERSTAR] ERAL BUILDING Mr. Speaker, I reserve the balance of and the gentleman from Pennsylvania Mr. GILCHREST. Mr. Speaker, I my time. [Mr. SHUSTER]. This is a very impor- Mr. TRAFICANT. Mr. Speaker, I move to suspend the rules and pass the tant bill to me. yield such time as he may consume to bill (H.R. 395) to designate the United Mr. Speaker, I rise today in support the gentleman from Minnesota [Mr. States courthouse and Federal building of H.R. 395, legislation to name the new OBERSTAR], distinguished ranking to be constructed at the southeastern Federal courthouse in Reno, NV after member. corner of Liberty and South Virginia the late Judge Bruce R. Thompson. (Mr. OBERSTAR asked and was given I cannot think of a more deserving Streets in Reno, Nevada, as the ‘‘Bruce permission to revise and extend his R. Thompson United States Courthouse Nevadan on which to bestow this remarks.) honor, Mr. Speaker. Judge Thompson and Federal Building’’. Mr. OBERSTAR. Mr. Speaker, again, The Clerk read as follows: was one of Nevada’s most prominent, I thank the senior Democrat on the respected and beloved men in Nevada H.R. 395 subcommittee, the gentleman from Be it enacted by the Senate and House of Rep- jurisprudence and led a long and highly Ohio [Mr. TRAFICANT], for the work distinguished career. After graduating resentatives of the United States of America in that he has done on this legislation, Congress assembled, from the University of Nevada and chairman of the subcommittee, the Stanford law school, he practiced law SECTION 1. DESIGNATION. gentleman from Maryland [Mr. The United States courthouse and Federal with George Springmeyer and later building to be constructed at the southeast- GILCHREST], and our colleague, the gen- Mead Dixon for 27 years until 1963. He tlewoman from Nevada [Mrs. VUCANO- ern corner of Liberty and South Virginia served as Assistant U.S. Attorney for VICH], who has been a sponsor of this Streets in Reno, Nevada, is designated as the the District of Nevada from 1942 to 1952 legislation. ‘‘Bruce R. Thompson United States Court- and as special master for the U.S. Dis- house and Federal Building’’. As with other bills that we are con- trict Court of the District of Nevada SEC. 2. LEGAL REFERENCES. sidering this afternoon, this, too, was Any reference in any law, regulation, docu- reported from our committee in the from 1952 to 1953. Judge Thompson was also president ment, record, map, or other paper of the last Congress, passed the House and United States to the courthouse and Federal languished in the other body. We are of the Nevada State Bar Association building referred to in section 1 is deemed to happy to have this opportunity to from 1955 to 1956. And, following a term be a reference to the ‘‘Bruce R. Thompson bring forward this legislation. as regent to the State Planning Board United States Courthouse and Federal Build- in 1959, he served as its chairman from ing’’. It honors a very distinguished jurist who so served the State and the na- 1960 to 1961. In 1963, he was appointed The SPEAKER pro tempore. Pursu- tional judicial system that he has won U.S. District Judge by President John ant to the rule, the gentleman from widespread support and the naming has Kennedy. Maryland [Mr. GILCHREST] and the gen- won endorsement from virtually every Mr. Speaker, I have previously testi- tleman from Ohio [Mr. TRAFICANT] organization with interest in the law in fied to Judge Thompson’s legendary ca- each will be recognized for 20 minutes. the State of Nevada. And the Nevada reer and I will not take further time The Chair recognizes the gentleman State legislature passed a resolution today. I will simply conclude by saying from Maryland [Mr. GILCHREST]. Judge Thompson’s outstanding career, Mr. GILCHREST. Mr. Speaker, I endorsing the naming of the Federal courthouse in Reno to honor Judge coupled by the immense love and re- yield myself such time as I may spect he earned from his colleagues, consume. Thompson. With that kind of support, we ought makes naming the new courthouse in Mr. Speaker, I rise in strong support to move ahead. It is fitting. It is prop- Reno a fitting tribute, worthy of his of H.R. 395, a bill to designate the Unit- er. It is appropriate for us to take this legacy. ed States Courthouse and Federal step. I want to thank Mr. GILCHREST and Building under construction in Reno, Mr. Speaker, I rise in support of H.R. 395, Mr. SHUSTER for their consideration NV, as the ‘‘Bruce R. Thompson United honoring Judge Bruce R. Thompson, who has and for their willingness to move this States Courthouse and Federal Build- enjoyed a full and distinguished judicial career. important legislation. Their assistance ing.’’ Judge Thompson was one of Ne- Judge Thompson graduated from the Uni- has been invaluable. vada’s most prominent and respected versity of Nevada and received his law degree I urge approval of this important leg- men in law and held a long and highly from Stanford Law School. He practiced law islation. distinguished career. Judge Thompson for 27 years, when he served as Assistant Mr. TRAFICANT. Mr. Speaker, I was a graduate of the University of Ne- U.S. Attorney for the District of Nevada from yield myself such time as I may vada and received his law degree from 1942 to 1952, and as special master for the consume. Stanford Law School. His accomplish- U.S. District Court of the District of Nevada Mr. Speaker, Judge Thompson has ments include service as Assistant U.S. from 1952 to 1953. Judge Thompson was also enjoyed an outstanding career, having Attorney for the district of Nevada, president of the Nevada State Bar Association been appointed to the Federal bench by special master for the U.S. district from 1955 to 1956. Following a term as regent President John F. Kennedy in 1963. He court of the district of Nevada, and ap- to the State Planning Board in 1959, he is extremely well liked by all his judi- pointment to the U.S. district court by served as its chairman from 1960 to 1961. In cial colleagues and has received the en- President John F. Kennedy. Addition- 1963, he was appointed U.S. District Judge by dorsement of many legal organization ally, Judge Thompson served a term as President John F. Kennedy, and as a jurist, in the State of Nevada, as evidenced by president of the Ninth Circuit District has earned the respect of his colleagues. the statements here of Mr. OBERSTAR judges and a term as president of the H.R. 395 has received widespread support and Mr. GILCHREST and the gentle- Nevada State Bar Association. He was and the endorsement of virtually every legal woman from Nevada, Mrs. VUCANOVICH. also a regent and chairman of the organization in the State of Nevada. The Ne- I commend Mrs. VUCANOVICH for her State planning board. He held member- vada State legislature has passed a resolution tenacity and diligence in pursuing the ships in the American Bar Association, endorsing the naming of the Federal court- passage of this bill. I urge all to vote the American Law Institute, the Amer- house in Reno in honor of Judge Thompson. for it. ican Judicature Society, the Institute It is fitting and proper to recognize the career Mr. Speaker, I yield back the balance of Judicial Administration, and the of Judge Thompson in this manner. of my time. American College of Trial Lawyers. I join the Nevada delegation in their support Mr. GILCHREST. Mr. Speaker, I have Virtually every legal organization in of H.R. 395, and commend Congresswoman no further requests for time, and I Nevada has unanimously passed a reso- VUCANOVICH for her leadership on this bill. yield back the balance of my time. lution in favor of naming the court- Mr. GILCHREST. Mr. Speaker, I The SPEAKER pro tempore. The house in honor of Judge Thompson. yield 5 minutes to the gentleman from question is on the motion offered by The entire Nevada congressional dele- Nevada [Mrs. VUCANOVICH]. the gentleman from Maryland [Mr. gation supports this legislation. H.R. Mrs. VUCANOVICH. Mr. Speaker, I GILCHREST] that the House suspend the 395 is an appropriate tribute to a fine want to thank the gentleman from rules and pass the bill, H.R. 395. H 13954 CONGRESSIONAL RECORD — HOUSE December 5, 1995 The question was taken; and (two- dent Lyndon B. Johnson to be the first and convinced the Supreme Court to declare thirds having voted in favor thereof) black Solicitor General. Two years segregation in public schools unconstitutional. the rules were suspended and the bill later, on June 13, 1967, President John- In 1961, Marshall was appointed to the sec- was passed. son chose Marshall to become the first ond circuit court of appeals by President John A motion to reconsider was laid on black Justice of the Supreme Court, F. Kennedy. Four years after he received ap- the table. where he served with distinction until pointment to the appeals court, President Lyn- f his retirement in 1991. He died in 1993. don B. Johnson chose Justice Marshall to be It is a fitting tribute to name a the Nation's first black solicitor general. THURGOOD MARSHALL UNITED courthouse in honor of this American Two years later, on June 13, 1967, Presi- STATES COURTHOUSE who believed in equal justice for all dent Johnson chose Marshall to become the Mr. GILCHREST. Mr. Speaker, I Americans, and devoted his life to ob- first black Justice of the Supreme Court where move to suspend the rules and pass the taining the values we all hold dear. he served with distinction until his retirement bill (H.R. 653) to designate the U.S. I strongly urge all Members to sup- in 1991. He died in 1993. courthouse under construction in port this bill. This bill enjoys broad, bipartisan support White Plains, NY, as the ‘‘Thurgood Mr. Speaker, I reserve the balance of from the New York delegation as well as the Marshall United States Courthouse.’’ my time. Westchester County Board of Legislators, the The Clerk read as follows: Mr. TRAFICANT. Mr. Speaker, I Common Council of White Plains, the White H.R. 653 yield such time as he may consume to Plains-Greenburgh NAACP, the African-Amer- Be it enacted by the Senate and House of Rep- the gentleman from Minnesota [Mr. ican Federation of Westchester, and the West- resentatives of the United States of America in OBERSTAR], distinguished ranking chester County Bar Association. Congress assembled, Member. It is fitting to name a courthouse in honor of SECTION 1. DESIGNATION. Mr. OBERSTAR. Mr. Speaker, again this great American who believed in equal The United States courthouse under con- we bring to the floor a bill that passed jsutice for all Americans, and devoted his life struction at 300 Quarropas Street in White this body in the 103d Congress but did to obtaining the values which we all hold dear. Plains, New York, shall be known and des- not make it through the other body. I I am proud and honored to support this leg- ignated as the ‘‘Thurgood Marshall United States Courthouse’’. am very appreciative of the efforts of islation, and urge its passage. Mr. TRAFICANT. Mr. Speaker, I SEC. 2. REFERENCES. our chairman, the gentleman from Any reference in a law, map, regulation, Maryland [Mr. GILCHREST], and our yield myself such time as I may document, paper, or other record of the Unit- senior Democrat, the gentleman from consume. ed States to the United States courthouse Ohio [Mr. TRAFICANT], for bringing for- Mr. Speaker, the character and con- referred to in section 1 shall be deemed to be ward this bill to honor Judge Thurgood tributions of Judge Thurgood Marshall a reference to the ‘‘Thurgood Marshall Unit- Marshall. No one, no one deserves our are without equal. Judge Marshall’s ed States Courthouse’’. respect and appreciation for the work struggle for equality and dignity for all The SPEAKER pro tempore. Pursu- in civil rights more than Justice Mar- people were absolutely of historical ant to the rule, the gentleman from shall. proportions. I believe it is an absolute Maryland [Mr. GILCHREST] and the gen- honor to participate in this debate and b 1530 tleman from Ohio [Mr. TRAFICANT] will have some little say in the naming of each be recognized for 20 minutes. His leadership, going back to the this building. The Chair recognizes the gentleman famed Board of Education case, all Mr. Speaker, with that I urge an from Maryland [Mr. GILCHREST]. through his service on the Supreme ‘‘aye’’ vote. Mr. GILCHREST. Mr. Speaker, I Court, is one of the high points, one of Mr. GILMAN. Mr. Speaker, I am pleased to yield myself such time as I may the storied chapters in American juris- join with the sponsor of this measure, Mr. consume. prudence. He is a man, if we are going ENGEL to express my strong support for H.R. Mr. Speaker, I rise in strong support to name a building for anyone, a Fed- 653, legislation designating the courthouse of H.R. 653, a bill which designates the eral courthouse for any person associ- currently under construction at 300 Quarropas U.S. courthouse under construction in ated with the law in this country, we Street in White Plains, NY, as the Thurgood White Plains, NY, as the ‘‘Thurgood should do it for Justice Thurgood Mar- Marshall Federal Courthouse. Marshall United States Courthouse.’’ shall. The naming of this courthouse is a fitting Thurgood Marshall was born in Balti- We do that today. I hope the other tribute to a man who dedicated his life and ca- more, MD. He graduated cum laude body will act promptly and decisively reer to the cause of justice for those who were from Lincoln University in 1930, and on this legislation. It is appropriate victims of bigotry. It was Justice Marshall, who graduated at the top of his class from that we have a landmark, that there be successfully argued in the case of Brown ver- the Howard University School of Law many in this land to honor Justice sus Board of Education of Topeka, that sepa- in 1933. Thurgood Marshall. rate schools for black and white students were As a graduate of college and profes- At the beginning of the 103d Congress a bill inherently unequal. In 1965 President Lyndon sional school during the Great Depres- was passed to name the Judiciary Building Johnson named Justice Marshall Solicitor sion, Thurgood Marshall was a member here on Capitol hill after Judge Marshall. H.R. General, making him the U.S. Government's of the black elite. However, he was con- 653 would further acknowledge the contribu- chief advocate before the Supreme Court. strained by a social structure which tions of Judge Marshall by designating the Two years later, President Johnson named tended to frustrate the aspirations of U.S. courthouse in White Plains, NY, the Thurgood Marshall to the Supreme Court, black people. ``Thurgood Marshall U.S. Courthouse.'' He ex- thereby becoming the first African-American Upon graduation from law school, emplified the highest ideals of fairness and Justice in our Nation's history. Justice Marshall began his legal career equality and his struggle against the evils of I cannot think of a more deserving individual with the National Association for the intolerance and bigotry spanned over five for this honor. Justice Marshall dedicated his Advancement of Colored People decades. career as director of the NAACP's legal de- [NAACP]. It was during this tenure, as Upon graduation from Howard University fense and educational fund, as a Federal jurist chief counsel, that he organized efforts School of Law, Justice Marshall embarked on and voice on the Supreme Court, to providing to end segregation in voting, housing, a legal career with the National Association for equal opportunity for all Americans and ending public accommodations, and education. the Advancement of Colored People [NAACP]. discrimination in voting, housing, public ac- These efforts led to the landmark Su- In 1940, he became the head of the newly commodations and education. The American preme Court decision of Brown versus formed NAACP Legal Defense and Education people were fortunate to benefit from the Board of Education, which declared Fund, a post that he held for 20 years. It was sound judgement and compassion that Justice segregation in public schools to be un- during this tenure as chief counsel that Justice Marshall brought to the Supreme Court. constitutional. Marshall organized efforts to end segregation Mr. KELLY. Mr. Speaker, I rise in strong In 1961, Justice Marshall was ap- in voting, housing, public accommodations, support of H.R. 653, a bill designating the pointed to the second circuit court of and education. These efforts led to a series of Federal courthouse in White Plains, NY, as appeals by President John F. Kennedy, cases grouped under the title of Brown versus the ``Thurgood Marshall United States Court- and 4 years later was chosen by Presi- Board of Education, in which Marshall argued house.'' December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13955 Upon completion of his law education, Jus- The Chair recognizes the gentleman contested markup over some very dif- tice Marshall dedicated himself to the civil from Maryland [Mr. GILCHREST]. ficult and hotly contested issues with rights struggle. Whether as head of the legal Mr. GILCHREST. Mr. Speaker, I just a bit of folk wisdom, or country defense and education fund of the NAACP, or yield myself such time as I may humor, or an observation that would as chief council in the Brown versus Board of consume. devastate one side or the other. He had Education case, Justice Marshall never slowed Mr. Speaker, I rise in strong support that remarkable knack, that personal- in his fight for equal rights for all Americans. of H.R. 840, a bill to designate the Fed- ity that just fitted the occasion, and he He continued this fight as the Nation's first eral Building and United States Court- did not have to say much, and he usu- black Solicitor General, where he scored nu- house located in Greenville, NC as the ally did not, but what he said was com- merous victories in the areas of civil and con- ‘‘Walter B. Jones Federal Building and pelling, and whether, as I said earlier, stitutional rights. His career culminated in an United States Courthouse.’’ Walter it was humor, or whether it was a bit of historic appointment to the U.S. Supreme Jones was one of our most respected folk wisdom to enlighten a point, or Court in 1967, where he served with distinc- and accomplished colleagues ever to whether it was to hurry a vote; when tion until his retirement in 1991. serve this Chamber. Born in Fayette- he called a vote, he said all those in H.R. 653 is a fitting tribute to the life and ville, NC, Walter Jones began his ca- favor say aye, aye, and everyone else work of our Nation's first African-American Su- reer as a public servant when he was jumped in, and, before they knew it, preme Court Justice, and I am proud to rep- elected mayor of Farmville, NC in 1949. the bill was passed. resent the district where the Thurgood Mar- He served three terms in North Caro- Mr. Speaker, maybe some of them shall U.S. Courthouse will be located. It is cer- lina State assembly and was in the wanted it passed or not, but they fol- tainly an appropriate honor for this great midst of his first term in the State sen- lowed his leadership, and his wisdom, and his care about America’s merchant American. I urge my colleagues to support this ate when in 1966 he won a special elec- marine, about our Coast Guard, about legislation. tion to this Chamber to fill the seat Mr. TRAFICANT. Mr. Speaker, I left vacant by the death of former our marine environment, about endan- yield back the balance of my time. Member Herbert Bonner. He became a gered species, and that committee had Mr. GILCHREST. Mr. Speaker, I, too, tireless advocate for the American jurisdiction over the Marine Mammal strongly urge an aye vote on this bill. worker and the American farmer. Wal- Protection Act, and he saw to it that I have no further speakers, and I yield ter Jones was reelected to 11 successive that jurisdiction was carried out and back the balance of my time. Congresses, serving in this Chamber that America’s concern for our Marine Mammal Protection Act and for the en- The SPEAKER pro tempore (Mr. EV- from February 5, 1966 until his death in dangered species of the great oceans of ERETT). The question is on the motion 1992. He was a member of the Agri- offered by the gentleman from Mary- culture Committee and served as chair- this country was carried out appropriately. land [Mr. GILCHREST] that the House man of the Merchant Marine and Fish- Mr. Speaker, for us to name a build- suspend the rules and pass the bill, eries Committee from the 97th through ing in his honor is a very small, but de- H.R. 653. the 100th Congress. As chairman of the served, honor, one that we can and that The question was taken; and (two- Merchant Marine and Fisheries Com- we should pay. The greater tribute to thirds having voted in favor thereof) mittee, Mr. Jones committed himself Walter Jones is the legacy of legisla- the rules were suspended, and the bill to ensuring that the United States tion that he left. But more impor- was passed. maintained a viable merchant marine tantly, the care that he had for the A motion to reconsider was laid on fleet and marine industry. H.R. 840 is people he represented; he loved them the table. an appropriate and fitting honor to be- and spoke of them often, and he rep- f stow on our former colleague and I resented them with great honor and WALTER B. JONES FEDERAL urge all Members to support the bill. dignity, and his legacy will carry on in Mr. Speaker, I reserve the balance of BUILDING AND UNITED STATES the name that we give to this building my time. in his honor. COURTHOUSE Mr. TRAFICANT. Mr. Speaker, I Mr. Speaker, this honor is long overdue. Mr. GILCHREST. Mr. Speaker, I yield such time as he may consume to Walter Jones' career spanned over four dec- move to suspend the rules and pass the the distinguished gentleman from Min- bill (H.R. 840) to designate the Federal ades beginning in 1949 with his election as nesota [Mr. OBERSTAR], the ranking the mayor of Farmville, NC, then in 1955 to building and United States courthouse member of the Committee on Trans- located at 215 South Evans Street in the North Carolina State Assembly, in 1965 to portation and Infrastructure. the State senate and finally in 1966 to the Greenville, North Carolina, as the Mr. OBERSTAR. Mr. Speaker, I U.S. House of Representatives. ‘‘Walter B. Jones Federal Building and thank the gentleman from Ohio [Mr. From his days in Congress, Mr. Jones United States Courthouse’’. TRAFICANT] for yielding this time to worked hard and long for his constituents. He The Clerk read as follows: me, and I also thank our chairman, the became a tireless advocate for the American H.R. 840 gentleman from Maryland [Mr. worker and the American farmer. He was re- Be it enacted by the Senate and House of Rep- GILCHREST], for bringing this legisla- elected to eleven successive Congresses, resentatives of the United States of America in tion to the floor. serving in the United States House of Rep- Congress assembled, Mr. Speaker, it was my great privi- resentatives from February 5, 1966, until his SECTION 1. DESIGNATION. lege and pleasure to serve with Walter death in 1992. He was a Member of the The Federal building and United States Jones on the House Merchant Marine House Agriculture Committee and served as courthouse located at 215 South Evans and Fisheries Committee. We served in chairman of the Merchant Marine and Fish- Street in Greenville, North Carolina, shall be Congress together on that committee, known and designated as the ‘‘Walter B. eries Committee from the 97th through the worked together on a lot of issues. But 100th Congresses. As chairman of the Mer- Jones Federal Building and United States what struck me was first of all he suc- Courthouse’’. chant Marine and Fisheries Committee, Walter ceeded Herb Bonner, who was chairman Jones committed himself to ensuring the Unit- SEC. 2. REFERENCES. of that committee and then in his own Any reference in a law, map, regulation, ed States maintained a viable merchant ma- document, paper, or other record of the Unit- right became chairman of the Commit- rine fleet and maritime industry. ed States to the Federal building and United tee on Merchant Marine and Fisheries. His stewardship of the Merchant Marine and States courthouse referred to in section 1 It is very unusual for one State, let Fisheries Committee was recognized for its shall be deemed to be a reference to the alone one district, to have a succession fairness and openness. I had the pleasure of ‘‘Walter B. Jones Federal Building and Unit- of chairmanship of one particular com- serving under Chairman Jones on the Mer- ed States Courthouse’’. mittee. chant Marine Committee. He was not only The SPEAKER pro tempore. Pursu- But Walter Jones served in that ca- known for his dedication, hard work, humility ant to the rule, the gentleman from pacity in a very unassuming, very affa- and humanity, but he also had a quiet way Maryland [Mr. GILCHREST] will be rec- ble, very warm, but also very knowl- about him that oftentimes brought great re- ognized for 20 minutes, and the gen- edgeable manner, with a quiet, sults. tleman from Ohio [Mr. TRAFICANT] will unsuspecting country humor. He would Walter B. Jones was one of the most re- be recognized for 20 minutes. often break the tension in a very hotly spected and accomplished Members ever to H 13956 CONGRESSIONAL RECORD — HOUSE December 5, 1995 serve in the House of Representatives, and much they respected and thought of meant a lot to me, as he did to every H.R. 840 is a fitting and appropriate tribute to my father, and the two words that they Member of this body. I must confess I his honor. used that made me feel so proud of my was not smart enough to remember I urge passage of H.R. 840. father was that he was a gentleman what the preacher said, but I was smart Mr. GILCHREST. Mr. Speaker, I and that he was fair. That to me, they enough to ask the preacher for his want to thank the gentleman from are two of the best words that can be notes that day, and they actually came Minnesota [Mr. OBERSTAR] for his very said about a person, that he is a gen- from one of the two ministers who pre- kind and most appropriate words to tleman and that he is a fair person. sided over your father’s funeral. one of the finest Members of this Con- I see my good friend, the gentleman I was always very much impressed gress. from Mississippi [Mr. TAYLOR], who with your father’s desire to serve the Mr. Speaker, I yield such time as he among many that came down to my fa- public. I really noticed at your father’s may consume to the gentleman from ther’s funeral, and I think the second funeral that everyone I spoke to there North Carolina [Mr. JONES]. or third month that I was here, maybe always mentioned that your dad was Mr. JONES. Mr. Speaker, I thank the in February or March, that GENE came there to serve his fellow citizens; in gentleman from Maryland [Mr. up to me, and he handed me this index this day of cynicism and skepticism, GILCHREST], the gentleman from Ohio card, and he said, ‘‘WALTER, I think it where people run for Congress based on [Mr. TRAFICANT], and the gentleman is only appropriate that you have saying how terrible a place it is and from Minnesota [Mr. OBERSTAR]. This this,’’ and I would like to close with that they are the only good one, that obviously is a very special privilege for this, if I may, Mr. Speaker. so many people felt so strongly and so me, one that I doubt very few sons in GENE handed me this, and he said, ‘‘It positively about your dad, and I am the history of the Congress have. I am is a note that I took at your father’s glad we did not have to wait the full 5 honored and humbled, quite frankly, to funeral,’’ and he said, ‘‘I wrote it down years to see to it that your father is be on the floor at this time to say right after the minister used this quote honored. thank you to the U.S. House for re- from Everett Hale,’’ and the quote is, I want to compliment the sponsor of membering my father in such a special and I think this fits my father and this bill, and above all, I want to com- and very permanent way. many of us that served in the U.S. pliment your dad for being a great The gentleman from Minnesota [Mr. House of Representatives; it says: ‘‘I American, and hope that you turn to be OBERSTAR] was right about my father. am only one, but I am one. I cannot do every bit as great as your father. Mr. TRAFICANT. Mr. Speaker, I He loved the Congress, he loved the everything, but I can do something. yield myself such time as I may people in the Congress, and was a man What I can do, I should do, and, with consume. that has served, that did serve, I should the help of God, I will do it.’’ say, for 26 years. I certainly must tell Mr. Speaker, many of us around here, Mr. Speaker, I close with that be- just speaking off the cuff, loved Walter my colleagues that not only am I and cause I think they are very powerful my family honored by them remember- Jones. I did not serve on the committee words, and again I know I am being with him, but because one of his probing my father, but also the constitu- repetitious, but this is a very emo- ents that elected my father to 13 terms ably closest allies. He imparted much tional time for me. I can only say in advice and counsel to me, many times in the U.S. House of Representatives. very simple, simple words, ‘‘Thank you My father appreciated the work of advising me to shut up and sit down, so very much.’’ and cautioning me on some of the un- this wonderful and great institution Mr. FIELDS of Texas. Mr. Speaker, and the men and women that made this usual behavior traits I employed to try will the gentleman yield? and help my district in my early days institution and are today making this Mr. JONES. I yield to the gentleman institution so great. My father also ap- in the Congress. from Texas. Without reading from a prepared preciated the staff that worked with Mr. FIELDS of Texas. Mr. Speaker, I text, like many others, I loved Walter him as chairman of the Committee on have no prepared statement. In fact I Jones. He embodied what a Congress- Merchant Marine and Fisheries, and wandered into the Chamber on another man should be like. I think back of Bill also the staff in his office, both in the matter, but, in knowing that this is in Natcher, Walter Jones, and Jamie district and also in Washington, as well recognition of the gentleman’s father, I Whitten and individuals like that, and as the members of the staff that work felt compelled to stand up and say we conjure up in our minds great lead- around the House and the Capitol and that, when I entered Congress in 1980, ers from our country that many times the women that operate the elevators. as a Republican, a freshman Repub- had gone without a whole lot of fanfare He was a man that appreciated his fel- lican, and was on the Merchant Marine and much recognition. I am absolutely low man and a person that never forgot and Fisheries Committee, the gentle- honored to be the sponsor of this legis- his roots, and that is why I think my man’s father took me aside, as he did lation. father for so many years, even when everyone who served under his tute- In addition to that, Mr. Speaker, I his health because of age was beginning lage, and gave advice, and was helpful am absolutely honored to find that to fail him and he had to campaign, and lent guidance, and he always did it such a fine son is here to carry on the quite frankly, in a wheelchair back in with great compassion for the constitu- legacy for North Carolina. The attitude the district, and many times can- encies that we represented, and he al- that he brings is much like his dad’s. I didates much younger would oppose my ways did it with a great deal of honor. guess the apple does not fall too far father. Yet my father would get better When we look around the Chamber, the from the tree. than 70 percent of the vote each and people who served under the gentle- I am proud of the fact that we are every time, and the reason for that was man’s father, Republican, Democrat, doing this today. This is right that we because my father never forgot the liberal or conservative, there is univer- should do this. We passed this legisla- people back home that gave him the sal admiration for what his father rep- tion last year. I cannot understand the privilege and the honor to represent resented, and we are all very appre- reason why we had to revisit this, but them. ciative. because of some of the political dynam- So I say to my colleagues again that Mr. JONES. Mr. Speaker, I thank the ics occurring in the other body. Let this is an honor for me to be on this gentleman from Texas [Mr. FIELDS]. there be no political dynamics that floor to thank my colleagues of the would in fact derail this particular b 1545 U.S. House of Representatives, that piece of legislation. This is fitting. I they thought so much of my father Mr. TRAFICANT. Mr. Speaker, I am proud to be associated with it. that they would want to remember him yield such time as he may consume to I thank the gentleman from Mary- in this very special way. If I may close, my good friend, the gentleman from land [Mr. GILCHREST] and all who because I see one of my father’s many Mississippi [Mr. TAYLOR]. played a part in helping to bring this friends, and before I close let me say Mr. TAYLOR of Mississippi. Mr. legislation to the floor. I ask all to sup- that it has been a very humbling expe- Speaker, I want to thank the gen- port it. rience to have men and women from tleman from North Carolina [Mr. Mr. Speaker, I yield back the balance both sides of the aisle to tell me how JONES] for his compliment. His dad of my time. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13957 Mr. GILCHREST. Mr. Speaker, I gentleman, and his great sense of how Mr. GILCHREST. Mr. Speaker, I yield 5 minutes to the gentleman from this institution should conduct itself, yield 5 minutes to the gentleman from Virginia [Mr. BATEMAN]. that never was there any occasion New York [Mr. GILMAN]. Mr. BATEMAN. Mr. Speaker, I thank when in any disagreement there was Mr. GILMAN asked and was given the gentleman for yielding time to me. anything disagreeable. He was a won- permission to revise and extend his re- When I first came to the Congress in derful, wonderful man, and like all my marks.) 1983 and was assigned to the Commit- previous colleagues, I miss him sorely. Mr. GILMAN. Mr. Speaker, I have tee on Merchant Marine and Fisheries Mr. GILCHREST. Mr. Speaker, I had a great regard for Walter Jones and attended its first meeting, Mr. yield 5 minutes to an esteemed col- over the years, a true gentleman and Speaker, I was almost taken aback by league, the gentleman from North one that was always willing to reach a the fact that Walter Jones, the chair- Carolina [Mr. COBLE], to speak on be- hand out to advise all of us in this man, had bothered to look at the biog- half of the bill. Chamber, so I am pleased to join with raphies of those members who were Mr. COBLE. Mr. Speaker, I thank the the gentleman with regard to honoring being assigned to his committee and gentleman for yielding time to me. Walter Jones. had learned that I was indeed born in Mr. Speaker, if I appear out of Mr. GILCHREST. Mr. Speaker, I his district in North Carolina. He re- breath, I am out of breath. I was in my yield myself such time as I may minded me of that fact. office and I turned on the television in consume. I would say to my colleagues that in the office while I was working and saw Mr. Speaker, my last comments people like Walter Jones, if we were to my good friend, the gentleman from would be to echo those of my col- emulate them in all of our activities Ohio, whom I know was one of Walter’s leagues who addressed Mr. Jones, here in the Congress, our work product dearest friends, but my volume was not Chairman Jones, Congressman Jones as would be improved, the atmosphere of turned on so I could not hear what the a fine man, one who fought throughout this institution would be more in keep- gentleman was saying. I usually listen the course of his career and his life for ing with what it should be, and the to the gentleman when he is talking. justice, for tolerance, for freedom, for American people would hold us in a fairness, for liberty. And it is quite ob- Subsequently the gentleman from higher regard. Walter Jones, as some- vious here this afternoon, Mr. Speaker, North Carolina, [Mr. JONES], young one mentioned, was indeed a great gen- that he was also a very fine father, be- WALTER, came on. My volume was not tleman. cause he raised a fine son who is now a tuned up as well. Then when I finally Mr. HEFNER. Mr. Speaker, will the Member of this Chamber. did activate the volume, I learned that gentleman yield? On behalf of the present gentleman we were over here honoring the late Mr. BATEMAN. I yield to the gen- from North Carolina [Mr. JONES], I Walter Jones, and I ran over here. I am tleman from North Carolina. urge my colleagues to vote ‘‘aye’’ on still huffing and puffing, Mr. Speaker, Mr. HEFNER. Mr. Speaker, I had a this bill. but I would be remiss if I did not say a few words to say. Walter Jones for Mr. Speaker, I yield back the balance word or two about him. many, many years was a very close of my time. I used to refer to WALTER junior, friend of mine. We worked very closely The SPEAKER pro tempore (Mr. EV- when I would talk to his dad, as together. What a lot of people do not ERETT). The question is on the motion realize was what a great sense of ‘‘young Walter.’’ ‘‘How is young Walter offered by the gentleman from Mary- doing? ’’ I would ask old Walter from humor Walter Jones had. land [Mr. GILCHREST] that the House If I would be permitted, I would just time to time. One time he said to me, suspend the rules and pass the bill, like to give a little story. We had a he always called me Coble, and he said H.R. 840. Member, and I will not quote any ‘‘Coble, I wish you would not refer to The question was taken; and (two- names, but the Member had a tendency him as young Walter, because by defi- thirds having voted in favor thereof) and he would say, ‘‘If there was a good, nition, that makes me old Walter.’’ I the rules were suspended and the bill qualified candidate in my district, I did not break that habit. I still call was passed. just would not run this year.’’ He con- him young WALTER, even to this day. A motion to reconsider was laid on tinued to say that. But Walter Jones probably conducted the table. One day we were having lunch and he the most, I guess evenhanded would be f said, ‘‘If there was a good, qualified an accurate way to describe him, even- candidate in my district, I wouldn’t handed, fair, hearings, and his hearings THOMAS D. LAMBROS FEDERAL run anymore.’’ Walter said, ‘‘Let me and meetings were always very, very BUILDING AND UNITED STATES name off a few.’’ So that is the last nonpartisan. Oftentimes, Mr. Speaker, COURTHOUSE time. He named off about five or six people will be critical of certain com- Mr. GILCHREST. Mr. Speaker, I different well-qualified people that mittees in the House: ‘‘Oh, they are too move to suspend the rules and pass the lived in that district. That was the last partisan.’’ That in and of itself does bill (H.R. 869) to designate the Federal time it was ever brought up, if there not bother me. This is a partisan body. building and U.S. Courthouse located was ever a qualified candidate. We are supposed to be partisan from at 125 Market Street in Youngstown, Walter Jones, as his son said, was a time to time. I think some of these OH, as the ‘‘Thomas D. Lambros Fed- fair man. He was a good man. We have committee chairmen, though, could eral Building and U.S. Courthouse’’, as a saying down in North Carolina: He is take a lesson from the late Walter amended. the kind of man, if you had to be away Jones. I think sometimes we are overly The Clerk read as follows: partisan in expressing our own views from home for a week, that you would H.R. 869 and the views of our colleagues. like to have Walter Jones agree to do Be it enacted by the Senate and House of Rep- up your things for you. He was a gen- I am very pleased and honored to resentatives of the United States of America in tleman, he was a fair man, and we miss take part in this, I say to my friend, Congress assembled, him. I think this is more than appro- the gentleman from Maryland, and my SECTION 1. DESIGNATION. priate, what we are doing for him friend, the gentleman from Ohio, and of The Federal building and United States today. I thank the gentleman for yield- course, my good friend, the gentleman courthouse located at 125 Market Street in ing time to me. from eastern Carolina, WALTER JONES, Youngstown, Ohio, shall be known and des- Mr. BATEMAN. I am delighted to Jr. The building is in Greenville, NC, ignated as the ‘‘Thomas D. Lambros Federal have yielded. home of East Carolina University, Building and United States Courthouse’’. Mr. Speaker, let me conclude. I will where many of us attended Walter SEC. 2. REFERENCES. not take the 5 minutes allocated, but Jones’ funeral when we laid him to rest Any reference in a law, map, regulation, let me conclude by saying that my per- that day. The funeral was in Greenville document, paper, or other record of the Unit- ed States to the Federal building and United sonal disagreements with the very es- and the interment, I think, was in States courthouse referred to in section 1 teemed Walter Jones were very, very Farmville, subsequently. But Walter shall be deemed to be a reference to the few; but one of the things that is a was a good man, beloved by many, be- ‘‘Thomas D. Lambros Federal Building and mark of the fact that he was a great loved by all who knew him. United States Courthouse’’. H 13958 CONGRESSIONAL RECORD — HOUSE December 5, 1995 The SPEAKER pro tempore. Pursu- House in the last Congress and again Lambros was responsible for many im- ant to the rule, the gentleman from did not muster support in the Senate. portant reforms, such as the voluntary Maryland [Mr. GILCHREST] will be rec- I appreciate the role that the gen- public defender program to provide in- ognized for 20 minutes, and the gentleman from Maryland [Mr. GILCHREST] digent criminal defendants with free tleman from Ohio [Mr. TRAFICANT] will has played in assuring that we again counsel. His groundbreaking work, be recognized for 20 minutes. consider this legislation and bring it to Members, in this area preceded the The Chair recognizes the gentleman the floor and I appreciate his support landmark U.S. Supreme Court decision, from Maryland [Mr. GILCHREST]. for the bill. Gideon versus Wainwright, which guar- Mr. GILCHREST. Mr. Speaker, I Mr. Speaker, it certainly is appro- anteed free counsel to indigent crimi- yield myself such time as I may priate to honor Judge Lambros, who nal defendants. consume. played a role in a very important area In 1990, Judge Lambros became chief Mr. Speaker, I rise in strong support of law that often is poorly understood judge in the Northern District of Ohio. of H.R. 869, as amended, a bill to des- and overlooked, and that is the vol- From there he officially retired in Feb- ignate the Federal Building and Court- untary public defender program that ruary 1995. house located in Youngstown, OH, as provides free counsel for indigent Mr. Speaker, this is a most beautiful the ‘‘Thomas D. Lambros Federal criminal defendants. Judge Lambros man. His efforts in the field of law will Building and United States Court- was responsible for reforms in this area be remembered for years. I urge all to support this legislation. house.’’ Judge Lambros was born and of the law that are very significant, I thank the gentleman from Mary- raised in Ashtabula, OH. He attended and he laid the groundwork for, but his land [Mr. GILCHREST] and the gen- Fairmont State College in Fairmont, work preceded the landmark U.S. Su- tleman from Minnesota [Mr. OBERSTAR] WV and received his law degree from preme Court decision in Gideon versus and all of those who participated for Cleveland Marshall law School in 1952. Wainwright that guaranteed free coun- such help and ask for an ‘‘aye’’ vote. Prior to his career as a judge, he sel to indigent criminal defendants. Mr. Speaker, I yield back the balance served in the U.S. Army from 1954 to It is often difficult for us to under- of my time. 1956. In 1960, Judge Lambros began his stand and to take up the cause of those Mr. GILCHREST. Mr. Speaker, we career in public service with his elec- who are indigent and who have com- have no more speakers on this bill. I tion to the Court of Common Pleas in mitted a crime, but nonetheless they want to thank the gentleman from Ashtabula County. In light of Judge deserve in our legal system legal coun- Ohio [Mr. TRAFICANT] for his work on Lambros’ excellent reputation as a fair sel. this, and I too urge an ‘‘aye’’ vote on and dedicated jurist, President Lyndon For a judge who provided that kind this bill. B. Johnson nominated him in 1967 to of distinguished leadership in an often Mr. Speaker, I yield back the balance the U.S. District Court for the North- neglected and poorly understood area of my time. ern District of Ohio. As a district court of the law, it is appropriate to honor The SPEAKER pro tempore. The judge, Judge Lambros was responsible Judge Lambros by naming a Federal question is on the motion offered by for several important legal reforms building and courthouse in his honor. the gentleman from Maryland [Mr. such as the voluntary public defender He is a good friend of the Democratic GILCHREST] that the House suspend the program, which provided indigent leader on the subcommittee, Mr. rules and pass the bill, H.R. 869, as criminal defendants with free counsel. TRAFICANT, who has been an advocate amended. This reform eventually became law in for this cause, and I compliment the Mr. GILCHREST. Mr. Speaker, on the landmark U.S. Supreme Court deci- gentleman, and I know that today we that I demand the yeas and nays. sion of Gideon versus Wainwright. will again pass this legislation so just- The yeas and nays were ordered. The SPEAKER pro tempore (Mr. EV- Judge Lambros became Chief Judge of ly deserved. Mr. TRAFICANT. Mr. Speaker, I ERETT). Pursuant to clause 5 of rule I the Northern District of Ohio in 1990, and the Chair’s prior announcement, and officially resigned from this posi- yield myself such time as I may consume. further proceedings on this motion will tion in February 1995. Judge Lambros be postponed. also received numerous honors and Mr. Speaker, I want to thank the f awards throughout his career including gentleman from Minnesota [Mr. OBER- the Cross of Paideia presented by the STAR] for his comments and remarks. ROMANO L. MAZZOLI FEDERAL Greek Orthodox Archdiocese of North Mr. Speaker, throughout the distin- BUILDING and South America, and an honorary guished career of Judge Lambros, who Mr. GILCHREST. Mr. Speaker, I doctorate of law from Capital Univer- retired in February, he embraced the move to suspend the rules and pass the sity Law and Graduate Center. rule of law, human rights, and social bill (H.R. 965) to designate the Federal It is a fitting tribute to name this justice for all citizens. I cannot think building located at 1600 Martin Luther building after Judge Lambros because of a more appropriate way to honor King, Jr., Place in Louisville, KY, as he played such an instrumental role in him than to name this courthouse and the ‘‘Romano L. Mazzoli Federal Build- its construction. Prior to the opening have this courthouse bear his name. ing.’’ of the U.S. courthouse in Youngstown, Judge Lambros was born in Ash- The Clerk read as follows: citizens had to travel at least 65 miles tabula, OH, where he graduated from H.R. 965 to Cleveland to seek justice in the Fed- Ashtabula High School. He attended Be it enacted by the Senate and House of Rep- eral court system. Judge Lambros rec- Fairmont State College in Fairmont, resentatives of the United States of America in ognized the hardship this imposed on WV, and received his law degree from Congress assembled, many people, especially senior citizens Cleveland Marshall Law School in 1952. SECTION 1. DESIGNATION. and the indigent. I strongly urge all From 1954 to 1956 he served in the U.S. The Federal building located at 600 Martin Luther King, Jr. Place in Louisville, Ken- Members to support this bill. Army; distinguished service, I might add. In 1960, Judge Lambros was elect- tucky, shall be known and designated as the b ‘‘Romano L. Mazzoli Federal Building’’. 1600 ed judge of the Court of Common Pleas SEC. 2. REFERENCES. Mr. Speaker, I reserve the balance of in Ohio’s Ashtabula County. He was re- Any reference in a law, map, regulation, my time. elected to a second full term without document, paper, or other record of the Mr. TRAFICANT. Mr. Speaker, I opposition, as his reputation for fair- Under States to the Federal building referred yield such time as he may consume to ness continued to grow. to in section 1 shall be deemed to be a ref- the gentleman from Minnesota [Mr. In 1967, that fairness was neverthe- erence to the ‘‘Romano L. Mazzoli Federal OBERSTAR], the distinguished ranking less recognized by former President Building’’. member. Lyndon B. Johnson, who nominated The SPEAKER pro tempore. Pursu- Mr. OBERSTAR. Mr. Speaker, I com- Judge Lambros to the Federal bench, ant to the rule, the gentleman from pliment the gentleman from Ohio [Mr. U.S. District Court, Northern District Maryland [Mr. GILCHREST] will be rec- TRAFICANT], the leader on our side, for of Ohio. As a district court judge, as so ognized for 20 minutes, and the gen- persisting on this legislation and bring- aptly stated by the gentleman from tleman from Ohio [Mr. TRAFICANT] will ing it forward once again. It passed the Minnesota [Mr. OBERSTAR], Judge be recognized for 20 minutes. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13959 The Chair recognizes the gentleman He always made sure that the vote he year to return to Louisville to spend from Maryland [Mr. GILCHREST]. cast was the right vote, not just for his more time with his wonderful wife, Mr. GILCHREST. Mr. Speaker, I district, but also for the national inter- Helen, and their children and grand- yield myself such time as I may ests. He left a great example that all of children. He was and still remains a consume. us could well follow. great man, admired at home and cer- Mr. Speaker, I rise in strong support Clearly, his great legacy will be that tainly here in Washington. of H.R. 965, a bill which designates the in the field of immigration. The Simp- b 1615 Federal building located in Louisville, son-Mazzoli Act that shapes the cur- KY, as the ‘‘Romano L. Mazzoli Fed- rent body of immigration laws is one Ron, as the gentleman from Min- eral Building.’’ Romano L. Mazzoli was that scholars, attorneys, and Federal nesota [Mr. OBERSTAR] has said, was a born and raised in Louisville, KY. After agency administrators will pour over very conscientious and very deter- graduating from the University of for years to come. It was his great leg- mined legislator. He stood fast to his Notre Dame, he served in the Army for acy, along with many other issues that beliefs and dealt honorably with sup- 2 years before returning to attend law were listed by our chairman. porters and adversaries alike. If he school at the University of Louisville. For me, this is a very personal mat- made his mind up to vote a certain way Ron was admitted to the Kentucky bar ter. Ron was a graduate of Notre Dame. on a bill, it did not matter who was in 1960, and began practicing law in I am very proud of his education at President or who was Speaker or who Louisville. In 1967, he began his career Notre Dame. When my son graduated was chairman of this or whatever, Ron in public service by being elected to from high school, Notre Dame was at Mazzoli would vote his conscience re- the Kentucky Senate, where he served the top of his list of universities that gardless of the consequences. That is from 1968 to 1970. In 1970, he was elected he wanted to attend, and he was a lit- what made him a very valued and valu- to join the House of Representatives, tle uncertain about Notre Dame and I able Member of the U.S. House of Rep- and the people of Kentucky’s 3d Con- arranged for Ron to visit with him. It resentatives. gressional District returned him to was Ron’s encouragement, painting a Even in the heat of battle, Ron’s Washington in 11 subsequent elections, picture of the quality of education, but principled manner drew nothing but co- where he served from 1970 to his retire- especially the values. operation and respect from all Mem- ment in 1994. Whether you agree with Notre Dame bers of this body. Mr. Mazzoli may be best remembered on football or basketball or any other He pursued with intelligence and for his tireless efforts on immigration sports activity, on the matter of values vigor the different issues of our Na- issues. He was also an active voice on I think there can be no question of the tion’s immigration policies as chair- issues concerning campaign finance re- standard set by Notre Dame. It was man of that subcommittee on Judici- form, smoking in public places, and that that persuaded Ted, and he en- ary. He became the foremost expert, in cigarette advertising. Romano Mazzoli tered Notre Dame on a scholarship, fact, on immigration, something com- built a strong reputation as one of the graduated with distinction, is now pur- pletely unrelated to his district in Lou- most dedicated ethical and courageous suing a master’s degree in theology, isville, but it was his responsibility Members ever to serve in Congress. and with very fond and very warm here in the Congress that was assigned Naming this Federal Building in his memories of Ron Mazzoli. to him, and he did it to the utmost honor would be a fitting tribute to this I mention that because so often I saw ability that he had, which was great. distinguished former Member of Con- him take time with young people to And so he became the foremost expert gress. I urge all Members to support talk to them about education, about on that very arcane subject and his this bill. career, and about values, and about work is reflected in the major laws Mr. Speaker, I reserve the balance of what is important in life. That we that govern immigration in this coun- my time. name a Federal building in his honor is try to this day. Mr. TRAFICANT. Mr. Speaker, I a tribute to his service to this country Ron was also a sentry for the dis- yield such time as he may consume to and to his care and concern for what advantaged, working on any number of the gentleman from Minnesota [Mr. this institution is all about, the people issues for more than 20 years of service OBERSTAR], the distinguished ranking we represent. No one served them bet- on the Committee on the Judiciary. Democrat on the committee. ter than Ron Mazzoli. First and foremost, however, he Mr. OBERSTAR. Mr. Speaker, I Mr. GILCHREST. Mr. Speaker, I worked for the Third District of Ken- thank the gentleman from Ohio [Mr. yield 5 minutes to the gentleman from tucky, for the people who honored him TRAFICANT], our senior Democrat on Kentucky [Mr. ROGERS], a colleague of with their many years of devoted sup- the subcommittee, for bringing forth Mr. Mazzoli. port. this legislation, and the gentleman Mr. ROGERS. Mr. Speaker, I thank In Ron’s last speech to the Congress from Maryland [Mr. GILCHREST] for his the gentleman for yielding me this on November 29, 1994, he said, ‘‘This is support of the legislation to honor Ron time. the kind of day that is steeped in nos- Mazzoli. Mr. Speaker, as the dean of the Ken- talgia, as we look backward, but also Mr. Speaker, I came to know Ron tucky delegation this year, I am hon- look forward to new lives.’’ Mazzoli, a very distinguished and spe- ored today to rise and strongly support That is Ron Mazzoli. Always remem- cial man, when I served on the staff of this bill and praise my most immediate bering the good times with a warm the Committee on Public Works and on predecessor as the dean of the delega- heart but looking forward to new chal- the staff of my predecessor, John tion, our friend Ron Mazzoli. lenges and new opportunities with a Blatnik, when I was administrative as- Kentucky, Mr. Speaker, has been smile. sistant and who took Mr. Mazzoli blessed with many outstanding Rep- I am very pleased to join Ron’s many under his wing when Ron was first resentatives in the Congress during the friends here in this body to this day. I elected and counseled him in his early 20th century. The names are in history. know of no Member who made more days serving in the Congress. Carl Perkins, Tim Lee Carter, John friends across that aisle than did Ron I think what the gentleman from Sherman Cooper, and of course the un- Mazzoli. I am very pleased to join Maryland [Mr. GILCHREST] said of Ron paralleled Bill Natcher, to name just a many of them here today as we seek to Mazzoli epitomizes his service in the few. There have been many others of an pass this legislation to name the Fed- Congress; Honor, integrity, respect for outstanding nature as well, but Ron eral building that has been designated the institution, a person who ap- Mazzoli is another Member who distin- for our friend Ron Mazzoli. It is an proached each issue on the basis of the guished our State and certainly this honor he has earned through his years merits of the case. He studied every body. of dedication and service for the people issue that he was about to vote on the First elected in 1970, Ron served of his district, for Kentucky, and for House floor, often agonized over votes nearly a quarter of a century in the our Nation. where there was a conflict, at least Congress, representing Louisville and So I hope today we pass this legisla- ideologically, between a national issue most of Jefferson County. As many of tion as a symbol of the respect that and the views of his constituency. my colleagues know, Ron retired last Ron Mazzoli earned along the way. H 13960 CONGRESSIONAL RECORD — HOUSE December 5, 1995 Mr. Speaker, I am here to help us Ron was truly one of the great mem- ents of Westchester County have asked pass our bill, and that bill is a large bers of Congress with which many of us that we name the courthouse at 300 one indeed that we owe to Ron Mazzoli served. Quarropas Street as a lasting memorial for service to his Nation. I am here today also now to thank to Mr. Marshall’s legacy. Sixty years Mr. TRAFICANT. Mr. Speaker, I my colleagues for the passage of the ago Mr. Marshall was at the forefront yield such time as he may consume to bill which commemorates one of the of a movement at its inception. The the gentleman from Kentucky [Mr. most distinguished Americans of this struggle for civil rights for minorities WARD] the outstanding individual who century, and that is the designation of is one which we continue today. What has succeeded our fine past Member the U.S. courthouse in White Plains, tribute could be more fitting for a man Ron Mazzoli. NY, as the Thurgood Marshall U.S. who fought tirelessly for the cause of Mr. WARD. I thank the gentleman Courthouse. As representatives of the civil rights than to provide a tangible from Ohio for yielding me the time. Westchester, NY, area I am here on be- symbol of the principles of law and jus- Mr. Speaker, I am proud to join my half of Congresswomen NITA LOWEY, tice which will be defended within the friends and colleagues, especially proud SUE KELLY, and Congressman BEN GIL- walls of the courthouse. to follow my colleague, the gentleman MAN to urge the bestowal of this honor I again thank my colleagues for pass- from Kentucky [Mr. ROGERS], in speak- in memory of an historic and influen- ing this bill. I thank the gentleman ing on behalf of this bill today. tial man, and the ideals for which he from Ohio [Mr. TRAFICANT] for his hos- I urge all of my colleagues to support stood. pitality. I urge the passage of this this legislation which will serve as a Mr. Marshall, as we know, began his other fitting tribute to Ron Mazzoli. lasting tribute to such a distinguished distinguished career in private prac- Mr. TRAFICANT. Mr. Speaker, I Member who served in this body for 24 tice. Specializing in civil rights cases, yield myself such time as I may years. he represented clients who very often consume. Ron Mazzoli, as many Members who could not afford to pay for his services. Mr. Speaker, as a sponsor of the bill, had the privilege to serve with him As the national counsel of the NAACP, I am very proud to bring this legisla- know, earned the reputation as one of Mr. Marshall spent much of his time in tion forth. I believe the record, as has the most devoted and ethical Members the South furthering the cause of civil been depicted in the statements made ever to serve in this House. His work rights and challenging segregated edu- here by so many Members, justifiably on immigration issues and campaign fication. In 1954, Mr. Marshall’s struggle brings forth the great contributions nance reform will continue to serve as for integrated education culminated in that Ron Mazzoli has made to the Na- a lasting testament to his years of pub- his argument before the Supreme Court tion and to his district. I was a very good friend of Ron’s. lic service for many years to come. in the landmark Brown versus Board of Being that he was an old Notre Dame I have had the pleasure of succeeding Education case. Following this deci- grad and I was a University of Pitts- Ron Mazzoli here and of being, I hope, sion, he focused his energies on the burgh grad, we had certainly debated a associated with the kind of commit- elimination of segregation and dis- lot about Pitt-Notre Dame games. But ment that he had by virtue of that suc- crimination in voting, housing, public in addition to that we worked very cession. I also served in the Kentucky accommodations, as well as within our hard on some common issues. legislature where Congressman Mazzoli defense. Maybe a little bit off the record here, served with great distinction for 4 He chose to fight the battle of civil I had the occasion to have a call from years. rights on a different front when he ac- his mom, 83 years old. She was just so I serve in this Congress and feel that cepted President Kennedy’s appoint- tickled that her son would be memori- it is a great honor to be able to say ment to the U.S. Court of Appeals for alized in such a fashion to have a build- when I introduced myself to my new the Second Circuit. He continued to ing named after his distinguished colleagues upon arrival that I have Ron break down the walls of segregation on record. Mazzoli’s seat. the other side of the bench, accepting I think that that phone call basically As an unassuming man, Ron Mazzoli posts traditionally held by white said it all. There are many people that would never ask for this distinction or males. As solicitor general he argued take tremendous interest in what we seek to have it bestowed upon him. But such cases as the Voting Rights Act of do here. Sometimes we overlook the no one is more deserving of such an 1965, abolishing literacy requirements, contributions that many of them made honor. voter qualification tests, and poll to help many of us get here to serve I urge all Members to support this taxes. our Nation. I am sure Mrs. Mazzoli legislation because by doing so this On June 13, 1967, Thurgood Marshall, back in Kentucky today is very proud. Congress will give me the privilege of the great grandson of an African man I would like to thank Mrs. Mazzoli for going to my district office by walking brought to this country as a slave, was producing such a fine American who into the Romano L. Mazzoli Federal appointed to the Supreme Court of the served so well in the Congress of the Building. United States, the first African-Amer- United States, ladies and gentlemen. I Mr. TRAFICANT. Mr. Speaker, I ican to hold that position. As a Su- urge all to support this bill. yield such time as he may consume to preme Court Justice, Mr. Marshall con- With that, Mr. Speaker, I yield the the distinguished gentleman from New tinued his work in the name of individ- balance of my time. York [Mr. ENGEL]. Due to travel sched- ual rights for minorities, women, and Mr. GILCHREST. Mr. Speaker, I ules, he had a little rough time getting all those who for so long did not have yield myself such time as I may here exactly on time. He is one of the a voice in our Government. consume. sponsors of the legislation honoring Mr. Speaker, these are but a few of I, too, urge an ‘‘aye’’ vote on this bill and naming the building after Judge the highlights in the distinguished ca- and would like to echo the sentiments Thurgood Marshall and will speak out reer of a man who earned the respect of of my good friend, the gentleman from order on that bill as well as on this his colleagues through his intelligence, Ohio [Mr. TRAFICANT], to restate that bill. hard work, and commitment to the Mr. Mazzoli, a Member of Congress, Mr. ENGEL. I thank my friend from civil rights of all Americans. Mr. Mar- epitomizes what all of us would seek to Ohio for yielding me the time. shall said of himself that he hoped to be like, an honorable man, a just man, Mr. Speaker, I want to also add my be thought of as one who did the best and without a doubt a good friend. voice in the designation of H.R. 965, to he could with what he had. We know I urge support for the bill. designate the Federal building in Lou- that he deserves a better and more Mr. Speaker, I yield back the balance isville, KY, as the Romano Mazzoli lasting memory. of my time. Federal Building. The Westchester County Board of The SPEAKER pro tempore (Mr. EV- Having served with Ron Mazzoli, I Legislators, the Common Council of ERETT). The question is on the motion can think of no greater or fitting honor the City of White Plains, the African- offered by the gentleman from Mary- and I am just delighted that this bill is American Federation of Westchester, land [Mr. GILCHREST] that the House here this afternoon. I know that all of the White Plains-Greenburgh Federa- suspend the rules and pass the bill, our colleagues will support it, because tion of the NAACP, and the constitu- H.R. 965. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13961 The question was taken. pleas. Judge Parker is best known for ment of the court as a power in the Mr. GILCHREST. Mr. Speaker, on his reputation and nickname as the land. The court calendar tells the that I demand the yeas and nays. ‘‘hanging judge.’’ Reportedly, he sen- story. It was a court of no vacations The yeas and nays were ordered. tenced more men to the gallows than except for Sundays and Christmas. The SPEAKER pro tempore. Pursu- any other jurist in United States his- During his service the court disposed of ant to clause 5, rule I, and the Chair’s tory. This reputation is particularly a grand total of 13,500 cases, of which prior announcement, further proceed- interesting in light of reports that he 12,000 were criminal. Of the 12,000 ings on this motion will be postponed. did not believe in capital punishment. criminal charges 8,600 resulted in con- f But he did believe in the law, and is victions. quoted as saying ‘‘I’ve never hanged a However, Judge Parker is best known JUDGE ISAAC C. PARKER man, it is the law that has done it.’’ for his reputation as the ‘‘hanging FEDERAL BUILDING Judge Parker died in November 1896. judge.’’ He unquestionably sentenced Mr. GILCHREST. Mr. Speaker, I Perhaps nothing illustrates more viv- more men to the gallows than any move to suspend the rules and pass the idly the legacy of Judge Parker than other jurist in United States history. bill (H.R. 1804) to designate the United the request of the citizens of Fort His nickname is particularly interest- States Post Office-Courthouse located Smith, almost 100 years later, to name ing in light of reports that Parker him- at South 6th and Rogers Avenue, Fort the Federal building in their city in his self did not believe in capital punish- Smith, AR, as the ‘‘Judge Isaac C. honor. I strongly urge my colleagues to ment. But he did believe in the laws, Parker Federal Building’’. support this bill. and is quoted as having said, ‘‘I’ve The Clerk read as follows: b 1630 never hanged a man. It is the law that H.R. 1804 has done it.’’ Mr. Speaker, I yield such time as he Be it enacted by the Senate and House of Rep- Off the bench, Judge Parker was may consume to the gentleman from resentatives of the United States of America in known as a humorous and friendly Minnesota [Mr. OBERSTAR], the distin- Congress assembled, man, devoted to his family and re- guished ranking member. SECTION 1. DESIGNATION. spected by all as a man of incorruptible The United States Post Office-Courthouse Mr. OBERSTAR. Mr. Speaker, I thank the gentleman from Ohio [Mr. integrity. He was active in local affairs located at South 6th and Rogers Avenue, and served for several years as presi- Fort Smith, Arkansas, shall be known and TRAFICANT], the ranking member on designated as the ‘‘Judge Isaac C. Parker the subcommittee, and the chairman, dent of the Fort Smith School Board. Federal Building’’. the gentleman from Maryland [Mr. The year or two that President Grant requested him to stay stretched out to SEC. 2 REFERENCES. GILCHREST], for bringing forth this bill. Any reference in a law, map, regulation, This is certainly a case of a tribute 21, until his death in 1896. He had ac- document, paper, or other record of the Unit- long delayed and an honor bestowed in complished the goal of the President, ed States to the United States Post Office- a manner that certainly is appropriate. as well as his own, to restore respect to Courthouse referred to in section 1 shall be When a man is so great that the people the court and the law of the land, and deemed to be a reference to the ‘‘Judge Isaac to safeguard the citizens of his jurisdic- C. Parker Federal Building’’. of a community a century later ask that he be memorialized in a particular tion. The SPEAKER pro tempore. Pursu- way, then certainly the Congress ought Judge Parker is buried in the na- ant to the rule, the gentleman from to respond to that appeal as we are tional cemetery in Fort Smith near the Maryland [Mr. GILCHREST] and the gen- doing today by naming the Federal court that he had so faithfully served tleman from Ohio [Mr. TRAFICANT] will building at Fort Smith, AR, in honor of for over two decades. each be recognized for 20 minutes. Judge Parker, whose great career, Perhaps nothing illustrates the leg- The Chair recognizes the gentleman whose remarkable career has been acy of Judge Parker more than the re- from Maryland [Mr. GILCHREST]. quest of the citizens of Fort Smith, al- Mr. GILCHREST. Mr. Speaker, I spelled out by Chairman GILCHREST. I urge support of the legislation. most 100 years later, to name the Fed- yield myself such time as I may Mr. GILCHREST. Mr. Speaker, I eral building in his honor. This is a re- consume. yield such time as he may consume to markable and fitting tribute. Mr. Speaker, I rise in strong support the gentleman from Arkansas [Mr. Finally, Mr. Speaker, I would like to of H.R. 1804, a bill to designate the HUTCHINSON]. take this opportunity to pay tribute to United States Post Office—Courthouse Mr. HUTCHINSON. Mr. Speaker, let another Arkansan, Mr. Larry Degen. located in Fort Smith, AR, as the me first say I appreciate your assist- The city of Fort Smith is currently ‘‘Judge Isaac C. Parker Federal Build- ance in bringing this bill to the floor planning events to mark the 100th an- ing.’’ Judge Parker is a legendary fig- today. I would also like to thank niversary of Judge Parker’s death. The ure in Arkansas, and his fame extends Chairman SHUSTER, as well as ranking naming of the city’s Federal building is to the surrounding States as well. He member OBERSTAR and subcommittee one of the main initiatives that is was a soldier, a lawyer, a member of ranking member TRAFICANT for their being planned in connection with this Congress, and a judge. In 1875 after his assistance. anniversary. retirement from Congress, President This bill, H.R. 1804, would name the Larry Degen was a very active leader Ulysses Grant appointed him Chief Jus- Federal building in Fort Smith, AR, in planning this celebration. In par- tice of the Utah Territory. However, at after Judge Isaac Parker. Judge Parker ticular, he was one of the first people the President’s request, he resigned to is a great figure in Arkansas and the who contacted me requesting legisla- accept appointment to the United surrounding States. He was a soldier, a tion to name the Federal building in States Court for the Western District Congressman, a lawyer, and a judge. honor of Judge Parker. of Arkansas. The Western District In 1875 after his retirement from the Larry continued to call and write me, Court had fallen into disrepute due to U.S. Congress, President Grant ap- encouraging Congress to move forward the actions of Judge Parker’s prede- pointed Isaac Parker as chief justice of with this legislation in time for the an- cessor, Judge William Story. Under the the Utah Territory. However, at the re- niversary. His last call was on October threat of impeachment, Judge Story quest of the President, Parker resigned 27th. Tragically, Larry died on October had departed. The jurisdiction of the to accept appointment as judge of the 31st at the very young age of 47. A busi- court covered the western half of Ar- United States Court for the Western nessman, church member, community kansas and what is now the entire District of Arkansas. activist, father, and grandfather, Larry State of Oklahoma. Judge Parker dedi- The court had fallen into disrepute Degen represents the true spirit of the cated himself to reestablishing the because of the actions of Parker’s pred- people of Fort Smith. I am sure Judge court as a power in the land. During his ecessor. The President asked Parker to Parker would’ve been honored to know service the court disposed of a grand ‘‘stay a year or two in Fort Smith and that a man of Larry’s caliber worked total of 13,500 cases, of which 12,000 get things straightened out.’’—Ended on the legislation that honors his were criminal. Of the 12,000 criminal up staying 21 years. name. charges, 8,600 resulted in criminal con- When he assumed office Judge Parker I would urge my colleagues to sup- victions, either by jury trials or guilty dedicated himself to the reestablish- port this measure. H 13962 CONGRESSIONAL RECORD — HOUSE December 5, 1995 Mr. TRAFICANT. Mr. Speaker, I and pass the bill (H.R. 2684) to amend tially of $300,000,000 (which is hereby trans- yield myself such time as I may title II of the Social Security Act to ferred to the Account from amounts otherwise consume. provide for increases in the amounts of available in such Trust Fund) and shall also Mr. Speaker, there is an old saying: consist thereafter of such other amounts as may allowable earnings under the Social Se- be transferred to it under this subsection. The When Judge Parker got through with curity earnings limit for individuals balance in the Account shall be available solely those cold-blooded killers, there was no who have attained retirement age, and for expenditures certified under paragraph (2). recidivism. for other purposes, as amended. ‘‘(2)(A) Before October 1 of each calendar We have talked and we have heard The Clerk read as follows: year, the Chief Actuary of the Social Security the phrase coined so many times in re- H.R. 2684 Administration shall— ferring to judges throughout America ‘‘(i) estimate the present value of savings to Be it enacted by the Senate and House of Rep- the Federal Old-Age and Survivors Insurance as the hanging judges. Ladies and gen- resentatives of the United States of America in tlemen, that is, this was, the hanging Trust Fund, the Federal Disability Insurance Congress assembled, Trust Fund, the Federal Hospital Insurance judge, and I believe that he was revered SECTION 1. SHORT TITLE. Trust Fund, and the Federal Supplementary not only by his colleagues but also by This Act may be cited as the ‘‘Senior Citizens’ Medical Insurance Trust Fund which will ac- the frontier community which he Right to Work Act of 1995’’. crue for all years as a result of cessations of served. SEC. 2. INCREASES IN MONTHLY EXEMPT benefit payments resulting from continuing dis- I think that he blazed a trail to let AMOUNT FOR PURPOSES OF THE SO- ability reviews carried out pursuant to the re- everybody respect the law, and some- CIAL SECURITY EARNINGS LIMIT. quirements of section 221(i) during the fiscal times you have got to get people’s at- (a) INCREASE IN MONTHLY EXEMPT AMOUNT year ending on September 30 of such calendar tention, and I think we have got the FOR INDIVIDUALS WHO HAVE ATTAINED RETIRE- year (increased or decreased as appropriate to account for deviations of estimates for prior fis- Nation’s attention now to the con- MENT AGE.—Section 203(f)(8)(D) of the Social Security Act (42 U.S.C. 403(f)(8)(D)) is amended cal years from the actual amounts for such fis- tributions made by Judge Parker. to read as follows: cal years), and I support this bill and ask all Mem- ‘‘(D) Notwithstanding any other provision of ‘‘(ii) certify the amount of such estimate to bers to unanimously support the bill. this subsection, the exempt amount which is ap- the Managing Trustee. Mr. Speaker, I yield back the balance plicable to an individual who has attained re- ‘‘(B) Upon receipt of certification by the Chief of my time. tirement age (as defined in section 216(l)) before Actuary under subparagraph (A), the Managing Mr. GILCHREST. Mr. Speaker, I the close of the taxable year involved shall be— Trustee shall transfer to the Account from yield myself such time as I may ‘‘(i) for each month of any taxable year end- amounts otherwise in the Trust Fund an 2 amount equal to the estimated savings so cer- consume. ing after 1995 and before 1997, $1,166.66 ⁄3, Mr. Speaker, I would like again to ‘‘(ii) for each month of any taxable year end- tified. ‘‘(C) To the extent of available funds in the echo the sentiments of the gentleman ing after 1996 and before 1998, $1,250.00, ‘‘(iii) for each month of any taxable year end- Account, upon certification by the Chief Actu- from Ohio [Mr. TRAFICANT] that we rec- ary that such funds are currently required to ing after 1997 and before 1999, $1,333.331⁄3, ognize a man such as Judge Parker ‘‘(iv) for each month of any taxable year end- meet expenditures necessary to provide for con- who did blaze a trail in the early years ing after 1998 and before 2000, $1,416.662⁄3, tinuing disability reviews required under section of this country to establish justice and ‘‘(v) for each month of any taxable year end- 221(i), the Managing Trustee shall make avail- law. ing after 1999 and before 2001, $1,500.00, able to the Commissioner of Social Security from I want to thank my colleague, the ‘‘(vi) for each month of any taxable year end- the Account the amount so certified. ‘‘(D) The expenditures referred to in subpara- gentleman from Arkansas [Mr. HUTCH- ing after 2000 and before 2002, $2,083.331⁄3, and graph (C) shall include, but not be limited to, INSON], for being extremely relentless ‘‘(vii) for each month of any taxable year ending after 2001 and before 2003, $2,500.00.’’. the cost of staffing, training, purchase of medi- and persistent, consistently, to get this cal and other evidence, and processing related bill pushed through the House. I thank (b) CONFORMING AMENDMENTS.— (1) Section 203(f)(8)(B)(ii) of such Act (42 to appeals (including appeal hearings) and to him for all of his efforts. I urge a ‘‘yes’’ U.S.C. 403(f)(8)(B)(ii)) is amended— overpayments and related indirect costs. vote on this bill. (A) by striking ‘‘the taxable year ending after ‘‘(E) The Commissioner shall use funds made Mr. Speaker, I have no further re- 1993 and before 1995’’ and inserting ‘‘the taxable available pursuant to this paragraph solely for quests for time, and I yield back the year ending after 2001 and before 2003 (with re- the purposes described in subparagraph (C).’’. (2) CONFORMING AMENDMENT.—Section balance of my time. spect to individuals described in subparagraph 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) The SPEAKER pro tempore (Mr. EV- (D)) or the taxable year ending after 1993 and is amended in the last sentence by inserting before 1995 (with respect to other individuals)’’; ERETT). The question is on the motion ‘‘(other than expenditures from available funds and offered by the gentleman from Mary- in the Continuing Disability Review Administra- (B) in subclause (II), by striking ‘‘for 1992’’ land [Mr. GILCHREST] that the House tion Revolving Account in the Federal Disability and inserting ‘‘for 2000 (with respect to individ- suspend the rules and pass the bill, Insurance Trust Fund made pursuant to sub- uals described in subparagraph (D)) or 1992 H.R. 1804. section (n))’’ after ‘‘is responsible’’ the first (with respect to other individuals)’’. place it appears. The question was taken. (2) The second sentence of section 223(d)(4)(A) Mr. GILCHREST. Mr. Speaker, on (3) ANNUAL REPORT.—Section 221(i)(3) of such of such Act (42 U.S.C. 423(d)(4)(A)) is amended Act (42 U.S.C. 421(i)(3)) is amended— that I demand the yeas and nays. by striking ‘‘the exempt amount under section The yeas and nays were ordered. (A) by striking ‘‘and the number’’ and insert- 203(f)(8) which is applicable to individuals de- ing ‘‘the number’’; The SPEAKER pro tempore. Pursu- scribed in subparagraph (D) thereof’’ and in- (B) by striking the period at the end and in- ant to clause 5 of rule I and the Chair’s serting the following: ‘‘an amount equal to the serting a comma; and prior announcement, further proceed- exempt amount which would be applicable (C) by adding at the end the following: ‘‘and ings on this motion will be postponed. under section 203(f)(8), to individuals described a final accounting of amounts transferred to the f in subparagraph (D) thereof, if section 2 of the Continuing Disability Review Administration Senior Citizens’ Right to Work Act of 1995 had Revolving Account in the Federal Disability In- GENERAL LEAVE not been enacted’’. surance Trust Fund during the year, the Mr. GILCHREST. Mr. Speaker, I ask (c) EFFECTIVE DATE.—The amendments made amount made available from such Account dur- unanimous consent that all Members by this section shall apply with respect to tax- ing such year pursuant to certifications made by able years ending after 1995. may have 5 legislative days within the Chief Actuary of the Social Security Admin- SEC. 3. ESTABLISHMENT OF DISABILITY INSUR- istration under section 201(n)(2)(C), and expend- which to revise and extend their re- ANCE CONTINUING DISABILITY RE- itures made by the Commissioner of Social Secu- marks on H.R. 308, H.R. 255, H.R. 395, VIEW ADMINISTRATION REVOLVING rity for the purposes described in section H.R. 653, H.R. 840, H.R. 869, H.R. 965, ACCOUNT. 201(n)(2)(C) during the year, including a com- and H.R. 1804, the bills just considered. (a) CONTINUING DISABILITY REVIEW ADMINIS- parison of the number of continuing disability The SPEAKER pro tempore. Is there TRATION REVOLVING ACCOUNT FOR TITLE II DIS- reviews conducted during the year with the esti- objection to the request of the gen- ABILITY BENEFITS IN THE FEDERAL DISABILITY mated number of continuing disability reviews tleman from Maryland? INSURANCE TRUST FUND.— upon which the estimate of such expenditures There was no objection. (1) IN GENERAL.—Section 201 of the Social Se- was made under section 201(n)(2)(A).’’. curity Act (42 U.S.C. 401) is amended by adding (b) EFFECTIVE DATE AND SUNSET.— f at the end the following new subsection: (1) EFFECTIVE DATE.—The amendments made SENIOR CITIZENS’ RIGHT TO WORK ‘‘(n)(1) There is hereby created in the Federal by subsection (a) shall apply for fiscal years be- ACT OF 1995 Disability Insurance Trust Fund a Continuing ginning on or after October 1, 1995, and ending Disability Review Administration Revolving Ac- on or before September 30, 2002. Mr. BUNNING of Kentucky. Mr. count (hereinafter in this subsection referred to (2) SUNSET.—Effective October 1, 2002, the Speaker, I move to suspend the rules as the ‘Account’). The Account shall consist ini- Continuing Disability Review Administration December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13963 Revolving Account in the Federal Disability In- any such case in which the individual is enti- ‘‘(ii) the dollar amount of any benefits pay- surance Trust Fund shall cease to exist, any tled to old-age insurance benefits, the individual able to the claimant, and balance in such Account shall revert to funds has attained retirement age (as defined in sec- ‘‘(iii) the maximum amount under paragraph otherwise available in such Trust Fund, and tion 216(l)) as of the end of the year preceding (2) that may be charged for services performed sections 201 and 221 of the Social Security Act the year with respect to which the recomputa- in connection with such claim.’’; and shall read as if the amendments made by sub- tion is made, and the year with respect to which (4) by redesignating paragraph (5) as para- section (a) had not been enacted. the recomputation is made would not be sub- graph (3). (c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL stituted in recomputation under this subsection (b) JUDICIAL PROCEEDINGS.—Section 206(b)(1) SECURITY ADMINISTRATION.— for a benefit computation year in which no of such Act (42 U.S.C. 406(b)(1)) is amended— (1) IN GENERAL.—Section 702 of such Act (42 wages or self-employment income have been (1) in the first sentence of subparagraph (A), U.S.C. 902) is amended— credited previously to such individual, or by striking ‘‘representation,’’ and all that fol- (A) by redesignating subsections (c) and (d) as ‘‘(II) the first year following the year with re- lows and inserting the following: ‘‘representa- subsections (d) and (e), respectively; and spect to which the recomputation is made, in tion. In determining a reasonable fee, the court (B) by inserting after subsection (b) the fol- any other such case; or’’. shall take into consideration the amount of the lowing new subsection: (b) CONFORMING AMENDMENTS.— fee, if any, that such attorney, or any other per- ‘‘Chief Actuary (1) Section 215(f)(7) of such Act (42 U.S.C. son, agent, or attorney, may charge the claim- 415(f)(7)) is amended by inserting ‘‘, and as ant for services performed in connection with ‘‘(c)(1) There shall be in the Administration a amended by section 5(b)(2) of the Senior Citi- the claimant’s claim when it was pending before Chief Actuary, who shall be appointed by, and zens’ Right to Work Act of 1995,’’ after ‘‘This the Commissioner.’’; in direct line of authority to, the Commissioner. subsection as in effect in December 1978’’. (2) in the second sentence of subparagraph The Chief Actuary shall be appointed from indi- (2) Subparagraph (A) of section 215(f)(2) of (A), by striking ‘‘or certified for payment’’; viduals who have demonstrated, by their edu- the Social Security Act as in effect in December (3) by striking subparagraph (B); and cation and experience, superior expertise in the 1978 and applied in certain cases under the pro- (4) by striking ‘‘(b)(1)(A)’’ and inserting actuarial sciences. The Chief Actuary shall visions of such Act as in effect after December ‘‘(b)(1)’’. serve as the chief actuarial officer of the Admin- 1978 is amended— (c) CONFORMING AMENDMENTS.— istration, and shall exercise such duties as are (A) by striking ‘‘in the case of an individual (1) Section 223(h)(3) of such Act (42 U.S.C. appropriate for the office of the Chief Actuary who did not die’’ and all that follows and in- 423(h)(3)) is amended by striking all that follows and in accordance with professional standards serting ‘‘in the case of an individual who did ‘‘obtained)’’ and inserting a period. of actuarial independence. The Chief Actuary not die in the year with respect to which the re- (2) Section 1127(a) of such Act (42 U.S.C. may be removed only for cause. computation is made, for monthly benefits be- 1320a–6(a)) is amended by striking the last sen- ‘‘(2) The Chief Actuary shall be compensated ginning with benefits for January of—’’; and tence. at the highest rate of basic pay for the Senior (B) by adding at the end the following: (3) Section 1631(d)(2)(A) of such Act (42 U.S.C. Executive Service under section 5382(b) of title 5, ‘‘(i) the second year following the year with 1383(d)(2)(A)) is amended— United States Code.’’. respect to which the recomputation is made, in (A) by striking ‘‘(other than paragraph (4) (2) EFFECTIVE DATE OF SUBSECTION.—The any such case in which the individual is enti- thereof)’’; and amendments made by this subsection shall take tled to old-age insurance benefits, the individual (B) by striking all that follows ‘‘title II’’ and effect on the date of the enactment of this Act. has attained age 65 as of the end of the year inserting a period. SEC. 4. ENTITLEMENT OF STEPCHILDREN TO preceding the year with respect to which the re- (d) EFFECTIVE DATE.—The amendments made CHILD’S INSURANCE BENEFITS computation is made, and the year with respect by this section shall apply with respect to— BASED ON ACTUAL DEPENDENCY ON to which the recomputation is made would not (1) any claim for benefits under the old-age, STEPPARENT SUPPORT. be substituted in recomputation under this sub- survivors, and disability insurance program (a) REQUIREMENT OF ACTUAL DEPENDENCY section for a benefit computation year in which under title II of the Social Security Act, the sup- FOR FUTURE ENTITLEMENTS.— no wages or self-employment income have been plemental security income program under title (1) IN GENERAL.—Section 202(d)(4) of the So- credited previously to such individual, or XVI of such Act, or the black lung program cial Security Act (42 U.S.C. 402(d)(4)) is amend- ‘‘(ii) the first year following the year with re- under part B of the Black Lung Benefits Act ed by striking ‘‘was living with or’’. spect to which the recomputation is made, in that is initially filed on or after the 60th day (2) EFFECTIVE DATE.—The amendment made any other such case; or’’. following the date of the enactment of this Act, by paragraph (1) shall apply with respect to (c) EFFECTIVE DATE.—The amendments made and benefits of individuals who become entitled to by this section shall apply with respect to (2) any claim for such benefits filed before such benefits for months after the third month recomputations of primary insurance amounts such 60th day by a claimant who is first rep- following the month in which this Act is en- based on wages paid and self employment in- resented by any person, agent, or attorney in acted. come derived after 1994 and with respect to ben- connection with such claim on or after such (b) TERMINATION OF CHILD’S INSURANCE BENE- efits payable after December 31, 1995. 60th day. FITS BASED ON WORK RECORD OF STEPPARENT SEC. 6. ELIMINATION OF THE ROLE OF THE SO- SEC. 7. DENIAL OF DISABILITY BENEFITS TO UPON NATURAL PARENT’S DIVORCE FROM STEP- CIAL SECURITY ADMINISTRATION IN DRUG ADDICTS AND ALCOHOLICS. PARENT.— PROCESSING ATTORNEY FEES. (a) AMENDMENTS RELATING TO TITLE II DIS- (1) IN GENERAL.—Section 202(d)(1) of the So- (a) ACTIONS BEFORE THE COMMISSIONER.— ABILITY BENEFITS.— cial Security Act (42 U.S.C. 402(d)(1)) is amend- Section 206(a) of the Social Security Act (42 (1) IN GENERAL.—Section 223(d)(2) of the So- ed— U.S.C. 406(a)) is amended— cial Security Act (42 U.S.C. 423(d)(2)) is amend- (A) by striking ‘‘or’’ at the end of subpara- (1) in paragraph (1), by striking the fourth ed by adding at the end the following: graph (F); and fifth sentences; ‘‘(C) An individual shall not be considered to (B) by striking the period at the end of sub- (2) by striking paragraphs (2), (3), and (4); be disabled for purposes of this title if alcohol- paragraph (G) and inserting ‘‘; or’’; and (3) by inserting after paragraph (1) the follow- ism or drug addiction would (but for this sub- (C) by inserting after subparagraph (G) the ing new paragraph: paragraph) be a contributing factor material to following new subparagraph: ‘‘(2)(A) No person, agent, or attorney may the Commissioner’s determination that the indi- ‘‘(H) if the benefits under this subsection are charge in excess of $4,000 (or, if higher, the vidual is disabled.’’. based on the wages and self-employment income amount set pursuant to subparagraph (B)) for (2) REPRESENTATIVE PAYEE REQUIREMENTS.— of a stepparent who is subsequently divorced services performed in connection with any claim (A) Section 205(j)(1)(B) of such Act (42 U.S.C. from such child’s natural parent, the sixth before the Commissioner under this title, or for 405(j)(1)(B)) is amended to read as follows: month after the month in which the Commis- services performed in connection with concur- ‘‘(B) In the case of an individual entitled to sioner of Social Security receives formal notifi- rent claims before the Commissioner under this benefits based on disability, the payment of cation of such divorce.’’. title and title XVI. such benefits shall be made to a representative (2) EFFECTIVE DATE.—The amendments made ‘‘(B) The Commissioner may increase the dol- payee if the Commissioner of Social Security de- by this subsection shall apply with respect to lar amount under subparagraph (A) whenever termines that such payment would serve the in- notifications of divorces received by the Commis- the Commissioner determines that such an interest of the individual because the individual sioner of Social Security on or after the date of crease is warranted. The Commissioner shall also has an alcoholism or drug addiction condi- the enactment of this Act. publish any such increased amount in the Fed- tion (as determined by the Commissioner) that SEC. 5. RECOMPUTATION OF BENEFITS AFTER eral Register. prevents the individual from managing such NORMAL RETIREMENT AGE. ‘‘(C) Any agreement in violation of this para- benefits.’’. (a) IN GENERAL.—Section 215(f)(2)(D)(i) of the graph shall be void. (B) Section 205(j)(2)(C)(v) of such Act (42 Social Security Act (42 U.S.C. 415(f)(2)(D)(i)) is ‘‘(D) Whenever the Commissioner makes a fa- U.S.C. 405(j)(2)(C)(v)) is amended by striking amended to read as follows: vorable determination in connection with any ‘‘entitled to benefits’’ and all that follows ‘‘(i) in the case of an individual who did not claim for benefits under this title by a claimant through ‘‘under a disability’’ and inserting ‘‘de- die in the year with respect to which the recom- who is represented by a person, agent, or attor- scribed in paragraph (1)(B)’’. putation is made, for monthly benefits begin- ney, the Commissioner shall provide the claim- (C) Section 205(j)(2)(D)(ii)(II) of such Act (42 ning with benefits for January of— ant and such person, agent, or attorney a writ- U.S.C. 405(j)(2)(D)(ii)(II)) is amended by strik- ‘‘(I) the second year following the year with ten notice of— ing all that follows ‘‘15 years, or’’ and inserting respect to which the recomputation is made, in ‘‘(i) the determination, ‘‘described in paragraph (1)(B).’’. H 13964 CONGRESSIONAL RECORD — HOUSE December 5, 1995 (D) Section 205(j)(4)(A)(i)(II) (42 U.S.C. (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 section shall consider as priorities, for purposes 405(j)(4)(A)(ii)(II)) is amended by striking ‘‘enti- U.S.C. 1383(a)(2)(D)(i)(II)) is amended by strik- of expending funds allotted under this sub- tled to benefits’’ and all that follows through ing ‘‘eligible for benefits’’ and all that follows section, activities relating to the treatment of ‘‘under a disability’’ and inserting ‘‘described in through ‘‘is disabled’’ and inserting ‘‘described the abuse of alcohol and other drugs. paragraph (1)(B)’’. in subparagraph (A)(ii)(II)’’. SEC. 8. REVOCATION BY MEMBERS OF THE CLER- (3) TREATMENT REFERRALS FOR INDIVIDUALS (3) TREATMENT SERVICES FOR INDIVIDUALS GY OF EXEMPTION FROM SOCIAL SE- WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI- WITH A SUBSTANCE ABUSE CONDITION.—Title XVI CURITY COVERAGE. TION.—Section 222 of such Act (42 U.S.C. 422) is of such Act (42 U.S.C. 1381 et seq.) is amended (a) IN GENERAL.—Notwithstanding section amended by adding at the end the following by adding at the end the following new section: 1402(e)(4) of the Internal Revenue Code of 1986, new subsection: ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A any exemption which has been received under ‘‘Treatment Referrals for Individuals with an SUBSTANCE ABUSE CONDITION section 1402(e)(1) of such Code by a duly or- Alcoholism or Drug Addiction Condition ‘‘SEC. 1636. In the case of any individual dained, commissioned, or licensed minister of a church, a member of a religious order, or a ‘‘(e) In the case of any individual whose bene- whose benefits under this title are paid to a rep- Christian Science practitioner, and which is ef- fits under this title are paid to a representative resentative payee pursuant to section fective for the taxable year in which this Act is payee pursuant to section 205(j)(1)(B), the Com- 1631(a)(2)(A)(ii)(II), the Commissioner of Social enacted, may be revoked by filing an applica- missioner of Social Security shall refer such in- Security shall refer such individual to the ap- tion therefor (in such form and manner, and dividual to the appropriate State agency admin- propriate State agency administering the State with such official, as may be prescribed in regu- istering the State plan for substance abuse plan for substance abuse treatment services ap- lations made under chapter 2 of such Code), if treatment services approved under subpart II of proved under subpart II of part B of title XIX such application is filed no later than the due part B of title XIX of the Public Health Service of the Public Health Service Act (42 U.S.C. 300x– date of the Federal income tax return (including Act (42 U.S.C. 300x–21 et seq.).’’. 21 et seq.).’’. any extension thereof) for the applicant’s sec- (4) CONFORMING AMENDMENT.—Subsection (c) (4) CONFORMING AMENDMENTS.— of section 225 of such Act (42 U.S.C. 425(c)) is re- (A) Section 1611(e) of such Act (42 U.S.C. ond taxable year beginning after December 31, pealed. 1382(e)) is amended by striking paragraph (3). 1995. Any such revocation shall be effective (for (5) EFFECTIVE DATES.— (B) Section 1634 of such Act (42 U.S.C. 1383c) purposes of chapter 2 of the Internal Revenue (A) The amendments made by paragraphs (1) is amended by striking subsection (e). Code of 1986 and title II of the Social Security and (4) shall apply with respect to monthly in- (5) EFFECTIVE DATES.— Act), as specified in the application, either with surance benefits under title II of the Social Se- (A) The amendments made by paragraphs (1) respect to the applicant’s first taxable year be- curity Act based on disability for months begin- and (4) shall apply with respect to supplemental ginning after December 31, 1995, or with respect ning after the date of the enactment of this Act, security income benefits under title XVI of the to the applicant’s second taxable year beginning except that, in the case of individuals who are Social Security Act based on disability for after such date, and for all succeeding taxable entitled to such benefits for the month in which months beginning after the date of the enact- years; and the applicant for any such revoca- this Act is enacted, such amendments shall ment of this Act, except that, in the case of indi- tion may not thereafter again file application apply only with respect to such benefits for viduals who are eligible for such benefits for the for an exemption under such section 1402(e)(1). months beginning on or after January 1, 1997. month in which this Act is enacted, such If the application is filed after the due date of (B) The amendments made by paragraphs (2) amendments shall apply only with respect to the applicant’s Federal income tax return for a and (3) shall apply with respect to benefits for such benefits for months beginning on or after taxable year and is effective with respect to that which applications are filed on or after the date January 1, 1997. taxable year, it shall include or be accompanied of the enactment of this Act. (B) The amendments made by paragraphs (2) by payment in full of an amount equal to the (C) If an individual who is entitled to monthly and (3) shall apply with respect to supplemental total of the taxes that would have been imposed insurance benefits under title II of the Social security income benefits under title XVI of the by section 1401 of the Internal Revenue Code of Security Act based on disability for the month Social Security Act for which applications are 1986 with respect to all of the applicant’s income in which this Act is enacted and whose entitle- filed on or after the date of the enactment of derived in that taxable year which would have ment to such benefits would terminate by reason this Act. constituted net earnings from self-employment of the amendments made by this subsection (C) If an individual who is eligible for supple- for purposes of chapter 2 of such Code (notwith- reapplies for benefits under title II of such Act mental security income benefits under title XVI standing section 1402(c)(4) or (c)(5) of such (as amended by this Act) based on disability of the Social Security Act for the month in Code) except for the exemption under section within 120 days after the date of the enactment which this Act is enacted and whose eligibility 1402(e)(1) of such Code. of this Act, the Commissioner of Social Security for such benefits would terminate by reason of (b) EFFECTIVE DATE.—Subsection (a) shall shall, not later than January 1, 1997, complete the amendments made by this subsection apply with respect to service performed (to the the entitlement redetermination with respect to reapplies for supplemental security income bene- extent specified in such subsection) in taxable such individual pursuant to the procedures of fits under title XVI of such Act (as amended by years beginning after December 31, 1995, and such title. this Act) within 120 days after the date of the with respect to monthly insurance benefits pay- (b) AMENDMENTS RELATING TO SSI BENE- enactment of this Act, the Commissioner of So- able under title II of the Social Security Act on FITS.— cial Security shall, not later than January 1, the basis of the wages and self-employment in- (1) IN GENERAL.—Section 1614(a)(3) of the So- 1997, complete the eligibility redetermination come of any individual for months in or after cial Security Act (42 U.S.C. 1382c(a)(3)) is with respect to such individual pursuant to the the calendar year in which such individual’s amended by adding at the end the following: procedures of such title. application for revocation (as described in such ‘‘(I) Notwithstanding subparagraph (A), an (D) For purposes of this paragraph, the subsection) is effective (and lump-sum death individual shall not be considered to be disabled phrase ‘‘supplemental security income benefits payments payable under such title on the basis for purposes of this title if alcoholism or drug under title XVI of the Social Security Act’’ in- of such wages and self-employment income in addiction would (but for this subparagraph) be cludes supplementary payments pursuant to an the case of deaths occurring in or after such cal- a contributing factor material to the Commis- agreement for Federal administration under sec- endar year). sioner’s determination that the individual is dis- tion 1616(a) of the Social Security Act and pay- SEC. 9. PILOT STUDY OF EFFICACY OF PROVIDING abled.’’. ments pursuant to an agreement entered into INDIVIDUALIZED INFORMATION TO (2) REPRESENTATIVE PAYEE REQUIREMENTS.— under section 212(b) of Public Law 93–66. RECIPIENTS OF OLD-AGE AND SUR- (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 (c) CONFORMING AMENDMENT.—Section 201(c) VIVORS INSURANCE BENEFITS. U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read of the Social Security Independence and Pro- (a) IN GENERAL.—During a 2-year period beas follows: gram Improvements Act of 1994 (42 U.S.C. 425 ginning as soon as practicable in 1996, the Com- ‘‘(II) In the case of an individual eligible for note) is repealed. missioner of Social Security shall conduct a benefits under this title by reason of disability, (d) SUPPLEMENTAL FUNDING FOR ALCOHOL pilot study of the efficacy of providing certain the payment of such benefits shall be made to a AND SUBSTANCE ABUSE TREATMENT PRO- individualized information to recipients of representative payee if the Commissioner of So- GRAMS.— monthly insurance benefits under section 202 of cial Security determines that such payment (1) IN GENERAL.—Out of any money in the the Social Security Act, designed to promote bet- would serve the interest of the individual be- Treasury not otherwise appropriated, there are ter understanding of their contributions and cause the individual also has an alcoholism or hereby appropriated to supplement State and benefits under the social security system. The drug addiction condition (as determined by the Tribal programs funded under section 1933 of study shall involve solely beneficiaries whose Commissioner) that prevents the individual from the Public Health Service Act (42 U.S.C. 300x– entitlement to such benefits first occurred in or managing such benefits.’’. 33), $100,000,000 for each of the fiscal years 1997 after 1984 and who have remained entitled to (B) Section 1631(a)(2)(B)(vii) of such Act (42 and 1998. such benefits for a continuous period of not less U.S.C. 1383(a)(2)(B)(vii)) is amended by striking (2) ADDITIONAL FUNDS.—Amounts appro- than 5 years. The number of such recipients in- ‘‘eligible for benefits’’ and all that follows priated under paragraph (1) shall be in addition volved in the study shall be of sufficient size to through ‘‘is disabled’’ and inserting ‘‘described to any funds otherwise appropriated for allot- generate a statistically valid sample for pur- in subparagraph (A)(ii)(II)’’. ments under section 1933 of the Public Health poses of the study, but shall not exceed 600,000 (C) Section 1631(a)(2)(B)(ix)(II) of such Act Service Act (42 U.S.C. 300x–33) and shall be allo- beneficiaries. (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by cated pursuant to such section 1933. (b) ANNUALIZED STATEMENTS.—During the striking all that follows ‘‘15 years, or’’ and in- (3) USE OF FUNDS.—A State or Tribal govern- course of the study, the Commissioner shall pro- serting ‘‘described in subparagraph (A)(ii)(II).’’. ment receiving an allotment under this sub- vide to each of the beneficiaries involved in the December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13965 study one annualized statement, setting forth Mr. Speaker, I, of course, support more importantly, the link is broken. the following information: this legislation as well, and I commend So I would like to say today, whereas (1) an estimate of the aggregate wages and the gentleman from Kentucky as well it was not found possible to do this, the self-employment income earned by the individual on whose wages and self-employment income as the gentleman from Texas who are blind are very interested in this piece the benefit is based, as shown on the records of longstanding supporters of the concept, of legislation and would certainly like the Commissioner as of the end of the last cal- and I cannot think of a better example to reestablish this link. I would hope endar year ending prior to the beneficiary’s first of a legislative accommodation to var- somewhere down the line this could month of entitlement; ious points of view. come up again and we could have some- (2) an estimate of the aggregate of the em- There were those of us, and still are, thing that will work and continue. ployee and self-employment contributions, and who believe that it is improper to re- b 1645 the aggregate of the employer contributions peal the retirement test altogether, (separately identified), made with respect to the those of us who believe that retirement Mr. BUNNING of Kentucky. Mr. wages and self-employment income on which the benefits should, in fact, go to people Speaker, it is my pleasure to yield 3 benefit is based, as shown on the records of the minutes to the gentleman from Texas Commissioner as of the end of the calendar year who are retired. But the compromise preceding the beneficiary’s first month of enti- this bill represents is a very happy one, [Mr. ARCHER] the chairman of the full tlement; and as the gentleman from Kentucky has Committee on Ways and Means. (3) an estimate of the total amount paid as said, for practically any reasonable Mr. ARCHER. Mr. Speaker, I thank benefits under section 202 of the Social Security person who has dealt with this issue my friend from Kentucky for yielding Act based on such wages and self-employment over the years. This is a happy moment me time. income, as shown on the records of the Commis- Today is truly a banner day for this sioner as of the end of the last calendar year for the American people. It is a proud moment for the Congress, and it might House of Representatives and for the preceding the issuance of the statement for country. As my friend, the gentleman which complete information is available. not be a bad example for the people (b) INCLUSION WITH MATTER OTHERWISE DIS- moving across the hall here to nego- from Indiana, ANDY JACOBS, said, we TRIBUTED TO BENEFICIARIES.—The Commissioner tiate the whole budget. should find more opportunities to work shall ensure that reports provided pursuant to There has been give and take. There together for the betterment not only of this subsection are, to the maximum extent prac- has been friendship. And there has been our senior citizens, but for all Ameri- ticable, included with other reports currently accomplishment, and we have arrived cans. provided to beneficiaries on an annual basis. Today is particularly a sentimental (c) REPORT TO THE CONGRESS.—The Commis- at that accomplishment today. 1 day for me, because over 20 years ago I sioner shall report to each House of the Con- Mr. Speaker, I yield 2 ⁄2 minutes to gress regarding the results of the pilot study the gentlewoman from Connecticut initiated the effort to eliminate the re- conducted pursuant to this section not later [Mrs. KENNELLY]. tirement test. I felt very strongly that than 60 days after the completion of such study. Mrs. KENNELLY. Mr. Speaker, I this country was losing tremendous The SPEAKER pro tempore. Pursu- thank the gentleman for yielding me talent available in its senior citizens ant to the rule, the gentleman from this time. who, if they did work, were penalized Kentucky [Mr. BUNNING] will be recog- I rise today not in the manner that I by losing their Social Security benefits nized for 20 minutes, and the gen- would have liked. I support this bill. I and paying the highest effective mar- tleman from Indiana [Mr. JACOBS] will support final passage of this bill. ginal tax rate as a result of any age be recognized for 20 minutes. But I am truly disappointed that the group in the country. The Chair recognizes the gentleman bill came up under suspension, because Today, after all of those years, we from Kentucky [Mr. BUNNING]. it gives us no opportunity to amend are making a move in the right direc- Mr. BUNNING of Kentucky. Mr. the bill, and I had planned to testify tion, and it is a result of the work of Speaker, I yield myself such time as I today before the Committee on Rules the gentleman from Kentucky, JIM may consume. to ask that we could have an amend- BUNNING, our subcommittee chairman, Mr. Speaker, today, it is my honor to ment to continue equity for the blind cooperating with the gentleman from speak on behalf of the Senior Citizens’ people of this Nation. Up to this point, Indiana, ANDY JACOBS, the ranking Right To Work Act of 1995, because I people in America who are blind have Democrat on the committee. am also speaking on behalf of the 1 the same situation on earnings test But it is also a sentimental day for million people who are affected by the limits as those who are 65 and older, Barry Goldwater. I hope in some way Social Security earnings limit. and my amendment would have main- that he may be watching today, be- Over a year ago, we promised work- tained this current link between senior cause year after year he was the lead ing seniors financial relief from the pu- citizens and the blind for the purposes Senate sponsor of this legislation, until nitive earnings limit which is imposed of Social Security earnings. he retired from the Senate. on many older Americans who must This Social Security earnings test This earnings limit brings about the work to make ends meet. link was put forth originally by our most odious administrative nightmare Today we are taking one more step own chairman of the Committee on in every Social Security office across toward fulfilling that promise with the Ways and Means, the gentleman from this country. If you talk to people who Senior Citizens’ Right To Work Act. Texas [Mr. ARCHER]. He had this idea who are there day by day, having to H.R. 2684 is a fair and balanced bill. that this was a very good thing for the deal with Social Security problems, It is fair to the working seniors. It is blind to have this same type of situa- you will find that they will tell you fair to the financial soundness of the tion, and it became law nearly 20 years that this is the toughest thing they Social Security trust fund. ago. Unfortunately, the bill before us have to deal with, just from a stand- This legislation enjoys widespread will break that link, and the blind will point of administrative redtape. support among the senior community, no longer have the same work incen- When fully phased in, this will elimi- because they, too, know it is good pol- tive our senior citizens should and will nate about 50 percent of the people who icy to do what is right for working sen- enjoy. have to comply with it and bring about iors. Earlier in the year I submitted a these mountainous files of uncertainty. The members of the Ways and Means similar amendment before the Commit- Seniors who want to work after the Committee know it is good policy, too, tee on Rules during consideration of passage of this bill will be able to con- because it passed the committee unani- the Contract With America, and the tinue to do so up to earning $30,000 a mously on a vote of 31 to 0. amendment was not permitted on the year. That is a giant step forward. It I urge my colleagues to follow the ex- floor of the House. Today, again, I tried will unlash an awful lot of talent, an ample of the Ways and Means Commit- to get an amendment before the Com- awful lot of resources, to help push this tee and pass the Senior Citizens’ Right mittee on Rules, but, unfortunately, country forward in the years ahead. To Work Act of 1995. the decision was made to have this Mr. Speaker, I could not be more Mr. Speaker, I reserve the balance of come under suspension. gratified with the response on a bipar- my time. Mr. Speaker, I feel this is unfortu- tisan basis, where this bill came out of Mr. JACOBS. Mr. Speaker, I yield nate for the blind of this country not our committee on a 31-to-0 vote, to myself such time as I may consume. to be allowed to have the vote, but, send it to the Senate, where hopefully H 13966 CONGRESSIONAL RECORD — HOUSE December 5, 1995 they will pass it speedily and put it on rent law and under an amendment back I go back to just 10 days ago, on Sun- the desk of the President so it can be to 1977 that was proposed by my good day evening in this same body when on signed soon this year. friend, the gentleman from Texas [Mr. a unanimous consent we sent a con- Mr. BUNNING of Kentucky. Mr. ARCHER], the chairman of the commit- tinuing resolution down to the White Speaker, I have the good fortune to tee, there was a linkage formed be- House that would do the same thing, yield 1 minute to the gentleman from tween the blind and the earnings test promises made, promises kept. That is Florida [Mr. SHAW]. for Social Security recipients. How- why we all agreed to a 7-year balanced Mr. SHAW. Mr. Speaker, I rise today ever, although that linkage has proved budget. I look forward to the day we in support of this most important piece very beneficial to the blind involved stand here unanimously and say we ful- of legislation. It has been late in com- and it has been in the law since 1977, filled that promise also. ing, but it is certainly an answer to for some reason, unbeknownst to me, Mr. BUNNING of Kentucky. Mr. many of our commitments to our sen- that linkage is ending with the passage Speaker, I now have the pleasure of ior citizens. of this bill. yielding 1 minute to the gentleman For many it is very difficult to live If you look at the plight of a blind from Pennsylvania [Mr. ENGLISH]. on Social Security and then be limited person who has tried to struggle in a Mr. ENGLISH of Pennsylvania. Mr. to $11,000 a year in earnings limits, as low paying job, to not permit them to Speaker, I rise in strong support of existing law provides. By increasing earn more as we are doing for retired H.R. 2684, legislation that will raise the this over 7 years to $30,000, we are rec- people I think is absurd. In fact, the ex- Social Security earnings limit for ognizing the fact that many of our sen- ample I used before the Committee on working seniors who right now face iors want to continue to work, can con- Ways and Means during markup was higher real tax rates than millionaires tinue to work, and can live a much bet- take the situation of a blind person in the current system. ter and fuller life if they are able to who is not going to get better in his or While senior citizens are the primary work. It is high time that this legisla- her lifetime, unless a miracle would beneficiaries of this legislation, I am tion pass. occur, a blind person who is trying to pleased to say another important sec- I compliment the chairman and the increase their stand in this country, tor of our work force will also benefit, gentleman from Indiana [Mr. JACOBS] and they try to get a job earning more and that is members of the clergy. for working on this, in a bipartisan money. But they know full well they H.R. 2684 includes a provision that I way, to bring this most important are going to lose. A person who is blind have advocated that would provide a 2- year open season for members of the piece of legislation to the House floor. who is trying to earn will lose Social Mr. JACOBS. Mr. Speaker, I yield 4 Security benefits. clergy to enroll in Social Security. minutes to the gentleman from Wis- However, a retired person who is, Some members of the clergy elected not to participate in Social Security consin [Mr. KLECZKA]. say, 66 years old, very, very healthy, Mr. KLECZKA. Mr. Speaker, I thank not blind, will over a 7-year period be early in their careers, before they fully the gentleman for yielding me time. able to earn $30,000, and I think the understood the ramifications of opting Mr. Speaker, the bill before us is not unlinking of the two is totally unfair. out. Because the election process is ir- very controversial. The base bill does However, because of the Republican revocable, there is no way for them to provide for an increase in the earnings procedure today, the blind people will participate in the program under cur- limit for senior citizens. I guess we not get a separate vote on their request rent law. Clergy typically have the most modest earnings throughout their could debate, and possibly the Senate to my office and many others to keep working lives, and would be among will debate, whether or not it should go this linked. those most likely to rely on Social Se- to $30,000 over a period of 7 years. But The other problem with the bill has curity. This legislation would give the point I want to raise with the body nothing to do with the earnings test. However, under current law for attor- them an opportunity to enroll. today is, No. 1, the process on how the neys who represent people in Social Se- Mr. BUNNING of Kentucky. Mr. bill got before us today, and then two curity disability cases, they receive Speaker, I have the pleasure of yield- of the components which are very trou- their reimbursement for the represen- ing 1 minute to the gentleman from blesome to me. tation through a separate check from Texas [Mr. SAM JOHNSON] a member of We were notified, I believe last week, the Social Security Administration. the Subcommittee on Social Security that this bill would be coming before That is being done away with. It does and a member of the full committee. the Committee on Rules today at 2:30, not save any money. We are told it Mr. SAM JOHNSON of Texas. Mr. at which time Members who were in- might cost some money, but we are Speaker, I appreciate the gentleman terested could approach the Committee going to save some man-hours. We did yielding time. on Rules and ask for various amend- want to offer before the Committee on Mr. Speaker, the only thing that is ments to be made in order. Rules a proposal wherein we take the more important than repealing the That is the usual process when we are one disability check going to the bene- 16th amendment and getting rid of the amending bills and debating bills. How- ficiary, have two payees listed on the IRS is fixing it so our citizens have the ever, for whatever reason, unbe- check, and if in fact that did not cover right to work and earn whatever they knownst to this speaker, the Commit- the cost we would provide for a $20 fee. want to. This bill, believe it or not, al- tee on Rules canceled that hearing on That was not permitted. That is sad. lows anyone between 65 and 70, which is this particular bill and it was rushed to Mr. BUNNING of Kentucky. Mr. what we are talking about, to hit the House under a procedure we call Speaker, I yield 1 minute to the gen- $14,000 as a salary limit this year, this suspension of the rules. The suspension tleman from Georgia [Mr. COLLINS]. next year, instead of having to wait of the rules procedure does not permit Mr. COLLINS of Georgia. Mr. Speak- until the year 2002, which is what cur- any amendments to be offered to the er, I thank the gentleman for yielding rent law does. legislation being debated. me time. You know what that does? That helps So essentially what the Republican Mr. Speaker, I must say that this is 20 percent of those involved in that majority has done is cut some of us off, a day that many of us in this body can category, which is 925,000 people. That some of us who wanted to propose some stand and say promises made, promises means those guys are not going to have constructive changes to the legislation kept, because both sides of the aisle to pay any more tax. That means they we were debating. have promised our seniors we would can work at Wendy’s and McDonald’s You ask what are those changes? give them relief in their earnings abil- or wherever they want to and earn What do you want to change about the ity by allowing them to continue to money without being subject to the bill? There are two major changes I work and earn extra money and not be Federal Government of this Nation. think that have to be addressed. penalized for such. Mr. Speaker, I think we have to pass One was already spoken to by the It comes from both sides of the aisle. it. It is a duty that we have. gentlewoman from Connecticut [Mrs. As has been mentioned, both in the Mr. BUNNING of Kentucky. Mr. KENNELLY], and it is something we did subcommittee and the full committee, Speaker, I have the pleasure of yield- discuss before the committee and I am there was not a dissenting vote. Again, ing 1 minute to the gentleman from sad to say to no avail. But under cur- this is how this body can work. Minnesota [Mr. RAMSTAD]. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13967 Mr. RAMSTAD. Mr. Speaker, I thank Georgia earlier said, promises made, dedicated workers for continuing to the distinguished chairman for yield promises kept. work and contribute to a better liveli- me time. Mr. BUNNING of Kentucky. Mr. hood for themselves and also to a bet- Mr. Speaker, I rise today in strong Speaker, I yield 1 minute to the gen- ter future for the United States. support of this legislation. One provi- tleman from Michigan [Mr. CAMP]. Seniors across the country want to sion of this bill, Mr. Speaker, cuts off Mr. CAMP. Mr. Speaker, I thank the work beyond age 65 because a fixed So- benefits for those individuals consid- distinguished gentleman for yielding. I cial Security income alone these days ered disabled solely based on their ad- rise in support of the Senior Citizens often does not provide adequate finan- diction to either drugs or alcohol. I Right to Work Act which will raise the cial security. I think also the younger strongly support this provision. earnings limit for seniors. people in the workplace gain a lot Mr. Speaker, as a recovering alco- This legislation accomplishes two through the experience of those folks holic who spends a great deal of my important tasks: First, it ends the pol- who continue to work. It is good for all time with other alcoholics and addicts icy of subsidizing drug and alcohol of us. who are still suffering the ravages of abuse with Social Security funds; and, Unfortunately, currently the earn- chemical addiction, I can tell you that second, and very importantly, it ends ings limit discriminates against some paying cash benefits to these people is the practice of punishing seniors who of our senior citizens and prevents us not the kind of help that they need. In want to work. from being able to benefit from the tal- fact, cash benefits only make the prob- Currently, seniors who want to re- ents of millions of experienced profes- lem of addiction worse, only serve to main a vital part of the work force will sional. The earnings limit punishes enable, to fuel the addiction. lose $1 of their Social Security con- seniors after they have earned $11,280 Those addicted to drugs or alcohol do tributions for every $3 they earn over by hitting them with an additional ef- not need cash, they need treatment. $11,280. This legislation will remove the fective tax of 33 percent. It is too long This bill, Mr. Speaker, provides $200 disincentive to work placed upon sen- that this has gone on. Now is the time million in additional money to the iors by raising that limit. to change it. States through an existing block grant American seniors have worked hard Mr. Speaker, I do want to make one program for the prevention and treat- to pay into the Social Security trust note about an amendment that was accepted unanimously in the Committee ment of substance abuse. fund. This legislation not only protects So I commend my distinguished col- their investment and honors our com- on Ways and Means that is included in this legislation, a provision I offered league on the Committee on Ways and mitment to them, it also encourages during our consideration by our com- Means, the chairman of the Sub- seniors to continue their contribution mittee, that is, in effect, a sunshine committee on Social Security, for to our Nation’s work force. amendment. It is designed to help sen- bringing this thoughtful piece of legis- Mr. BUNNING of Kentucky. Mr. iors better understand their contribu- lation to the floor, and I urge all of my Speaker, I yield 1 minute to the gen- tions and benefits under the Social Se- colleagues to give substance abusers tleman from Texas [Mr. LAUGHLIN]. Mr. LAUGHLIN. Mr. Speaker, I curity system. the help that they need. Support this The lack of information currently legislation. thank my chairman for yielding me time. I am proud to stand in support of provided to seniors simply is unaccept- Mr. JACOBS. Mr. Speaker, I yield 2 able. My parents and seniors around minutes to my friend, the gentleman the Senior Citizens Right to Work Act, and I am proud to have been an origi- this country have a desire, a need, and from Nebraska [Mr. CHRISTENSEN]. certainly a right to know about the Mr. CHRISTENSEN. Mr. Speaker, I nal cosponsor of this bill. Not only does it raise the earnings limit for our sen- status of their participation in the sys- thank my friend from Indianapolis for tem, and so the amendment we pro- ior citizens between the ages of 65 and yielding me time. There is not a man posed outlines the total income earned 70, just as importantly as allowing nor woman on that particular side by each senior. from the gentleman’s party whom I re- them to have hard-earned money to Mr. Speaker, the provisions that we spect more, and whom I am going to help them in these years, it gives the have added to this bill that would give dearly miss after his retirement this added benefit of allowing them to con- further information on Social Security year. tinue working to allow the senior citi- are: The total income earned by the in- Mr. Speaker, today represents an- zens to do the things they want to do dividual receiving benefits, the total other step in our efforts to increase the in their golden senior years. Social Security contributions by that Social Security earnings limit. Cur- Mr. Speaker, that is a benefit that is individual and separately by that indi- rently senior citizens between the ages healthy to them beyond the financial vidual’s employer, and, finally, the of 65 and 69 lose $1 in Social Security earnings. And in that I cite as an ex- total dollars that have been received benefits for every three they make over ample of my own father who today is back by the beneficiary from Social Se- $11,280. This important piece of legisla- working at age 76. This law does not curity. tion we are considering today will apply to them because seniors above I think, Mr. Speaker that it will open change that. It will raise the earnings the age of 70 are not subjected to earn- up a degree of information that has limit for those ages 65 to 69 to $30,000 ings limits. But I see senior citizens never been available before. It will help by year 2002, thereby removing this dis- who find it healthy for their own day- people understand what their return is incentive to work and allowing seniors to-day happiness and well-being to be on the current Social Security com- to keep more of their hard-earned dol- working, and I am proud to support pared to what they have paid in. Nu- lars. this bill, and I urge my colleagues to merous seniors in my district find it This bill is especially important to support it. ironic that other retirement benefit the folks I represent back in Nebraska. Mr. JACOBS. Mr. Speaker, I yield 3 programs, like mutual funds and IRAs, The Omaha area is currently experienc- minutes to the gentlewoman from provide this type of information in ing a labor shortage. With unemploy- Washington [Ms. DUNN]. writing on a quarterly basis. ment hovering around 2 percent, our ef- Ms. DUNN of Washington. Mr. Speak- Our proposal is a study for a period of forts to raise the earnings limit will er, I thank the gentleman for yielding 2 years with not more than 600,000 re- allow more seniors to enter the work me this time. This is a wonderful piece cipients. We will see how it works, and force without being punished by the of legislation. It has simply taken too I hope continue to provide this and fur- Federal Government, thereby providing long to come to the floor of the House. ther information. Nebraska businesses with experienced It is bipartisan. It came out of our Mr. Speaker, I urge my colleagues to employees rich in talent and full of Committee on Ways and Means with a vote for this proposal. it is, as I said, ability. vote of 31 to 0, and it is time, in fact, way beyond its time. It will be good for beyond time, that this legislation go seniors and good for all of us. b 1700 into effect. Mr. BUNNING of Kentucky. Mr. Simply put, lifting the earnings limit I support this legislation largely be- Speaker, I yield such time as he may for our Nation’s seniors is the right cause I think it is just plain wrong to consume to the gentleman from North thing to do. And as my friend from penalize our most experienced and Carolina [Mr. HEINEMAN]. H 13968 CONGRESSIONAL RECORD — HOUSE December 5, 1995

(Mr. HEINEMAN asked and was given in the House; and another gentleman tleman from Illinois, Mr. DENNIS permission to revise and extend his re- from Texas, BILL ARCHER, who carried HASTERT, who has labored in the vine- marks.) it for 20 years in the House as an im- yards for many years. When I came Mr. HEINEMAN. Mr. Speaker, I portant piece. here in 1989, we worked so hard to get thank the gentleman for giving me this What this bill does, ladies and gen- this bill forward, and I think now we time. tleman, it helps working seniors, sen- have an opportunity to pass a great I rise in strong support of this legis- iors who do not have pension income or bill, to gain economic equality for lation. I am a cosponsor of the bill and stocks and bonds tacked away; people those elderly workers who either want I urge my colleagues to strongly, who have never had the chance to save to work or must work in order to main- strongly support the bill. and invest, and yet when they want to tain a decent lifestyle. I am proud to be an original cosponsor of work to bring up their standard of liv- Mr. JACOBS. Mr. Speaker, I yield 1 this legislation, which helps to fulfill a solemn ing, to be part of this country, to share minute to the gentleman from Penn- pledge I made to the senior citizens in the in the economy, to help their grand- sylvania [Mr. FOX]. Fourth Congressional District of North Carolina children, to take a vacation, to buy a Mr. FOX of Pennsylvania. Mr. Speak- to remove this burdensome tax targeted at our car, when they go to earn those extra er, I appreciate the opportunity to working senior citizens. dollars, they get hit with a marginal speak on behalf of this legislation Mr. Speaker, as a senior citizen myself I tax rate of 56 percent when they exceed which our senior citizens of the United know that current law penalizes seniors who the limit of $11,000. Fifty-six percent, States have been waiting for. The in- want to work by imposing an earnings limit on nearly twice the rate that millionaries come eligibility raising is certainly an the amount of outside income they can re- pay today. Those seniors who live off idea whose time has arrived. ceive while still obtaining their full Social Secu- investment incomes are not impacted I have to congratulate all those col- rity benefits. Seniors between the ages of 65 by the earnings limit. leagues who have been working so long and 69 currently lose $1 in Social Security Mr. Speaker, this is not just a right. and hard to make this legislation a re- benefits for every $3 they earn above America’s working seniors should not ality. The fact is that seniors should be $11,280. This kind of earnings limit amounts be punished just because they never able, under 70 years of age, to earn to an additional 33 percent tax on top of exist- had money to tuck away and must now more than $11,280. Under this legisla- ing income taxes. keep working to make ends meet. This tion it will raise the income limit up to I know from first hand experience that many tax relief for working seniors is sorely $30,000 without having the deduction seniors continue to lead active and productive needed. from their Social Security. lives and contribute in important ways to our Even though we know working sen- Anything we can do to help the sen- community. We should be supporting seniors iors will pay more into our economy iors, who have helped us have the right who want to work, not penalizing them. H.R. and more than offset the cost associ- to be here in Congress and to serve, 2684 will raise the current earnings limit from ated with lifting the earnings limit, certainly need our attention, our re- $11,280 to $30,000 by the year 2002. After the Congressional Budget Office will spect and admiration. I thank the indi- the year 2002, the earnings limit will be in- not allow this dynamic method of scor- viduals who have brought this legisla- dexed to the growth in average wages. ing. The gentleman from Kentucky tion forward: the gentleman from Illi- Mr. Speaker, this is a modest, but critical re- [Mr. BUNNING] has worked to put to- nois, DENNIS HASTERT, the gentleman form, and I am pleased to lend my support to gether a proposal that meets the CBO from Kentucky, Mr. BUNNING, and oth- this much needed legislation. budget rules and has also looked at ers, the gentleman from Indiana, Mr. Mr. BUNNING of Kentucky. Mr. that extra dynamic. JACOBS. I appreciate all their help in Speaker, I yield such time as he may Ladies and gentlemen, this is a sa- making this day possible and urge all consume to the gentleman from Massa- lute to senior citizens, people who have my colleagues to support the legisla- chusetts [Mr. TORKILDSEN]. worked their whole life, people who tion. (Mr. TORKILDSEN asked and was have yet to give information and edu- Mr. BUNNING of Kentucky. Mr. given permission to revise and extend cation and leadership to people who are Speaker, I yield 1 minute to the distin- his remarks.) younger, that they can be the person guished gentleman from Florida [Mr. Mr. TORKILDSEN. Mr. Speaker, I that they look up to in a work force in GOSS], a member of the Committee on rise in strong support of the increase in a small store, a candy store, a McDon- Rules. the earnings limit for Social Security ald’s, the Sears area, all of those people recipients. who endorse this piece of legislation. (Mr. GOSS asked and was given per- Mr. BUNNING of Kentucky. Mr. I again salute the gentleman from mission to revise and extend his re- Speaker, I yield 3 minutes to the gen- Kentucky for his tremendous leader- marks.) tleman from Illinois [Mr. HASTERT], ship and his staff for bringing this Mr. GOSS. Mr. Speaker, I am over- who has worked for the last 8 years to piece of legislation together and salute joyed to rise today in strong support of make this bill law. the seniors of this country so that they the Senior Citizens Right to Work Act. (Mr. HASTERT asked and was given can make a statement in their behalf This is very good news for seniors in permission to revise and extend his re- as well. Florida and all across America. marks.) Mr. BUNNING of Kentucky. Mr. The issue here is very, very simple. Mr. HASTERT. Mr. Speaker, this cer- Speaker, I yield 1 minute to the gen- Big brother, the Federal Government, tainly is a red letter day for this Con- tleman from Florida [Mr. STEARNS]. is no longer going to punish seniors gress, but certainly, even more than Mr. STEARNS. Mr. Speaker, I thank who choose to remain a productive part that, a red letter day for the seniors of my colleague from Kentucky for yield- of the American work force. The new this country. It would not have hap- ing me this time. majority in Congress made a promise pened, and I want to thank specifically Mr. Speaker, the earnings test limit to our Nation’s seniors that we would the gentleman, who, after we passed is unfair and unjust. It is, effectively, a fix the unfair earnings test process and this bill out of this House with over 400 mandatory retirement mechanism for a that is what is happening. votes on it, and the funding mechanism country no longer in need of it. It pre- Mr. Speaker, today’s action provides was rejected by the Senate, the gen- cludes greater flexibility for the elder- one more example of promises made, tleman from Kentucky [Mr. BUNNING] ly worker, and also prevents America’s promises kept, as we have said before. came back, worked with the staff dili- full use of the eager, experienced, and By raising the earnings test threshold gently and made it work. We need to educated elderly worker. Finally, it de- from the meager $11,280 to $30,000 over thank him profusely for that effort to prives the U.S. economy of the addi- the next 6 years we are sending a clear make sure that this bill is on this floor tional income which would be gen- message to seniors that hard work and today so that we can pass it and move erated by the elderly worker. self-reliance are still valued qualities it on. Mr. Speaker, I am an original cospon- in the United States of America. I also want to thank other Members, sor of this bill, and I certainly want to Although I feel strongly that we the gentleman from Texas, DICK applaud my colleague from Kentucky, should abolish the earnings test limit ARMEY, who carried this bill for years Mr. BUNNING; and, of course, the gen- altogether, because there should be no December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13969 additional tax penalty for work just be- have heard that through this measure We know that the gentleman is going cause an individual has reached a cer- we are going to salute our senior citi- to retire, and maybe we could name tain age, this legislation does move us zens. This is the same party, my this the Andy Jacobs retirement bill. much further to that ultimate goal. friends, that is cutting Medicare for The fact of the matter is I am sorry to Mr. Speaker, I urge a ‘‘yes’’ vote and the senior citizens by $270 billion. Dou- see him leave, and I am very proud to very much commend the gentleman bling their premiums, cutting $185 or have worked with the gentleman over from Kentucky [Mr. BUNNING], the gen- $182 billion out of Medicaid, which pro- the past 5 years on the Subcommittee tleman from Illinois [Mr. HASTERT], vides nursing home care. Where were on Social Security. and the gentleman from Indiana [Mr. the salutes then? Where was the sup- Mr. SMITH of New Jersey. Mr. Speaker, I JACOBS], for their strong, persistent, port and all the gushing then? rise in strong support of this legislation to raise smart leadership in this matter. Through this bill, the seniors are the Social Security earnings limit. Under this Mr. BUNNING of Kentucky. Mr. going to have to work to pick up what bill, the annual income senior citizens will be Speaker, I yield 1 minute to the gen- they are losing in their health care allowed to earn, without penalty, will rise from tleman from Florida [Mr. FOLEY]. program. This is ridiculous. $11,280 to $30,000 over the next 5 years. b 1715 Mr. BUNNING of Kentucky. Mr. In this day and age, I cannot believe that Speaker, would the Chair please give us there would be anybody in this Chamber who Mr. FOLEY. Mr. Speaker, I appre- the time remaining on both sides? wants to discourage people from working. Yet ciate the work of the gentleman from The SPEAKER pro tempore (Mr. EV- the earnings limit does precisely that. It is a Kentucky on this issue. My father is 73 ERETT). The gentleman from Kentucky foolish policy and one which creates perverse and a principal of a school in Palm [Mr. BUNNING] has 21⁄2 minutes, the gen- economic incentives. H.R. 2684 represents a Beach County, FL, very active. For tleman from Indiana [Mr. JACOBS] has 5 solid first step and goes a long way toward lift- those between the age of 66 and 69, they minutes remaining. ing the burden placed on those seniors who should have the same opportunities. Mr. JACOBS. Mr. Speaker, I have no continue to work and make contributions to Mr. Speaker, we have commended further requests, and I yield back the America's economic activity. people for work in America. Many of balance of my time. Under current law, seniors under the age of our bills talk about work being an hon- Mr. BUNNING of Kentucky. Mr. 70 who choose to work lose $1 out of every orable occupation. Go out and work. Speaker, I yield myself 21⁄2 minutes. $3 they earn over some arbitrary and bureau- Get a job. But somehow when we hit 66, Mr. Speaker, just in response to the cratic limitÐcurrently set at $11,280 a year. we are told, ‘‘Sorry, unless you are gentleman from Wisconsin [Mr. KLECZ- To punish these folks, who have racked up going to be penalized, you do not need KA], there are over 120 organizations years of experience, wisdom, and institutional to pursue gainful employment.’’ currently trying to get the nonblind knowledge makes no sense whatsoever. By So, I think this Congress is on the disabled to the same level of earnings raising the limit to $30,000, we begin to ease right track. Restoring dignity. Instead that are under this bill for the blind the penalty and, I hope, make definite strides of telling people just because they hit a disabled. The blind disabled in this bill to eliminating the earnings test altogether. magic number, this age, that they are continue to have the same limit on The elections that swept Republicans into no longer wanted, now we are saying earnings that are in the current law. In the majority were about rearranging our prior- they continue to be wanted. They will other words, their limit on earnings ities and keeping our promises. We promised be productive. They will continue to will rise to $14,400 by the year 2002. The to raise the earnings limit in the Contract With pay taxes and they will have a benefit nonblind disabled are stuck at $6,000. America, and this bill, of which I am proud to to society. The cost of raising the nonblind dis- be an original cosponsor, is symbolic of our Public supermarkets in my district abled to the blind disabled currently is efforts to keep our promises and fix a Govern- employ many seniors in assisting in approximately $10 billion. We do not ment which all too often sends hardworking grocery checkouts and other items. have the money to do that. To take citizens the wrong signals. People are proud to have that oppor- them to where the gentlewoman from H.R. 2684, Mr. Speaker, is only a partial fix tunity to continue to remain active in Connecticut [Mrs. KENNELLY] would and only the beginning of corrective action their communities and the job market. like to take them, the cost would run which is long overdue. Last year, I cospon- Mr. Speaker, I commend the chair- approximately $20 billion over just the sored legislationÐH.R. 300Ðwhich would man for his leadership on this and urge next 5 years. We do not have the money have fully repealed the earnings limit and passage. to do that. again this year, I cosponsored legislationÐ Mr. JACOBS. Mr. Speaker, I yield 2 The bill preserves the indexing of the H.R. 201Ðto fully repeal the earnings test. For minutes to the gentleman from Wis- limitation on earnings for blind dis- years, we have heard people argue that rais- consin [Mr. KLECZKA]. abled recipients in the future. So, in ing the earnings limit or repealing the earnings Mr. KLECZKA. Mr. Speaker, I really answer to the gentleman from Wiscon- test would only benefit the wealthy. What hate to be the skunk at the Republican sin, blind disabled recipients lose noth- these people either forget or ignore is the fact picnic this afternoon, but in my pre- ing as the result of this bill. that under current law, income derived from vious remarks I indicated that this bill In summary, I would first like to private pensions and investments is not sub- is basically noncontroversial. But, thank everybody that has worked on jected to the limit at all. Therefore the argu- also, one of the bad things that this this bill: the staff, Phil Moseley, Val- ment that this bill would only benefit the bill that we are going to be voting on erie Nixon, Kim Hildred, Katherine wealthy is completely without merit. In fact, the does is delink the earnings test for the Keith, Mary Anne Gee, Ken Morton, ultrawealthy can and already do earn as much blind. Janice Mays, Sandy Wise, and Cathy as they want from their investments, but mid- Mr. Speaker, we have 17,000 people, it Noe; but most of all I would like to dle-class hardworking men and women who is not a heck of a lot, but we have thank my colleague, the gentleman want to keep a job are penalized for moneys 17,000 blind Americans who qualify for from Indiana [Mr. JACOBS]. Without his they earn. H.R. 2684 addresses this inequity this program today and they are being help we could not have gotten this bill and restores fairness for those who want to delinked. Yet after I made those com- together and accomplished on a bipar- work. ments, not one Republican would stand tisan basis, both in the subcommittee For many of our elderly citizens, the addi- up and defend that law change. That is and in the full committee. tional wages they will be allowed to earn, with- sad. When we get a bill that comes out of out penalty, is important. But for many more The Speaker of this House, when he our subcommittee almost on a unani- there is an even greater reward: The dignity of addressed the National Federation of mous vote, and a bill that comes out of working, earning, and keeping an honest buck. the Blind, back in February of this the full Committee on Ways and There is a spiritual as well as a health benefit year, indicated that removing the link- Means, this day and age on a unani- to be derived from keeping active, working age for the blind was a major mistake mous vote, I am certainly very proud and being fairly compensated. Why the Fed- and that he would make sure that was of that fact. And it is because of the eral Government would punish people for this taken out. That is all we have heard leadership of the gentleman from Indi- is beyond me. for the last half hour is this gushing, ana on his side that we were able to ac- Mr. Speaker, H.R. 2684 also corrects a gushing for our senior citizens. We complish that. number of other injustices as well. Like the H 13970 CONGRESSIONAL RECORD — HOUSE December 5, 1995 fact that under current law, alcoholics and Social Security earnings limit to $30,000 by limit will be raised from the current $11,280 to drug abusers can receive Social Security dis- the year 2002, H.R. 2684, in part, fulfills our $14,000. Each year thereafter, through 2000, ability cash payments. As I said earlier, Re- promises made to senior citizens in the Con- the limit will increase by another $1,000. Thus, publicans were elected to change our prior- tract With America. Let me explain. in 2000 the limit be up to $18,000. In 2001 the ities, and here is a clear-cut case of mixed up First, it is a matter of fairness for seniors. earnings limitation will jump up by some priorities. Punish seniors who decide to work, Under current law, a senior citizen loses $1 in $7,000, going from $18,000 to $25,000. Fi- but give cash benefits to drug and alcohol benefits for every $3 earned, above the nally, in 2002 the limit will be increased from abusers? These people need treatment and $11,280 limit. This limit hurts low and middle- $25,000 to $30,000. counseling. Under H.R. 2684, people addicted income senior citizens the most. These are in- After 2002, the earnings limit will be indexed to alcohol or drugs will no longer be eligible to dividuals who work out of necessityÐand to the growth in average wages. In this way, receive benefits due to disability. Instead, the need the income. Raising the earnings limit the earnings limitation will be able to keep up bill redirects some of that funding to various will enable these individuals to work so that with the times. drug and alcohol treatment programs so that they can make ends meet. I have long been an advocate and supporter people get the type of help they need. Second, the low earnings limit penalizes of raising the earnings limitation for seniors. Mr. Speaker, in closing I would reiterate that senior citizens for remaining in our workforce. Earlier this year I cosponsored H.R. 8, the this bill on the whole is a solid piece of legisla- Our economy suffers from the loss of experi- Senior Citizens Equity Act, which contained a tion that can and should receive bipartisan ence and skills that seniors bring to the work provision raising the earnings limit to $30,000 support. It is unfortunate that during the years force. I have heard first hand from constituents by 2002. This provision was incorporated into that the Democrats controlled the House this in my district, that the earnings limit actually H.R. 1215, the Tax Fairness and Deficit Re- legislation was never brought to the floor for a inhibits some seniors from working because duction Act which passed the House on April vote and thus people continued to pay pen- the lose a portion of their Social Security ben- 5, 1995, by a vote of 246 in favor, 188 alties at a very low threshold. Today, I am efits. against. I voted in favor of H.R. 1215. Since proud to be a cosponsor of H.R. 2684, and I Third, raising the earnings limit will help the fate of this legislation is still undetermined, look forward to building upon this achievement stimulate the economy. Obviously , senior citi- I believe it is wise that the House is trying an- and eliminating the irrational earnings test al- zens will be paying more taxes if they are other venue, H.R. 2684, the Senior Citizens' together. working, and at the same time, have more Right to Work Act, in the effort to raise the Mr. MARTIN. Mr. Speaker, I am pleased to money in their pockets to spend. earnings limitation. come before you today to express my support Significantly, this legislation is paid for by The current low earnings limitation is an economic disincentive to work for many of our for the Senior Citizens' Right to Work Act of spending cuts that make sense. Among other Nation's seniors. It puts a limit on the full use 1995. things, the bill eliminates the current practice The time has come to defend the working of providing disability benefits to individuals of their capabilities, as many who want to seniors of AmericaÐseniors that have been that are considered disabled only because work more are put off by the reduction in their Social Security benefits. It is an absurd situa- penalized for their productive contributions to they are alcoholics or drug addicts. It also cretion. This country should encourage, not dis- society. ates a revolving fund to finance continuing dis- The current Social Security earnings limit of ability reviews to determine whether individ- courage, seniors from earning more than $11,280 has demonstrated Government's apa- uals receiving disability benefits are still dis- $11,280 per year. Seniors who work are contributing mightily to our economy. They earn thy toward those seniors who continue to work abled. Based on government studies, these money and pay taxes on what they earn. They in retirement out of necessity. We must never reviews will result in fewer beneficiaries and should not be penalized for their initiative and forget that, for many seniors, work is not a substantial savings to the taxpayer. Mr. Speaker, I strongly urge my colleagues industry. choice. In addition to raising the earning limit for More importantly, the wisdom of our Na- to support this legislation. By increasing the seniors, the legislation contains another much tion's seniors is needed in today's work force. Social Security earnings limit, it lessens the needed reform. It prohibits the consideration of penalty for many senior citizens and it does America benefits from their work ethic and drug addicts and alcoholics as disabled in de- so, in the most fiscally responsible manner. their experience. termining eligibility for entitlements to cash So- I urge support for this legislation, and com- Mr. BUYER. Mr. Speaker, I rise in strong cial Security and Supplemental Security In- mended those seniors who have continued to support of this important legislation. The cur- come [SSI] disability benefits if the addiction is rent earnings limit has been a disincentive for offer their ideas and services beyond retire- the contributing factor to the disability. This seniors to continue to be productively em- ment. These reforms in Social Security reflect should put an end to having SSI disability ployed. In particular, the present earnings limit our values to allow personal responsibility and being misused by drug and alcohol addicts to opportunity. imposes a hardship on middle and lower-in- support their habits. Mr. POMEROY. Mr. Speaker, it is with great come retirees, who often rely on earnings from Mr. Speaker, H.R. 2684, the Senior Citizens' pleasure that I offer my support for H.R. 2684, work to supplement their Social Security bene- Right to Work Act is a giant stride forward in the Senior Citizens' Right to Work Act. fits. The earnings penalty is in reality a huge the direction of helping our senior citizens be- For many senior citizens, their retirement marginal tax on working seniors. It discour- tween the ages of 65 and 69. It will enable years are not golden and filled with leisure. ages work and it is discriminatory between them to earn more money without fear of hav- Many of our elderly who cannot make ends earned (wages) and unearned (dividends, in- ing a substantial reduction in their Social Se- meet with their savings and Social Security terest, etc.) income. curity benefits. The Senior Citizens' Right to benefits have no other choice but to continue I support this legislation which will allow our Work Act will give our seniors the opportunity working. This legislation will help low-income seniors to continue to work and not be penal- to live better lives because they will be able to senior citizens, especially single women, who ized for it. The ``Senior Citizens' Right to Work have higher incomes and still retain their So- are at risk of living in poverty during their re- Act of 1995'' is long overdue and is just one cial Security benefits without reductions. I urge tirement years. piece of our puzzle as we bring tax fairness my colleagues to support this legislation. As the safety net for the elderly begins to back to America's tax code. Again, I am Ms. DELAURO. Mr. Speaker, I strongly sup- fray due to cuts in Medicare and other pro- pleased to support this legislation which will port the Senior Citizens' Right to Work Act grams, the least we can do is allow those who allow Indiana seniors the right to work. urge the measure's unanimous passage need to work to keep more of their benefits. I Mr. FLANAGAN. Mr. Speaker, I rise in today. This essential legislation increases the am pleased the Ways and Means Committee strong support of H.R. 2684, the Senior Citi- amount that senior citizens under age 70 may was able to forge a bipartisan bill on this im- zens' Right to Work Act. This bill will help alle- earn without having their Social Security bene- portant issue. viate the uncalled for economic discrimination fits reduced. Mr. PORTMAN. Mr. Speaker, I rise today in against senior citizens between the ages of 65 Under current law, Social Security bene- support of H.R. 2684, the Senior Citizens' and 69. It is outrageous that seniors in that ficiaries aged 65 through 69 who earn too Right to Work Act. As you know, in 1935 Con- age bracket are unduly punished by having much lose $1 in benefits for every $3 they gress passed the Social Security Act to pro- their Social Security earnings reduced by one earn above specified limits. The limit is in- vide a stable source of income to older Ameri- dollar for every three dollars they earn above dexed so that it increases annually to reflect cans. This program, however, includes an $11,280. the increase in average wage growth. The cur- earnings limit that unfairly penalizes those This bill will increase the earnings limitation rent limit is approximately $11,000. senior citizens who want to work beyond the from $11,280 to $30,000 by the year 2002. Seniors who are able to work should be en- retirement age. Mr. Chairman, by raising the The first increase will occur in 1996 when the couraged to do so. Without this measure, the December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13971 Federal Government is telling our elderly citi- out losing any of their hard-earned Social Se- all Members may have 5 legislative zens to stay at home, and not to pursue gain- curity benefits. days within which to revise and extend ful employment. That is not the message that Mr. BEILENSON. Mr. Speaker, the bill be- their remarks on H.R. 2684, the bill just I want to send to the seniors in the 3d Con- fore us obviously enjoys very broad support considered. gressional District of Connecticut. among our colleagues. However, we ought to The SPEAKER pro tempore. Is there Mr. Speaker, our Nation's seniors have too pause for a moment and give serious thought objection to the request of the gen- much to offer for us to simply turn them away. to what we are doing by passing this measure. tleman from Kentucky? We need their wisdom, their expertise and The Congressional Budget Office projects There was no objection. their zeal. that we will spend more than $350 billion on f Older Americans have tremendous potential Social Security benefits in 1996Ðmore than to contribute to our communities, both in terms one-fifth of the budget, and more than we are PRIVILEGES OF THE HOUSE—RE- of professional expertise and productivity. It is spending on any other single Federal pro- QUEST FOR REPORT FROM COM- a shame to lose those invaluable resources. gram. Working AmericansÐno matter how lit- MITTEE ON STANDARDS OF OF- Furthermore, Seniors who are active live tle they makeÐ6.2 percent of their pay- FICIAL CONDUCT REGARDING longer and lead happier lives. checkÐwith their employers paying the same COMPLAINTS AGAINST SPEAKER I strongly support the Senior Citizen's Right amountÐto finance these benefits. Yet not Mr. PETERSON of Minnesota. Mr. to Work Act, and I urge my colleagues to vote only have we taken this huge program off the Speaker, pursuant to clause 2(a)(1) of in favor of this important legislation. budget negotiating table, we are now actually rule IX, I hereby give notice of my in- Ms. EDDIE BERNICE JOHNSON of Texas. moving to increase itÐat a time when we are tention to offer a resolution—on behalf Mr. Speaker, I rise today to voice some con- trying to cut back just about everything else of myself and the gentleman from Flor- the Government spends money on. cerns with H.R. 2684, the Senior Citizens' ida [Mr. JOHNSTON]—which raises a We need to give serious thought to whether Right to Work Act. Although I will support the question of the privileges of the House. it makes sense to increase these benefitsÐ bill on final passage, I am concerned about The form of the resolution is as fol- when the majority of that increase will go to the effect that some of the more obscure pro- lows: those who are already relatively well offÐat a visions in the legislation may have on the time when we are moving to cut benefits for Whereas the Committee on Standards of rights of senior citizens. people who really need them. Official Conduct is currently considering Included in this bill are provisions which re- We also need to give serious thought to several ethics complaints against Speaker move the Social Security Administration from Newt Gingrich; whether it is wise to make what will be a huge Whereas the Committee has traditionally the process of payment of attorneys' fees. move toward turning Social Security into a Currently, the Social Security Administration handled such cases by appointing an inde- benefit which one is automatically entitled to pendent, non-partisan, outside counsel—a [SSA] approves the fees that an attorney may receive upon reaching age 65, rather than a procedure which has been adopted in every charge to represent a person in administrative program to compensate for lost earnings due major ethics case since the Committee was proceedings, usually related to a denial of dis- to retirement, as was originally intended. We established; ability benefits. When the applicant is success- need to ask: Does it make sense to do that Whereas—although complaints against ful, SSA withholds the lesser of $4,000 or 25 when people are living so much longer than Speaker Gingrich have been under consider- percent of the benefits to pay the attorney. they used to, and when our population of older ation for more than 14 months—the Commit- H.R. 2684 would change the law such that Americans is going to begin growing enor- tee has failed to appoint an outside counsel; SSA would no longer be involved in the proc- Whereas the Committee has also deviated mously in just a few years? from other long-standing precedents and ess and attorneys could negotiate fees up to And, we ought to consider whether we are rules of procedure; including its failure to a $4,000 limit. inviting early retireesÐages 62±64Ðto ask for adopt a Resolution of Preliminary Inquiry This portion of H.R. 2684, while seeming the same thing we are about to grant retirees before calling third-party witnesses and re- sublime on the surface, may result in attor- aged 65±69. Once we increase the earnings ceiving sworn testimony; neys choosing to stop representing disabled limitation for recipients who are aged 65±69, Whereas these procedural irregularities— individuals in their administrative proceedings. will early retirees ask for a liberalization of the and the unusual delay in the appointment of Since the fee would no longer be withheld, at- definition of ``retired'' using the very same ar- an independent, outside counsel—have led to torneys are fearful that they may not be paid guments that are being made by those aged widespread concern that the Committee is for the service they provide, and thus may 65±69? making special exceptions for the Speaker of the House; choose to avoid this type of representation. The title of this bill, the Senior Citizens' Right to Work Act, is a misnomer. Senior citi- Whereas a resolution calling for a status While I will support the legislation, I regret report on the Gingrich investigation was ta- that the leadership has chosen to bring this zens have every right to work; what this does bled by the House without debate on Novem- legislation to the floor in such a fashion so as is give older working Americans the right to ber 17, 1995; to preclude amendments, and I hope to work collect more Social Security benefits than they Whereas a second resolution calling for a with the Senate and the White House con- are currently entitled to. At a time when we status report on the Gingrich investigation cerning the availability of competent represen- ought to be curbing entitlement spending, not was tabled by the House without debate on tation for Social Security claimants. expanding it, passing this legislation seems November 30, 1995; Mr. GILMAN. Mr. Speaker, I rise today in most unwise. Whereas the integrity of the House depends on the confidence of the American people in support of H.R. 2684, the Senior Citizens Mr. BUNNING of Kentucky. Mr. Speaker, I yield back the balance of the fairness and impartiality of the Commit- Right to Work Act of 1995, and commend its tee on Standards of Official Conduct. sponsor, the gentleman from Kentucky [Mr. my time. The SPEAKER pro tempore. The Therefore be it resolved that; BUNNING] for all of his hard work on this meas- The Chairman and Ranking Member of the question is on the motion offered by ure. Committee on Standards of Official Conduct Under current law, this country's senior citi- the gentleman from Kentucky [Mr. should report to the House, no later than De- zens from age 65 to age 69 are limited to earn BUNNING] that the House suspend the cember 19, 1995, concerning: only $11,280 in additional income before they rules and pass the bill, H.R. 2684, as (1) the status of the Committee’s investiga- amended. tion of the complaints against Speaker Ging- suffer penalties of $1 in Social Security bene- The question was taken. rich; fits for every $3 of income earned above that Mr. BUNNING of Kentucky. Mr. (2) the Committee’s disposition with regard limit. Mr. BUNNING's measure will allow seniors Speaker, on that I demand the yeas to the appointment of a non-partisan outside by the year 2000, to earn up to $30,000 in and nays. counsel and the scope of the counsel’s inves- outside income without being forced to give up The yeas and nays were ordered. tigation; Social Security benefits. The SPEAKER pro tempore. Pursu- (3) a timetable for Committee action on While this bill is certainly a step in the right ant to clause 5 of rule I and the Chair’s the complaints. direction, I believe that we should go further prior announcement, further proceed- The SPEAKER pro tempore. Under and eliminate this anachronistic limitation and ings on this motion will be postponed. rule IX, a resolution offered from the thereby allow our seniors to continue to work f floor by a Member other than the ma- to the best of their capabilities in order to sus- jority leader or the minority leader as tain themselves in a time of an increasing cost GENERAL LEAVE a question of the privileges of the of living. We must allow older Americans who Mr. BUNNING of Kentucky. Mr. House has immediate precedence only choose to work to earn appropriate pay with- Speaker, I ask unanimous consent that at a time or place designated by the H 13972 CONGRESSIONAL RECORD — HOUSE December 5, 1995 chair in the legislative schedule within pending the rules and passing the bill, Lucas Paxon Smith (TX) Luther Payne (NJ) Smith (WA) 2 legislative days its being properly no- H.R. 869, as amended. Maloney Payne (VA) Solomon ticed. The Chair will announce designa- The Clerk read the title of the bill. Manton Peterson (FL) Souder tion at a later time. In the meantime, The SPEAKER pro tempore. The Manzullo Peterson (MN) Spence the form of the resolution proffered by Markey Petri Spratt question is on the motion offered by Martinez Pickett Stark the gentleman from Florida will appear the gentleman from Maryland [Mr. Martini Pombo Stearns in the RECORD at this point. GILCHREST] that the House suspend the Mascara Pomeroy Stenholm The Chair is not at this point making Matsui Porter Stockman rules and pass the bill H.R. 869, as McCarthy Portman Stokes a determination as to whether the res- amended, on which the yeas and nays McCollum Poshard Stump olution constitutes a question of privi- are ordered. McCrery Pryce Stupak lege. That determination will be made The vote was taken by electronic de- McDade Quillen Talent at the time designated by the Chair for McDermott Quinn Tanner vice, and there were—yeas 414, nays 0, McHale Radanovich Tate consideration of the resolution. not voting 18, as follows: McHugh Rahall Tauzin f McIntosh Ramstad Taylor (MS) [Roll No. 834] McKeon Rangel Taylor (NC) REPORT ON RESOLUTION WAIVING YEAS—414 McKinney Reed Tejeda POINTS OF ORDER AGAINST CON- McNulty Regula Thomas Abercrombie Crane Gutknecht Meehan Richardson Thompson FERENCE REPORT ON H.R. 2076, Ackerman Crapo Hall (OH) Meek Riggs Thornberry DEPARTMENTS OF COMMERCE, Allard Cremeans Hall (TX) Menendez Rivers Thornton JUSTICE, AND STATE, THE JUDI- Andrews Cubin Hamilton Metcalf Roberts Thurman Archer Cunningham Hancock CIARY, AND RELATED AGENCIES Meyers Roemer Tiahrt Armey Danner Hansen Mfume Rogers Torkildsen APPROPRIATIONS ACT, 1996 Bachus Davis Harman Mica Rohrabacher Torres Baesler de la Garza Hastert Mr. GOSS, from the Committee on Miller (CA) Ros-Lehtinen Towns Baker (CA) Deal Hastings (FL) Miller (FL) Rose Traficant Rules, submitted a privileged report Baker (LA) DeLauro Hastings (WA) Minge Roth Upton (Rept. No. 104–381) on the resolution (H. Baldacci DeLay Hayes Mink Roybal-Allard Velazquez Res. 289) waiving points of order Ballenger Dellums Hayworth Moakley Royce Vento Barcia Deutsch Hefley Molinari Sabo Visclosky against the conference report to ac- Barr Diaz-Balart Hefner Mollohan Salmon Volkmer company the bill (H.R. 2076) making Barrett (NE) Dickey Heineman Montgomery Sanders Vucanovich appropriations for the Departments of Barrett (WI) Dicks Herger Moorhead Sanford Walker Bartlett Dixon Hilleary Commerce, Justice, and State, the Ju- Moran Sawyer Walsh Barton Doggett Hilliard Morella Saxton Wamp diciary, and related agencies for the Bass Dooley Hinchey Murtha Scarborough Ward fiscal year ending September 30, 1996, Bateman Doolittle Hobson Myers Schaefer Waters and for other purposes, which was re- Becerra Dornan Hoekstra Myrick Schiff Watt (NC) Beilenson Doyle Hoke Neal Schroeder Watts (OK) ferred to the House Calendar and or- Bentsen Dreier Holden Nethercutt Schumer Waxman dered to be printed. Bereuter Duncan Horn Neumann Scott Weldon (FL) f Berman Dunn Hostettler Ney Seastrand Weldon (PA) Bevill Durbin Houghton Norwood Sensenbrenner Weller REPORT ON RESOLUTION WAIVING Bilbray Edwards Hoyer Nussle Serrano White Bilirakis Ehlers Hunter POINTS OF ORDER AGAINST CON- Oberstar Shadegg Whitfield Bishop Ehrlich Hutchinson Obey Shaw Wicker FERENCE REPORT ON H.R. 1058, Bliley Emerson Hyde Olver Shays Williams PRIVATE SECURITIES LITIGA- Blute Engel Inglis Ortiz Shuster Wise TION REFORM ACT OF 1995 Boehlert English Istook Orton Sisisky Wolf Boehner Ensign Jackson-Lee Owens Skaggs Woolsey Mr. GOSS, from the Committee on Bonilla Eshoo Jacobs Oxley Skeen Wynn Rules, submitted a privileged report Bonior Evans Jefferson Packard Skelton Yates Bono Everett Johnson (CT) Pallone Slaughter Young (AK) (Rept. No. 104–382) on the resolution (H. Borski Ewing Johnson (SD) Parker Smith (MI) Young (FL) Res. 290) waiving points of order Boucher Farr Johnson, E. B. Pastor Smith (NJ) Zimmer against the conference report to ac- Brewster Fattah Johnson, Sam Browder Fawell Johnston NOT VOTING—18 company the bill (H.R. 1058) to reform Brown (CA) Fazio Jones Bryant (TX) McInnis Torricelli Federal securities litigation, and for Brown (FL) Fields (LA) Kanjorski Chapman Nadler Tucker other purposes, which was referred to Brown (OH) Fields (TX) Kaptur Chenoweth Pelosi Waldholtz Brownback Filner Kasich DeFazio Roukema Wilson the House Calendar and ordered to be Bryant (TN) Flake Kelly printed. Dingell Rush Wyden Bunn Flanagan Kennedy (MA) Fowler Studds Zeliff f Bunning Foglietta Kennedy (RI) Burr Foley Kennelly b 1747 ANNOUNCEMENT BY THE SPEAKER Burton Forbes Kildee So (two-thirds having voted in favor PRO TEMPORE Buyer Ford Kim Callahan Fox King thereof) the rules were suspended and The SPEAKER pro tempore. Pursu- Calvert Frank (MA) Kingston the bill as amended, was passed. ant to clause 5, rule I, the Chair will Camp Franks (CT) Kleczka Canady Franks (NJ) Klink The result of the vote was announced now put the question on each motion Cardin Frelinghuysen Klug as above recorded. to suspend the rules on which further Castle Frisa Knollenberg The title of the bill was amended as proceedings were postponed earlier Chabot Frost Kolbe to read: ‘‘A bill to designate the Fed- Chambliss Funderburk LaFalce today, in the order in which the motion Christensen Furse LaHood eral building and United States court- was entertained. Chrysler Gallegly Lantos house located at 125 Market Street in Votes will be taken in the following Clay Ganske Largent Youngstown, OH, as the ‘Thomas D. order: Clayton Gejdenson Latham Clement Gekas LaTourette Lambros Federal Building and United H.R. 869, by the yeas and nays; H.R. Clinger Gephardt Laughlin States Courthouse’.’’. 965, by the yeas and nays; H.R. 1804, by Clyburn Geren Lazio A motion to reconsider was laid on the yeas and nays; and H.R. 2684, by the Coble Gibbons Leach the table. Coburn Gilchrest Levin yeas and nays. Coleman Gillmor Lewis (CA) f The Chair will reduce to 5 minutes Collins (GA) Gilman Lewis (GA) ANNOUNCEMENT BY THE SPEAKER the time for any electronic vote after Collins (IL) Gonzalez Lewis (KY) the first such vote in this series. Collins (MI) Goodlatte Lightfoot PRO TEMPORE Combest Goodling Lincoln f Condit Gordon Linder The SPEAKER pro tempore (Mr. Conyers Goss Lipinski EWING). Pursuant to the provisions of THOMAS D. LAMBROS FEDERAL Cooley Graham Livingston clause 5 of rule I, the Chair announces BUILDING AND U.S. COURTHOUSE Costello Green LoBiondo that he will reduce to a minimum of 5 Cox Greenwood Lofgren The SPEAKER pro tempore. The Coyne Gunderson Longley minutes the period of time within pending business in the question of sus- Cramer Gutierrez Lowey which a vote by electronic device may December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13973 be taken on each additional motion to Kim Murtha Shaw The Clerk read the title of the bill. King Myers Shays suspend the rules on which the Chair Kingston Myrick Shuster The SPEAKER pro tempore. The has postponed earlier proceedings. Kleczka Neal Sisisky question is on the motion offered by f Klink Nethercutt Skeen the gentleman from Maryland [Mr. Klug Neumann Skelton GILCHREST] that the House suspend the Knollenberg Ney Slaughter ROMANO L. MAZZOLI FEDERAL Kolbe Norwood Smith (MI) rules and pass the bill, H.R. 1804, on BUILDING LaFalce Nussle Smith (NJ) which the yeas and nays are ordered. LaHood Oberstar Smith (TX) The vote was taken by electronic de- The SPEAKER pro tempore. The Lantos Obey Smith (WA) pending business is the question of sus- Largent Olver Solomon vice, and there were—yeas 373, nays 40, pending the rules and passing the bill, Latham Ortiz Souder answered ‘‘present’’ 2, not voting 17, as LaTourette Orton Spence follows: H.R. 965. Laughlin Owens Spratt The Clerk read the title of the bill. Lazio Oxley Stark [Roll No. 836] The SPEAKER pro tempore. The Leach Packard Stearns YEAS—373 question is on the motion offered by Levin Pallone Stenholm Abercrombie Dickey Hyde Lewis (CA) Parker Stockman the gentleman from Maryland [Mr. Ackerman Dicks Inglis Lewis (GA) Pastor Stokes Allard Dixon Istook GILCHREST] that the House suspend the Lewis (KY) Paxon Stump Andrews Doggett Jackson-Lee rules and pass the bill, H.R. 965, on Lightfoot Payne (NJ) Stupak Archer Dooley Jacobs Lincoln Payne (VA) Talent Armey Doolittle Johnson (CT) which the yeas and nays are ordered. Linder Peterson (FL) Tanner The vote was taken by electronic de- Bachus Dornan Johnson (SD) Lipinski Peterson (MN) Tate Baesler Doyle Johnson, Sam vice, and there were—yeas 415, nays 0, Livingston Petri Tauzin Baker (CA) Dreier Johnston not voting 17, as follows: LoBiondo Pickett Taylor (MS) Baker (LA) Duncan Jones Lofgren Pombo Taylor (NC) [Roll No. 835] Baldacci Dunn Kanjorski Longley Pomeroy Tejeda Ballenger Durbin Kaptur YEAS—415 Lowey Porter Thomas Barcia Edwards Kasich Lucas Portman Thompson Barr Ehlers Kelly Abercrombie Collins (IL) Gallegly Luther Poshard Thornberry Ackerman Collins (MI) Ganske Barrett (NE) Ehrlich Kennedy (MA) Maloney Pryce Thornton Bartlett Emerson Kennedy (RI) Allard Combest Gejdenson Manton Quillen Thurman Andrews Condit Gekas Barton English Kennelly Manzullo Quinn Tiahrt Bass Ensign Kildee Archer Conyers Gephardt Markey Radanovich Torkildsen Armey Cooley Geren Bateman Eshoo Kim Martinez Rahall Torres Beilenson Evans King Bachus Costello Gibbons Martini Ramstad Towns Baesler Cox Gilchrest Bentsen Everett Kingston Mascara Rangel Traficant Bereuter Ewing Kleczka Baker (CA) Coyne Gillmor Matsui Reed Upton Baker (LA) Cramer Gilman Berman Farr Klink McCarthy Regula Velazquez Bevill Fawell Klug Baldacci Crane Gonzalez McCollum Richardson Vento Ballenger Crapo Goodlatte Bilbray Fazio Knollenberg McCrery Riggs Visclosky Bilirakis Fields (TX) Kolbe Barcia Cremeans Goodling McDade Rivers Volkmer Barr Cubin Gordon Bliley Flanagan LaFalce McDermott Roberts Vucanovich Blute Foley LaHood Barrett (NE) Cunningham Goss McHale Roemer Walker Barrett (WI) Danner Graham Boehlert Forbes Lantos McHugh Rogers Walsh Boehner Fox Largent Bartlett Davis Green McInnis Rohrabacher Wamp Barton de la Garza Greenwood Bonilla Frank (MA) Latham McIntosh Ros-Lehtinen Ward Bono Franks (CT) LaTourette Bass Deal Gunderson McKeon Rose Waters Bateman DeLauro Gutierrez Borski Franks (NJ) Laughlin McKinney Roth Watt (NC) Boucher Frelinghuysen Lazio Becerra DeLay Gutknecht McNulty Roukema Watts (OK) Beilenson Dellums Hall (OH) Brewster Frisa Leach Meehan Roybal-Allard Waxman Browder Frost Levin Bentsen Deutsch Hall (TX) Meek Royce Weldon (FL) Bereuter Diaz-Balart Hamilton Brown (CA) Funderburk Lewis (CA) Menendez Sabo Weldon (PA) Brown (OH) Furse Lewis (KY) Berman Dickey Hancock Metcalf Salmon Weller Bevill Dicks Hansen Brownback Gallegly Lightfoot Meyers Sanders White Bryant (TN) Ganske Lincoln Bilbray Dixon Harman Mfume Sanford Whitfield Bilirakis Doggett Hastert Bunn Gejdenson Linder Mica Sawyer Wicker Bunning Gekas Lipinski Bishop Dooley Hastings (FL) Miller (CA) Saxton Williams Bliley Doolittle Hastings (WA) Burr Gephardt Livingston Miller (FL) Scarborough Wise Burton Geren LoBiondo Blute Dornan Hayes Minge Schaefer Wolf Boehlert Doyle Hayworth Buyer Gibbons Longley Mink Schiff Woolsey Callahan Gilchrest Lowey Boehner Dreier Hefley Moakley Schroeder Wynn Bonilla Duncan Hefner Calvert Gillmor Lucas Molinari Schumer Yates Camp Gilman Luther Bonior Dunn Heineman Mollohan Scott Young (AK) Bono Durbin Herger Canady Goodlatte Maloney Montgomery Seastrand Young (FL) Cardin Goodling Manton Borski Edwards Hilleary Moorhead Sensenbrenner Zimmer Boucher Ehlers Hilliard Castle Gordon Manzullo Moran Serrano Chabot Goss Markey Brewster Ehrlich Hinchey Morella Shadegg Browder Emerson Hobson Chambliss Graham Martinez Brown (CA) Engel Hoekstra NOT VOTING—17 Christensen Green Martini Brown (FL) English Hoke Chrysler Greenwood Mascara Bryant (TX) Nadler Tucker Clayton Gunderson Matsui Brown (OH) Ensign Holden Chapman Pelosi Waldholtz Brownback Eshoo Horn Clement Gutknecht McCarthy Chenoweth Rush Wilson Clinger Hall (OH) McCollum Bryant (TN) Evans Hostettler DeFazio Skaggs Wyden Bunn Everett Houghton Coble Hall (TX) McCrery Dingell Studds Zeliff Coburn Hamilton McDade Bunning Ewing Hoyer Fowler Torricelli Burr Farr Hunter Coleman Hancock McDermott Burton Fattah Hutchinson b 1756 Collins (GA) Hansen McHale Buyer Fawell Hyde Combest Harman McHugh Callahan Fazio Inglis So (two-thirds having voted in favor Condit Hastert McInnis Calvert Fields (LA) Istook thereof) the rules were suspended and Cooley Hastings (WA) McIntosh Camp Fields (TX) Jackson-Lee Costello Hayes McKeon Canady Filner Jacobs the bill was passed. Cox Hayworth McNulty Cardin Flake Jefferson The result of the vote was announced Cramer Hefley Meehan Castle Flanagan Johnson (CT) as above recorded. Crane Hefner Meek Crapo Heineman Menendez Chabot Foglietta Johnson (SD) A motion to reconsider was laid on Chambliss Foley Johnson, E. B. Cremeans Herger Metcalf Christensen Forbes Johnson, Sam the table. Cubin Hilleary Meyers Chrysler Ford Johnston f Cunningham Hobson Mica Clay Fox Jones Danner Hoekstra Miller (CA) Clayton Frank (MA) Kanjorski JUDGE ISAAC C. PARKER Davis Hoke Miller (FL) de la Garza Holden Minge Clement Franks (CT) Kaptur FEDERAL BUILDING Clinger Franks (NJ) Kasich Deal Horn Moakley Clyburn Frelinghuysen Kelly The SPEAKER pro tempore. The DeLauro Hostettler Molinari DeLay Houghton Mollohan Coble Frisa Kennedy (MA) pending business is the question of sus- Coburn Frost Kennedy (RI) Dellums Hoyer Montgomery Coleman Funderburk Kennelly pending the rules and passing the bill, Deutsch Hunter Moorhead Collins (GA) Furse Kildee H.R. 1804. Diaz-Balart Hutchinson Moran H 13974 CONGRESSIONAL RECORD — HOUSE December 5, 1995 Morella Roberts Stupak SENIOR CITIZENS’ RIGHT TO WORK Lewis (CA) Ortiz Skeen Murtha Roemer Talent Lewis (GA) Orton Skelton Myers Rogers Tanner ACT OF 1995 Lewis (KY) Owens Slaughter Myrick Rohrabacher Tate The SPEAKER pro tempore (Mr. EV- Lightfoot Oxley Smith (MI) Neal Ros-Lehtinen Tauzin Lincoln Packard Smith (NJ) Nethercutt Rose Taylor (MS) ERETT). The pending business is the Linder Pallone Smith (TX) Neumann Roth Taylor (NC) question of suspending the rules and Lipinski Parker Smith (WA) Ney Roukema Tejeda passing the bill, H.R. 2684, as amended. Livingston Pastor Solomon Norwood Roybal-Allard Thomas The Clerk read the title of the bill. LoBiondo Paxon Souder Nussle Royce Thornberry Lofgren Payne (NJ) Spence Oberstar Sabo Thornton The SPEAKER pro tempore. The Longley Payne (VA) Spratt Obey Salmon Thurman question is on the motion offered by Lowey Peterson (FL) Stark Olver Sanford Tiahrt the gentleman from Kentucky [Mr. Lucas Peterson (MN) Stearns Ortiz Sawyer Torkildsen Luther Petri Stenholm Orton Saxton Traficant BUNNING] that the House suspend the Maloney Pickett Stockman Owens Scarborough Upton rules and pass the bill, H.R. 2684, as Manton Pombo Stokes Oxley Schaefer Vento amended, on which the yeas and nays Manzullo Pomeroy Stump Packard Schiff Visclosky are ordered. Markey Porter Stupak Pallone Schroeder Volkmer Martinez Portman Talent Parker Schumer Vucanovich The vote was taken by electronic de- Martini Poshard Tanner Pastor Seastrand Walker vice, and there were—yeas 411, nays 4, Mascara Pryce Tate Paxon Sensenbrenner Walsh not voting 17, as follows: Matsui Quillen Tauzin Payne (VA) Shadegg Wamp McCarthy Quinn Taylor (MS) Peterson (FL) Shaw Ward [Roll No 837] McCollum Radanovich Taylor (NC) Peterson (MN) Shays Watts (OK) YEAS—411 McCrery Rahall Tejeda Petri Shuster Waxman McDade Ramstad Thomas Pickett Sisisky Weldon (FL) Abercrombie Costello Goodlatte McDermott Rangel Thompson Pombo Skaggs Weldon (PA) Ackerman Cox Goodling McHale Reed Thornberry Pomeroy Skeen Weller Allard Coyne Gordon McHugh Regula Thornton Porter Skelton White Andrews Cramer Goss McInnis Richardson Thurman Portman Smith (MI) Whitfield Archer Crane Graham McIntosh Riggs Tiahrt Poshard Smith (NJ) Wicker Armey Crapo Green McKeon Rivers Torkildsen Pryce Smith (TX) Williams Bachus Cremeans Greenwood McKinney Roberts Torres Quillen Smith (WA) Wise Baesler Cubin Gunderson McNulty Roemer Towns Quinn Solomon Wolf Baker (CA) Cunningham Gutierrez Meehan Rogers Traficant Radanovich Souder Woolsey Baker (LA) Danner Gutknecht Meek Rohrabacher Upton Rahall Spence Yates Baldacci Davis Hall (OH) Menendez Ros-Lehtinen Velazquez Ramstad Spratt Young (AK) Ballenger de la Garza Hall (TX) Metcalf Rose Vento Reed Stark Young (FL) Barcia Deal Hamilton Meyers Roth Visclosky Regula Stearns Zeliff Barr DeLauro Hancock Mfume Roukema Volkmer Richardson Stenholm Zimmer Barrett (NE) DeLay Hansen Mica Roybal-Allard Vucanovich Riggs Stockman Barrett (WI) Dellums Harman Miller (CA) Royce Walker Rivers Stump Bartlett Deutsch Hastert Miller (FL) Sabo Walsh Barton Diaz-Balart Hastings (FL) Minge Salmon Wamp NAYS—40 Bass Dickey Hastings (WA) Mink Sanders Ward Bateman Dicks Hayes Moakley Sanford Waters Barrett (WI) Foglietta Payne (NJ) Becerra Dixon Hayworth Molinari Sawyer Watts (OK) Bishop Ford Sanders Bentsen Doggett Hefley Mollohan Saxton Waxman Bonior Gonzalez Scott Bereuter Dooley Hefner Montgomery Scarborough Weldon (FL) Clay Gutierrez Serrano Berman Doolittle Heineman Moorhead Schaefer Weldon (PA) Clyburn Hastings (FL) Slaughter Bevill Dornan Herger Moran Schiff Weller Collins (IL) Hilliard Stokes Bilbray Doyle Hilleary Morella Schroeder White Collins (MI) Hinchey Thompson Bilirakis Dreier Hilliard Murtha Schumer Whitfield Conyers Jefferson Torres Bishop Duncan Hinchey Myers Scott Wicker Coyne Johnson, E. B. Towns Bliley Dunn Hobson Myrick Seastrand Williams Engel Lewis (GA) Velazquez Blute Durbin Hoekstra Neal Sensenbrenner Wise Fattah Lofgren Waters Boehlert Edwards Hoke Nethercutt Serrano Wolf Fields (LA) McKinney Watt (NC) Boehner Ehlers Holden Ney Shadegg Woolsey Filner Mfume Bonilla Ehrlich Horn Norwood Shaw Yates Flake Mink Bonior Emerson Hostettler Nussle Shays Young (AK) Bono Engel Houghton Oberstar Shuster Young (FL) ANSWERED ‘‘PRESENT’’—2 Borski English Hoyer Obey Sisisky Zeliff Boucher Ensign Hunter Brown (FL) Rangel Olver Skaggs Zimmer Brewster Eshoo Hutchinson Browder Evans Hyde NAYS—4 NOT VOTING—17 Brown (CA) Everett Inglis Beilenson LaFalce Becerra Fowler Tucker Brown (FL) Ewing Istook Johnston Watt (NC) Bryant (TX) Nadler Waldholtz Brown (OH) Farr Jackson-Lee Chapman Pelosi Wilson Brownback Fattah Jacobs NOT VOTING—17 Chenoweth Rush Wyden Bryant (TN) Fawell Jefferson Bryant (TX) Nadler Tucker DeFazio Studds Wynn Bunn Fazio Johnson (CT) Chapman Neumann Waldholtz Dingell Torricelli Bunning Fields (LA) Johnson (SD) Chenoweth Pelosi Wilson Burr Fields (TX) Johnson, E.B. DeFazio Rush Wyden Burton Filner Johnson, Sam Dingell Studds Wynn b 1807 Buyer Flake Jones Fowler Torricelli Callahan Flanagan Kanjorski Messrs. TORRES, ENGEL, CON- Calvert Foglietta Kaptur b 1814 YERS, and SCOTT, Ms. VELA´ ZQUEZ, Camp Foley Kasich Canady Forbes Kelly So (two-thirds having voted in favor and Messrs. TOWNS, STOKES, COYNE, Cardin Ford Kennedy (MA) thereof) the rules were suspended and HINCHEY, and SERRANO changed Castle Fox Kennedy (RI) the bill, as amended, was passed. their vote from ‘‘yea’’ to ‘‘nay.’’ Chabot Frank (MA) Kennelly Chambliss Franks (CT) Kildee The result of the vote was announced Mr. RANGEL changed his vote from Christensen Franks (NJ) Kim as above recorded. ‘‘yea’’ to ‘‘present.’’ Chrysler Frelinghuysen King A motion to reconsider was laid on Clay Frisa Kingston Mr. HASTINGS of Florida and Mr. Clayton Frost Kleczka the table. FLAKE changed their vote from Clement Funderburk Klink f Clinger Furse Klug ‘‘present’’ to ‘‘nay.’’ Clyburn Gallegly Knollenberg b 1815 So (two-thirds having voted in favor Coble Ganske Kolbe Coburn Gejdenson LaHood SPECIAL ORDERS thereof) the rules were suspended and Coleman Gekas Lantos the bill was passed. Collins (GA) Gephardt Largent The SPEAKER pro tempore (Mr. Collins (IL) Geren Latham MCINNIS). Under the Speaker’s an- The result of the vote was announced Collins (MI) Gibbons LaTourette nounced policy of May 12, 1995, and as above recorded. Combest Gilchrest Laughlin under a previous order of the House, Condit Gillmor Lazio A motion to reconsider was laid on Conyers Gilman Leach the following Members will be recog- the table. Cooley Gonzalez Levin nized for 5 minutes each. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13975 The SPEAKER pro tempore. Under a his political party second, I would wel- league with regard to the national previous order of the House, the gen- come the President’s initiative, be- debt, and I certainly agree with him tleman from Florida [Mr. DIAZ- cause I feel that as a Member of Con- that we need to balance the budget. BALART] is recognized for 5 minutes. gress I should have the right to choose However, I would suggest that we all [Mr. DIAZ-BALART addressed the between two competing points of view; agree that the budget needs to be bal- House. His remarks will appear here- and that is what this great Chamber is anced, and in fact, the President has after in the Extensions of Remarks.] dedicated to, and that is what this also said many times that he wants the f great Chamber is being deprived of budget balanced. The problem is how today by the failure of the administra- do we do it. That is where the prior- The SPEAKER pro tempore. Under a tion to step forward and honestly tell ities come into place. previous order of the House, the gen- us how they would balance the budget. One of the points that President Clin- tleman from Hawaii [Mr. ABERCROMBIE] Given the size of this debt, I think it is ton has made and that I have made and is recognized for 5 minutes. imperative that they do so. that many of the Democratic leaders [Mr. ABERCROMBIE addressed the Mr. Speaker, I did some quick cal- have made is that we have to look at House. His remarks will appear here- culations with a calculator just before this budget in human terms. What are after in the Extensions of Remarks.] I came on the floor. If I had a business the impacts? What do the numbers f that started at the time of the birth of mean in real terms in terms of working PRESIDENT DUTY-BOUND TO Christ and spent $1 million a day, I American families, students, older BALANCE BUDGET would still not spend even $1 trillion. Americans, the environment and many In fact, I would need just about an- of the other priorities that President The SPEAKER pro tempore. Under a other 11,000 years to even approach the Clinton has articulated. previous order of the House, the gen- figure that we have accumulated in The bottom line is that if we look at tleman from Maine [Mr. LONGLEY] is terms of the national debt today. the Republican budget that passed this recognized for 5 minutes. Another way of looking at it is that House and the Senate and is now on the Mr. LONGLEY. Mr. Speaker, I think over the next 7 years under a Repub- President’s desk, the priorities are mis- one of the difficult things that Mem- lican or Democratic version of a budg- placed. Too much of the emphasis is on bers of this Congress have to face is et, this Government could be spending cutting taxes or on giving tax breaks how to conceive of the extent of the na- $12 or $13 trillion. In effect, our na- primarily for wealthy Americans and tional debt of this country. Given the tional debt exceeds over 40 percent of not enough emphasis is being placed on budget negotiations that are ongoing, I every nickel and dime that this Gov- helping the average working person. think it might be prudent to call to the ernment will spend over the next 7 Many of the cuts are on programs for attention of the Members and of the years. senior citizens, education, particularly Speaker the fact that as of 3 o’clock In tribute to Matthew and Lisa, who for student loans for students that this afternoon, the national debt is represent the youngsters of this coun- want to go on to colleges or univer- $4,988,891,675,281.12. That is the official try who literally and figuratively are sities, and for the environment. figure from the Bureau of Public Debt carrying the burden of this debt, I One of the things that I keep point- and the Department of the Treasury. think again it is incumbent upon us as ing out is how much of the impact in It is next to impossible for many of adults and as responsible citizens to do terms of tax cuts or tax breaks go to us to conceive of how large a number our duty in the democratic process. wealthy Americans. According to the that is, and frankly, it was difficult for Mr. Speaker, I want to end on this numbers of the Joint Committee on me even to realize how difficult it was note: Our hearts and prayers are all Taxation, 51 percent of taxpayers with just to mount the number on a piece of with the American service men and incomes under $30,000 would, as a wood. It is over 15 characters. In fact, women who are being sent overseas and group, have a net tax increase under the piece of lumber that Matthew and deployed into harm’s way in Bosnia. I the Republican budget plan and nearly Lisa are holding in front of me is over noted this morning that there was in- half of the benefits under the Repub- 10 feet in length. Just to carry it from formation from the White House to lican tax package or under the budget, the office, I was unable to take it suggest that the President was plan- 48 percent, that is, go to the top 12 per- through the revolving door, leaving the ning to visit the troops in Bosnia once cent of families, those with incomes of Cannon Building. I was unable to use they were deployed following the peace $100,000 or more. the elevator in this building; we had to treaty. So we certainly want to balance the work our way up the staircases, get Again, I applaud and commend that budget, but we want to do it in a way some help from some of the security initiative on the part of the President, that does not give tax breaks to the guards, just to navigate the normal but I would also suggest to the Presi- wealthy and does not cut critical pro- hallways of Congress. dent that his duties as Commander in grams that are important to seniors, to I think that with the negotiations Chief and as President of this great students, and also to the environment, that are ongoing and given the work country call on him to also come to the among other things. that has been done in this Congress to Congress and tell us honestly, Mr. One of the things that received a lot attempt to devise a reasonable plan by Speaker, how he would balance the Na- of attention today in this regard was which we can balance the Federal debt, tion’s budget. the Medicaid Program. Medicaid was I would like to urge, Mr. Speaker, that the health care program that the Fed- f the President has a duty to this coun- eral Government and States pay for for try and to this Congress, given the fact The SPEAKER pro tempore. Under a low-income people. Nearly 37 million that the Republicans have come up previous order of the House, the gentle- people are currently covered by Medic- with a 7-year plan to balance the Fed- woman from the District of Columbia aid, and about half of them are chil- eral budget, a plan that has been cer- [Ms. NORTON] is recognized for 5 min- dren. tified by the Congressional Budget Of- utes. Well, surprisingly, in a way, but I am fice to be fiscally in balance, I feel it is [Ms. NORTON addressed the House. not surprised, because I know that doc- incumbent on the President to give us Her remarks will appear hereafter in tors do care about health care for low- his view of how he would balance the the Extensions of Remarks.] income people, today the American budget in 7 years. f Medical Association, the main national It is not enough to criticize what we association of physicians, came out have done; I think the President is MISPLACED BUDGET PRIORITIES with a statement that was very critical duty-bound to step to the plate and tell The SPEAKER pro tempore. Under a of the Republican Medicaid plan. Basi- us what he would do. What are his pri- previous order of the House, the gen- cally, they criticized the fact that orities? tleman from New Jersey [Mr. PALLONE] under the Republican proposal as part I have to say very frankly, Mr. is recognized for 5 minutes. of this budget, Medicaid would no Speaker, as a Member of this body who Mr. PALLONE. Mr. Speaker, I was longer be guaranteed, no longer be an is an American first and a member of listening to the remarks of my col- entitlement, and it would be up to the H 13976 CONGRESSIONAL RECORD — HOUSE December 5, 1995

States to decide who they were going [Mr. PALLONE] just gave some figures, ministration official said yesterday’’ to cover. So for those 37 million Ameri- and although I know he is well inten- that an outcome without a reconcili- cans who now receive Medicaid pay- tioned, I think some of the information ation bill, balanced budget act, pre- ments or Medicaid benefits, all of a that he gave out is not quite accurate. serves our priorities and not theirs. sudden, some of them may not receive I would like to give a few figures to Once again they are moving away from it, and it would be up to the States to the people who may be paying atten- it. decide. tion to my colleagues. For instance, The Post went on to say even Presi- President Clinton has asserted that the earned income tax credit. In 1995 dent Clinton in two interviews this it is crucial to maintain a Federal we are spending almost $20 billion on month made the case that operating guarantee for Medicaid for those 37 the earned income tax credit, and my the government under reduced spend- million people, and that is one of the good friend, the gentleman from Ohio ing bills and leaving the big budget is- reasons he is going to or is likely to [Mr. HOKE], the head of the Theme sues until 1997 would not be a bad out- veto this bill, because it does not guar- Team, points out that it is going to go come. In other words, he is not going antee their coverage. Basically, what up to $25.4 billion. That is a 28-percent to negotiate a 7-year balanced budget the doctors are saying, what the AMA increase. agreement as he said he would because is saying, is that they are concerned They keep talking about cuts. he said it would be better to run the government on short-term spending that States, because of the budget b 1830 crunch, because they may not have the bills through the elections in 1996, I money to make up for the loss of Fed- It is an increase of 28 percent. The guess for political reasons, because he eral dollars that are going to come to School Lunch Program is going from thinks it would be good for him. the States in a block grant under the $4.5 billion to $6.17 billion. That is a 37- But then let us see what the head of Republican proposal, will simply cut percent increase. Student loans, they the Federal Reserve said, Alan Green- back on the number of people who are keep saying we are cutting student span. He testified before Congress in eligible, or on the quality of care. Basi- loans. They are going from $24.5 billion November and he warned that failure cally, what they are saying is that be- to $36.5 billion. That is almost a 50-per- to reach a balanced budget agreement cause of the budget crisis that States cent increase. would lead to higher interest rates, face, they are going to have the same Medicaid, they beat on Medicaid all higher home mortgage rates, and that problem and they are not going to be the time. Medicaid, we are spending $89 the economy would go downhill and able to actually cover all of these peo- billion, it is going to $127 billion. That suffer. So as the President made this agree- ple. is a 43-percent increase. And Medicare, ment for a balanced budget in 7 years The AMA said today in The New they are trying to scare the senior citi- using CBO figures, he and his staff York Times that the Federal Govern- zens to death in this country. Medi- knew that it was just to get over the ment should establish basic national care, we are spending in 1995 $178 bil- hump that we had caused by closing standards of uniform eligibility for lion and it is going up over $111 billion. down the government. He did not real- Medicaid, and should prescribe the That is a 63-percent increase over the ly mean it. That is why they are not minimum package of benefits that next 7 years. negotiating in good faith. They have would be available to poor people in all Think about that. All we hear is how not sent up anything. States, basic standards of uniform, we are cutting, and we are increasing all of these programs from 28 percent Chairman KASICH of the Committee minimum, adequate benefits of Medic- on the Budget has held up our agree- aid recipients. up to 63 percent. Medicare is going up from $178 billion to $290 billion. So do ment time and time again on television So what they are saying is that there saying, ‘‘Here is our proposed budget. should be a Federal standard, there not believe all the baloney you are hearing from my Democrat colleagues. Where is the President’s?’’ And it was a should be a Federal guarantee for who blank hand he held up in conjunction is eligible for Medicaid, who gets the Let me talk about something that I think is extremely important. On No- with that. health insurance, and what kind of We need to have a proposal from the vember 19, 2 weeks ago, President Clin- quality care will be provided for those President to get to a balanced budget ton, in writing, agreed to negotiate a 7- low-income people. in 7 years, as he agreed to, using CBO year balanced budget using Congres- The trustees of the AMA also said, figures, and cut out this politics. If we sional Budget Office figures. He agreed there needs to be an appropriate bal- do not do it, according to the Federal to that on November 19. ance between States interest in secur- Reserve Chairman Greenspan, we are On November 20, the next day, his ing increased flexibility in light of likely to see people buying homes hav- fewer Federal funds for Medicaid and chief of staff, Leon Panetta, said that ing to pay much higher monthly pay- the very real needs of the people the maybe we could reach an agreement on ments, much higher mortgage rates. Medicaid program is intended to serve, 7 or 8 years and he went on to say, Interest rates on everything would go most of whom have no other means of ‘‘But I don’t think the American people up. As a result, sales and the economy access to health care coverage. ought to read a lot into what was will go downhill. One of the arguments that the Re- agreed to last night.’’ In other words, Mr. Speaker, if the President does publican leadership have put forth is he was starting to back away from the not begin negotiating in good faith, the that Medicaid should be more flexible agreement the President signed the budget talks will break down. This will and that is why it should go back to day before. lead or could lead to another Govern- the States. However, what the doctors Two days later, on Wednesday, Sec- ment shutdown. It could also cause se- are saying is, it is very nice to have retary of the Treasury Robert Rubin vere economic problems. If this hap- flexibility, but we have to make sure began talking to reporters about a 9- pens, the American people should and I that the people who are covered by year budget. Three days before the hope will hold President Clinton ac- Medicaid now do have health care cov- President agreed to a 7-year budget and countable. erage. I know that that is going to be he agreed to use Congressional Budget f an important consideration for the Office figures. Here we are, 3 days President during these negotiations. later, his Treasury secretary said, ‘‘I COMPREHENSIVE ANTITERRORISM ACT OF 1995 f think our 9-year budget is every bit as valid as their premise. I’ve never un- The SPEAKER pro tempore (Mr. BUDGET REQUIRES GOOD-FAITH derstood how 7 years got canonized.’’ TAYLOR of North Carolina). Under a NEGOTIATIONS But the President already signed the previous order of the House, the gen- The SPEAKER pro tempore. Under a agreement, Mr. Secretary Rubin. He tleman from Illinois [Mr. HYDE] is rec- previous order of the House, the gen- had signed the agreement. Yet 3 days ognized for 5 minutes. tleman from Indiana [Mr. BURTON] is later you are saying, ‘‘Well, it’s not Mr. HYDE. Mr. Speaker, today I am, along recognized for 5 minutes. really that important.’’ with my Judiciary Committee colleagues, BILL Mr. BURTON of Indiana. Mr. Speak- Then on Tuesday, November 28, the MCCOLLUM, LAMAR SMITH, and BOB BARR in- er, the gentleman from New Jersey Washington Post reported ‘‘a senior ad- troducing a revised antiterrorism bill. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13977 On June 20, the Judiciary Committee favor- just to this country but to the entire will highlight for us the specific tech- ably reported the Comprehensive Antiterrorism world community. nologies and efforts that are now under Act of 1995 (H.R. 1710). Since that date, con- One of the byproducts of the military way to deal with this potentially dev- cerns have been raised by a number of Mem- buildup of the 1960’s, 1970’s, 1980’s and astating situation around the world. bers about certain provisions in H.R. 1710. into the 1990’s has been the huge This is a landmark hearing, Mr. Responding to these concerns, BOB BARR and amount of nuclear waste that has been Speaker. I am proud to have assembled I have developed a new compromise version generated from our nuclear material, what I think will be an expert panel of of the bill. The new language responds to the equipment, and the ships and tech- witnesses to fully highlight this world- concerns voiced by several Members, yet nologies that we have had available to wide problem and to show that we are maintains the effectiveness of the bill to deter our military establishments through- in fact working with the world commu- future terrorist acts. The new bill does the fol- out the world. The problem that we nity to find solutions. Bringing to- lowing: now face is what do we do with this gether Russia, the European Commu- Requires the marking of plastic explosives waste that has been generated, espe- nity, and also working with the Japa- to allow for more effective detection; cially as both America and in the case nese Diet and the United States Con- Prohibits the possession, importation, and of the officially Soviet Union, Russia, gress, we are trying to find solutions sale of nuclear materials; dispose of this nuclear waste, and how that allow us to come to grips with the Prohibits foreign terrorist organizations from do we deal with that. disposal of spent nuclear fuel and nu- raising money in the United States; The hearing that we will be holding clear waste. Prevents entry into the United States by tomorrow, both for the Subcommittee Preceding the hearing at 12:30, Dr. members and representatives of foreign terror- on Military Research and Development Yablokov and I will join with the ist groups; in cooperation with the Subcommittee Ballona Foundation, a Norwegian non- Reforms asylum laws to stop their manipula- on Fisheries, Wildlife and Oceans of the profit organization that just recently tion by foreign terrorists; Committee on Resources, will for the documented land-based nuclear pollu- Establishes a special deportation procedure first time focus on what is in fact a tion extensively at Russian military for alien terrorists that satisfies due process worldwide problem. The hearing will be facilities. The information that has and protects our national sovereignty; international in scope. been accumulated by the Ballona Encourages the development of a machine- Beginning at 1:30 p.m. tomorrow Foundation is so devastating that the readable visa and passport system; afternoon in hearing room 2118, we will Russian security apparatus invaded Authorizes an employer engaged in the hear from the distinguished environ- Ballona’s headquarters in Moscow and business of providing private security services mental activist from Russia, Dr. 1 month ago confiscated photographs and all of their documentation. to investigate an employment applicant's legal Aleksai Yablokov. Dr. Yablokov is a Together, Dr. Yablokov and I will status and his authorization to work; member of the Russian National Secu- work to assure the American people Authorizes lawsuits by Americans against rity Council. He is a key adviser to and our media that we are outraged foreign nations responsible for state-spon- President Yeltsin, and he has traveled to America to tell us about his findings that these actions have occurred, and sored terrorist activity; and that we in fact should be working with Provides for the expedited expulsion of ille- in terms of the problem the Russians have been having in disposal of their the Ballona Foundation and Russian gal aliens from the United States. leaders like Dr. Yablokov to assist nuclear waste and their spent nuclear Importantly, the bill also: Russia in understanding the complex- fuel. Adds Habeas Corpus reform provisions; ity of their environmental nuclear Adds the Victim Restitution Act of 1995 Dr. Yablokov was a chairman of the Yablokov Commission, which for the problem and, more importantly, how (H.R. 665); we can work together to solve it. It is Adds the Criminal Alien Deportation Im- first time in Russia’s history documented extensively 30 years of delib- a problem that is monumental, that provements Act of 1995 (H.R. 668); needs immediate attention, and that erate dumping of nuclear waste into Deletes the enhanced wiretap authoriza- potentially could cause a threat to the the Arctic Ocean, the Sea of Japan, and tions, including emergency wiretap expansion entire population of this earth. and roving wiretap modifications; other bodies that border the former So- I invite my colleagues to participate Deletes the authorization of military involve- viet states. Dr. Yablokov is an out- in that hearing, and welcome the sup- spoken critic of those policies in the ment in civilian law enforcement situations; port of Vice President AL GORE. At this Deletes the overly broad definition of terror- former Soviet Union that have led to point in time, Mr. Speaker, I would environmental degradation. He will ism; like to enter into the RECORD his letter Deletes funding for a domestic share with us his work and the work of to me supporting this series of hearings counterterrorism center and for additional FBI others like him in Russia in attempt- by Subcommittee on Research and De- personnel; and finally, ing to understand and deal with these velopment on ways that we can assist Deletes the 40-percent civil penalty sur- international environmental problems. the environmental community, work- charge intended to fund the Digital Telephony Joining with Dr. Yablokov on our ing with our military, to understand law. first panel will be Kaare Bryn, the di- and deal with these international envi- Important and significant changes have rector general and ambassador of the ronmental problems. resources department from the Nor- been made in this bill. The revised version de- THE VICE PRESIDENT, serves broad support. A ``yes'' vote on this wegian Ministry of Foreign Affairs. He Washington, DC, December 6, 1995. legislation is a vote for a more secure America will testify before us as to the concerns Hon. CURT WELDON, and the fight against crime. that the Norwegian people have with Chairman, Subcommittee on Military Research, I urge your support for this important meas- the problems internationally of dump- Rayburn House Office Building, Washing- ure. ing nuclear waste in our oceans. ton, DC. Following that, we will have our DEAR MR. CHAIRMAN: As you know, the top- CONGRESSIONAL HEARINGS TO Government respond to highlight some ics on which the Committee will focus during FOCUS ON NUCLEAR WASTE of the things that we are doing to as- this series of hearings have been of interest The SPEAKER pro tempore. Under a to me for some time, and I am pleased to sist in more fully understanding the have this opportunity to share my perspec- previous order of the House, the gen- problem of nuclear waste around the tive. As President Lyndon Baines Johnson tleman from Pennsylvania [Mr. world, not just off of Russia but even said during his tenure, ‘‘The waters which WELDON] is recognized for 5 minutes. off of our own shores, and what we are flow between the banks belong to all the peo- Mr. WELDON of Pennsylvania. Mr. doing through the Department of De- ple.’’ While the President was speaking Speaker, as chairman of the Sub- fense, the Department of State, and the about a domestic issue at the time, his mes- committee on Military Research and Environmental Protection Agency to sage resonates today. Development of the Committee on Na- Oceans cover 71 percent of the Earth’s sur- provide protection for the American face, and we face a common threat to this tional Security, I rise to highlight a se- people and cooperation with other na- precious resource. In this time of lean budg- ries of hearings that will begin tomor- tions who have similar concerns. ets, creative efforts to exploit existing re- row in our main hearing room that I Then, finally, we will have an assess- search and technology efforts for dual pur- think are of landmark significance not ment panel of technical experts who poses are not only sensible but essential. The H 13978 CONGRESSIONAL RECORD — HOUSE December 5, 1995 United States has tremendous resources Communist taking over the Secretary- and the concerns that many of us had which only have to be harnessed, and the Generalship of NATO, fought to keep which now, in fact, may be verified Committee’s hearings represent a significant Spain out of NATO, you described to that Russia does not have adequate step in that direction. me, because I am on your R&D sub- control and that perhaps the potential As we approach the 21st Century, I welcome efforts to ensure that our country is committee, you described to me before for an accidental or a rogue launch, or well prepared to act on the basis of the very I had to leave to go to a 2-hour intel- even worse, a sale of one of those sys- best data. I particularly want to thank you ligence briefing on Bosnia and tems to a rogue nation is, in fact, for your efforts in this regard. Your ideas Chechnya, that it was a nightmare be- something we have to look at in a seri- and insight on these issues are important to yond description, the nuclear waste ous vein. That hearing we will hold in me, and your continued support is essential. problem all across Russia and Siberia. January will even consist of people Again, please accept my very best wishes Mr. WELDON of Pennsylvania. Will who have worked in the administra- for a productive series of hearings. the gentleman yield? tion. Sincerely, Mr. DORNAN. I will. I want to hear a Mr. DORNAN. Hearing under which AL GORE. little bit more about it in a dialog. subcommittee? f Mr. WELDON of Pennsylvania. The Mr. WELDON of Pennsylvania. R&D AMERICAN INVOLVEMENT IN THE problem is so extensive that the secu- subcommittee, which Chairman SPENCE BOSNIAN WAR rity forces of Russia went into the asked me to chair, took testimony headquarters of this Norwegian non- from at least three people whose sto- The SPEAKER pro tempore. Under government organization, Ballona, ries have been corroborated that per- the Speaker’s announced policy of May which was about ready to release a re- haps there has been some dumbing 12, 1995, the gentleman from California port, confiscated all of their comput- down of intelligence reports relative to [Mr. DORNAN] is recognized for 60 min- ers, all of their software, all of their Russian command and control. So the utes as the designee of the majority data and their photographs. They were purpose of the hearing tomorrow is not leader. able to save a significant portion of to just look at the environmental prob- Mr. DORNAN. Mr. Speaker, you will that which we will release tomorrow at lems of Russia and to work with those notice that the gentleman from Penn- 12:30 which in fact show photographs of good people like Dr. Yablokov, who are sylvania [Mr. WELDON] and I are not in spent nuclear fuel that have been ex- not afraid to stand up and speak the tuxedos. A lot of the membership from posed in the outdoors for 30 years, of truth, but also to point up the fact that both sides of the aisle are down at the nuclear waste on land that is sitting we in this country who want improved White House tonight in tuxes at the with no protection. long-term relations with the Russians, Christmas party. The situation is so severe in the area and I certainly do as chairman of the The last time I was at a Christmas of the Northern Fleet up in the area of Russian-American energy caucus and party was 3 years ago tomorrow night. Murmansk and the ports where the as a member of the environmental cau- George Bush’s personal Pearl Harbor Northern Fleet is headquartered— cus that works with Russian duma was that December 7 Christmas party, Severodmorsk is the other port—that member Nikolai Veronsov on environ- and I touched him for the first time in Dr. Yablokov and the Yablokov Com- mental issues, that we must never his Presidency, put my hands on his mission report estimated that perhaps oversee the way that Russia deals with shoulders and I said, ‘‘Mr. President, as much as 10 million curies of radio- the most potent force that they have, I’m going to run for President in 1996 active nuclear waste is currently being and that is their nuclear arsenal. Dr. for one reason, to avenge you, a 58- stored because the Russians have no Yablokov, who is in our country right combat-mission Naval carrier attack capacity to safely dispose of it. now to be present at the press con- pilot being defeated by a triple avoider By comparison, Three Mile Island at ference and hearing tomorrow is the of serving his country who let three its worst only gave off a few curies, rel- prime person in all of Russia who has high school kids from Hot Springs and atively speaking, to the Russian threat been willing to stand up and question Fayetteville go in his place.’’ that is there. So there is a terrible the leadership. The reason I asked you to stay for a problem as the Russians downsize their Just last week I read the FIBITS re- second in the well, CURT, you are a sub- military, as there are nuclear-powered ports, as I do everyday, on Russia. committee chairman under Chairman submarines that are being decommis- Mr. DORNAN. Flesh out that acro- FLOYD SPENCE of National Security. It sioned. They do not have any way to nym. used to be Armed Services—it still is in deal with this. Mr. WELDON of Pennsylvania. That the Senate—Committee on Armed is the foreign intelligence reports that b 1845 Services. There are five of us. We did we get summarizing all the foreign away with Oversight. The point that we have to understand media. I nicknamed us the Marshals. You is, as we look at those nuclear weapons Mr. DORNAN. Broadcast from all can pick a Napoleonic field marshal that are still in Russia, and we are con- around the world in English. image with batons, or I prefer the Old cerned about the command and control Mr. WELDON of Pennsylvania. There West being a westerner. In Pennsylva- of those nuclear weapons, certainly were three specific articles from Rus- nia you have sheriffs still, do you not? when you look at the way they are sia, all three quoted Dr. Yablokov by Mr. WELDON of Pennsylvania. Yes. treating the waste gives you some indi- name. One of them was highlighting Mr. DORNAN. So we are his 5 mar- cation that there are serious problems the fact Dr. Yablokov has stated on the shals. His deputies. So the two of us on in the way that Russia deals with its record that Russia has as much as the floor means we have 40 percent of nuclear power as well as its nuclear 100,000 tons of chemical weapons de- the subcommittee chairmen on the waste, and, as you know, I say to the spite the fact the military leadership House. gentleman from California [Mr. DOR- only says they have 40,000 tons. Dr. I just came from a CAT meeting. NAN], and as a member of our sub- Yablokov has come out publicly in That is one of these new unofficial committee, we have been extensively Moscow and said that cannot be cor- groups that is supposed to be the looking at Russian command and con- rect. Dr. Yablokov has also come out toughest tigers, panthers, leopards on trol. and publicly criticized the leadership the hill, Conservative Action Team, In January of next year, our sub- over the small nuclear weapons that CAT. They do not know what to do committee will have a hearing that Russia, in fact, has accessible to it. So over Bosnia. will be the conclusion of a 4-month in- he is not afraid to speak his mind. He I am putting you on the spot because vestigation where we have interviewed is someone for whom I have the highest you know I respect you. I think you are over 40 witnesses on the issue of intel- respect. He is with us. He will be with a Russian expert. Nobody tracked the ligence gathered and provided to Con- us tomorrow at the hearing. He will be Kremlin harder than you did when the gress on command and control of the very candid and tell us what he feels bad guys were in power, and now that Russian nuclear arsenal. Some of the are the problems of his country. the bad guys are still all over the place results of those interviews are star- But I also expect him to be very can- with different titles and we have a tling in terms of the lack of security did about problems we, in fact, have in December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13979 our country. We are not totally with- However, this is the 20th century, legislation which I will be back on the out blame. In fact, part of our hearing and no matter 600 years of suppression House floor tomorrow to present to tomorrow, I expect, will focus on the and persecution and then Tito’s crimes, this body which, in fact, will call for a 30,000 barrels of nuclear waste that you do not do that to women and chil- vote. were dumped off the San Francisco dren. You do not target innocent peo- Mr. DORNAN. Good. coast a few years ago and what we are ple, and although, and this is the best Mr. WELDON of Pennsylvania. As doing to monitor that. We, in this ballpark figure until I am disabused of you know, the President, I voted with country, have been very critical of the this, although five percent of the atroc- my colleague from California on three Russians because of their lack of con- ities are committed by Moslems, they occasions to say we do not want ground trol over the Komsmolensk when it went can quibble 4, 3, let us just say 5, and troops in Bosnia; unfortunately, again, down off of Norway, yet we have not 10 percent by Coatians, they can quib- the President is not listening. He has been willing to discuss openly the fact ble it down to 8, 9, 85 percent is Serbian told the American people it is going to that we have two nuclear subs on the atrocities. And they now are going to be between 20,000 and 25,000. They are bottom of the ocean floor, the Thresher get to keep maybe half of the 3,800 vil- not the numbers. The numbers are and Scorpion. lages where they destroyed the minaret 32,000 ground troops, with about 20,000 We are saying we must join together and destroyed every shred of culture, support troops, for a total of some- to understand the problems created town halls, anything that would be a where over 50,000 American kids. through the use of nuclear technology. memory draw to bring people back Here we are sending 50,000 American This will be a first step tomorrow. I am when the killing was over. kids into a region that borders Ger- looking forward to having the gen- We are putting our young men and many where they are sending 4,000 Ger- tleman whose special order I am in- women into that, and I will tell you, mans. To me, it is not just unfair, it is fringing on to be there, as he so elo- Mr. Speaker, from this chairman, if outrageous. quently is on all of our national secu- CAT, the conservative action team, Mr. DORNAN. Are you going to the rity issues, to help us understand what cannot figure out what to do, then I Christmas party? is happening in the former Soviet want everybody within the sound of my Mr. WELDON of Pennsylvania. No. states as relates to these and other is- voice, I am telling you for the first Mr. DORNAN. My I publicly make a sues involving nuclear power and nu- time, I got my 50 signatures today to presentation of a gift to you? As I come clear weapons. have a conference tomorrow. I, BOB down to the well to give it to you, do Mr. DORNAN. For letting you get in DORNAN, circulated the letter on this you feel any problem with being told those extra words, I wanted everyone floor those last 5 votes. I got 64 signa- you are not supporting the troops, the in the million people watching C– tures. All I needed, 50, under Repub- First Armored Division, Old Ironsides, SPAN, not only our distinguished lican rules, no Democrats, just Repub- if you somehow or other vote to stop Speaker pro tempore in the chair, to licans, tomorrow to discuss Bosnia. them from going there? know that, but I wanted to read you The feeling I am getting around here, Mr. WELDON of Pennsylvania. If the something. This is the price you are we are going to do nothing. We have al- gentleman will further yield, I will tell going to have to pay to bounce this off ready voted twice. We had a vote 243 to you what I said to Secretary Perry in you, if you knew about this particular 171, we are not doing anything. The very emphatic words in our hearing atrocity: Bosnian Serbs swept into freshmen are telling me we are not in last week. I said, ‘‘Mr. Secretary,’’ he Moslem and Croat villages, 3,800 of yet. Let us have 1 more vote tomorrow asked me what do we tell the troops if them, and engaged in Europe’s worst while only the enabling advanced team this Congress were to vote against the atrocities since the Nazi Holocaust. is in. I hate to put you on the spot. Do President’s policy, and I said, ‘‘Mr. Serbian thugs raped at least 20,000 not you think, in the midst of this Secretary, let me say this to you, you women and girls. In barbed wire camps, budget talk, the impending second go back and tell those troops that this men, women, and children were tor- train crash on December 15, possibly Congress and our national security tured and starved to death. that we should talk Bosnia tomorrow committee supports those troops with To me, the sickest thing in the world for at least an hour? every ounce of energy in our bodies to is not only murdering an innocent per- Mr. WELDON of Pennsylvania. If the the core and bone of our bodies.’’ In son in cold blood, but torturing them gentleman will yield further, abso- fact, if I have my way, we will have a for hours knowing you are going to kill lutely. As a matter of fact, as he vote this week, as my good friend and them anyway. Girls as young as six knows, last week, I believe it was on colleague knows, and that vote will be were raped repeatedly. I am reading Monday or Tuesday, I did a 45-minute on having this Congress go on record to from Readers Digest, the October issue. special order on Bosnia where I ex- say that we will give the theater com- In one case, three Moslem girls were pressed my outrage at portions of the mand officer in Bosnia with the Presi- chained to a fence, raped by Serbian President’s speech. The gentleman dent sending our troops there, General soldiers for 3 days, then drenched with from California just acknowledged the Joulwan, every resource, piece of gasoline and set on fire. atrocities that have occurred against equipment and support that he feels he Now, for all of my Serbian-American human beings, and what offended me needs to protect our troops. Secretary friends, and I have plenty, I know you most was when President Clinton went Perry said, ‘‘We do not need that. I will cringe at the sound of these atrocities, before the American people and made do that.’’ I said to the Secretary we and I know because you have got them the case of how kids and women have were told that three years ago, and be- in Pennsylvania as I do in California, been abused and tortured in ethnic cause the Secretary of Defense said the great Americans of Serbian heritage, cleansing. climate was not right, politically, in and they say, well, what about the In a bipartisan manner on this House Washington, he denied the support that atrocities committed following the floor, we have been saying that for 3 was requested of him by the command- battle of Kovoso, June 28, 1389, 606 years, and in bipartisan votes on three ing officer in charge of the Somalia years and 5 months ago. Yes, the Otto- separate occasions this body and the theater that led to not only the deaths man Turks committed atrocity after other body voted to have the adminis- of 18, actually 19, young Americans, atrocity. Then the Serbs began to give tration lift the arms embargo so that but had their bodies dragged through as good as they were taking it, and there at least would be a leveling of the the streets of Mogadishu. So we are then it became a three-way split with playing field so people could defend going to support the troops, and we are Catholic Croatians fighting orthodox themselves. All of those three times going to support them most emphati- Serbs, back and forth, Austria, the over the past 3 years, the administra- cally, because we are not going to let province of Styria, holding the line, tion failed to listen to us. this administration repeat Somalia. look at the big army in Groz, in Aus- But now, all of a sudden, they want Mr. DORNAN. Let me tell the audi- tria, it shows there, 400 or 500, half a to put American sons and daughters in ence here something, and the Speaker, millennium of defending Christendom between these warring factions. I because foreign affairs went first, and from Islamic warriors coming up from would say to my colleague from Cali- now named international relations, Istanbul. fornia, as he knows, I have developed they got most of the coverage that H 13980 CONGRESSIONAL RECORD — HOUSE December 5, 1995 night on C–SPAN. We went in the abreast in his new blue suit, he give it to him. And we will be watching afternoon. You sit to my immediate marched down the lawn of the White every request that comes over from left, to the senior position, going up to- House 50 feet or more to a General Joulwan, who has been given ward FLOYD SPENCER, our great chair- prepositioned mike. the responsibility to protect our troops man, and they wired the mikes all the b 1900 and give them the resources we need. way down to your mike for C–SPAN. And this Congress, and I know the gen- Remember, I said, I am not using my You know how he got this one? He tleman shares my feelings as chairman mike. I want to use your mike. I want meets with the division commander of of the Subcommittee on Military Per- the C–SPAN cameras to hear my voice the 1st Armored and all the officer sonnel and perhaps no one speaks more clearly, the sound on tape. They came corps division level of Old Ironsides, and eloquently for our men and women in up to me afterward and heard me lean he says, using infantry Fort Benning, the military than the gentleman, and over to you, when you asked the ques- GA words, gentleman, would you follow with the experience he has had and tion of Christopher, the Secretary of me for a second? And he turns his back with the background he has had, he is State, what about Somalia, and I on them for a second and says follow the perfect chairman of that sub- leaned to you, and I said, ‘‘We learned me, and walks down this driveway at committee, but that we will make sure our lesson in Somalia,’’ half a second their command headquarters in Ger- that we will not have a repeat of Soma- later Christopher said, ‘‘We learned our many. lia in this operation, even though the lessons in Somalia.’’ I went, ‘‘Oh, my Here is one of the White House people overwhelming majority of our col- gosh, yes, over the dead bodies of 19 that screwed up the Waco hearings, the leagues disagree with sending ground men.’’ gentleman from Massachusetts, PETER troops there in the first place. What have we learned in Vietnam, BLUTE, just recognized him, from Mr. DORNAN. Mr. Speaker, just one for God’s sake? What have we learned twisting all the Waco joint hearings thing, before the chairman goes, in- in Grenada, Panama; what did we learn here in the early summer; he starts fringing on his time again, because I in every single conflict? We are always walking down, he gets that look with have always found that a dialogue is learning from the immediate last prior his chin in the air, flexes his jaw mus- more interesting to watch only C– struggle. We learned the U.N. command cles, and poses just like he did in 1993. SPAN than a monologue, and I am structure is flawed. It is December, and I nominate this as going to give them one hell of a mono- What I am going to do with this the most offensive photo opportunity logue here in a minute, the gentleman patch of Old Ironsides is, on my blazer, using our military men and women and I both know one of the biggest mis- it looks funny on a suit, I am going to that I have seen this year. That is the conceptions, although the American make everybody else pay me three worst staged thing I have seen. But he people are beginning to understand if bucks, yours is free, because it is a does not say follow me all the way to you look at the polling data, that we House floor presentation. Bosnia, because he is on his way home are expending massive treasury in that Mr. WELDON of Pennsylvania. I will to be at the Kennedy Center last night. whole Balkans area. I am trying to tell pay you. He says follow me down this driveway people if you want to get down the de- Mr. DORNAN. No; no. to the camera, thank you for the photo bate, think of it in couplets. Sealift, 95 Mr. WELDON of Pennsylvania. Re- op, and enjoy your Christmas in the percent ours, and airlift, 95 percent member the gift ban. snow of Tuzla, 5 kilometers from the United States of America taxpayers. Mr. DORNAN. You pay me for the biggest chlorine plant in all of the 8 Sea power, the Adriatic. You notice cloisonne, $6. I am going to get a little provinces of former Yugoslavia that a that PAT SCHROEDER, bless her heart, cloisonne pins, regimental pins they Green Beret who is over there helping finally starts asking good questions wear up here for the First Armored Di- the Muslims told me, and nobody has after she announced her retirement. I vision. On my blazers, it looks good on contradicted it, one bomb or terrorist whispered to the gentleman they will a blue blazer with gray slacks, I am attack on that chlorine plant and poi- not answer this question, and they did going to sew this on my blazers for the son gas starts down the valley to not. We have the 6th fleet in the Med. next 11 months. Nobody is going to tell Tuzla, and it can kill everybody in We always have people up there. It is BOB DORNAN I do not support the town and every American man and steaming longer, they are costing more troops. You and I are going to probably woman in the whole area. I hope to God money at sea. The minute your put a take a codel over there after New we are going to secure that plant. carrier battle group out there, that is Year’s, maybe New Year’s Day. We can Mr. WELDON of Pennsylvania. If the another 6,000 men on top of everything arrive there as Clinton did in Moscow gentleman will yield, I just want to else. in 1969, New Year’s, to welcome in 1970. add, I agree, there is the worst admin- Mr. WELDON of Pennsylvania. Easy We are going to go over there and meet istration photo op I have seen. It of- 6,000, probably closer to 7,000. How these guys and tell them, ‘‘Gentle- fends me, not just a photo op like that, about air strikes that we provided? men,’’ and they are men and women; and I share my colleague’s feelings Mr. DORNAN. That is next. Sealift, we call them kids because we love the about that, but that we would in a case airlift, sea power, air power. Close air young guys and gals. They are men and of having our troops deployed overseas support. I was at Aviano August 30. I women. ever deny adequate backup and support am told again that the two French pi- Did you see this picture in the week- as requested by the on-scene com- lots, Frederique and Jose, are probably end papers of Clinton leading the mander. beaten to death, murdered, and they troops in Germany? Do you know what In the 9 years I have been here, that were known prisoners. I held up their he had to do to get this picture? The has only happened one time, and that pictures on the floor here the other most offensive picture, even worse than was in Somalia. We in the Congress did day. Captain Chiffot and Lieutenant the whole Joint Chiefs of Staff and our not find out about it until after it was Jose Savignon. late pal Les Aspin on the stage at Fort over. That led to the resignation of Les These two pilots, this is day 90 they McNair, to abuse SAM NUNN’s law, and Aspin, who was a good friend of both of are missing in action. If these were IKE SKELTON and us on homosexuals in ours. That is never going to happen American pilots, particularly if one the military, to twist it into ‘‘Don’t again. As I said to Secretary Perry and was a woman, that is the way Ameri- ask, don’t tell,’’ a confusing policy de- Christopher and General Shalikashvili, cans respond to a woman in trouble, signed to lose in the courts; he, worse this President, through his chain of Clinton would not be marching at this than that, Fort McNair, July 19, 1993, command, has put General Joulwan in photo op in front of the 1st Armored. was May 4, ending Operation. charge of that theater of operations. He would not be doing it if those were Hope, Restore Hope, in Somalia, end Mr. DORNAN. We helped to make American pilots. of George Bush’s operation, only three that happen. It is under NATO because Well, what are these Frenchmen, al- men killed in action on patrol, 27 more of us. lies of ours or not? They were flying to go, 19 on the third, fourth and sixth Mr. WELDON of Pennsylvania. What- under our command or control, our of October, he lined up 30 Marines, in- ever General Joulwan wants, this Con- AWACS, our airborne control centers, cluding about 8 lady Marines, lined gress and this administration better our combat control out of Aviano. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13981 They took off from Villaparte, maybe them. We are going to end this century offensive, that we never had a chance 10 more air minutes to fly over Aviano, in Sarajevo, well, the French get that, to play a role in this process, because and they are gone. They are lost. They Sarajevo or Tuzla, the way we began it the President committed the ground disappeared. And the war criminals in Sarajevo. troops long before any leader in the know where they are, because I have It is offensive to be blackmailed and Balkans decided they were going to got all their faces picteled out, so the be told by intelligent Europeans, a big- come to terms for a peace agreement. Serbs turned over the pictures to Perry ger population than we have, bigger Unfortunatley, young kids are going Match. So that is the first quadrant of gross domestic or area product than we to lose their lives over that. That is it. Sea power, air power, sea lift, air have, to be told unless you are, there, why you and I, as chairman of appro- lift. we are not going, and the raping of lit- priate defense subcommittees, have got Now, food. What are we? 80 percent? tle 6-year-old girls can continue. We to use every ounce of energy in our 70 percent? 90 again? Fuel, what are want you in the trenches. body to protect those kids. And we will we? 70, 80, 890 percent, supplied and Mr. WELDON of Pennsylvania. If the do that. transported there? gentleman will yield on that point, Mr. DORNAN. You know where the Now down to hospitals. I told you we that was the second major problem I Germans are going? Croatia. There is are going to go back to Zagreb. I hope had with President Clinton’s speech. no fighting in Croatia now around Za- to God there is never a person in there He said that those who oppose his pol- greb. They will live in Croatian mili- as badly wounded as BOB DOLE was just icy are isolationists. tary barracks and hard facilities be- a few kilometers across the Adriatic in Nothing could be further from the cause of their cozy relationship during mid-Italy. I hope we do not fill up the truth. He knows that this Congress has the Second World War. I am not going hospital in Zagreb. We have most of gone on record three times saying to to bring up the ghost of the Istasa, the the hospital supplies. lift the arms embargo over the past Coatian gestapo. They had their sins, The whole other range of logistics. three years. He knows that since Au- so did the Serbs under Tito. The Mus- You know I am on my 7th year that gust this Congress has gone on record lims were importing terrorism early NEWT extended me on Intelligence. We three times. The most recent vote gar- on, just like World War I, fiddling are 95 percent or more of the intel- nered 315 in favor, Democrats and Re- around with the terrorist groups in the ligence. We have the no-longer-secret publicans alike, saying do not send Middle East. Every side there has plen- unmanned aerial vehicles, that is under ground troops in. ty of guilt. my other subcommittee chairmanship, This Congress has said America But this is the German relationship. Technical and Tactical Intelligence. should not be asked to do it all alone. The German Embassy is in Zegreb, Cro- Our satellite architecture, which you When you add up the amount of troops atia, is the biggest one here. Here may are an expert on, that is ours. that you have just outlined, and you be the dreaded gray hand behind all of I mean air power, sea power, sealift, total in the ground troops, we are talk- this, the European Economic Commu- airlift, fuel, food, logistics. Here is the ing in excess of 50,000 American troops, nity. The EEC is interested in one other one. The war will spread. Cer- costing the taxpayers between $2 and $3 thing, bigger import into the United tainly not across the Adriatic. The 6th billion, that we are going to incur for States then we export to Europe. More Fleet is there. Will it go south into this Bosnian operation. Volkswagens and Mercedes and Volvos Greece? No, because we have got 500 The question that made me so upset coming in here than we are putting out men and women in Macedonia, a block- as I thought through this whole situa- there. They see this area as a trade area. ing action. What are they? Chopped tion, was why are the Germans only One thing I have said for 3 years, 4 liver? We have men on the ground hem- putting in 4,000 and why does the Bun- years, I told Bush, the Europeans are destag have to approve that before ming them in. dragging their feet and demanding we They are not going to blow through they can go? Why are the Italians put- put our people in danger on the ground Hungary. TOM LANTOS will stop that ting in 2,100, and why does the Italian because they simply do not want a and take over a CO–DEL and physically parliament have to approve that before Muslim State in the European area stand on the line to stop that. What are those 2,100 can go? Why are the Scan- west of the Ural Mountains. They do they going to do, charge into Romania dinavians only putting in a collective not want it. So now that we are down and Bulgaria? They are not going to total of 2,000, and certain of the Scan- to the place divided up, half of the vil- come through Croatia. They got their dinavian countries have said we will lages where atrocities took place going clock cleaned in the whole Krajina come, but you have to pay for our trav- the other way, Clinton said last week area, the old former Slavonia. Slovenia el, our food and our lodging? something that made my blood curdled is not going to let them come up there. Why are these other countries in Eu- again. They are begging to come into NATO. rope putting all of these conditions and He said ‘‘We have fought all these More than NATO, they want to be a providing so few troops, when America wars.’’ Not we. He wasn’t there when United States ally, just like Albania. is putting again 50,000 young American this country called him. And it is not Where are they going? Nowhere. In sons and daughters on the line. And the that he has to say you folks and get in other words, we are doing everything French, who I will admit are putting a Ross Perot problem. All he has to say except putting our men and women on 7,500 in, are the same French that de- is ‘‘America has fought these wars.’’ the ground in the toughest quadrant nied us access to their air space when A lot of people are calling my office around Tuzla in harm’s way. I think we wanted to go down to Libya to pay and saying ‘‘Are you going to impeach that I as a Member feel blackmailed, Quadafi back for the terrorism he him, Congressman DORNAN,’’ because I CURT, that when NATO says to me, and caused. The same people we are now read this on the floor? This is an arti- Senator MCCAIN repeated it this week- joining with, because they feel it is im- cle from Mr. Phil Merrill, in the Wall end, that NATO said they would not go portant for America to be there, denied Street Journal, November 14, it seems without us. us that air space. like a long time ago, 22 days ago, Vice President GORE said on the Let me just say that is what we are ‘‘Bosnia, we shouldn’t go,’’ Phillip Mer- show, the expanded Nightline, View- concerned about. And this President, rill, the former Assistant Secretary point, with Ted Koppel, well, look, we as he usually does, twists that around General of NATO. had to go over there in World War I. and convolutes it to say we are isola- The new Secretary General of NATO My dad was wounded three times. We tionists who do not care about human is a former Spanish communist who had to go in World War II. rights abuses. It is outrageous. fought to keep Spain out of NATO. CURT, do you like to go in European The real mistake here was when this Suddenly he has been picked to be the museums? Have you ever seen so much President 3 years ago opened his mouth head of NATO, and he is Clinton’s can- culture in your life, from Greece to the and said, ‘‘If need be, I will put Amer- didate. I read this on the floor 3 weeks British Parliament? These people we ican ground troops on the ground for a ago. These are former Deputy Sec- are told they are incapable of not slit- peace agreement.’’ Long before the ne- retary General Phillip Merrill’s words. ting one another’s throats unless they gotiations began we all knew that was ‘‘It is very doubtful that the Balkans have Americans standing between a given. That is what we all found so can sustain a multi-ethnic society of H 13982 CONGRESSIONAL RECORD — HOUSE December 5, 1995 the kind envisioned by Clinton. The flareups occur, these inherently con- the choice is now, before we enter this U.S. has no strategic stake in this fight flicting policies will leave us powerless war and before American blood is shed. and cannot and should not be the mili- in the end to act effectively, even if we If he sends them in without a con- tary arbiter. Our policy seems to be,’’ do not have any casualties, which I gressional approval, which the gen- and I wish Mr. Speaker, Americans pray to God we will not. I do not want tleman from Pennsylvania, Mr. would memorize this, ‘‘to simulta- one first armored division, Old Iron- WELDON, Chairman WELDON, just said neously threaten the Serbs from the sides, same name as that great naval the French have to do and the Germans air. The Aviano-Villaparte-Brindisi air ship of the line that still is a commis- have to do—by the way, the most for- threat is still there. You do something sioned naval fighting vehicle up there eign ownership of property in this wrong, we tear you up from the air.’’ in Boston Harbor that they take out country is British. The mother coun- Two: Now we are going to act as and turn around every six months so try. It makes some sense. Guess who is peacekeepers on the ground. the sun bakes both sides equally. That right up there with the Japanese. I Three, we are going to train the Cro- Old Ironsides is where this armored di- think they own more property. The atian Army. We have been doing that. vision—actually, it is Patton’s tank Netherlands. The Dutch. Holland. The I witnessed it in August. We are going battalion from World War I, that my Netherlands, where in the Hague, in to arm the Bosnian military. dad tried to get into because he was an their capital, Richard Goldstone, the When Ted Koppel on the aforemen- automobile man from New York City distinguished justice of South Africa, tioned Friday or Thursday show last and did not make it. This is the out- is conducting the war crimes tribunal. week said ‘‘how are we going to do growth. Our very first armored division The Netherlands are sending 180 that, Mr. Vice President,’’ he seemed commissioned before World War II troops only, and their parliament will have to approve their going. No air- very uncomfortable, Mr. GORE, and he grew out of the prophetic statements of craft will be flying in harm’s way over said ‘‘Well, with third parties.’’ And he General George S. Patton of what the SAM sites along the Danube, being said ‘‘Well, who would those be?’’ And would happen in the next war with tracked by radar sites from inside there was this long uncomfortable armor. Melosevic’s Serbia proper. Now, here is the way Merrell closed, pause, and he said contractors. Here is the map, Mr. Speaker. It is Contractors. Like Vernell? Are we and I read it on the floor, so a lot of not classified. I swear in the next Con- going back to RMKBRW, the big huge people across America say BOB DORNAN gress, if we get a freshman class as big conglomerate that LBJ built out of is the man to carry the articles of im- and as aggressive as this, I will get you Texas and Idaho and other firms, to peachment against Clinton. I read to sign on a letter for me, Mr. Speaker, put in 20 10,000 foot runway bases and a these words of Ambassador Phillip where we can have, within reason, with couple of parallel 13,000 runway bases Merrell. To endorse the President’s pol- tightly written rules, a Congress man at Bien Hoa and Cam Ranh Bay so he icy comes close to an act of murder of or woman on this floor saying I would could come in in a 747 to visit with the young Americans, who have sworn alle- like the camera to come in, with your troops? giance to our country but who will best lenses, and I will hold it steady, b 1915 serve and die under circumstances that we would have it on a tripod, and come will neither advance U.S. interests nor Mr. Speaker, I am hearing all of the in and cover this map frame-to-frame the cause of freedom. on the camera, like I used to do on my Vietnam doublespeak, all the McNa- Certainly not if we are going to fail mara crazy rationalizations, and this Emmy award winning television show to arrest the war criminals guilty of 27 years ago. time one of my staffers said to me, BOB astrocities and invite the big kahuna Here is the footprint of the Dayton DORNAN, isn’t this your dream when war criminal Milosevic to Dayton. line. They are going to get the Cro- you were 31 years old, after the Tonkin When the American body bags start atians to give back this huge chunk of Gulf, that you wished you were in Con- coming home, it will be a political dis- yellow territory. This is Croatia, the gress as a forceful articulate voice to aster for those who did not oppose beige, and this big chunk of yellow was stop men dying? You thought it would sending troops to Bosnia. What does where the Croatians, with American be a couple thousand, turned out to be that mean; that Senator BOB DOLE, training, cleaned the clock of the Ser- 58,000 plus, and 8 women engraved on who at this point in time has a per- bians along the Krajina area. that wall down there, and friends of centage lock on the Republican nomi- Krajina is Serb-Croat language for mine, like David Hrdlicka left alive be- nation to challenge Clinton, does it border. That is all it means, the bor- hind in Laos, Charlie Shelton, Eugene mean that Clinton is doomed; that he ders. The fighting of the vicious border Deburen. will add to the two Democratic Presi- line between the vicious Ottoman em- No. I am here now, and I want to see dents who have gotten a second con- pire, the corrupt killers, and the equal if I cannot do what I thought I could do secutive term since Andy Jackson, killing vengeance forces developed as a young man if I had only come to when he got his second term in the from Austria all along this area. Hun- the Congress, which was 10 years ahead election of 1832? Only Roosevelt and garian knights. Croatian knights. Re- of the curve in those days. Woodrow Wilson have gotten a second member, we got our neckties from Cro- So after we threaten the Serbs from consecutive term, so that means Clin- atia. When they rode with Napoleon, he the air, act as peacekeepers on the ton does not get a second term? Maybe loved it that they put their cravats on ground in the toughest quadrant of all, he can make a comeback in the year their lances and their scarves from around Tuzla, train the Croatian army, 2000 like Grover Cleveland, another their women around their wrists or arm the Bosnian military, then we are Democrat. Separated terms. their throats. And that was the begin- going to make sure that the Dayton Does that mean that DOLE does not ning of neckties, Croatian forces fight- peace negotiations are implemented, win? What does it mean; that Ross ing with Napoleon. and then we are not going to go out of Perot is going to be emboldened; that Now, Mr. Speaker, here, what used to our way to seek out or hunt down, like United We Stand America will grow look like a country that was shaped a good tough Simon Wiesenthal, these into the major party and eclipse the like an arrowhead, the penetration of people that sanctioned the raping of other two; because hearing the haunt- the Islamic Ottoman arrowhead into children and the burning alive of ing twang of Alabama’s George Wal- the belly of Europe, an arrowhead women who had been desecrated, hang- lace, there is not a dime’s worth of dif- shape, it now looks like a very sick ing on a fence for days. No, we will not ference between the two of them; that amoeba with some big tumors on it hunt them down, and we are going to the Senate votes a resolution to sup- from the Bihac pocket all the way try not to bump into them, but if we port and the House goes impotent and down past beautiful Dubrovnik, which I find them in the room with us, we will silent, neutered, we do not do any- visited in 1972 and thought it was a arrest them, these 53 Serbian and 3 thing? dream village, and then the Serbs Croatian war criminals. He says should President Clinton pounded the blazes out of it and burned Now, as Mr. Merrell continued, any send American troops into Bosnia down monasteries that were 500 and 600 one of these policies is defensible. without congressional approval, he years old, and here they had survived Taken together they are incoherent. As should be impeached. The time to face both the world wars of this period. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13983 Here is Montenegro. I met with one not. Clinton is going to pray, and I will b 1930 of the freedom fighters from there 3 be praying right along with him, that Kill that Buddhist monk. And then weeks ago. They want to break away not a single man or woman from Old they asked later, ‘‘What was that Bud- from Serbia. Here is the blown-up map Ironsides is hurt, and that he will be dhist monk saying?’’ And he was say- of the city, with neighborhoods cut in back in time for the election. He will ing, ‘‘Please, please, please, help me. two, just like Clinton visited Belfast hope that Haiti does not explode. So I Please don’t hurt me. I’m a man of reli- for the first time. I have been there want to put in the words of General gion.’’ And they murdered him. nine times. Shot in the back with a McKenzie and Colonel Stewart. That is what happens when you tell rubber bullet the week after Bloody Mr. Speaker, here is the paper from troops loose rules of engagement. Sunday in February 1972. I have walked over the weekend, that same photo-op. Again, nice man; wrong man for this I was at Normandy watching young along the Shankle. I have been in job: Warren Christopher, saying we soldiers shake Clinton’s hand. After- Derry. Not Londonderry, but Derry. I learned our lesson from Somalia. I am ward, I said do you like this guy? They understand what it is like when a going to ask permission to put in this said, no, he beat it out of the service. neighborhood builds corrugated steel Reader’s Digest article. That is Octo- He did not serve. We love Reagan. But, walls and people hate each other from ber. I understand the November issue is apartment building to building. hey, he is the President. I want to send a picture home to my mom. I want to just as bloodcurdling. There are 100,000 people demonstrat- I am lucky enough to have on my say I shook the President of the United ing in Sarajevo saying they will not ac- staff one of the greatest young authors cept the Dayton map lines through this States’ hand. He is the Commander-In- Chief. Meanwhile, Tom Brokaw was to come out of the Vietnam conflict, Al city of Sarajevo. Here is Pale, the Serb Santoli. He is masterful with oral his- capital, just a hop, skip, and jump over saying these GI’s love him. They cannot get enough of him. tory. Here is a chapter from his book, the Igman Mountain area into the Well, here is something. This is why ‘‘Leading the Way: Lessons Learned.’’ area. That is where the French pilots he loves these photo-ops. These GI’s About real leaders. were shot down in the Mirage 2,000. are so good, they will do their best to He interviewed Schwarzkopf and Pale. Probably beaten to death and make him look good in spite of him- Colin Powell for this book. Here is murdered by Serbs. That is a war self. The troops saved their most en- First Sergeant Anthony McPike, Saudi crime, to kill a prisoner of war. They thusiastic response. Roars of hoo-ah for Arabia, 1990 to 1991. Tank leader, C both had leg damage. In the pictures I Clinton’s description of rules of en- Company, first tank battalion. I think showed last week on the floor we could gagement. Now, this is dangerous, Mr. they did have Abrams tanks, but it is see they were being held up. Again, the Speaker. That will allow them to pro- Marines. First marine division. camera could not come in close. Trust tect themselves against perceived He says, ‘‘In one incident,’’ the first me, I will change that. threats. sergeant says, Sergeant McPike, ‘‘I was Now we have the Postojna corridor. We are coming to Clinton’s exact on road security. There were two cap- Then this chloride plant. The biggest words. Their orders, Clinton said, spell tains, a warrant officer, gunny, a mas- in all of the eight provinces of Yugo- out the most important rule of all in ter sergeant and me. We found some slavia. That means the Hungarian big bold letters. If you are threatened enemy prisoners of war who surren- province, Vojvodina; Kosovo, which is with attack, you may respond imme- dered. These two captains did one of 90 percent Albanian, although attached diately and with decisive force. Every- the stupidist things I have ever seen. to Serbia. Those were the two autono- one should know that when America Without even securing the area, one mous regions. Serbia makes three; comes to help make the peace, America captain tried to order some troops that Bosnia-Herzegovina, four; Croatia, five; will look after its own. In his speech a were flanking outside the POWs’’ Montenegro, six; Macedonia, seven; and week ago last night he said we will which they were doing correctly, but Serbia itself eight. Those are the eight meet fire with fire and then some. the captain grabs a rifle and runs areas. Mr. Speaker, this is what costs men’s across the field. He did not even know This was the biggest plant, and it is lives. We cannot tell the youngest what was in front of him. ‘‘Myself, and just a few miles from Tuzla. Right troopers in this armored division, with the other first sergeant saw that, we there, Ruckevach. That is where it is their tanks all locked up in a tank shook our heads. We went back to the that can kill everybody in that area, if park, or left behind in Germany be- Humvees and just sat there.’’ somebody decides to hit that with a cause they cannot get across some of It is nice to have sergeants that un- missile from Serbia. So, hopefully, we those bridges in that area with a 70-ton derstand combat to keep some rather will secure that plant. I will go over M–1 Abrams tank, to tell young people aggressive young officers in check. there around New Year’s and make that if you perceive a threat, fire. It is ‘‘Something else that I felt impor- sure we do. not going to work. tant to keep in check was that a lot of So there is the Dayton line. They This division commander, and I am troops wanted to open fire. The first have built a corridor out to Gorazde. going to go visit with him before we sergeant and I talked to a lot of them. We have written off Srebrenica. I have have somebody killed over there, or a We said, ‘Y’all don’t understand. The just found out it meant silver. That woman shot at night, or a child shot, minute you pull that trigger and kill was a big silver plant contracted by the or somebody trying to come over to somebody, your life is changed forever. Germans. The Venetians had it first. our camp for food shot at night by That’s a feeling you’ll never get rid All of this area, what Churchill called some nervous GI who watched his of.’ ’’ To kill a human being. the tinderbox of Europe, and the Euro- friends step on a mine the day before. ‘‘ ‘You might think it’s funny now, peans cannot solve that problem them- Remember that Lieutenant Calley, who but it’s not. You might take the life of selves. should have been shot for what he did another human being that is not even Mr. Speaker, this is the script, the to the U.S. Army and to his unit and to offering a threat to you. I can under- written text, of Steve Kroft on 60 Min- his men? Remember what Calley’s unit stand if a man is running at you with utes, a piece entitled ‘‘Over There’’, the did? They had not been in serious fight- his weapon blazing or with a fixed bay- song from my dad’s period, interview- er fights, having their men shot up onet. But if he’s standing there with ing two people who worked hard over with AK–47’s. They had been stepping his hands on top of his head, don’t tell there, Lieutenant Colonel Bob Stewart, on land mines for months, an unseen me you are just going to take him the British commander, and Canadian enemy. Men screaming, their private out.’ ’’ General Louis McKenzie, a great sports parts and their legs all shredded. That ‘‘They said, ‘Hell, Top, he’s the car driver, I might add, with a love for is what built up in the tension where enemy.’ ’’ These are Marines now, Mr. MG sports cars, as this Congressman suddenly he could turn to people like Speaker. ‘‘I said, ‘That’s right. But has, and I passed it on to my son. Paul Meadlow, who told him get lost, you’ve got to realize that enemy Here are the words of General Lieutenant, and walked away, a real should be treated humanely. You are McKenzie and Colonel Stewart saying hero, but told other people, kill that an American fighter. You are not a you will be in there for 30 years, just little boy over there throwing his leg paid killer. How about if somebody did like Cyprus. And I thought, no, we will over his brother. that to your child?’ ’’ H 13984 CONGRESSIONAL RECORD — HOUSE December 5, 1995 ‘‘They said, ‘Wow, Top, we didn’t We are talking about saving lives. Army invaded Croatia ostensibly to think of it like that.’ ’’ Then here is the House Republican protect its Serbian minority. The Serbs ‘‘In Saudi Arabia, a chaplain gave us Conference issue brief. ‘‘Bosnia: Ques- agreed to a cease-fire. The United Na- a class on combat leadership. I think tioning the Clinton Plan, But Support- tions sent in a 14,000 member that this class should be mandatory. ing Our Troops.’’ The reason, again, UNPROFOR [U.N. Protection Force] to He said, ‘There is a fine line between Mr. Speaker, and you will be there, build a new nation. reality and fantasy. Once you cross that I want this conference, unless you The mission has since mushroomed that line, all the psychiatrists in the are on the floor in the chair, that I to more than 40,000 personnel. I was all world will do nothing but get wealthy want this conference tomorrow, is that over their headquarters like a cheap on you.’ ’’ we have got to decide how we draw a suit meeting with Yasushi Akashi. It ‘‘Under the stress of combat, anyone line. Do we support the troops, all became the most expensive and exten- can cross that [psychological] line 50,000-plus of them in the Adriatic, in sive peacekeeping operation ever. After without realizing it . . . If that young the skies flying air patrols out of neighboring Bosnia declared its inde- man is allowed to mess up, you defeat Aviano, and everybody on the ground? pendence in March of 1992, the Serbs yourself. Because it affects the whole The first armored and all the troops. launched a savage campaign of ethnic platoon. And once a leader loses the re- We support them. We want to keep cleansing against the Moslems and spect of his troops, he’ll never get it them safe, but we disagree with this Croats, who made up 61 percent of the back.’’ policy, even though the division com- population. Rapidly, the Serbs gained God forbid we kill some innocent manders are gung-ho to go. The young control of two-thirds of Bosnia. Moslems, innocent Serbs, or innocent privates that I saw, except for a few Bosnian Serbs swept into Moslem and Croatians in this Tuzla hot area soon sergeants who do not want to leave Croatian villages, 3,800, and engaged in to be under heavy snow cover in an- their little, tiny children at Christmas- Europe’s worst atrocities since the other terrible, pneumonia-producing time. Those holidays, it is only about Nazi Holocaust. Serbian thugs raped at Balkan winter. Because if we get some from the second birthday to the tenth least 20,000 women. young trooper that kills some innocent where Christmas is a dazzling event. I will skip ahead of this. The 6-year- people and the Army decides to court- We only get eight of those from God olds. The Serbian women hung on the martial him, you know what he is with each individual child, and we miss fence drenched with gasoline and set on going to say? He is going to say that he one, that is one-eighth of a great heart- fire alive. was in Germany in the first week of tugging memory gone. Then we try to While this was happening, the December in 1995, and he heard Mr. look at the shaky video that our young UNPROFOR troops stood by and did Clinton, who managed to avoid service wife took of the kids. nothing to help. Designated military and have his draft induction date of Mr. Speaker, how much time do I observers counted artillery shells and July 28, 1969 politically reversed and have left? the dead. Meanwhile, evidence began to suppressed, he will say, ‘‘Here the The SPEAKER pro tempore (Mr. accumulate that there was a serious president’s words were: The most im- TAYLOR of North Carolina). The gen- corruption problem, like Cambodia. portant rule of all, in big bold letters, tleman has 4 minutes left. Accounting procedures were so loose if you are threatened with an attack, Mr. DORNAN. Mr. Speaker, let me that the U.N. overpaid $1.8 million on a you may respond immediately, even if read this segment on Bosnia. If I run $21 million fuel contract. you perceive it to be a threat.’’ out of time, I ask for unanimous con- Kenyan peacekeepers stole 25,000 gal- These are the wrong rules of engage- sent to put it in the RECORD. lons of gas worth $100,000; sold it to the ment for peacekeepers. But then the This is Readers Digest from Dale Van Serb aggressors. Corruption charges first armored division was trained to Atta. I know Dale. He is a good re- routinely dismissed as unimportant by take on the best Russia could throw at porter. This is not an excerpted article U.N. Officials. Sylvana Foa, F–O–A, us in the Fulda Gap to save Europe from a news magazine. This is commis- then spokesperson for the U.N. Human with American lives for a half century sioned by Readers Digest and it is Rights Commission in Geneva said, ‘‘It after the Nuremberg trials, which about the United Nations. And I have was no surprise,’’ get this quote, ‘‘that started two weeks ago 50 years ago. always avoided beating up on the Unit- out of 14,000 pimply 18–year–old kids, a Here is a letter from IKE SKELTON, to ed Nations, because we have had some bunch of them should get up to hanky- show that this is bipartisan angst here good Americans serve up there. But panky.’’ against what Clinton is doing. He this is the most unregulated, finan- That sounds like some good old boy, writes to Secretary Perry, ‘‘If the U.S. cially unaccounted for group in the his- not a woman. Like black market deal- Department of State insists on arming tory of civilization. It has dictator- ings and going to brothels. When re- and training the Croat-Moslem federa- ships in there. Castro is in there. These ports persisted, the United Nations fi- tion, will an American guarantee and people submit bills. Nobody ever audits nally investigated. November 1993, a coordination of the effort, as testified them. They are all overpaid. Boutros month after Mogadishu, a special com- by Secretary Christopher yesterday, Boutros-Ghali makes $344,000 tax-free a mission confirmed that some terrible will the 20,000 American soldiers in the year, double the President, if we in- but limited mistakes had occurred. Bosnia-Herzegovina region be fore- clude that Chelsea Clinton does not get Four Kenyans and 19 Ukrainian sol- warned of this additional security risk? $12,675 a year tax free. diers were dismissed from the U.N. Will they be informed of the possibility It is outrageous, the corruption at force. of vengeful acts by Serbs or of hos- the United Nations, and these are the The commission found no wrong- tilities from Moslems expecting, but people that Clinton wanted our troops doing. I will continue this tomorrow, denied, favorable treatment? This is a under. We beat his brains out in this and point out that the Russian com- major security issue.’’ House. Is that is why they are under mander, Mr. Speaker, is the man re- He has two sons on active duty, General Joulwan instead of some U.N. sponsible for the atrocities in Army officers. ‘‘I urge the Department command? Implementation force Chechnya, he is going to be in our zone of Defense to issue memoranda to each sounds like one of these U.N. names, commanding a brigade, a battalion of soldier to be on extra alert as this but it is not. 800 Russian troops. What a massive State Department policy will put them The section on Cambodia I may read problem to dump into the arms of our at higher risk.’’ tomorrow night, and then Rwanda and fine young American officers and men I would like to put in the RECORD, then Somalia, and then I will get the who are eager to please. Mr. Speaker, a background paper from November issue. But I will trail off The State Department announced today, the Heritage Foundation that I think reading until my time runs out on that one way or another, the Bosnian peace is great, questioning the Bosnia peace Bosnia. talks, currently going on in Dayton, Ohio, plan. I want these questions asked and June 1991, Croatia declared its inde- will come to a close tomorrow. If that sounds like an ultimatum, it is. answered in print. If it is too expen- pendence. I had just left there a few For 19 days, the Chief U.S. negotiator, sive, I will get permission on the House weeks before. Was recognized by the Richard Holbrook, has literally forced the floor tomorrow to put it in. U.N. Serbia-dominated Yugoslavian three warring factions to negotiate a peace December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13985 treaty to end the war. If the talks fail, pre- Can these parties be trusted to keep a Lt. Colonel Bob Stewart: If you act at all, sumably that’s it. If the talks succeed, Presi- peace agreement? you’ll lose your impartiality. I’ll give you an dent Clinton has pledged to send 20,000 U.S. General Louis McKenzie: No, they can’t be example: When I was there, our blood . .. troops over there, as part of a NATO force to trusted. There is a history of lying. It de- Steve Kroft: Colonel Stewart told us his keep the peace; actually, most of them are pends what their agenda is. And their agenda Battalion ran into a situation where it had already over there, stationed in Germany, is—it’s not predictable, and it changes. some surplus blood. Rather than throw it waiting to be told what to do next. Steve Kroft: We can’t trust any of these away, they decided to give it to the local As the talks near to climax, we wanted to people? hospital. find out what American soldiers could be Lt. Colonel Bob Stewart: No, that’s a per- Lt. Colonel Bob Stewart: Now, that’s a getting into. In a quarter of the world few fect—perfect way to describe it. If you want pretty neutral thing to do, you would imag- Americans knew much about, until the a philosophy, don’t trust them til they prove ine. No. The next thing I had was the local Serbs, the Croats and the Bosnian Muslims their actions on the ground. Bosnian Croat commanders and also the started killing each other. No one know that Steve Kroft: Unlike the U.N. forces, Amer- mayor of the town, complaining like hell, better than the two men you’re about to ican troops training for deployment in the that I had given our blood to a hospital that meet. former Yugoslavia, will not be peacekeepers. was predominantly Muslim. So, in reality, in Their job will be to enforce the agreement, order to act at all, you should somehow get 60 MINUTES and if necessary, punish violators. They’ll a third of the blood supply to Bosnia Croats, ‘‘OVER THERE’’ have to insert themselves between warring Bosnia Muslims, and Bosnian Serbs. Steve Kroft: Canadian General Louis armies, and assist in the treacherous job of General Louis McKenzie: I have never run McKenzie and British Lieutenant Colonel moving people in and out of areas, that the up against that problem in any other mis- Bob Stewart, who we met in London, have agreement decrees will be set aside for sion area. Through Central America, the both commanded peacekeeping troops in Croats, Muslims and Serbs. And not every- Middle East, Vietnam, etcetera, where even Bosnia for the United Nations. And the U.S. thing will be spelled out in the manual. talking to one side during the negotiation military thought enough of their experience General Louis McKenzie: They will be de- process is seen as collaboration by the other to have them give advice to American offi- livering babies, they’ll be delivering food, side. cers who might serve in Bosnia. In 1992, they’ll be moving families, they’ll be evacu- Steve Kroft: So, it’s possible then, in our Stewart led a battalion of British troops re- ating burning hospitals, they will be doing function there, that we could end up with ev- sponsible for delivering humanitarian aid. all kinds of things that aren’t within their eryone against us. Colonel Bob Stewart: ‘‘You know, it’s not a terms of reference, because they’re going to Lt. Colonel Bob Stewart: Well, that would question about me not getting through, it’s a be the only game in town. be perfect. question of whether I—how much damage I Steve Kroft: The situation is fraught with General Louis McKenzie: Yeah. Like the do.’’ peril for the Americans. It was the Duke of General said, ‘‘That would be perfect . . .’’ Steve Kroft: He knows what it’s like to Wellington who said, ‘‘Big countries Lt. Colonel Bob Stewart: Then you’re neu- lose friends, and to witness atrocities. shouldn’t involve themselves in small wars.’’ tral. Lt. Colonel Bob Stewart: ‘‘But no man can The United States would be risking its mili- General Louis McKenzie: If you can get ev- kill a child . . . and a woman like this.’’ tary credibility in a situation, General erybody to just dislike you equally, then Interpreter: ‘‘They died because they’re McKenzie believes, isn’t worth it. you—you’re on the right track. Muslims.’’ General Louis McKenzie: In Bosnia, every Steve Kroft: They aren’t laughing because Stever Kroft: When we talked to him in side there wants America on their side. For- it’s funny. It’s called gallows humor. London this weekend, both he and General get about NATO for a second; they want To make sure American soldiers aren’t put McKenzie told us the Americans have to be America on their side. And to target Amer- in indefensible positions, they would bring prepared to take casualties. ican soldiers and make it look like one of the with them, massive fire power . . . Some of Lt. Colonel Bob Stewart: My soldiers were other two sides is doing it, is extremely easy. that firepower, was on display a few weeks shot up by all three sides. You mustn’t just You can hire somebody across the line, in ago, during live fire exercises in Germany. deploy soldiers into the middle of a war zone, the other ethnic group to fire at American And the Pentagon is promised that Amer- and think it’s just like someone escorting a soldiers. And America, historically, has re- ican troops would be able to use that fire- kid to school in the morning. I’m quite sure acted very forcefully to that, and will go power. If attacked, they would be able to re- the American military are fully aware of after the side that they think is targeting spond decisively and immediately. that. them. And that is the beginning of a slippery The Secretary of Defense, Perry, says we Steve Kroft: General Louis McKenzie was slope. So, I think that American soldiers will are going to be the meanest dog on the the first UN Commander in Sarajevo, back in be subjected, to a degree of risk out of all block. Is that—is that what’s needed? 1922; a Veteran of nine peace-keeping mis- proportion, to any other nation represented Lt. Colonel Bob Stewart: Well, I could be sions in places like Gaza, Cyprus and Viet- in the NATO force. quite crude and answer that, ‘‘you can be the nam. But nothing prepared him for the Lt. Colonel Bob Stewart: These guys are meanest dog in the block, but when some- former Yugoslavia. out of control. That’s clear. People on the one’s got you between—between their legs, General Louis McKenzie: There is a level ground don’t give a damn. They’re in a posi- you howl like hell. Surely, weren’t the of—of hatred that certainly, I have never tion; they’re bored. They might just take pot American troops, the meanest dog in the seen before in any other theater of oper- shots because they feel like it. No one is block in Vietnam. I don’t wish to say there’s ations. going to bring them to book for it. I haven’t a—some kind of parallel here, but you’re not Steve Kroft: McKenzie’s opinions on poten- heard of anyone being brought to task by necessarily fighting a war that’s a standard tial U.S. involvement there have been solic- their own side. There are no rules of engage- conventional war in Bosnia. You’re not ited by two U.S. congressional committees. ment. We talked ages and ages about rules of meant to be fighting. In a way, you’re meant His most recent appearance was before the engagement. There are no rules of engage- to be in between. And in between, standing House National Security Committee last ment for them. And there’s no comeback there, trying to get peace, is dangerous, and month. when they fire. people get hurt. You told the House committee, not too Steve Kroft: The NATO troops are expected General Louis McKenzie: I’m not sure that long ago, that you didn’t think the United to remain impartial. But that won’t be easy. the meanest dog in the block is the right States Government should get involved mili- The American military knows it already has analogy; maybe a seeing eye dog. Maybe a tarily in Bosnia. Do you still feel that way? enemies in Bosnia; the Serbs, for example. seeing eye dog could help these folks, be- General Louis McKenzie: Yes, I do. From a Steve Kroft: Last summer, NATO war- cause they’re the ones that have to make the military—I—I have to emphasize, from a planes, mostly American war planes, peace and keep the peace. It’s not—you military point of view, they didn’t invite me pounded Bosnian Serb military positions, can’t—you can’t impose peace more than you down there to give them political advice; and inflicted heavy damage. can impose morality. You can’t kill people they had plenty of folks doing that. And I ap- Lt. Colonel Bob Stewart: How many Bosnia to make peace. It just doesn’t work very preciated that they’d painted themselves Serbs, sons, brothers and husbands, were well. into a corner politically. And I think they killed? And how many children, women? But Steve Kroft: What you need in Bosnia, were gonna have to get involved. But from a sure as hell, someone at the far end has lost General McKenzie says, is patience; lots of soldier’s point of view, I said, ‘‘don’t touch it someone. Someone’s got a grudge. And that patients; and realistic expectations about with a ten-foot pole.’’ person will not be under control necessarily, the prospects for long-term peace in the Bal- Steve Kroft: If there’s an agreement signed when Americans go in. kans. in Dayton between the warring parties, it Steve Kroft: Is that realistic, to expect General Louis McKenzie: I don’t think I will be a triumph of politics and diplomacy. that the—that the United States can go in was exaggerating when I said three or four But General McKenzie and Colonel Stewart there and be a neutral force? years ago, if Americans gets involved in this both caution against euphoria. They say General Louis McKenzie: On the first day particular game, maybe they should start what’s going on in Dayton is the easy part. you arrive, you could well be impartial. But training their grandchildren as peace- The hard part will be making it work on the on the first evening of the first day that you keepers. Because this—I mean, we’ve been in ground. General McKenzie says he nego- arrive, and one side targets you, Corporal Cyprus for over 30 years now, on a U.N. mis- tiated nine different cease fires in Sarajevo, Jones and Lieutenant Smith are probably sion, and I—it won’t surprise me if we’re in and was delighted if they held for 24 hours. not going to be terribly impartial. Bosnia for over 30 years. H 13986 CONGRESSIONAL RECORD — HOUSE December 5, 1995

Steve Kroft: President Clinton said this is BOSNIA: QUESTIONING THE CLINTON dom of the President’s decision to send U.S. a gonna be one-year commitment. PLAN ...BUT SUPPORTING OUR TROOPS! forces to Bosnia, we understand that it is a General Louis McKenzie: Everyone—every- Republicans don’t question the President’s foregone conclusion that they will go. In- one agrees that that’s for domestic consump- authority, as Commander-and-Chief, to send deed, close to 1,500 troops have already begun tion. It’s just no way you’re gonna be out of U.S. troops to Bosnia. We do question his to arrive in the former Yugoslavia. There there in one year. judgment. For an operation that will place should be no doubt that Republicans will un- Steve Kroft: So, you’re saying that you be- American lives at risk, the ‘‘Clinton Plan’’ conditionally support our troops once they lieve that there will be United States troops for Bosnia is fraught with difficult-to-swal- are in Bosnia. We will make sure our troops in Bosnia taking casualties, during a Presi- low Administration ‘‘assurances’’ and too have every resource available and as much dential Election? many unanswered questions. However, as leeway as they feel they need to defend General Louis McKenzie: I—I hope there much as we may disagree with the Presi- themselves should they be attacked. Again, are no casualties. But I believe there will—if dent’s decision, there should be no mistake there should be no mistake: Republicans will you go in, in the near future, there will be that Republicans will strongly support our support our troops in Bosnia and we will con- United States troops in Bosnia during the— troops once they are on the ground. tinue to work to ensure their safety through- the Presidential Election, and another Presi- The Process—The President’s promise to out this mission. dential Election, and another Presidential send 25,000 U.S. ground forces to Bosnia was f Election. made in an ill-conceived and off-hand re- Steve Kroft: Do you agree? mark more than two years ago. It became a NATIONAL HEALTH CARE: WE Lt. Colonel Bob Stewart: Absolutely. commitment in search of a mission. Clinton SHOULD NOT SURRENDER THE Steve Kroft: Is it a mistake to say that made this promise without gaining the sup- DREAM you’re gonna be out in a year? port of the American people and before consulting Congress. As a result, both Congress The SPEAKER pro tempore. Under Lt. Colonel Bob Stewart: Well, I don’t the Speaker’s announced policy of May think it’s a mistake, but I don’t think any— and the American people have been shutout any—I think it’s rather foolish statement of the process that now involves sending 12, 1995, the gentleman from New York to—to say, that—there is a time limit. Be- American men and women to Bosnia. This [Mr. OWENS] is recognized for 60 min- cause I don’t think you can actually nec- problem is highlighted by the numerous polls utes as the designee of the minority essarily put a time limit on something, when indicating close to 60 percent of Americans leader. we don’t even understand—we don’t even continue to disapprove of the Clinton plan to Mr. OWENS. Mr. Speaker, we have 10 know what’s going to happen there tomor- send U.S. troops to Bosnia. days left on our countdown until the row. U.S. Troops As Targets—There are inherent problems with using American soldiers budget deal is made. Ten days left, and Steve Kroft: President Clinton and his it appears certain that there will be State department have heard these dire as- as ‘‘peacekeepers.’’ As Washington Post Col- sessments before. Some have even come from umnist Charles Krauthammer has written, some great disappointments among a American military officers. But the Presi- ‘‘If you are unhappy with the imposed peace, majority of the American people. The dent and his Administration are taking their there is nothing like blowing up 241 Marines majority will be swindled by this budg- cues from history; and their belief that an or killing 18 U.S. Army Rangers to make et deal, but I am here tonight to send abdication of responsibility in Europe, could your point.’’ The lessons of Beirut and Soma- a message that we should not be dis- destroy the NATO alliance, and weaken lia are simple—when the United States, the world’s only remaining superpower, sends couraged. America’s position in the world. And even The budget deal that is going to be former military commanders, who have troops to unstable regions of the world, they immediately become targets for those seek- made is not a surrender, it is a retreat. spent time on the ground in Bosnia, believe It is temporary. The dream and the vi- that argument has some merit. ing either attention for their cause or ret- General Louis McKenzie: With all due re- ribution for past events, such as NATO-led sion of the American people to have a spect to NATO—and I served nine years in bombings. better society, a society which makes Can U.S. Peacekeepers Remain Neutral?— NATO—I mean, it is looking for a mission. use of all of the resources of our tre- The Clinton Plan calls for U.S. forces to act And if it passes this one up, it might be a mendously rich industrialized economy as neutral enforcers of the peace while the long time before another one comes along. U.S. also helps arm and train the Bosnian should not be surrendered. It still can So this is a defining moment for NATO, over- Muslims so they will be able to defend them- be realized. worked phrase, but I think it is. selves once American troops leave. This sce- Last year we drove for a while, for Steve Kroft: Is this a situation where the nario, however, ignores the role America the first two years of the Clinton ad- Europeans said, ‘‘This is too tough a problem played prior to this peace accord. It was ministration, toward a national health for us to solve. Let’s let the Americans do American planes that bombed the Bosnian it?’’ care plan. The national health care Serbs into submission in order to force them I think, Colonel Stewart, a lot of people plan’s dream was to realize universal to the bargaining table. probably are thinking that. As for arming the Bosnian Muslims, the health coverage for the first time in Lt. Colonel Bob Stewart: Yeah. I think it’s Clinton Administration contends that the the United States of America. Most of possibly true. I mean, quite frankly, I don’t Bosnians need arms to defend themselves the industrialized nations of the world care. Really, I don’t care who leads. But pray once American forces leave. But if peace has do have universal health care coverage, to God, someone does, and we get something broken out, and the American ‘‘enforcers’’ or something close to it. done. I don’t care. are no longer needed, exactly who will the Because of the fact that the legisla- Lt. Colonel Bob Stewart: All I want—I per- Bosnians be defending themselves from? The tion which is before us now, the legisla- sonally, and I know General Lewis is the fact that the Clinton plan recognizes that same, want peace restored to this area. We tion which is likely to be agreed upon, the Bosnian people will need to defend them- the negotiations dealing with the legis- actually feel quite strongly about the place. selves from the Serbs once the American We know that the vast majority of the peo- forces are gone illustrates just how illusory lation and the appropriation when it is ple are crying out for the fighting to stop. this peace really is. all finished, we will be a long ways Steve Kroft: And finally, there is the moral Is There Really a Peace?—While peace may away from that universal health care argument; 200,000 people killed, 1.8 million exist on paper, it is unclear as to whether it dream. driven from their homes. Does the world’s exists in the hearts of the Balkan people. Re- We should not surrender the dream last superpower have a moral duty to end the cent news reports indicate that the peace though. We should only understand suffering? Is there a chance that the Serbs, plan is not receiving a very enthusiastic en- that it is a temporary stalemate. It is the Croats and Muslims really are finally dorsement from the Bosnian Serbs, espe- tired of the bloodshed. cially those living near Sarajevo. And it is a retreat which we continue to insist General Louis McKenzie: There’s a whole still unclear to most Americans why 60,000 that this country is rich enough, this bunch of things involved here, just in addi- heavily-armed, combat-ready soldiers are country has the resources, and the peo- tion to doing the right thing. I mean, there’s needed to ‘‘enforce’’ a ‘‘peace’’ agreement. ple of this country deserve a national the American political process which is The Clinton Plan Is Poorly Defined—Be- health care plan which guarantees unique. There is NATO looking for a role. fore our troops are fully deployed, Repub- health care for all who need it. There’s a country that self-destructed over licans will continue to insist that the Presi- the last three years, and is looking for some dent outline a clear and achievable objective b 1945 help. There’s a whole bunch of very brave and define what encompasses a successful That is a next step in our civilization non-governmental organization working mission. Finally, the President needs to de- that we should not ever turn our backs their butts off in the former Yugoslavia, develop an exit strategy that is more com- on. The fact that the deal is going to be livering medicine and food, et cetera, et prehensive than the simple goal of having cetera, and all that comes together in Day- our troops home in one-year. made and we are going to be far short ton, with three people that we agree we don’t Republicans Support Our Troops—While of that should not deter us. The deal trust. Republicans continue to question the wis- will be made and no matter what it is, December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13987 it certainly will leave us without uni- will insist that we come back and, very little to do with the improvement versal health care coverage. when the Democrats regain the House of health care. The restructuring is all I only hope that we are not so far of Representatives in 1996, health care about how the funding will take place. away that it may take us another 10 will be back on the table. We will move The restructuring is about who will years to regain the territory that we again toward universal health care cov- make profits. The restructuring is lose. I only hope that we do not lose erage. It cannot be surrendered. We about how will you save money by giv- the Medicaid entitlement. The Medic- cannot envisage an America which does ing the patients minimum service and aid entitlement is the first step that not care about the sick, an America maximizing the profits for the provid- was taken 30 years ago toward health which does not care about the elderly ers. care coverage for all who need it. If we and what kind of nursing homes they It is a very unfortunate situation. lose the Medicaid entitlement, if we no have. We have to insist on maintaining There was an article that appeared in longer are willing to say to every poor that standard for our civilization. We the New York Times on Friday, No- American that if you are in need of have to get back to the fight, and we vember 3, which I think sort of sums it health care and you are poor, you qual- have to get back to it with gusto. up, ‘‘Can Someone Save My Hospital,’’ ify by a means test, which tests wheth- The majority have made it clear that is the op-ed article’s title. The disman- er or not you really are eligible, if you they do not want to retreat on health tling of New York City’s health care qualify, you get the health care cov- care. The majority have made it clear system has already begun. erage, you get taken care of. You are that they do not want the Medicare The mayor has a plan to privatize and drastically change the hospitals. not left to die. You are not left without and the Medicaid cuts. More than 70 They are going to be closing city hos- a nursing home, if you cannot afford it. percent of the people have said that pitals. Many of the city hospitals are Medicaid pays for health care for poor they do not want the health care cuts getting ready to sell themselves or to families, but Medicare also pays for in Medicare and Medicaid. The major- be sold. HMO’s are being developed most, two-thirds of Medicare goes for ity have said they do not want cuts in that will compete with each other for nursing homes and the care of the peo- education. The majority have said they patient dollars. ple with disabilities. So people with want the President to veto many of the I will just quote from this article, disabilities and the elderly who need bills that he has already signed, but ‘‘Can Someone Save My Hospital,’’ by nursing homes are as much bene- certainly those that are left, basically Gary Calcutt who is a physician. He is ficiaries as poor families of Medicaid. the health, education, and human serv- medical director of a special care AIDS So we should not forget that. The Med- ices budget, certainly the one they clinic at North Central Bronx Hospital. icaid brings us closer to the realization most of all want him to veto. And one paragraph in his article reads of universal health care than any other The majority has made it pretty as follows: Government program in health care. If clear that they think that the move- This plan will no doubt take some time to Medicaid entitlements are lost, we will ment of the Republican majority to carry out, but in fact the dismantling of the experience a great setback. So step one dismantle the programs that were cre- city hospital system is now underway. Be- is to hope that in the negotiations ated by Franklin Roosevelt in the New cause of State Medicaid cuts and a reduction which grow more questionable each Deal and by Lyndon Johnson in the in city subsidies, the Health and Hospitals day, there is less to negotiate with as Great Society, the rapid movement of Corp. has had a budget shortfall of $950 mil- the days go by. We had the defense ap- the Republican majority to dismantle lion over the last 2 years, forcing it to slash propriation as part of the negotiation and to wreck these programs, the ma- services and to cut personnel. Twice in the past year nearly all the agency’s employees at one time and as long as the Presi- jority has indicated they do not agree have been offered a severance package. The dent did not sign the bill, we were with. They do not think that this kind second buyout offer in May was accompanied waiting for him to veto the bill, then of extremism is necessary. They do not by a letter from Dr. Bruce Segal, who was you had the possibility of a $7 billion accept the artificial crisis that has then president of the Health and Hospitals process there, $7 billion that the Presi- been created. Corp., strongly urging employees to take the dent clearly felt was not needed. It was The majority have made it clear that severance package in order to avoid layoffs. not in his budget, $7 billion which rep- they are not on board and they are The agency’s managers must approve each layoff but in North Central Bronx Hospital, I resented things like the B–2 bomber very much against this. Yet it sort of don’t know of any employee who has been that everybody agreed we did not need. creeps forward because that is the way denied a severance buyout. This has led to We had the flexibility of at least our Republic works. The people who devastating losses in some crucial depart- starting negotiations with $7 billion on have been elected can ignore the ma- ments. the table that could be transferred jority for a while. They can get away He goes on and on. I have had my from wasteful defense expenditures to with it. constituents come to me and say, look, expenditures that were more meaning- So I want to just reaffirm the fact you must come and visit Kings County ful in education or health care, et that we need health care for every Hospital. I go there quite often, but cetera. That is gone. The defense bill American. We can have health care for they wanted me to make a special visit has become a part of law. The defense every American. The country can af- and walk around in various depart- appropriation now has been, sort of by ford it, and we should not accept what- ments and look around carefully. They default, since the President did not ever happens when the deal is finally said, you can visit, you can see the veto it, the time period lapsed and now completed as being final. chaos, you can see why patients are that is off the table. So without a Health care in many cities and many bound to be suffering because the chaos doubt, we are in a little weaker posi- areas of the country right now is al- is so great; the overworked personnel tion than we were before the defense ready undergoing some drastic changes are so obviously tired. There is so bill was allowed to pass through. for the worse. Even while the debate is much, the morale is so low until it is That is why I say that as we move to- taking place and no final decision has visible. And they were right. You could ward the deadline of December 15, been made about what funds will be feel it in the hospital. You could feel every day of the countdown brings us a available and what new rules will be in that this hospital is no longer the way little closer to a situation where we are place, health care systems are being it once was. weaker than we should be. And, there- dismantled in rural areas. Health care I have been there many times. Kings fore, the outcome is inevitably going to systems are being drastically changed County Hospital has a history of being be a dissatisfactory one. It is going to in urban areas. And in New York City, one of the finest hospitals in the Na- be a disappointing one. It is only a there is a great dramatic change tak- tion; 40 years ago people came from all matter of how much are we going to ing place now. Health care administra- over the country to be treated at Kings give up, how much are we going to hold tors in large numbers are leaving. Re- County Hospital, a public hospital. But on to. structuring of hospitals is taking now it is in chaos, and it may be in bet- Whatever the outcome is, we should place. Super HMO’s are being developed ter shape than many of the city’s hos- insist that it is only a temporary set- to swallow up small HMO’s. pitals. back. It is only a retreat. It is not a All of it represents a great deal of en- So the process has begun. The suffer- total defeat. We will not surrender. We ergy, a great deal of change, which has ing has begun. But I am saying we H 13988 CONGRESSIONAL RECORD — HOUSE December 5, 1995 should not surrender. I am saying that any long-term research and develop- that problem. There is a problem of this too must pass. When the budget ment to improve schools. The Federal waste in Government, and we should deal is made, we should not surrender. Government is still the only place deal with waste wherever waste is. The We should not give up on health care. where you are going to have the kinds waste is in the B–2 bombers that no- We should not give up on education. of financing for higher education that body wants. The waste is in the CIA We know already that the Federal Gov- you need, infrastructure of colleges and that continues to spend at the same ernment only pays a small percentage universities are in deep trouble, updat- level it was at during the cold war of the total educational bill. The total ing of equipment of colleges and uni- while it does more and more harm. funding for education, over $360 billion versities. There are a number of things Mr. Speaker, the CIA is one example the last year, is borne by State govern- that need to be done on a scale that of an agency that ought to be stream- ments and local governments. The Fed- will require help from the Federal Gov- lined and downsized before it does more eral Government is responsible for only ernment. Otherwise, the help will not harm. The CIA’s latest revelation about 7 percent of the bill. So when be coming. Private industry and pri- about the incompetence and the evil of you look at the cuts in education and vate donations will not be able to do it, the CIA has been manifest in a ‘‘60 ´ you say that there is $4 billion cut in 1 and certainly States and localities will Minutes’’ expose of a fact that the CIA year, it is a large amount to cut from not be able to do it. had on its payroll the head of the orga- the Federal budget. I think it is a 16- We should not surrender and say that nization in Haiti called FRAPH. percent cut. But it does not represent a FRAPH is an organization that dem- it is never going to be done by the Fed- onstrated, and brought guns and ter- 16-percent cut across the Nation in eral Government. We should not say education expenditures by itself. rorized the pier in Haiti when the first But what has happened is the Federal that we are forever going to have B–2 ships were sent to Haiti with Canadian Government’s cut, its statement that bombers that are not wanted by the and New York City personnel, New education is of less importance, the Re- Joint Chiefs of Staff, the Secretary of York State—I mean United States per- publican majority’s indication that Defense does not want it. The Presi- sonnel, some police from Canada and education is of less importance, that dent does not want it. We are going to police from the United States, and en- we pay lip service to the fact that edu- forever continue to fund B–2 bombers gineers from the United States Army cation is an investment in the future of and neglect education. were supposed to be the first peaceful the country, education guarantees that We should not surrender and believe contingent landing in Haiti, and that young people will be able to survive in that that is going to happen. I do not was part of a peaceful plan that had a very complex society, they will be think it is going to happen. The major- been agreed to at Governors Island. able to qualify for the high technology ity want education to be made a prior- But they were greeted on the docks by jobs created, we have all of the rhetoric ity in the expenditure of Federal funds this demonstration of men with guns on both sides, Republicans, Democrats and Government funds at every level. who roughed up the Embassy officials say the same thing. But the Republican The majority will ultimately prevail. from the United States Embassy in majority has indicated they really do b 2000 Haiti, and they made all kinds of not believe it. We must hold on and understand that threats, and the Harlan County ship de- If you can make cuts of that mag- the fight has just begun, the public cided to turn around and not dock at nitude at the Federal level, you send a opinion has just begun to manifest it- the port there in Port-au-Prince, Haiti. They did not dock because the intel- message down to the State levels and self. They are just waking up here in ligence that we received was that that the local levels. So they have begun to Washington to the fact that the Amer- group that was demonstrating on the cut, too. In New York City, the school ican public means it when they said dock was a very dangerous group. The system has been cut by almost $2 bil- that education is a top priority for lion over the last 2 years. New York intelligence that come from the CIA Government expenditure, they mean it City has almost a million students, and was that great harm would come to when they say that health care is a top the budget at one time was up to $8 bil- American personnel and Canadian per- priority. It is not just an idle piece of lion for the million students. But those sonnel if they had landed that day. energy thrown away when people reply drastic cuts have taken place so you That was what the CIA said. to polls. They are replying to polls and have obvious hardships. Mr. Penizullo, who was then the When the school term started last telling them the truth, we mean it. President’s envoy for the Haitian prob- September, 8,000 youngsters in the New Education ought to be a top priority. lem, he was dealing with the Haitian York City high schools had no place to Right now it is No. 1 in the polls; problem. He insisted that it was just sit. Right now there are classes of 40 health care, No. 2. From week to week theater, that this group had no depth, and 45 students. And there are still they rotate, they alternate. Health that there was no danger from this problems with just getting places for care and education clearly are No. 1 group, and that the Harlan County children to sit. An editorial recently in priorities. If the decisionmakers here should go ahead and dock, we should the New York Times talked about the in Washington, if the Republican ma- proceed with the implementation of fact that every time it rains, the New jority, respected the majority of Amer- the Governors Island agreement as we York City schools literally wash away. ican people, then certainly we would agreed upon it. But the CIA insisted You have the rains going through the not be in this dilemma. that, no, this group represents a real crevices of the old buildings and the So the majority should not sit, but threat, great harm could come to sand and the cement is drained away. the majority should not give up. They America forces, and since this incident The bricks start to fall. So after every should wait, and in the process of wait- was following the Somalia debacle rain you have large numbers of bricks ing we should assert ourselves. The ma- where 18 Americans have lost their falling from these old buildings. So the jority should continue to make certain lives in Somalia, the President accept- New York City schools are literally that the public opinion polls register ed the advice of the CIA and ordered falling down. There is no hope in sight what you believe. the Harlan County to turn around. So in terms of new construction because In the process of continuing the fight you had a great American ship being the budget cuts in construction pre- I think I cannot stress too often that turned around by handful of thugs in ceded the other cuts. there is a bedrock basic piece of infor- the Port-au-Prince harbor because the All of this is taking place in edu- mation that we should always fall back CIA had said that those thugs rep- cation. But I say, we should not surren- on. We should not accept the theory resent a large armed threat. der. We should not accept the fact that that America is in a state of fiscal cri- The CIA insisted on this, and it turns the Federal Government is retreating sis. We should not accept the notion out that all along the CIA knew better. in this one budget. Which is under the that the country is about to go bank- The CIA knew because the leader of the control of the Republican majority. We rupt, that Medicare and Medicaid can- group that met the Harlan County ship should hold onto the dream that the not be funded. We should not accept in the port was on the payroll of the Federal Government, although it never the notion that the Federal Govern- CIA. They knew who Emmanuel Con- will play a major role in funding of ment will go bankrupt because it helps stant was because Emmanuel Constant education, it has a role to play. It poor people. All of this is just not true. had been recruited by the CIA, and the never will play the predominant role We should understand that there is a CIA had its own policies separate from but it has a major role to play. problem, there is a problem in terms of the White House’s policies and pro- The Federal Government still is the taxes being too high for individuals grams, and the CIA thwarted the first only place where you are going to have with families, and we should deal with peaceful attempt to restore the legiti- December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13989 mate Government of Haiti to power. lavish homes and cars, something he cannot have universal health care in That peaceful attempt, if it had been could never afford on the CIA salary, America. You can have it in Germany, allowed to go forward, would have the CIA on his salary of course, but you can have it in Japan, you can have saved the United States at least a bil- who knows what the CIA has paid. All it in Italy, you can have it in France, lion-and-a-half, maybe $2 billion, be- things which affect CIA are secret, so but you cannot have it in America. cause a year later almost exactly a you really do not know what was paid, You can never have education paid for year later, the liberating forces of the but it was agreed that Aldrich Ames all the way through 4 years in college United States went into Haiti, 20,000 really did not earn enough money to as they have in France or a few other strong, armed with equipment, et have the kind of luxurious lifestyle nations. You cannot have that in cetera, because of the fact that the that he had. America. We are too poor. Do not ac- first plan, a peaceful plan which would Despite all that, alcoholic, betrayal cept that big lie no matter what hap- have cost much less, would not have in- of CIA codes with respect to sex and volved large amounts of troops, and safe houses, lavish living, he was only pens in the budget negotiations and equipment, and et cetera. That plan accidentally sort of discovered, and of where we end up on December 15. had been thwarted by a group that the course there are still revelations about I am saying the majority of the CIA knew was a very small group be- the harm that was done by Aldrich American people, the great majority cause they had recruited it and they Ames. Not only did at least 10 agents out there, people who I call the caring had the head of the group on the pay- die as a result of his betrayal and his majority, should never accept this. The roll. activities, but we now know that he dream should not be surrendered. We Emmanuel Constant is now in prison passed on information from some of the should just understand it is a tem- here in the United States. Emmanuel agents that were in question that was porary setback and we will continue. Constant has confessed and told all as not correct information, and he led the We will continue the quest for Federal to how he was recruited, how he was United States Government to expend involvement in education at every urged to run for President of Haiti, and large sums of money on various activi- level, we will continue the quest to I believe the story 100 percent. The CIA ties, probably like star wars, and guarantee that our society provides of course has not denied it; they just counter warfare, submarine warfare, maximum opportunity for all and that have no comment. They do admit that and a number of things that were based we also meet the threat of a changing they sometimes hire people in foreign on information deliberately fed to our countries to get information from Government to make our Government economy which requires job training them. The implication is that Emman- spend money on activities to counter- and readjustment for large numbers of uel Constant might have been on the act Russian achievements in military people. payroll of the CIA, but all they wanted hardware which did not exist. I wanted to talk about continuing from him was information. There was So in every way Aldrich Ames is an the process of forging ahead and not no further plot to undermine the legiti- example of a blundering CIA that not accepting the temporary setback with- mate Government of Haiti. only is costly, but is also dangerous. out having to use my chart tonight. I I cite this one example as just one The other example I have given of think you probably have grown weary more of several examples I have cited the CIA blundering is the fact that of seeing the chart which reflects a over the past of blunders of the CIA they discovered that the CIA had a large part of the answer to the problem which are costly and also dangerous. I slush fund, a petty cash fund, of at of both the deficit and the excessive need not go back and tell the story of least $1.5 billion. Everything is secret taxation of Americans. I hope you have Aldrich—and recount the story of Al- again, but we know they confessed, and not grown weary because it needs to be drich Ames. Mr. Ames is in prison now. the press has pretty much established Mr. Ames even recently, with all of that it was at least $1.5 billion in petty branded into the memory of every pol- his arrogance, wrote a book review on cash or in an account that was treated icymaker in America. It needs to also a spy novel, and the book review was like a petty cash account that nobody be clearly branded into the memory of in, I think, the Washington Post, a knew about in high places. The Direc- every American voter. There is a basic book review of a spy novel where he tor of the CIA did not know about the story told by this chart, and whereas I chastises the author of the novel as petty cash account, and the President wanted to sort of take a recess and not being an amateur, et cetera. I found it did not know about the petty cash ac- bring it tonight; today I read an article sickening that a man who was in pris- count. How can you have a fund of $1.5 in the New York Times. I was a little on as a result of serving for 10 years as billion and it not be known in the cir- late in reading the Sunday Times, and a Russian spy; you know, he was in cles above you, the supervising circles I read an article which really upset me charge of CIA spying on the Soviet that are there? Who had it and where greatly, and I in the process of reading Union in Eastern Europe, and he was in are they? Who was put in jail as a re- that article determined I have to go the employ of the soviet Union in East- sult of harboring this $1.5 billion slush back one more time before this session ern Europe. They admit that at least 10 fund? And if they had a $1.5 billion is over and explain this chart. agents lost their lives as a result of Mr. slush fund that nobody knew about, the I have to explain the chart because Ames’ betrayal of his country. There is likelihood that they were also at the the writer of the article in the New nothing lower than a traitor, you same time had more money and were York Times; it was Sunday, December know, and I cannot see how this traitor misusing funds is great, but of course, 3, and the name of the author is Keith is now being allowed in prison to write everything is secret, and we still do not book reviews and to parade his ego know exactly what happened. Bradsher; it is not a op-ed page article, over the pages of the media showing I am only giving this example as an so I assume he is a journalist, a re- what a smart guy he is. example of a place where there is obvi- porter, or an analyst for the New York But Aldrich Ames was there for 10 ous waste, there is dangerous waste, Times. He chose to write an article years. Aldrich Ames was not detected and, if you want to save money, then about Democrats and Republicans and despite the fact that he was an alco- downsize the CIA, streamline the CIA, how we have created the deficit to- holic, he used the CIA safe houses for cut the budget of the CIA. It is just one gether over the last three decades. his trysts, his rendezvous with his example of many where you can cut women. He did all the things wrong the budget appropriately. b 2015 that you are not supposed to do, even So we should not surrender, we failed a lie detector test, and still the should not admit, that it is impossible. The title of the article is ‘‘Deficit CIA did not detect that he was spying We should not accept the big lie that it Partnership,’’ and the subtitle is ‘‘The for the Soviet Union. He had a bank ac- is impossible for America to ever pro- Republicans and the Democrats Dug count which allowed him to own very vide health care for everybody, you the Budget Hole Over Three Decades.’’ H 13990 CONGRESSIONAL RECORD — HOUSE December 5, 1995 As I read the article, I could not help more taxes. They paid 48.1 percent of than—it was around $70 billion per year but boil with fury because of the fact the taxes in 1983, while corporations versus when Ronald Reagan left office, that here is a very long-winded analy- dropped to an all-time low of 6.2 per- it was almost at $400 billion per year, sis. They use a large chart here show- cent. Now corporations are up, up from the deficit. But he is right, the deficits ing over a period from 1965 to 1995, a 30- 6.2 percent to 11.2 percent, which is, did get larger: year period, what happened. A lot of thank God, a slight increase, but indi- Among experts who have studied the his- thought has obviously gone into the ar- viduals are still up at 43.7 percent. tory of American budget deficits, there is ticle. Why a journalist, an analyst of We have Mr. Bradsher discussing the fairly broad agreement that both sides are this caliber, maybe he has some eco- deficit partnership and how the deficit partly right. Neither party has clean hands, nomic training, why or how he can dis- took place, and at no time does he talk and the slower economic growth over the cuss this problem of the deficit over a about this dramatic change that took last 20 years has made the situation worse. place in the tax structure, in the bur- The current budget negotiations between the 30-year period and not deal with the Republican Congress and a Democratic whole problem of revenues and the den, the percentage of the tax burden President, stalled in large measure over han- problem with the fact that the Amer- that shifted from corporations to indi- dling the deficit, are a reminder that the ican people were swindled in the meth- viduals. How can a learned journalist, budget policy of the United States is made ods used to collect revenues. He talks analyst, economist make such a discus- by compromise. only about expenditures. sion without discussing the obvious? If Yes, that is true. Some of the biggest The Republicans and the Democrats the physical sciences, physics and decisions that continue to feed the dug the budget hole over decades. He chemistry, proceeded in the same way, budget deficit were made by Repub- talks about how Republicans and we would probably be 30 or 40 years be- lican Presidents with Democratic Con- Democrats together have increased the hind in our technology. If you take a gresses, notably during the Richard expenditures. He does not talk about major factor in a discussion and ignore Nixon and Ronald Reagan administra- what happened with the revenues and it completely, then you certainly can- tions. He goes on to point out what I how, while expenditures were increas- not be said to be participating in any have just already conceded, that both ing for various reasons, some of them scientific reasoning process. You cer- Democrats and Republicans were good, a great drop took place in the tainly be said to be proceeding in a log- guilty. But all Mr. Bradsher discusses revenues; and the revenues did not drop ical manner when you just leave out a in terms of the creation of the problem in the area of personal or individual great portion of the argument. is expenditures. and family income taxes, the revenue Mr. Bradsher is intent on blaming He talks about the fact that— both Democrats and Republicans. I went up in the area of individual and There was a competition between the Re- family income taxes. would concede that from the beginning. publicans and Democrats at one time on ex- The revenue dropped drastically in Whatever has happened in America penditures for the elderly, a rivalry between the area of corporate income taxes. over the last 30 years, 40 years, it cer- Richard Nixon and Wilbur Mills. Wilbur The story of the great drop in cor- tainly has been both Democrats and Mills was the Democratic chairman of the porate income taxes as a percentage of Republicans. Yes, in 1983 Ronald Committee on Ways and Means who made a the revenue collected by the Federal Reagan was President and that is why brief bid for the Presidency in 1972. That ri- you have corporations’ share of the in- valry between Nixon and Mills contributed Government is a story that nobody to the decision to increase payments to So- wants to tell. The New York Times re- come taxes go down to an all-time low of 6.2 percent, but Democrats were in cial Security recipients by 15 percent in 1969, porter, analyst, journalist, whatever he by 10 percent in 1970, and by 20 percent in is, does not want to talk about it. You control of the House Committee on 1972. In each case the administration advo- will not find the commentators on tele- Ways and Means, where all tax policies cated a generous increase, and the Congress vision, the talk show hosts, nobody originated, so if we had a scandalous added a little more. wants to talk about the fact that taxes situation where the income taxes for I am not going to criticize the Con- in 1943, and I did not go back as far as individuals and families went up to 48.1 gress or Nixon for the increase in So- he went and this article went back, ac- percent while the taxes for corpora- cial Security payments. They were far tually this article went back to 1965, 30 tions dropped to 6.2 percent, then both too low. I think that is an example of years; 1943 goes all the way back, the hands of the Democrats who con- expenditures going up that was very World War II was still underway in trolled the Committee on Ways and badly needed. The expenditures were 1943. The income taxes being paid by Means and the Democrats in the House far too low for Social Security recipi- corporations were up to 39.8 percent, who voted for it are dirty in this situa- ents who were in very dire straits, and almost 40 percent, while the income tion where the American people as a that increase was certainly a noble in- tax being paid by individuals and fami- whole, the great majority, were swin- crease, a reasonable increase, a justifi- lies was 27.1 percent. I have gone over dled. This is something that I would able increase. this many times, but you just have to concede. As Medicare and Social Security Mr. Bradsher, from the very begin- get the red bar and the blue bar clearly costs have grown they have squeezed ning, I would say yes, the Democrats focused in your mind in order to under- out Federal spending on other pro- and Republicans were both guilty. My stand the nature of the great swindle grams like transportation and edu- problem is not with that assertion. The that took place. cation. Medicare and Medicaid expendi- problem is why do you go on and on In 1943 corporations were paying 40 tures, however, were raised when the and you do not even mention the fact percent of the burden, the income tax Congress and the Presidents competed that there was a great revolution tak- burden, but in 1983, 40 years later, the in terms of increasing expenditures in ing place in terms of the shifting of the corporations are paying only 6.2 per- the area of expanding Medicaid to in- tax burden. clude pregnant women, pregnant cent of the tax burden. Only 6.2 percent I am going to read a few paragraphs, of the income tax burden is being borne excerpts from Mr. Bradsher’s article: women who were not necessarily on by corporations, and the individual’s AFDC, the elderly in nursing homes, Democrats in Congress have repeated for share of the taxes has shot up from 27.1 years the mantra that President Reagan and all those expenditures were added percent to 48.1 percent. That was the pushed the deficit out of control by cutting to Medicare after it had first been cre- highest point of taxes on families and taxes while raising military spending. ated. individuals. This was when Ronald Democrats have said that. That is I would not quarrel with the Demo- Reagan was in his heyday on his trick- true. crats or the Republicans for adding le-down economics, the rising tide will To continue with Mr. Bradsher, those uncovered people who were very lift all boats, and if you will cut the though; important to the Medicare Program. taxes for corporations they will create Republicans have recited just as regularly Those expenditures I think were jus- jobs, and those jobs will fuel an eco- the view that Democrats voted for ever-larg- tifiable. All of the expenditures that nomic revolution, a miracle, and every- er deficits during their 40 years of control in are cited in terms of domestic discre- body will benefit. the House. tionary expenditures in this article are Mr. Speaker, individuals and families The deficits did get larger, but when not necessarily justifiable, but 90 per- did not benefit. They ended up paying Jimmy Carter left office, it was less cent of them are. He is talking about December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13991 expenditures for people, expenditures At the same time, you cannot bal- dent. He called a conference and set as an investment in education, an in- ance the budget unless you deal with forth six goals. Bill Clinton was at that vestment in health care, an investment the fact that everybody insists on ig- same conference. He continued what in programs for the elderly. noring, and that is that corporations George Bush started. If he were talking about expenditures have gotten away with a big swindle. If So why are we on the verge of a $4 for Sea Wolf submarines or for F–22 you follow the Congressional Black billion cut in education for the next fighter planes and for star wars, then Caucus alternative budget, you can budget year? Why are we on the verge he would be talking about expenditures raise this 11.2 percent be first ending of a tremendous 20 percent or more cut that we could have done without. If he all subsidies to corporations by the in education over a 7-year period? was talking about expenditures for the taxpayers. We have a situation where We can give that up. We do not have CIA and the intelligence operation on a taxpayers’ moneys are used to sub- to have those cuts. If we were to take large scale after the cold war was over, sidize corporations in certain activi- a look at the hard facts of what has then I would say he was talking about ties. You can raise this amount by get- happened in America from 1943 to 1995, expenditures that we could certainly ting rid of those subsidies. You can we would see that we have allowed our- do without. raise the amount again if you close tax selves to be swindled. The point is that Mr. Bradsher goes loopholes, starting with the loopholes The share of the taxes paid by cor- on and on about expenditures and that deal with foreign corporations. porations could go up and nobody never does he once cite the fact that a would suffer. Wall Street is booming. b 2030 revolutionary change in revenue col- Everybody has indicated that we are in lection took place, that we fell in our Foreign corporations have advan- an unprecedented growth period. The revenue collection from 39.8 percent for tages that our own home-based Amer- Dow Jones average is above 5,000. A corporations and went up to 48 percent ican corporations do not have. record-setting pace has been estab- for individuals in 1983. Even now, in There are a number of loopholes that lished. 1995, after some adjustment was made can be closed which have been devel- So who is making the money? The by the Clinton administration, cor- oped over the years, with the help of corporations. The red bar is where the porations are paying only 11.2 percent the Committee on Ways and Means and action is. The red bar is where the of the total tax burden and individuals Ronald Reagan, primarily, while he money is. Why did Slick Willie rob are paying 43.7 percent. was in office. Those loopholes can be banks? Because that is where the Why is this important? Because this closed now. If we merely raise the cor- money is. If we want to revitalize the is the bedrock of the dilemma that we porate share of the revenues from 11.2 American economy, then the revenue face. This is where you end as you go percent up to 16 percent, we could should come from the bustling sector backwards in the discussion to its lower this 43.7 percent, at the same of the corporate world where the foundation. The agreement that is time we raise the corporate up to just money is. That is where we can solve going to finally be made by the Demo- about 16 percent, and thereby give a cratic President and the Republican- the problem of the deficit: We can give tax cut. controlled Congress is going to have to a tax cut, and at the same time we can When we do this, according to the do something about the question of tax avoid the draconian cuts in programs. calculations that were accepted using cuts. Who will get the tax cuts is the Mr. Speaker, we are going to desta- CBO figures, the Congressional Black question, or should anybody get tax bilize the whole society. We are refus- Caucus alternative budget shows, we do cuts? That is the question that ing to recognize that poor people need not have to cut Medicare and we do not emerges from the editorial pages of health care, poor people need edu- have to cut Medicaid. We do not have more and more newspapers. We are cation. to cut Medicare and we do not have to down to a situation now where if you We have a problem with the mini- cut Medicaid, and we can increase edu- are going to have a balanced budget in mum wage, that I talked about last 7 years, then you have to surrender the cation. time, which does not contribute to the The dream does not have to be sur- tax cut. deficit at all, has very little to do with I am a Democrat. I am described as rendered on universal health care. We this chart, except if we were to in- an old-fashioned liberal, but I think can keep the entitlement for Medicaid, crease the minimum wage, the profits the American people ought to get a tax and we can go further in terms of an of corporations would go down a little cut. I think you ought to have a tax additional amount of involvement of bit. However, at the same time, we cut for families and individuals. I think the Federal Government in education. would benefit greatly by having to ex- the tax cuts proposed by President The Congressional Black Caucus al- pend far less on unemployment com- Clinton that were related to education ternative budget increased education pensation and various other benefits are very much appropriate. I think the by 25 percent. The President says that that are provided to poor people, food tax cuts proposed which relate to chil- he wants to increase education by even stamps, et cetera. dren are very appropriate, if you were more. Over a 7-year period, he talks Mr. Speaker, in short, I want to con- to rewrite them in a way which allows about an increase of more than $40 bil- clude by saying, we are 10 days from a families that do not owe taxes to also lion in education. I have not figured final budget deal, and the outcome of benefit. the percentage on that, but the Presi- that deal is going to be disappointing. To rewrite the Republican tax bill dent is on course. The President is fol- We expect our Democratic President to would be almost impossible. I think lowing the rhetoric of both the Repub- make certain that we do not have a you could build a compromise on Presi- licans and the Democrats. total debacle. We will not have a Dun- dent Clinton’s tax cut proposals. Those We all say that education is an in- kirk; we do not expect to surrender the tax cut proposals would give some re- vestment in the Nation’s security. Edu- Philippines. There are a lot of terrible lief to the American families and indication is also an absolute necessity if things that will not happen, but it is viduals who have financed the cold war our economy is to be able to compete, going to be disappointing, it is going to and gone through quite a bit, and saw and what the President is doing is fol- be a temporary setback. their taxes rise from 27 percent in 1943 lowing the rhetoric and the philosophy The important thing to remember is to 48 percent in 1983, and to 43 percent, and the ideology instead of ignoring it, that the majority of the American peo- almost 44 percent, today. They deserve although both parties have expounded ple have already made it clear in the some relief. Individuals and families along the same lines. public opinion polls. They do not think should get a tax cut. When all is said Education was deemed a priority by that we have a crisis that merits the and done and the deal is made, individ- Ronald Reagan. He was the first one draconian cuts that are taking place. uals and families need some tax cut. It who sounded the trumpet and said, we They do not think that we need to ought to be the individuals and fami- are a nation at risk if we do not act to move against the elderly and cut Medi- lies who are at the lowest levels in the revamp our entire education system. care. They do not think we need to economic strata, the middle-income Ronald Reagan was the one who led the move against the poor who are sick and and lower-income people, who get the way. George Bush followed by saying cut Medicaid so drastically. They do tax cut. he wanted to be the education presi- not think we need to throw away our H 13992 CONGRESSIONAL RECORD — HOUSE December 5, 1995 education policies of the last two dec- BOSNIAN CONFLICT IS CIVIL WAR plan that could coordinate troops with ades and desert public education or The SPEAKER pro tempore (Mr. this specific goal. In other words, it desert higher education. TAYLOR of North Carolina). Under a was a mission looking for a purpose. All of these draconian moves are previous order of the House, the gen- Clinton’s implementation force has no clear mission. In theory, they are being made by people who have a vision tleman from Indiana [Mr. SOUDER] is poised to act as buffers between war- of America which is an incorrect vi- recognized for 60 minutes. ring sides, and in reality, they are tar- sion, a vision that is not the vision of Mr. SOUDER. Mr. Speaker, I rise to gets for snipers. His is an arbitrary the majority of the people. The caring discuss my opposition to sending our time period for exit and not a national majority knows that their welfare and troops to war in Bosnia. As one of the exit strategy, which means anybody their best interests lie in rejecting new freshman Members, I do not pre- who wants to wait out the last months these cuts. tend to have the experience of our earlier speaker, the gentleman from Cali- can do that. The potential for United That is why the polls clearly show fornia [Mr. DORNAN], who has traveled States troops becoming targets for that at least 60 percent of the Amer- to many of these areas and has much those who have no interest in bringing ican people want the cuts to be vetoed knowledge about our military. peace to the area is simply far greater and rejected. At least 70 percent of the I am a country boy from a small than any national security interest in American people do not want Medicare town in Indiana of 700. I come here on Bosnia. and Medicaid cut. behalf of common-sense Hoosiers who Mr. Speaker, let me tell a local story If we were to follow the common are very concerned about what our that has ties to northeast Indiana. Ma- sense of the American people, they President has committed us to do. I rine Lance Corporal Jeff Durham of would make the budget cuts in the want to make a couple of general com- Fort Wayne, who graduated from areas where there is real waste instead ments first before plunging into some Blackhawk High School, was involved of insisting that the defense budget be specifics. in the rescue of Air Force Captain increased by $7 billion while we are The first and core question is, is Scott O’Grady. The 20-year-old Durham cutting the education budget by $4 bil- sending ground troops in our vital na- and other members of the 24th Marine lion. They would insist that we cut the tional interest? I think not. The pri- Expeditionary Unit were awakened on CIA and obviously wasteful agencies mary question regarding the United board a carrier in the Adriatic Sea instead of making the cuts in the area States role in Bosnia is whether this is around 3 a.m., were briefed, and de- of Head Start, summer youth employ- a civil war or is an act of aggression parted for a mission 2 hours later. ment programs, and Medicaid. between two sovereign nations. Jeff was on board a backup helicopter This conflict is a civil war because which was prepared to defend the res- The current majority knows that the the Bosnian Serbs are fighting with the cue team against the enemy if things Medicaid entitlement means exactly Bosnian Moslems and the Bosnian went wrong. Their mission was to get what it says. People are entitled to Croats over political control, power between the rescue chopper and the health care if they are poor; if they and authority. Since the conflict is a enemy. Fortunately, O’Grady made a pass a means test and they qualify for civil war, there is no legal obligation clean escape and the Marines did not the service, they are entitled to health for the United States to get involved. have to get out of the chopper. care, the legislation that is before the President Clinton even admitted the We may have a voluntary army, but President now. The appropriations bill conflict in Bosnia is a civil war in an it is wrong to view our troops as mis- before the President will take away interview with Rita Braver of CBS sionaries or use them in missions that that entitlement. News on April 20, 1994, stating the do not have clear American interests We have already almost lost the enti- President of the United States as fol- at stake. tlement for Aid to Families with De- lows: ‘‘I think this is a civil war in the I know that the people of Fort Wayne pendent Children, and now on the chop- sense that people who live within the and Jeff’s family do not consider him a ping block we have the entitlement for confines of the nation we have recog- disposable asset, a mercenary just to Medicare. We should not surrender that nized are fighting each other for terri- be thrown around in the process of pur- entitlement. Everything possible tory and power and control. It is clear- suing whims by our President. I also should be done. Everybody should ly a civil war.’’ That is not a Repub- believe we have shown that there is make certain that they register their lican stating that; that is the Presi- strong congressional and public opposi- opinions and that they communicate dent of the United States. tion to sending ground troops. with their Congressmen and the Presi- Although the United States has nu- The House has voted on three sepa- dent and the White House, everybody, merous interests in a peaceful resolu- rate occasions in opposition to United to let it be known that one clear indi- tion of the Bosnian war, for example, States involvement in Bosnia. In the cation of a giant step backwards that ending the atrocities, preventing fur- DOD appropriations bills, the original cannot be accepted by the American ther human rights abuses and ending House-passed bill contained the Neu- people is a surrender of the entitlement the suppression of minority groups. mann amendment by MARK NEUMANN, a for Medicaid. We will not surrender Much of this, I think, is coming out of fellow freshman from Wisconsin, which that entitlement. a heartfelt concern for those who are will restrict the use of funds for de- hurting in other nations and watching ployment of United States forces in However, even if there should be a ca- the terrible torture. The conflict does Bosnia without the prior approval of tastrophe happening and we have a loss not in fact threaten our national secu- Congress. It passed by a vote of 294 to of that entitlement, I am here to say rity. 125 on January 7, 1995. In conference, that it is only a setback, it is only a re- Given the terrible nature of war, I this was modified twice to become a treat. The majority will win in the end. am supportive of sending troops into nonbinding provision and then was We should get our forces and begin to combat situations only when there is a dropped completely. reassemble and march on toward the vital national security interest at By the way, many of us who opposed dream. stake and when a clear military objec- that DOD Conference Report the first America can have universal health tive is achievable. time, one of the three main criteria care; America can have a budget which So then the next question is, has the that we opposed it on was the pulling is a budget which seeks to take care of President provided a clear mission or of that Bosnia language. the interests of all of the people. This exit strategy, which will place our Part of the agreement that came out is the richest nation that ever existed troops in imminent danger because he of that was H. Resolution 247, which ex- in the history of the world. There is no has not provided such a mission or pressed the sense of the House that reason why every American cannot strategy. He has promised to commit there should be no presumption by the have opportunity and decent health at least 20,000 troops. We have heard parties to any peace negotiation that care, and we dedicate ourselves to that 30,000, but it appears to be 20,000 here the enforcement of any peace agree- purpose, no matter what happens on at the beginning, before an agreement ment will involve the deployment of December 15. was reached, instead of designing a U.S. forces and emphasized that no December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13993 U.S. troops should be deployed to the what exactly do we feel is going to ants in this to take out the mines first, region without prior congressional ap- keep Croatia from doing a fairly log- but there are a couple of problems. One proval. This passed by 315 to 103; that ical geographical move over time? is that they do not exactly know where is, no troops should be deployed to the Well, there are supposedly a couple of the mines are. Second, they do not region without prior congressional ap- different arguments. One is that these have the equipment to detect the proval. Clearly, this has been ignored. areas are Moslem and that while they mines. H.R. 2606 prohibited the use of funds are working with the Croatians, al- So since we have the equipment and appropriated to the Department of De- though they were just fighting them, since our troops are going to have to go fense to be used for the deployment or now they are working with them ap- through these areas as well as France implementation of United States parently again, that there was more and Britain, we are going to wind up ground forces to the Balkans as part of concern by Croatia that this area having to go through the mines, and a peacekeeping operation unless such would be taken over by the Moslems that is probably what the President funds have been specifically appro- than the Serbs. was warning us, that we are going to priated by Congress for that purpose. This is what you call to some degree lose lives trying to locate these mines That passed by a vote of 243 to 171. hopefulness, because these areas have that we do not know where they are been fighting all between themselves and we do not exactly know how to b 2045 and partly what we are banking on is find them, although, quote, they are in We have made our will known. We that Croatia will not do the logical logical places. In other words, it is not are not being heeded. geographical close because all of a sud- as though they are randomly sorted. Hoosiers in northeast Indiana do not den they are going to decide, well, They are at where the front lines were, support sending the ground troops to maybe we don’t want to fight the Mos- but since the front line has moved all Bosnia, either. Ninety-four percent of lems anymore or the Serbians anymore over the place on this map, it is very those contacting my offices have ex- even though we have been doing so for difficult for us to know where the pressed strong opposition to the Presi- hundreds of years and we view them as mines are. So we are going to have dent’s plan. We have hundreds of calls, occupying our nation’s land. deaths related to the mines. There is up to three times as many as we nor- It is a little bit hopeful thinking to no question of that. mally get. We have letters. think that when one army probably Another question is whether or not In the last week I was on three dif- was going to win, when one army still the American troops will be targets ferent talk shows where 80 percent of has that incentive through history of After all, it was the American Air the calls were on Bosnia. Outrage is many years of war, to suddenly say, Force that bombed many of these being expressed by the people in Indi- ‘‘Oh, we think now they’re going to be cities. ana that this President could ignore good’’ and maintain this kind of un- One of the things that was kind of the will of the American people and to usual geographical layout. Anybody enlightening to me was, is that one of send our boys at risk of a potential who looks at this goes and say, ‘‘Why the reasons the administration is ap- war. exactly are we putting our troops in parently arguing that our American I also wanted to show, I know that here?’’ troops may not be targets is very simple. We are going to rebuild their coun- Congressman DORNAN showed this map One other thing that is kind of inter- earlier, of a couple of noteworthy geo- esting. We were told, and this map may try. And so if they think that we are graphical points that have probably be slightly different because there were going to rebuild the buildings that we been made a number of times but I two things still being negotiated. As is bombed out and helped build their na- want to make them again. apparent, there is a very narrow part tion again, then maybe we will not be First of all, the so-called Dayton line in here between the two parts of the targets because the Americans are nice guys and if they shoot us, we will not named after Dayton, OH—talk about areas controlled by the Serbian give them money. interjecting ourselves in international Bosnians, and the two areas that were We have heard $60 million, then we foreign policy, we now have the line be- still being debated and which are going to be the most difficult are this area have heard $600 million. Estimates tween the nations being named after an have certainly been floating around on American city—snakes around making right in here and Sarajevo. So the two places they have not defined are the the floor of the House as high as $6 bil- Vietnam look clearly defined. It goes two most difficult and the two most lion. At a time when we are trying to for over a thousand miles. We are not strife-ridden. figure out how not to cut the budget, quite sure because they are still sort- The Russian troops are going to be to respond to the earlier Speaker, but ing out these borders how many miles somewhere in here and the American how to slow the growth of the budget, exactly, but it snakes around all over troops are up here. This is a very dif- it is pretty tough to go back to Indiana the place. ficult region to monitor. It is where and say, ‘‘Oh, by the way, we’re having Then I asked in one of our briefings, the Germans were when they came to slow down a little bit of the growth I am on the oversight subcommittee down and lost so many troops, 70,000, in these different programs, we’re hav- over the Defense and State and CIA, trying to subdue this region. They ing to do this, we’re having to do this chaired by the gentleman from New came down through this area. We are but we’re going to rebuild everything Hampshire [Mr. ZELIFF]. This is Cro- putting ourselves right across from the we just bombed over in Bosnia.’’ It is a atia around in a U. Russian troops in an area where we are very tough sell on one hand to say we Is there anywhere else in the world still negotiating the borders, where the are tight on the budget, and on the where you have a nation with a U narrow strip is, very narrow connect- other hand where there is not a clear around another nation? The answer is ing, and you look at this and say, if compelling national interest that we no. You have Pakistan, it has been di- you already have not established a are spending all this money rebuilding vided, it and Bangladesh, and you have compelling national interest and you it. other situations but no U situation already have a bunch of difficulties Plus I just thought this quote was like this. with this, would just logic not tell you kind of interesting. It was in the New Another core question is, since this in looking at this map that you are York Times, Friday, December 1. This part is tied with the Serbs, which is walking into an unbelievable potential was a young lady, when asked what she over on this side, what would have hap- nightmare of a situation for the U.S. thought about the troops coming in, pened if we had not gone in? We were Armed Forces? when asked what she thought of the told that most likely Croatia would In the briefings that we have had, a Americans arrival, she said, ‘‘It’s cool. have drawn a line somewhere like this. number of other things have been in- It’s great. All the Bosnian boys are Well, these yellow pockets are where teresting talking about the mines that going to be very jealous. We don’t date Croatia had already advanced, that are there and the question of why are them anymore. We met some Swedish clearly the Serbs were vulnerable in Americans going to be involved in tak- soldiers but these American soldiers this area, and that if this was what ing out these mines? will have everything. Cars and money.’’ would have logically happened and if Well, partly apparently we are going This ought to do great relations. We Croatia is in a situation like this U, to ask all those who had been combat- have already bombed their country. We H 13994 CONGRESSIONAL RECORD — HOUSE December 5, 1995 are coming in there rebuilding it, and here in Congress over the weekend under our last one, that we honor all now their young soldiers who are com- which was about as bad as going over treaty commitments in responding to ing back and having to supposedly lay to Bosnia, that we had a luncheon those who invade the lands of our al- down their arms are finding that their where the Speaker was at as well, with lies. That is one reason that we would girlfriends are all interested in the the President of Montenegro and a rep- put our own troops in. American soldiers, which is certainly resentative from Croatia as the Speak- Second, that we provide a nuclear going to lead to extra peace. It is not a er, Mr. TAYLOR of North Carolina umbrella to the world against the major item, but it is just every single asked, because we heard that it was threats of other nuclear powers. thing you hear is not working in our critical, that we put backing behind The third reason would be, finally, direction. this or there would be no peace agree- provide weapons and technical assist- I read the book ‘‘Balkan Ghosts,’’ ment. You asked whether or not we ance to other countries where war- which I recommend to others to read. could do this with air and naval power, ranted, but do not commit American It is very interestingly written about and he basically said yes, probably forces to local conflicts. this whole region. What strikes you is could. Bosnia fits none of these. There is no the violence that has occurred here I asked the question in one of our NATO treaty agreement. They are not over many, many centuries between briefings why we could not just do part of NATO. There is no threat of nu- the different nations, the different that. They first said, and I do not be- clear war in this situation. backgrounds, and the deep-seated ha- lieve they were supposed to say this, Finally, it is indeed a local conflict, tred. retreated, I do not think it is classified so maybe we provide technical assist- I think what struck me most is that or anything, ‘‘Well, it’s because this ance but we certainly do not provide so many times, in one case, I cannot was an American agreement, and the ground troops. remember what century or what war, European forces said since this was an Another point in this article, it says one of the nations in overpowering the American agreement that, therefore, that we are told, and this is what I al- other basically slaughtered all the we had to put ground troops in.’’ luded to earlier in another context, young children below 2 years old, much ‘‘Wait a minute. What do you mean like King Herod did in Biblical times. We are told that other NATO countries this is an American agreement?’’ will decline to send their own military forces In other cases they took groups into ‘‘Well, this was made in Dayton, OH. to Bosnia unless the United States assumes slaughterhouses, an actual butcher This was the American President’s a dominant role, which includes sizable com- place, and butchered them, cutting off agreement.’’ bat support and naval forces backing it up. their legs and arms and heads and hung They do not think, for example, we This calls to mind the decades of over-reli- up the severed limbs like it was a meat should be rearming the Bosnian Serbs. ance by NATO members on American resources, and President Eisenhower’s warning locker. So we are having to put ground troops Well, those memories are in these in October 1963 that the size and permanence in because our President brought the of our military presence in Europe would, different nations. And often when they peace treaty process to America, it is go to battle, they will go into their quote, continue to discourage the develop- called the Dayton line, it is an Amer- ment of the necessary military strength churches, whether it is a Catholic ican agreement, that made us put Western European countries should provide church or an Orthodox church or a ground troops in, not because they are for themselves. Moslem church or some blend thereof essential to the peace there but they NATO has substantially changed because this is a holy war. The enemy are essential to the American version since there was a direct Communist that they are fighting has murdered of the peace because we may have need- their children, has murdered their threat. We have to always be on guard. ed to have some firepower behind it, grandfathers, it has been in a brutal Russia could be immediately another which is still debatable, but we would way, and it is not going to all of a sud- Communist power and we would be not have necessarily had ground den be solved by a 1-year cease-fire if back in the Cold War. But things have troops. indeed it ever turns into a cease-fire changed and other nations around the There is one other thing that I had completely, but it is not going to be world need to take more responsibility. learned and kind of reinforced what I solved because underneath it there are We cannot be a policeman everywhere. had been hearing was we heard a very centuries of very emotional religious I also wanted to read a couple of compelling story from people from and ethnic conflict. quotes from Friday, December 1, Wash- Another thing that I never really Montenegro and it was very impressive ington Times article by Thomas Sowell fully understood until I read that book how they were getting along and how referring to the lapse of historic savvy and got some briefings is why do all of they had taken things. Then it came by our President. these countries fight over some of around to the representative from Cro- He takes a couple of quotes. For ex- these areas? atia who absolutely ripped into ample, the President said, ‘‘Bosnia lies Croatia at its peak went way down Montenegro how they had pillaged at the very heart of Europe.’’ Not if this way. Serbia at its peak came way their museums and raped their women you know any geography. It is basi- over this way. Hungary came down, and so on. cally on the fringes of Europe. It is not Bulgaria at its peak, Romania at its And the response was, ‘‘Yeah, but primary in either importance or geog- peak, Greek at its peak, the Ottoman this happened before 1992,’’ which raphy. It has been a place where there Empire at its peak, all at one time or showed me the intensity here even have been battles where other powers another claimed a bunch of this terri- though that apparently was, if I recall have chosen to get themselves involved tory. When they would expand in, they correctly, a 1991 incident, that the in- as we are but it is hardly central to Eu- would plant people from their nations tensity between these countries is not rope in either geography or politics. to plant seeding in those different just going to go away because we I was very disturbed, for example, areas, so you have mixed nationalities wished it to go away and temporarily when the President at the tail end of in there to boot. put some troops there. his speech made a quote that I have no Basically to summarize the battle- I also wanted to insert a couple of ar- doubt is accurate from the Pope which grounds, every country merely wants ticles for the RECORD and I want to was that this century started with a back what they once had. It is impos- read a couple of quotes from this. war in this area and we do not want it sible to meet that goal. It is much like I was very impressed by an op-ed ar- to end with a war in this area. the Russians saying when they were ticle on Tuesday, November 28, by b 2100 Communists that they only wanted the James Webb, a former Assistant Sec- land next to theirs. Each of these coun- retary of Defense under Ronald Reagan The question is what is the best way tries want to go back to maps that and Secretary of Navy in the Reagan to keep us from not having a war? I do overlap and which are not going to be administration. not have a lot of confidence that quote resolved by some kind of miraculous He reiterates a couple of points out was used in context. agreement in Dayton, OH. of the Nixon doctrine that we have ap- If these countries are fighting among One other thing. In hoping to go over parently drifted away from not only themselves, it could get very messy; to Bosnia, which we instead got to stay quite frankly under this President but for example, if Serbia loses control of December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13995 this area and moves over to here, there lessons there. That is pick you fights, base, if any of our people get killed, we may be centuries of conflict between have a clear mission, back up your are going to go after them with every- Serbia and Croatia over where this line troops, do not get in situations where thing we have. He said that to the could be, and lot of lives unnecessarily you are the sitting ducks, and some troops the other day as he was launch- lost. If the Moslems are overrun in people say, and this is a core question ing them on their mission. The ques- these areas, in a sense persecuted by ei- and I am going to touch on this for a tion is: Is that not what happened in ther Croatia or by Serbia and flee to minute, is this like Vietnam or is this Vietnam? We were their to support other nations, they could be at risk of like Afghanistan or is this like Leb- Vietnamization, help stabilize the what they could do. They could be anon or is this like Korea? southern, pretty soon, 20,000 troops are much like the Palestinians and be wan- Let me suggest, first of all, on Korea, not going to be able to stabilize this dering, searching for a place to land. It the line in Korea does not wander area, maybe we will need 38,000; some- is a messy area. around in different angles, coming one gets killed, we will have to go up in But if you put Russian troops right back like an odd-shaped ‘‘U’’ or a ‘‘V.’’ the mountains. The guys in the moun- here and American troops right here And the reason the line in Korea held tains, particularly, Afghan Moslems and you have a change of power in Rus- is because we went all the way up to and others who are going to flee into sia and you have a conflict where this the Chinese border. The Chinese and the mountains, Hitler took tons of group are allies of Russia and this the North Koreans were afraid that at troops until he finally gave up trying group, with their more Catholic tradi- any time the American military might to subdue them. Pretty soon, we are up tion, are allies of the United States, again invade North Korea or into to 75,000, 100,000 not because we are try- you are looking at the potential for China, therefore, they dug in behind ing to start a war, but because we are war. That is how you get into world the line to keep us from advancing. It chasing people who killed American wars, not by letting these countries was not an arbitrary line put on by our soldiers, and we are demanding retribu- fight over their battles and the terrible Government in peace negotiations. tion. This leads to bigger battles. This In Vietnam, when we tried to do that, things that may happen to those coun- is how wars start. It is not how wars it failed. tries but by putting two major nuclear are avoided, because we are in an ex- powers right across from each other in The case, and some Marines have compared this to Lebanon, more like tremely vulnerable situation in an area a very tense situation in defending po- that has had conflict for hundreds and tential client states. That is how you we are supposed peacekeeping troops, sitting down basically in valleys and hundreds of years. get a war, and the way to avoid ending I also really resented the President’s mountainous regions where our guys this century with a nuclear war is not comments about the Olympics in Sara- are sitting ducks for land mines, occa- by us going in there, it is by us staying jevo, talking about how peaceful it sional snipers and random people who out. used to be. It used to be a Communist have not disarmed, maybe like Leb- As Thomas Sowell points out, that country. It was hammered together by anon. There can be a case like Afghani- first off, Yeltsin is at best lukewarm Tito. None of us voted to elect Presi- stan; Russia went in trying to subdue a with this. Furthermore, anybody who dent Clinton the new Tito. It is not his rebellion. The rebellion had been going watches the news realizes the govern- job to hammer this nation back to- on between different forces for many ment in Russia is not necessarily sta- gether through the force of gunpower, years. Some of the troops fighting in ble. Part of their challenge is they are which is how this nation was put to- Afghanistan are now in this area, as we not being aggressive enough and na- gether in the first place. You can have learned by the CBS, I believe, TV com- tionalistic enough in approaching rela- different views on Tito. Clearly, one mentator captured by some of them tions with our country, that any no- advantage of Tito was he provided sta- the other day, almost shot, that there tion that all of a sudden we are going are roaming bands in this same area of bility. That is not the mission of this into Bosnia because there was this Afghanistan fighters. You see many of U.S. Congress, this House, this Senate, peace accord is belied, as Thomas the logistics. or this President, to be the new Tito, Sowell points out, that Mr. Clinton ad- For me, since I most relate to Viet- and I urge our President to lose his vocated such action years before the nam, it sure seems a lot like Vietnam. Tito complex. Yugoslav leaders even set foot in Day- I heard the President say the other I also listened to his tortured logic to ton and even before he became Presi- night, ‘‘My fellow Americans.’’ A chill try to address why we are getting into dent. goes up my spine because many of us this war. Roughly, it went like this: He is depending on us to forget what heard ‘‘My fellow Americans’’ once too Europe is essential to our stability, he said before. Obviously, he depends many times already. I now, for the first NATO is essential to Europe, we are es- on that many weeks out of the year. In time, understand how some of those sential to NATO; therefore, we have to this particular case, he has advocated liberal Democrats who I did not like at put ground troops in. First off, it does this policy. He has now made it come the time felt when they felt they were not establish the Balkans are essential to fruition and dragging all of America pulled into Vietnam under votes in to Europe. Second, he did not make a along with him under the guise of their protest, and all of a sudden their very good case that at this time Eu- something totally different. Our claim patriotism was challenged because rope is essential or that Europe is that our mission is clear and limited, they were questioning a war they did threatened. Third, he did not establish to quote Thomas Sowell again, as Mr. not want to get in in the first place. We that we have to have ground troops as Clinton put it, is true only if every- in Congress have voted three times we part of NATO to be supportive of thing goes according to plan. The same did not want this war. NATO. would have been true in Vietnam if ev- At what point do you say, ‘‘Look, we Maybe because of the peace agree- erything had been according to plan. are elected by the American people as ment he agreed to, there is pressure We would have simply defended the ex- well; at what point is there a joint gov- now for us to put ground troops in, but isting government until they got on ernment?’’ You do not have an imme- maybe we should have let the Euro- their feet and then pulled out. diate threat to the security of United peans negotiate the agreement that is You know, many of us and a lot of States. It is not as though we have in Europe. Let them figure out how to the media have asked why are so many troops already in combat in threat of do it, and we back them up rather than of the freshman conservative Repub- being killed and the President has to us being the world policeman who licans so upset about this war. Many of go in. You can argue Nixon went into brings them to Dayton OH, and then us who came through the Vietnam era Cambodia because he was protecting has all the obligations to be the police- reacted in different ways. I was a con- troops on the ground. You can do a man of Europe. I do not think his logic servative during that period, as were number of arguments the President has worked in any way. many others, but we did not really like to have flexibility. Does he have to I also want to read a little bit of a how the war was being fought either. have flexibility to start us into a po- letter that I got from Ralph Garcia. He We saw a lot of our friends being killed tential Vietnam? is the chairman of my veterans’ affairs over something where we basically One of the things he said, partly, I advisory panel. He is president of the abandoned later on and learned some think, to shore up his conservative Vietnam Veterans’ Chapter 698 in H 13996 CONGRESSIONAL RECORD — HOUSE December 5, 1995 northeast Indiana and on the State people from northeast Indiana, to send respect of our Armed Forces, because council of Vietnam veterans. He said to them. If nothing else, we will give we want them to be served in the most me that the entire group adamantly them to the Armed Forces so they can important things, which are to defend agrees that we should not send U.S. send them to the troops there. This is our Nation, defend our national inter- troops into Bosnia. He also said that he not a question of supporting our men ests, and when it is unnecessary, to be described, as a Vietnam veteran, as a and women who are serving our Nation able to spend their time with their former CIA employee, that this looks with courage, bravery, at high risk, families and have their full lives to like Vietnam all over again. ‘‘We all separated from their families. This is a look forward to. agree that is no clearly defined na- question of trying to protect them, LAPSE OF HISTORIC SAVVY tional interest. Bosnia is a European protecting our national interest, to (By Thomas Sowell) problem. Nor is there a clear, quantifi- keep us from bogging down in another Bill Clinton’s speech on Bosnia was an in- able objective or mission statement. war where literally there is terrible sult to the intelligence of the American peo- We will have casualties. The slowing of tragedy all over the world. We can go ple. Virtually every point made in that the Bosnian war process is not worth into almost every country any time. speech depended on being able to take advantage of ignorance, amnesia, or an inability to the cost of U.S. lives or scarce fiscal re- We can go into our American cities deal with simple logic. sources, because peace cannot be en- that have terrible tragedies. The ques- ‘‘Bosnia lies at the very heart of Europe,’’ forced.’’ tion is: What is the role of our Armed said the president. That claim can be taken I hear this most intensely from vet- Forces of the United States? seriously only by those ignorant of geog- erans in my district. As I look at what It is a travesty of justice, an embar- raphy. The Balkans are on the fringes of Eu- happened in Vietnam and as I look now rassment to our country, to see this rope, geographically and otherwise. President use it like it is the Arkansas Sarajevo is less than 600 miles from the at our young American men and Bosphorous, where Asia begins. It is farther women going into a war-torn land in State Police trying to put down rebel- than that from Berlin or Paris, and more the middle of winter, feeling doubt lions all over the world. I am very dis- than a thousand miles from London. about going in, it has to be discourag- appointed at our inability in the House Mr. Clinton’s geographical fraud was not ing to them to hear us fighting among to bring this up to another tough vote incidental. It was part of a whole false pic- ourselves, of questioning their mission, now. We have got to cut this money. ture he painted, in which we must intervene and that is not what we are trying to We are the last line of defense for our in order to prevent the war in Bosnia from troops where their lives are being put spilling over in the rest of Europe around it. do here. I honestly believe we need in Not only is Bosnia not in the heart of Eu- this House to cut off funding now beat stake during this tough season. Un- rope, its many wars over many centuries fore there lives are lost. less we can chop off the money here in have not spilled over into other countries. I believe I am defending those Amer- the House and try and get the Senate On the contrary, it was the intervention of ican men and women by pushing before to go along, unless the American peo- other countries in the Balkans that turned a any of them are killed. Once the gun- ple will rise up and speak out and tell local assassination in Sarajevo in 1914 into shots start, we have got to rally behind their Representatives they do not want the First World War. Today, it is our inter- their supposed peace mission to turn vention that risks creating another inter- our troops. I understand that. I am national confrontation, if Russia resumes its going to fight every day up until gun- into a major war, it is very difficult. As historic role as an ally of the Serbs. shots start. Even if it is embarrassing I used to sit home before I ran for Con- The fact that Russian president Boris for us to withdraw, better to have the gress and then I also was growing up, I Yeltsin has gone along grudgingly with embarrassment than to get caught in a used to say, ‘‘Boy, you know, it is real- Western policy in the Balkans thus far is no long war with many American lives, ly frustrating being out here in Indi- guarantee that he will continue to do so, as ana, not being able to influence things events unfold next year—which is an election and I believe that is defending our year in Russia, as well as in the United troops. and not being able to change.’’ Then States. Moreover, either another candidate But what we need to remember is, you come to Washington. You get in or another heart attack can take Mr. Yeltsin just like in Vietnam where our leaders there and you see us bail out in Mexico completely out of the picture. messed up and where our leaders are and not be able to stop it. You hear all There are far more belligerent Russian tripping over themselves apologizing of this baloney about cuts and how we politicians waiting in the wings, eager to re- for this and apologizing for that, it are gutting Medicare and gutting so- store Russia’s power and its historic role as should take nothing away from those cial security and gutting student loans, a force backing the Serbs in the Balkans. What would we do then, with 20,000 young troops who go in to defend American all of which are not true, and you think American soldiers as sitting ducks in Rus- honor, who do what they are asked to how can I combat this. Then you see sia’s backyard? do in service of their country. We need our troops going into what I believe We have a huge national interest in avoid- to be supportive of them. Our leader- will be a war, and we are not able to ing any such situation. ship maybe should hang their head, but stop it. We have no other national interest in that I do not feel a whole lot different part of the world. Not one American’s safety our soldiers should hold there heads up will be endangered if we stay out. Not one high and know they are doing what than I did back in Indiana. Only now I American’s livelihood will be jeopardized. they are being asked to do and they are am a Member of Congress. That is real- The notion that we are going into Bosnia doing their best jobs. ly a sad commentary on our political because of a ‘‘peace’’ accord reached recently When I was a student in high school system. in Dayton is falsified by the simple fact that at the little high school of Leo High I remember in reading Barry Gold- Mr. Clinton was urging such action years be- School, and my high school class had 68 water’s memoirs, talking about a con- fore any Yugoslav leaders ever set foot in members, that shows how little the versation he had with Richard Nixon, Dayton, and even before he became presi- who said he thought, after having been dent. Again, Mr. Clinton is depending on our school was, we did a chain letter to forgetfulness. those who graduated from our little a House Member and a Senate Member, Other gambits in the president’s speech in- school who were over in Vietnam. One finally became President of the United clude picturing the Dayton accords as some of the commitments I made in my dis- States, he could ultimately make these kind of achievement ‘‘as a result of our ef- trict, I hope other Members will as decisions. What he found was he could forts.’’ Nothing has been easier than to get well, anybody who can get me the ad- not even get the type of pencil he agreements in the Balkans—and nothing wanted. Haldeman would go to the harder than getting the parties to live up to dress of anybody from our region of, for them. Calling this latest accord ‘‘a commit- that matter, Indiana, who is in Bosnia. staff and say he would forget about it ment to peace’’ is another reliance on amne- I want to write them a personal note of next week. He could not get the pencils sia. support to them individually. I hope he wanted. It is very frustrating being One of the few claims with any semblance others will. here, trying to change this, knowing of fact or logic behind it is that, if the Unit- If I cannot get the Armed Services to the American people are outraged. ed States pulls out of its own commitments, give me who is there, I need people to They want a change. We are your elect- this will make our word less reliable in the ed Representatives. There are many of future. The larger question, however, is: Re- let me know who is there. liable for what purpose? Another thing we will do is we will us here who are going to continue to Do we want people to rely on us to run collect letters, particularly over the battle, not because of any disrespect to around the world engaging in these military Christmas season, particularly from our Armed Forces but because of great adventures? December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13997 The need to back up the president’s words one hand and on the other treating our mili- Those who aspire to the Presidency in 1996 with American troops cuts two ways. We can tary forces in some cases as mere bargaining should use the coming debate to articulate a either sacrifice young lives for the sake of chips. As the past few years demonstrate, world view that would demonstrate to the presidential rhetoric or the president can this also causes us to fritter away our na- world, as well as to Americans, an under- learn to keep his big mouth shut, in order to tional resolve while arguing about military standing of the uses and limitations—in a spare those lives until they need to be risked backwaters like Somalia and Haiti. sense the human budgeting of our military for something that truly threatens the Given the President’s proposal and the fail- assets. American people. ure to this point of defining American stakes Richard Nixon was the last President to If this president can’t keep his mouth shut, in Bosnia as immediate or nation-threaten- clearly define how and when the United then we need one who can. ing, the coming weeks will offer a new round States would commit forces overseas. In 1969, There is a far greater danger to the people of such debates. The President appears he declared that our military policy should of this country from terrorists from the Bal- tempted to follow the constitutionally ques- follow three basic tenets: kans striking in the United States, as a re- tionable (albeit effective) approach used by Honor all treaty commitments in respond- sult of our intervention, than from the war the Bush Administration in the Persian Gulf ing to those who invade the lands of our al- in that region spilling over the Atlantic war: putting troops in an area where no lies. Ocean. Thinly-veiled threats of this sort American forces have been threatened and Provide a nuclear umbrella to the world have already been made. no treaties demand their presence, then against the threats of other nuclear powers. The claim that ‘‘our mission is clear and gaining international agreement before plac- Finally, provide weapons and technical as- limited,’’ as Mr. Clinton put it, is true only ing the issue before Congress. sistance to other countries where warranted, if everything goes according to plan. The Mr. Clinton said their mission would be but do not commit American forces to local same would have been true in Vietnam if ev- ‘‘to supervise the separation of forces and to conflicts. erything had gone according to plan: We give them confidence that each side will live These tenets, with some modification, are would have simply defended the existing gov- up to their agreements.’’ This rationale re- still the best foundation of our world leader- ernment until they got on their feet and minds one of the ill-fated mission of the ship. They remove the United States from then pulled out. international force sent to Beirut in 1983. He local conflicts and civil wars. The use of the But wars that go strictly according to plan has characterized the Bosnian mission as American military to fulfill treaty obliga- are the rare exceptions. The big question is: diplomatic in purpose, but promised, in his tions requires ratification by Congress, pro- What is our Plan B? What if we can’t put the speech last night, to ‘‘fight fire with fire and viding a hedge against the kind of President genie back in the bottle and just get caught then some’’ if American troops are threat- discretion that might send forces into con- in the crossfire? ened. This is a formula for confusion once a flicts not in the national interest. Yet they The haste with which the Clinton adminis- combat unit sent on a distinctly noncombat provide clear authority for immediate action tration is getting ready to put its troops in mission comes under repeated attack. required to carry out policies that have been place suggests that they will deal with that We are told that other NATO countries agreed upon by the government as a whole. question by relying on the American tradi- will decline to send their own military forces Given the changes in the world, an addition of supporting our soldiers, once they to Bosnia unless the United States assumes tional tenet would also be desirable: The have been committed. In other words, Plan B a dominant role, which includes sizable com- United States should respond vigorously is to present us with a fait accompli, so that bat support and naval forces backing it up. against cases of nuclear proliferation and it will be considered unpatriotic to fail to This calls to mind the decades of over-reli- state-sponsored terrorism. back up the president as he flounders in an- ance by NATO members on American re- These tenets would prevent the use of other quagmire. sources, and President Eisenhower’s warning United States forces on commitments more in October 1963 that the size and permanence appropriate to lesser powers while preserving [From the New York Times, Nov. 28, 1995] of our military presence in Europe would our unique capabilities. Only the United REMEMBER THE NIXON DOCTRINE ‘‘continue to discourage the development of States among the world’s democracies can the necessary military strength Western Eu- (By James Webb) field large-scale maneuver forces, replete ropean countries should provide them- with strategic airlift, carrier battle groups ARLINGTON, VA.—The Clinton Administra- selves.’’ and amphibious power projection. tion’s insistence on putting 20,000 American The Administration speaks of a ‘‘reason- Our military has no equal in countering troops into Bosnia should be seized on by na- able time for withdrawal,’’ which if too short conventional attacks on extremely short no- tional leaders, particularly those running for might tempt the parties to wait out the so- tice wherever the national interest dictates. President, to force a long-overdue debate on called peacekeepers and if too long might Our bases in Japan give American forces the the worldwide obligations of our military. tempt certain elements to drive them out ability to react almost anywhere in the Pa- While the Balkan factions may be im- with attacks causing high casualties. cific and Indian Oceans, just as the contin- mersed in their struggle, and Europeans may Sorting out the Administration’s answer ued presence in Europe allows American feel threatened by it, for Americans it rep- to such hesitations will take a great deal of units to react in Europe and the Middle East. resents only one of many conflicts, real and time, attention and emotion. And doing so in In proper form, this capability provides re- potential, whose seriousness must be the absence of a clearly stated global policy assurance to potentially threatened nations weighed, often against one another, before will encourage other nations, particularly everywhere. But despite the ease with which allowing a commitment of lives, resources the new power centers in Asia, to view the the American military seemingly operates and national energy. United States as becoming less committed to on a daily basis, its assets are limited, as is Today, despite a few half-hearted attempts addressing their own security concerns. the national willingness to put them at risk. such as Gen. Colin Powell’s ‘‘superior force Many of these concerns are far more serious As the world moves toward new power cen- doctrine,’’ no clear set of principles exists as to long-term international stability and ters and different security needs, it is more a touchstone for debate on these tradeoffs. American interests. These include the con- vital than ever that we state clearly the con- Nor have any leaders of either party offered tinued threat of war on the Korean penin- ditions under which American forces will be terms which provide an understandable glob- sula, the importance of the United States as sent into harm’s way. And we should be ever al logic as to when our military should be a powerbroker where historical Chinese, Jap- more chary of commitments, like the loom- committed to action. In short, we still lack anese and Russian interests collide, and the ing one in Bosnia, where combat units invite a national security strategy that fits the need for military security to accompany attack but are by the very nature of their post-cold war era. trade and diplomacy in a dramatically mission not supposed to fight. More than ever before, the United States changing region. has become the nation of choice when crises Asian cynicism gained further grist in the occur, large and small. At the same time, the wake of the Administration’s recent snubs of f size and location of our military forces are in Japan: the President’s cancellation of his flux. It is important to make our interests summit meeting because of the budget crisis, RULES OF PROCEDURE FOR THE known to our citizens, our allies and even and Secretary of State Warren Christopher’s COMMITTEE ON SCIENCE FOR our potential adversaries, not just in Bosnia early return from a Japanese visit to watch THE 104TH CONGRESS but around the world, so that commitments over the Bosnian peace talks. can be measured by something other than Asian leaders are becoming uneasy over an (Mr. WALKER asked and was given the pressures of interest groups and manipu- economically and militarily resurgent China permission to extend his remarks at lation by the press. Furthermore, with alli- that in recent years has become increasingly this point in the RECORD and to include ances increasingly justified by power rela- more aggressive. A perception that the Unit- extraneous matter.) tionships similar to those that dominated ed States is not paying attention to or is not Mr. GOODLING. Mr. Speaker, pursu- before World War I, our military must be as- worried about such long-term threats could ant to rule XI(2)(a) of the Rules of the sured that the stakes of its missions are in itself cause a major realignment in Asia. worth dying for. One cannot exclude even Japan, whose House of Representatives, I submit for Failing to provide these assurances is to strong bilateral relationship with the United the RECORD the amended Rules Govern- continue the unremitting case-by-case de- States has been severely tested of late, from ing Procedure for the Committee on bates, hampering our foreign policy on the this possibility. Science for the 104th Congress. H 13998 CONGRESSIONAL RECORD — HOUSE December 5, 1995

RULES GOVERNING PROCEDURE FOR THE Special meetings Open meetings COMMITTEE ON SCIENCE—104TH CONGRESS 9. Rule XI 2(c) of the Rules of the House of 18. Each meeting for the transaction of GENERAL Representatives is hereby incorporated by business, including the markup of legisla- 1. The Rules of the House of Representa- reference (Special Meetings). tion, of the committee shall be open to the tives, as applicable, shall govern the com- COMMITTEE PROCEDURES public, including to radio, television, and still photography coverage, except when the mittee and its subcommittees, except that a Quorum committee, in open session and with a ma- motion to recess from day to day and a mo- 10. (a) One-third of the Members of the tion to dispense with the first reading (in jority present, determines by rollcall vote committee shall constitute a quorum for all that all or part of the remainder of the meet- full) of a bill or resolution, if printed copies purposes except as provided in paragraphs (b) are available, are nondebatable motions of ing on that day shall be closed to the public and (c) of this Rule. because disclosure of matters to be consid- high privilege in the committee and its sub- (b) A majority of the Members of the com- committees. The rules of the Committee, as ered would endanger national security, mittee shall constitute a quorum in order to: would tend to defame, degrade or incrimi- applicable, shall be the rules of its sub- (1) report or table any legislation, measure, committees. nate any person or otherwise would violate or matter; (2) close committee meetings or any law or rule of the House. No person other COMMITTEE MEETINGS hearings pursuant to Rules 18 and 19; and (3) than Members of the committee and such Time and place authorize the issuance of subpoenas pursuant congressional staff and such departmental 2. Unless dispensed with by the Chairman, to Rule 32. representatives as they may authorize shall the meetings of the committee shall be held (c) Two Members of the committee shall be present at any business or markup session on the 2nd and 4th Wednesday of each month constitute a quorum for taking testimony which has been closed to the public. This the House is in session at 10:00 a.m. and at and receiving evidence, which, unless waived Rule does not apply to open committee hear- such other times and in such places as the by the Chairman of the Full Committee after ings which are provided for by Rule 19 con- Chairman may designate. consultation with the Ranking Minority tained herein. 3. The Chairman of the committee may Member of the Full Committee, shall include 19. Each hearing conducted by the commit- convene as necessary additional meetings of at least one Member from each of the major- tee shall be open to the public including to the committee for the consideration of any ity and minority parties. radio, television, and still photography cov- bill or resolution pending before the commit- Proxies erage except when the committee, in open tee or for the conduct of other committee 11. No Member may authorize a vote by session and with a majority present, deter- business. proxy with respect to any measure or matter mines by rollcall vote that all or part of the 4. The Chairman shall make public an- before the committee. remainder of that hearing on that day shall nouncement of the date, time, place and sub- Witnesses be closed to the public because disclosure of ject matter of any of its hearings at least matters to be considered would endanger na- 12. The committee shall, insofar as is prac- one week before the commencement of the tional security, would compromise sensitive ticable, require each witness who is to ap- hearing. If the Chairman, with the concur- law enforcement information, or would tend pear before it to file twenty-four (24) hours rence of the Ranking Minority Member, de- to defame, degrade or incriminate any per- in advance with the committee (in advance termines there is good cause to begin the son, or otherwise would violate any law or of his or her appearance) a written state- hearing sooner, or if the committee so deter- rule of the House of Representatives. Not- ment of the proposed testimony and to limit mines by majority vote, a quorum being withstanding the requirements of the preced- the oral presentation to a five-minute sum- present for the transaction of business, the ing sentence, and Rule 9, a majority of those mary of his or her statement, provided that Chairman shall make the announcement at present, there being in attendance the req- additional time may be granted by the the earliest possible date. Any announce- uisite number required under the rules of the Chairman when appropriate. ment made under this Rule shall be prompt- committee to be present for the purpose of 13 Whenever any hearing is conducted by ly published in the Daily Digest, and prompt- taking testimony. the committee on any measure or matter, ly entered into the scheduling service of the (1) may vote to close the hearing for the the minority Members of the committee House Information Systems. sole purpose of discussing whether testimony shall be entitled, upon request to the Chair- 5. The committee may not sit, without spe- or evidence to be received would endanger man by a majority of them before the com- cial leave, while the House is reading a meas- the national security or violate Rule XI pletion of the hearing, to call witnesses se- ure for amendment under the five minute 2(k)(5) of the Rules of the House of Rep- lected by the minority to testify with re- rule. resentatives; or spect to the measure or matter during at Vice chairman to preside in absence of chairman (2) may vote to close the hearing, as pro- least one day of hearing thereon. vided in Rule XI 2(k)(5) of the Rules of the 6. The Member of the majority party of the Investigative hearing procedures House of Representatives. No Member may committee or subcommittee thereof des- 14. Rule XI 2(k) of the Rules, of the House be excluded from nonparticipatory attend- ignated by the Chairman of the Full Com- of Representatives is hereby incorporated by ance at any hearing of any committee or mittee shall be Vice Chairman of the com- reference (right of witnesses under sub- subcommittee, unless the House of Rep- mittee or subcommittee as the case may be, poena). resentatives shall by majority vote authorize and shall preside at any meeting during the Subject matter a particular committee or subcommittee, for temporary absence of the Chairman. If the purposes of a particular series of hearings on Chairman and Vice Chairman of the commit- 15. Bills and other substantive matters a particular article of legislation or on a par- tee or subcommittee are not present at any may be taken up for consideration only when ticular subject of investigation, to close its meeting of the committee, or subcommittee, called by the Chairman of the committee or hearings to Members by the same procedures the Ranking Member of the majority party by a majority vote of a quorum of the com- designated in this Rule for closing hearings on the committee who is present shall pre- mittee, except those matters which are the to the public: Provided, however, that the side. subject of special-call meetings outlined in committee or subcommittee may be the Order of business Rule 9. same procedure vote to close one subsequent 16. No private bill will be reported by the 7. The order of business and procedure of day of the hearing. committee if there are two or more dissent- the committee and the subjects of inquiries (3) Whenever a hearing or meeting con- ing votes. Private bills so rejected by the or investigations will be decided by the ducted by the committee is open to the pub- committee will not be reconsidered during Chairman, subject always to an appeal to the lic, these proceedings shall be open to cov- the same Congress unless new evidence suffi- committee. erage by television, radio, and still photog- cient to justify a new hearing has been pre- Membership raphy, except as provided in Rule XI 3(f)(2) of sented to the committee. the House of Representatives. The Chairman 8. A majority of the majority Members of 17. (a) It shall not be in order for the com- shall not be able to limit the number of tele- the committee shall determine an appro- mittee to consider any new or original meas- vision, or still cameras to fewer than two priate ratio of majority Members of each ure or matter unless written notice of the representatives from each medium (except subcommittee and shall authorize the Chair- date, place and subject matter of consider- for legitimate space or safety considerations man to negotiate that ratio with the minor- ation and to the extent practicable, a writ- in which case pool coverage shall be authority party; Provided, however, that party rep- ten copy of the measure or matter to be con- ized). resentation on each subcommittee (including sidered, has been available in the office of Requests for rollcall votes at full committee any ex-officio Members) shall be no less fa- each Member of the committee for at least 48 vorable to the majority party than the ratio hours in advance of consideration, excluding 20. A rollcall vote of the Members may be for the Full Committee. Provided, further, Saturdays, Sundays and legal holidays. had at the request of three or more Members that recommendations of conferees to the (b) Notwithstanding paragraph (a) of this or, in the apparent absence of a quorum, by Speaker shall provide a ratio of majority Rule, consideration of any legislative meas- any one Member. party Members to minority party Members ure or matter by the committee shall be in Automatic rollcall vote for amendments which which shall be no less favorable to the ma- order by vote of two-thirds of the Members affect the use of Federal resources jority party than the ratio for the Full Com- present, provided that a majority of the com- 21. (a) A rollcall vote shall be automatic on mittee. mittee is present. any amendment which specifies the use of December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 13999 Federal resources in addition to, or more ex- the committee and which is entertained by governmental policies as they relate to tech- plicitly (inclusively or exclusively) than that the Chairman shall be presented in writing nological development and commercializa- specified in the underlying text of the meas- upon the demand of any Member present and tion; technology transfer; patent and intel- ure being considered. a copy made available to each Member lectual property policy; international tech- (b) No legislative report filed by the com- present. nology trade; research, development, and mittee on any measure or matter reported SUBCOMMITTEES demonstration activities of the Department by the committee shall contain language Structure and jurisdiction of Transportation; civil aviation research, which has the effect of specifying the use of development, and demonstration; research, 26. The committee shall have the following Federal resources more explicitly (inclu- development, and demonstration programs standing subcommittees with the jurisdic- sively or exclusively) than that specified in of the Federal Aviation Administration; sur- tion indicated. the measure or matter as ordered reported, face and water transportation research, de- (1) SUBCOMMITTEE ON BASIC RESEARCH.— unless such language has been approved by velopment, and demonstration programs; Legislative jurisdiction and general and spe- the committee during a meeting or other- materials research, development, and dem- cial oversight and investigative authority on wise in writing by a majority of the Mem- onstration and policy; and biotechnology all matters relating to science policy includ- bers. policy. Committee records ing: Office of Science and Technology Policy; Referral of legislation 22. (a) The committee shall keep a com- all scientific research, and scientific and en- plete record of all committee action which gineering resources (including human re- 27. The Chairman shall refer all legislation shall include a record of the votes on any sources), math, science and engineering edu- and other matters referred to the committee question on which a rollcall vote is de- cation; intergovernmental mechanisms for to the subcommittee or subcommittees of manded. The result of each rollcall vote research, development, and demonstration appropriate jurisdiction within two weeks shall be made available by the committee for and cross-cutting programs; international unless, the Chairman deems consideration is inspection by the public at reasonable times scientific cooperation; National Science to be by the Full Committee. Subcommittee in the offices of the committee. Information Foundation; university research policy, in- chairmen may make requests for referral of so available for public inspection shall including infrastructure, overhead and part- specific matters to their subcommittee with- clude a description of the amendment, mo- nerships; science scholarships; government- in the two week period if they believe sub- tion, order, or other proposition and the owned, contractor-operated non-military committee jurisdictions so warrant. name of each Member voting for and each laboratories; computer, communications, Ex-officio members and information science; earthquake and fire Member voting against such amendment, 28. The Chairman and Ranking Minority research programs; research and develop- motion, order, or proposition, and the names Member shall serve as ex-officio Members of ment relating to health, biomedical, and nu- of those Members present but not voting. all subcommittees and shall have the right (b) The records of the committee at the tritional programs; to the extent appro- to vote and be counted as part of the quorum National Archives and Records Administra- priate, agricultural, geological, biological and ratios on all matters before the sub- tion shall be made available for public use in and life sciences research; and the Office of committee. accordance with Rule XXXVI of the Rules of Technology Assessment. the House of Representatives. The Chairman (2) SUBCOMMITTEE ON ENERGY AND ENVIRON- Procedures shall notify the Ranking Member of any de- MENT.—Legislative jurisdiction and general 29. Unless waived by the Chairman, no sub- cision, pursuant to clause 3(b)(3) or clause and special oversight and investigative au- committee shall meet for markup or ap- 4(b) of the Rule, to withhold a record other- thority on all matters relating to energy and proval when any other subcommittee of the wise available, and the matter shall be pre- environmental research, development, and committee or the Full Committee is meeting sented to the committee for a determination demonstration including: Department of En- to consider any measure or matter for mark- on the written request of any Member of the ergy research, development, and demonstra- up or approval. committee. tion programs; federally owned and operated 30. Each subcommittee is authorized to Publication of committee hearings and markups nonmilitary energy laboratories; energy sup- meet, hold hearings, receive evidence, and 23. The transcripts of those hearings con- ply research and development activities; nu- report to the committee on all matters re- ducted by the committee which are decided clear and other advanced energy tech- ferred to it. Each subcommittee shall con- to be printed shall be published in verbatim nologies; general science and research activi- duct legislative, investigative, and general form, with the material requested for the ties; uranium supply, enrichment, and waste oversight, inquiries for the future and fore- record inserted at that place requested, or at management activities as appropriate; fossil casting, and budget impact studies on mat- the end of the record, as appropriate. Any re- energy research and development; clean coal ters within their respective jurisdictions. quests by those Members, staff or witnesses technology; energy conservation research Subcommittee chairmen shall set meeting to correct any errors other than errors in and development; science and risk assess- dates after consultation with the Chairman transcription, or disputed errors in tran- ment activities of the Federal Government; and other subcommittee chairmen with a scription, shall be appended to the record, Environmental Protection Agency research view toward avoiding simultaneous schedul- and the appropriate place where the change and development programs; and National ing of committee and subcommittee meet- is requested will be footnoted. Prior to ap- Oceanic and Atmospheric Administration, ings or hearings wherever possible. proval by the Chairman of hearings con- including all activities related to weather, 31. Any Member of the committee may ducted jointly with another congressional weather services, climate, and the atmos- have the privilege of sitting with any subcommittee, a memorandum of understanding phere, and marine fisheries, and oceanic re- committee during its hearings or delibera- shall be prepared which incorporates an search. tions and may participate in such hearings agreement for the publication of the ver- (3) SUBCOMMITTEE ON SPACE AND AERO- or deliberations, but no such Member who is batim transcript. Transcripts of markups NAUTICS.—Legislative jurisdiction and gen- not a Member of the subcommittee shall shall be recorded and published in the same eral and special oversight and investigative vote on any matter before such subcommit- manner as hearings before the committee authority on all matters relating to astro- tee, except as provided in Rule 28. and shall be included as part of the legisla- nautical and aeronautical research and de- 32. During any subcommittee proceeding tive report unless waived by the Chairman. velopment including: national space policy, for markup or approval, a rollcall vote may Opening statements; 5-minute rule including access to space; sub-orbital access be had at the request of one or more Mem- 24. Insofar as is practicable, the Chairman, applications; National Aeronautics and bers of that subcommittee. after consultation with the Ranking Minor- Space Administration and its contractor and Power to sit and act; subpoena power ity Member, shall limit the total time of government-operated laboratories; space 33. The committee and each of its sub- opening statements by Members to no more commercialization including the commercial committees may exercise the powers pro- than 10 minutes, the time to be divided space activities relating to the Department vided under Rule XI 2(m) of the Rules of the equally among Members present desiring to of Transportation and the Department of House of Representatives, which is hereby make an opening statement. The time any Commerce; exploration and use of outer incorporated by reference (power to sit and one Member may address the committee on space; international space cooperation; Na- act; subpoena power). any bill, motion or other matter under con- tional Space Council; space applications; sideration by the committee or the time al- space communications and related matters; National security information lowed for the questioning of a witness at and earth remote sensing policy. 34. All national security information bear- hearings before the committee will be lim- (4) SUBCOMMITTEE ON TECHNOLOGY.—Legis- ing a classification of secret or higher which ited to five minutes, and then only when the lative jurisdiction and general and special has been received by the committee or a sub- Member has been recognized by the Chair- oversight and investigative authority on all committee shall be deemed to have been re- man, except that this time limit may be matters relating to competitiveness includ- ceived in Executive Session and shall be waived by the Chairman or acting Chairman. ing: standards and standardization of meas- given appropriate safekeeping. The Chair- The rules of germaneness will be enforced by urement; the National Institute of Standards man of the Full Committee may establish the Chairman. and Technology; the National Technical In- such regulations and procedures as in his Requests for written motions formation Service; competitiveness, includ- judgment are necessary to safeguard classi- 25. Any legislative or non-procedural mo- ing small business competitiveness; tax, fied information under the control of the tion made at a regular or special meeting of antitrust, regulatory and other legal and committee. Such procedures shall, however, H 14000 CONGRESSIONAL RECORD — HOUSE December 5, 1995 ensure access to this information by any House of Representatives, separately set out shall transmit immediately to the Chairman Member of the committee, or any other and identified [Rule XI 2(l)(3)(D)]. of the committee notice of the filing of that Member of the House of Representatives who (b) Notwithstanding paragraph (a) of this request. has requested the opportunity to review such Rule, if the committee has not received prior 43. (a) Any document published by the material. to the filing of the report the material re- committee as a House Report, other than a Sensitive or confidential information received quired under paragraph (a) of this Rule, then report of the committee on a measure which pursuant to subpoena it shall include a statement to that effect in has been approved by the committee, shall the report on the measure. be approved by the committee at a meeting, 35. Unless otherwise determined by the and Members shall have the same oppor- committee or subcommittee, certain infor- Minority and additional views tunity to submit views as provided for in mation received by the committee or sub- 38. If, at the time of approval of any meas- Rule 38. committee pursuant to a subpoena not made ure or matter by the committee, any Mem- (b) Subject to paragraphs (c) and (d), the part of the record at an open hearing shall be ber of the committee gives notice of inten- Chairman may approve the publication of deemed to have been received in Executive tion to file supplemental, minority, or addi- any document as a committee print which in Session when the Chairman of the Full Com- tional views, that Member shall be entitled his discretion he determines to be useful for mittee, in his judgment, deems that in view to not less than 3 calendar days (excluding the information of the committee. Saturday, Sundays, and legal holidays) in of all the circumstances, such as the sen- (c) Any document to be published as a com- which to file such views, in writing and sitivity of the information or the confiden- mittee print which purports to express the signed by that Member, with the clerk of the tial nature of the information, such action is views, findings, conclusions, or recommenda- committee. All such views so filed by one or appropriate. tions of the committee or any of its sub- more Members of the committee shall be in- REPORTS committees must be approved by the Full cluded within, and shall be a part of, the re- Committee or its subcommittees, as applica- Substance of legislative reports port filed by the committee with respect to ble, in a meeting or otherwise in writing by 36. The report of the committee on a meas- that measure or matter. The report of the a majority of the Members, and such Mem- ure which has been approved by the commit- committee upon that measure or matter bers shall have the right to submit supple- tee shall include the following, to be pro- shall be printed in a single volume which mental, minority, or additional views for in- vided by the committee: shall include all supplemental, minority, or clusion in the print within at least 48 hours (1) the oversight findings and recommenda- additional views, which have been submitted after such approval. tions required pursuant to Rule X 2(b)(1) of by the time of the filing of the report, and (d) Any document to be published as a the Rules of the House of Representatives, shall bear upon its cover a recital that any committee print other than a document de- separately set out and identified [Rule XI] such supplemental, minority, or additional scribed in paragraph (c) of this Rule: (1) shall 2(l)(3)(A)]; views (and any material submitted under include on its cover the following statement: (2) the statement required by section 308(a) paragraph (a) of Rule 35) are included as part ‘‘This document has been printed for infor- of the Congressional Budget Act of 1974, sep- of the report. However, this rule does not mational purposes only and does not rep- arately set out and identified, if the measure preclude (1) the immediate filing or printing resent either findings or recommendations provides new budget authority or new or in- of a committee report unless timely re- adopted by this Committee;’’ and (2) shall creased tax expenditures as specified in quested for the opportunity to file supple- not be published following the sine die ad- [Rule XI 2(l)(3)(B)]; mental, minority, or additional views has journment of a Congress, unless approved by (3) a detailed, analytical statement as to been made as provided by this Rule or (2) the the Chairman of the Full Committee after whether that enactment of such bill or joint filing by the committee of any supplemental consultation with the Ranking Minority resolution into law may have an inflationary report upon any measure or matter which Member of the Full Committee. impact on the national economy [Rule XI may be required for the correction of any 2(l)(4)]; technical error in a previous report made by Notification to Appropriations Committee (4) with respect to each rollcall vote on a that committee upon that measure or mat- 44. No later than May 15 of each year, the motion to report any measure or matter of a ter. Chairman shall report to the Chairman of public character, and on any amendment of- 39. The Chairman of the committee or sub- the Committee on Appropriations any de- fered to the measure or matter, the total committee, as appropriate, shall advise partments, agencies, or programs under the number of votes cast for and against, and the Members of the day and hour when the time jurisdiction of the Committee on Science for names of those Members voting for and for submitting views relative to any given which no authorization exists for the next against, shall be included in the committee report elapses. No supplemental, minority, fiscal year. The Chairman shall further re- report on the measure or matter; or additional views shall be accepted for in- port to the Chairman of the Committee on (5) the estimate and comparison prepared clusion in the report if submitted after the Appropriations when authorizations are sub- by the committee under Rule XIII 7(a) of the announced time has elapsed unless the sequently enacted prior to enactment of the Rules of the House of Representatives, unless Chairman of the committee or subcommit- relevant annual appropriations bill. the estimate and comparison prepared by the tee, as appropriate, decides to extend the Oversight Director of the Congressional Budget Office time for submission of views beyond 3 days, 45. No later than February 15 of the first prepared under subparagraph 2 of this Rule in which case he shall communicate such session of a Congress, the Committee shall 34 has been timely submitted prior to the fil- fact to Members, including the revised day meet in open session, with a quorum present, ing of the report and included in the report and hour for submissions to be received, to adopt its oversight plans for that Con- [Rule XIII 7(d)]; without delay. gress for submission to the Committee on (6) in the case of a bill or joint resolution Consideration of subcommittee reports House Oversight and the Committee on Gov- which repeals or amends any statute or part ernment Reform and Oversight, in accord- thereof, the text of the statute or part there- 40. Reports and recommendations of a sub- ance with the provisions of clause 2(d) of of which is proposed to be repealed, and a committee shall not be considered by the Rule X of the House of Representatives. comparative print of that part of the bill or Full Committee until after the intervention 46. The Chairman of the committee, or of joint resolution making the amendment and of 48 hours, excluding Saturdays, Sundays any subcommittee, shall not undertake any of the statute or part thereof proposed to be and legal holidays, from the time the report investigation in the name of the committee amended [Rule XIII 3]; and is submitted and printed hearings thereon without formal approval by the Chairman of (7) a transcript of the markup of the meas- shall be made available, if feasible, to the the committee after consultation with the ure or matter unless waived under Rule 22. Members, except that this rule may be Ranking Minority Member of the Full Com- 37. (a) The report of the committee on a waived at the discretion of the Chairman. mittee. measure which has been approved by the Timing and filing of committee reports committee shall further include the follow- 41. It shall be the duty of the Chairman to Other procedures and regulations ing, to be provided by sources other than the report or cause to be reported promptly to 47. During the consideration of any meas- committee: the House any measure approved by the com- ure or matter, the Chairman of the Full (1) the estimate and comparison prepared mittee and to take or cause to be taken the Committee, or of any Subcommittee, or any by the Director of the Congressional Budget necessary steps to bring the matter to a Member acting as such, shall suspend further Office required under section 403 of the Con- vote. proceedings after a question has been put to gressional Budget Act of 1974, separately set 42. The report of the committee on a meas- the Committee at any time when there is a out and identified, whenever the Director (if ure which has been approved by the commit- vote by electronic device occurring in the timely, and submitted prior to the filing of tee shall be filed within seven calendar days House of Representatives. the report) has submitted such estimate and (exclusive of days on which the House is not 48. The Chairman of the Full Committee, comparison of the committee [Rule XI in session) after the day on which there has after consultation with the Ranking Minor- 2(l)(3)(C)]; been filed with the clerk of the committee a ity Member, may establish such other proce- (2) a summary of the oversight findings written request, signed by the majority of dures and take such actions as may be nec- and recommendations made by the Commit- the Members of the committee, for the re- essary to carry out the foregoing rules or to tee on Government Reform and Oversight porting of that measure. Upon the filing of facilitate the effective operation of the Com- under Rule X 2(b)(2) of the Rules of the any such request, the clerk of the committee mittee. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14001

LEGISLATIVE AND OVERSIGHT JURISDICTION OF Ms. NORTON, for 5 minutes, today. the Speaker’s table and referred as fol- THE COMMITTEE ON SCIENCE Mr. PALLONE, for 5 minutes, today. lows: ‘‘Rule X. Establishment and jurisdiction of (The following Members (at the re- 1764. A letter from the Executive Director, standing committees quest of Mr. COBURN) to revise and ex- Thrift Depositor Protection Oversight Board, ‘‘The Committees and Their Jurisdiction. tend their remarks and include extra- transmitting a report on the status of var- ‘‘1. There shall be in the House the follow- neous material:) ious savings associations, pursuant to 12 ing standing committees, each of which shall Mr. LONGLEY, for 5 minutes, today. U.S.C. 1441a(k)(9); to the Committee on have the jurisdiction and related functions Mr. WELDON of Pennsylvania, for 5 Banking and Financial Services. assigned to it by this clause and clauses 2, 3, minutes, today. 1765. A letter from the Secretary of Edu- and 4; and all bills, resolutions, and other Mr. BURTON of Indiana, for 5 minutes cation, transmitting final regulations—voca- matters relating to subjects within the juris- each day, today and on December 6, 7, tional rehabilitation service projects for American Indians with disabilities, pursuant diction of any standing committee as listed and 8. in this clause shall (in accordance with and to 20 U.S.C. 1232(d)(1); to the Committee on subject to clause 5) by referred to such com- Mr. HYDE, for 5 minutes, today. Economic and Educational Opportunities. mittees, as follows: Mr. GOODLING, for 5 minutes, on De- 1766. A letter from the Secretary of Edu- cember 6. * * * * * cation, transmitting final regulations—Wil- Mr. MCKEON, for 5 minutes, on De- liam D. Ford Federal Direct Loan Program, ‘‘(n) COMMITTEE ON SCIENCE. cember 6. pursuant to 20 U.S.C. 1232(d)(1); to the Com- ‘‘(1) All energy research, development, and Mr. SMITH of Michigan, for 5 minutes, mittee on Economic and Educational Oppor- demonstration, and projects therefor, and all tunities. federally owned or operated nonmilitary en- each day, on December 6 and 7. 1767. A letter from the Secretary of Edu- ergy laboratories. f cation, transmitting final regulations—Cli- ‘‘(2) Astronautical research and develop- EXTENSION OF REMARKS ent Assistance Program, pursuant to 20 ment, including resources, personnel, equip- U.S.C. 1232(d)(1); to the Committee on Eco- ment, and facilities. By unanimous consent, permission to nomic and Educational Opportunities. ‘‘(3) Civil aviation research and develop- revise and extend remarks was granted 1768. A letter from the Secretary of Edu- ment. to: cation, transmitting final regulations—Fed- ‘‘(4) Environmental research and develop- (The following Members (at the re- eral Family Education Loan Program, pursu- ment. quest of Mr. COBURN) and to include ex- ant to 20 U.S.C. 1232(d)(1); to the Committee ‘‘(5) Marine research. traneous matter:) on Economic and Educational Opportunities. ‘‘(6) Measures relating to the commercial Mr. LEWIS of California in two in- 1769. A letter from the Secretary of Edu- application of energy technology. stances. cation, transmitting final regulations—stu- ‘‘(7) National Institute of Standards and Mr. ROGERS. dent assistance general provisions, pursuant Technology, standardization of weights and Mr. GILMAN in three instances. to 20 U.S.C. 1232(d)(1); to the Committee on measures and the metric system. Economic and Educational Opportunities. ‘‘(8) National Aeronautics and Space Ad- Mr. RAMSTAD. Mr. COBLE. 1770. A letter from the Administrator, ministration. Health Care Financing Administration, ‘‘(9) National Space Council. Mr. DAVIS. Mr. SHUSTER in two instances. transmitting the Administration’s report en- ‘‘(10) National Science Foundation. titled ‘‘Rural Health Care Transition Grant ‘‘(11) National Weather Service. Mr. HEINEMAN. Mr. FLANAGAN. (RHCTG) program,’’ pursuant to 42 U.S.C. ‘‘(12) Outer space, including exploration 1395ww note; to the Committee on Com- and control thereof. Mr. LAHOOD. (The following Members (at the re- merce. ‘‘(13) Science Scholarships. 1771. A letter from the Secretary of Health quest of Mr. PALLONE) and to include ‘‘(14) Scientific research, development, and and Human Services, transmitting the semi- demonstration, and projects therefor. extraneous matter:) annual report of the inspector general for ‘‘In addition to its legislative jurisdiction Mr. GEJDENSON. the period April 1, 1995, through September under the proceeding provisions of this para- Mr. LANTOS. 30, 1995, and the management report for the graph (and its general oversight function Mr. FOGLIETTA in two instances. same period, pursuant to 5 U.S.C. app. (Insp. under clause 2(b)(1)), the committee shall Mr. ORTIZ. Gen. Act) Sec. 5(b); to the Committee on have the special oversight function provided Mr. TORRES. Government Reform and Oversight. for in clause 3(f) with respect to all non- Mr. STARK in two instances. 1772. A letter from the Secretary of the In- military research and development.’’ Mr. YATES. terior, transmitting the semiannual report SPECIAL OVERSIGHT FUNCTIONS Mr. BARRETT of Wisconsin. of the inspector general for the period April 3.(f) The Committee on Science shall have Mr. HAMILTON. 1, 1995, through September 30, 1995, together the function of reviewing and studying, on a Mr. KENNEDY of Massachusetts in two with the Secretary’s report on audit follow- continuing basis, all laws, programs, and instances. up, pursuant to 5 U.S.C. app. (Insp. Gen. Act) Government activities dealing with or in- Mr. POSHARD in two instances. Sec. 5(b); to the Committee on Government volving nonmilitary research and develop- Ms. DELAURO. Reform and Oversight. ment. Mr. GEPHARDT. 1773. A letter from the Chairman, Council f Ms. EDDIE BERNICE JOHNSON of Texas. of the District of Columbia, transmitting a Mrs. COLLINS of Illinois. copy of D.C. Act 11–155, ‘‘Closing of a Portion LEAVE OF ABSENCE Mr. MORAN. of G Street, N.W., and a Portion of a Public By unanimous consent, leave of ab- (The following Members (at the re- Alley in Square 454, S.O. 95–1, Act of 1995,’’ pursuant to D.C. Code, section 1–233(c)(1); to sence was granted to: quest of Mr. SOUDER) and to include extraneous matter:) the Committee on Government Reform and Mrs. FOWLER (at the request of Mr. Oversight. Mr. ROHRABACHER. ARMEY), for today and the balance of 1774. A letter from the Chairman, Council Mr. NEY. the week, on account of the death of of the District of Columbia, transmitting a Mr. STUPAK. copy of D.C. Act 11–156, ‘‘Solid Waste Facil- her father. Mrs. KENNELLY. ity Permit Temporary Act of 1995,’’ pursuant Mrs. CHENOWETH (at the request of f Mr. ARMEY), for today, on account of to D.C. Code, section 1–233(c)(1); to the Com- illness. ADJOURNMENT mittee on Government Reform and Over- sight. f Mr. SOUDER. Mr. Speaker, I move 1775. A letter from the Chairman, SPECIAL ORDERS GRANTED that the House do now adjourn. Consumer Product Safety Commission, The motion was agreed to; accord- transmitting the semiannual report on ac- By unanimous consent, permission to ingly (at 9 o’clock and 14 minutes tivities of the inspector general for the pe- address the House, following the legis- p.m.), the House adjourned until to- riod April 1, 1995, through September 30, 1995, lative program and any special orders morrow, Wednesday, December 6, 1995, pursuant to 5 U.S.C. app. (Insp. Gen. Act) heretofore entered, was granted to: at 10 a.m. Sec. 5(b); to the Committee on Government (The following Members (at the re- Reform and Oversight. f 1776. A letter from the Attorney General, quest of Mr. PALLONE) to revise and ex- Department of Justice, transmitting the tend their remarks and include extra- EXECUTIVE COMMUNICATIONS, ETC. semiannual report of the inspector general neous material:) for the period April 1, 1995, through Septem- Mr. ABERCROMBIE, for 5 minutes, Under clause 2 of rule XXIV, execu- ber 30, 1995, and the management report for today. tive communications were taken from the same period, pursuant to 5 U.S.C. app. H 14002 CONGRESSIONAL RECORD — HOUSE December 5, 1995 (Insp. Gen. Act) Sec. 5(b); to the Committee be provided only to businesses which have H.R. 2714. A bill to require the inclusion of on Government Reform and Oversight. qualified profit-sharing plans; to the Com- provisions relating to worker rights and en- 1777. A letter from the Chairman, Merit mittee on Government Reform and Over- vironmental standards in any trade agree- Systems Protection Board, transmitting a sight, and in addition to the Committee on ment entered into under any future trade ne- copy of a statistical report on the U.S. Merit Economic and Educational Opportunities, for gotiating authority; to the Committee on Systems Protection Board’s [MSPB] cases a period to be subsequently determined by Ways and Means. decided in fiscal year 1994, pursuant to 5 the Speaker, in each case for consideration By Mr. TORKILDSEN (for himself, U.S.C. 1204(a)(3); to the Committee on Gov- of such provisions as fall within the jurisdic- Mrs. MEYERS of Kansas, Mr. TALENT, ernment Reform and Oversight. tion of the committee concerned. Mr. MANZULLO, Mrs. SMITH of Wash- 1778. A letter from the Chairman, Panama By Mrs. LINCOLN: ington, Mr. ZELIFF, Mr. EWING, Mr. Canal Commission, transmitting the semi- H.R. 2706. A bill authorize the Secretary of JONES, Mr. LOBIONDO, Mr. BARTLETT annual report on activities of the inspector the Interior to accept from a State donations of Maryland, Mr. MEEHAN, Mr. general for the period April 1, 1995, through of services of State employees to perform CHRYSLER, Mr. METCALF, and Mr. hunting management functions in a National September 30, 1995, pursuant to 5 U.S.C. app. RAMSTAD): (Insp. Gen. Act) Sec. 5(b); to the Committee Wildlife Refuge in a period of Government H.R. 2715. A bill to amend chapter 35 of on Government Reform and Oversight. budgetary shutdown; to the Committee on title 44, United States Code, popularly 1779. A letter from the Chairman, Thrift Resources. known as the Paperwork Reduction Act, to Depositor Protection Oversight Board, trans- By Mr. MONTGOMERY: minimize the burden of Federal paperwork mitting the board’s annual report in compli- H.R. 2707. A bill to amend the Internal Rev- demands upon small businesses, educational ance with the Inspector General Act Amend- enue Code of 1986 to increase the minimum and nonprofit institutions, Federal contrac- ments of 1988, pursuant to 5 U.S.C. app. (Insp. amount of the State ceiling on tax-exempt tors, State and local governments, and other Gen. Act) Sec. 5(b); to the Committee on private activity bonds; to the Committee on persons through the sponsorship and use of Government Reform and Oversight. Ways and Means. 1780. A letter from the Assistant Secretary By Mr. RIGGS: alternative information technologies; to the for Legislative Affairs, Department of State, H.R. 2708. A bill to provide for character Committee on Government Reform and transmitting a draft of proposed legislation development; to the Committee on Economic Oversight, and in addition to the Committee entitled the ‘‘Consular and Immigration Effi- and Educational Opportunities. on Small Business, for a period to be subse- ciency Act of 1995’’; to the Committee on the H.R. 2709. A bill to provide for the convey- quently determined by the Speaker, in each Judiciary. ance of certain land to the Del Norte County case for consideration of such provisions as fall within the jurisdiction of the committee f Unified School District of Del Norte County, CA; to the Committee on Resources. concerned. REPORTS OF COMMITTEES ON H.R. 2710. A bill to provide for the convey- By Ms. VELA´ ZQUEZ: PUBLIC BILLS AND RESOLUTIONS ance of certain land in the State of Califor- H.R. 2716. A bill to extend the provisions of nia to the Hoopa Valley Tribe; to the Com- the Chinese Student Protection Act of 1992 Under clause 2 of rule XIII, reports of mittee on Resources. to certain aliens who entered the United committees were delivered to the Clerk H.R. 2711. A bill to provide for the substi- States without inspection; to the Committee for printing and reference to the proper tution of timber for the canceled Elkhorn on the Judiciary. calendar, as follows: Ridge timber sale; to the Committee on Ag- By Mr. HYDE: Mr. LIVINGSTON: Committee on Appro- riculture, and in addition to the Committee H.J. Res. 130. Joint resolution providing for priations. Revised subdivision of budget to- on Resources, for a period to be subsequently the establishment of a Joint Committee on tals for fiscal year 1996 (Rept. 104–380). Re- determined by the Speaker, in each case for Intelligence; to the Committee on Rules. ferred to the Committee of the Whole House consideration of such provisions as fall with- By Mr. SMITH of New Jersey (for him- on the State of the Union. in the jurisdiction of the committee con- self, Mr. GILMAN, Ms. PELOSI, Mr. Mr. GOSS: Committee on Rules. House cerned. WOLF, Mr. SOLOMON, Mr. LANTOS, Mr. Resolution 289. Resolution waiving points of By Mr. RIGGS (for himself, Mr. DOO- COX, Mr. BERMAN, Mr. ROHRABACHER, order against the conference report to ac- LITTLE, Mr. POMBO, Mr. TAYLOR of and Mr. GEJDENSON): company the bill (H.R. 2076) making appro- North Carolina, and Mr. H. Con. Res. 117. Concurrent resolution priations for the Departments of Commerce, RADANOVICH): concerning writer, political philosopher, Justice, and State, the Judiciary, and relat- H.R. 2712. A bill to promote balance be- human rights advocate, and Nobel Peace ed agencies for the fiscal year ending Sep- tween natural resources, economic develop- Prize nominee Wei Jingsheng; to the Com- ment, and job retention in northwest Califor- tember 30, 1996, and for other purposes (Rept. mittee on International Relations. nia, and for other purposes; to the Commit- 104–381). Referred to the House Calendar. f Mr. DREIER: Committee on Rules. House tee on Resources, and in addition to the Committee on Agriculture, for a period to be Resolution 290. Resolution waiving points of MEMORIALS order against the conference report to ac- subsequently determined by the Speaker, in company the bill (H.R. 1058) to reform Fed- each case for consideration of such provi- Under clause 4 of rule XXII, eral securities litigation, and for other pur- sions as fall within the jurisdiction of the 182. The SPEAKER presented a memorial committee concerned. poses (Rept. 104–382). Referred to the House of the Senate of the State of Mississippi, rel- By Mr. RIGGS (for himself, Mr. ENG- Calendar. ative to Senate Concurrent Resolution No. LISH of Pennsylvania, Mr. ENSIGN, Mr. HYDE: Committee on the Judiciary. 547: a concurrent resolution post-ratifying Mr. COX, Mr. TALENT, Mr. STOCKMAN, H.R. 1710. A bill to combat terrorism; with amendment XIII to the Constitution of the and Mr. FLANAGAN): an amendment (Rept. 104–383). Referred to United States prohibiting the practice of H.R. 2713. A bill to amend the Internal Rev- the Committee of the Whole House on the slavery within the United States except as State of the Union. enue Code of 1986 to provide additional tax incentives to stimulate economic growth in punishment for a crime whereof the party f depressed areas, and for other purposes; to shall have been duly convicted; and for related purposes; to the Committee on the Judici- PUBLIC BILLS AND RESOLUTIONS the Committee on Ways and Means, and in addition to the Committees on the Judici- ary. Under clause 5 of rule X and clause 4 ary, and Banking and Financial Services, for f of rule XXII, public bills and resolu- a period to be subsequently determined by tions were introduced and severally re- the Speaker, in each case for consideration PRIVATE BILLS AND ferred as follows: of such provisions as fall within the jurisdic- RESOLUTIONS tion of the committee concerned. By Mr. HYDE (for himself, Mr. MCCOL- Under clause 1 of rule XXII, private By Mr. SANDERS (for himself, Mr. LUM, Mr. SMITH of Texas, and Mr. bills and resolutions were introduced BARR): FRANK of Massachusetts, Mr. MILLER H.R. 2703. A bill to combat terrorism; to of California, Mr. YATES, Mr. GON- and severally referred as follows: the Committee on the Judiciary. ZALEZ, Mr. OWENS, Ms. NORTON, Ms. By Miss COLLINS of Michigan: By Mrs. COLLINS of Illinois (for her- KAPTUR, Mr. LIPINSKI, Mr. STARK, Mr. H.R. 2717. A bill to authorize the Secretary self and Mr. HASTERT): HINCHEY, Mr. CONYERS, Mr. TRAFI- of Transportation to issue a certificate of H.R. 2704. A bill to provide that the U.S. CANT, Ms. VELA´ ZQUEZ, Mr. EVANS, Mr. documentation with appropriate endorse- Post Office building that is to be located on BROWN of Ohio, Mr. DELLUMS, Mr. ment for employment in the coastwise trade the 2600 block of East 75th Street in Chicago, BROWN of California, Mr. WATT of and on the Great Lakes and their tributary IL, shall be known and designated as the North Carolina, Ms. RIVERS, Mrs. and connecting waters in trade with Canada ‘‘Charles A. Hayes Post Office Building’’; to MINK of Hawaii, Mr. FILNER, Mr. for the Vessel The Summer Wind; to the Com- the Committee on Government Reform and VENTO, Mr. BONIOR, Ms. MCKINNEY, mittee on transportation and Infrastructure. Oversight. Mr. SPRATT, Mr. RAHALL, Mr. By Mr. GILLMOR: By Mr. FATTAH: NADLER, Mr. DEFAZIO, Mr. FATTAH, H.R. 2718. A bill to authorize issuance of a H.R. 2705. A bill to provide that Federal Mr. HOLDEN, Mr. OLVER, Ms. BROWN certificate of documentation with appro- contracts and certain Federal subsidies shall of Florida, and Ms. ROYBAL-ALLARD): priate endorsement for the vessel Island Star; December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14003

to the Committee on Transportation and In- H.R. 2407: Mr. FROST, Mr. MORAN, Ms. ROY- Sec. 104. Acts of terrorism transcending na- frastructure. BAL-ALLARD, Mrs. KENNELLY, Mr. HINCHEY, tional boundaries. By Mr. TAYLOR of Mississippi: Mr. FRANKS of New Jersey, and Mr. MAR- Sec. 105. Conspiracy to harm people and H.R. 2719. A bill to authorize the Secretary TINEZ. property overseas. of Transportation to issue a certificate of H.R. 2433: Mr. SPRATT, Mr. OBERSTAR, Mrs. Sec. 106. Clarification and extension of documentation with appropriate endorse- THURMAN, Mr. EMERSON, Mrs. LOWEY, Mr. criminal jurisdiction over cer- ment for employment in the coastwise trade FRANKS of New Jersey, Mr. DELLUMS, Ms. tain terrorism offenses over- for the vessel Courier Service; to the Commit- ROYBAL-ALLARD, Mr. BROWDER, Mr. KLECZKA, seas. tee on Transportation and Infrastructure. Mrs. MINK of Hawaii, and Mrs. MORELLA. Sec. 107. Expansion and modification of By Mr. WELDON of Florida: H.R. 2458: Mr. HOUGHTON, Mr. DURBIN, Ms. weapons of mass destruction H.R. 2720. A bill to authorize the Secretary KAPTUR, Mr. SOUDER, and Mr. MCHUGH. statute. of Transportation to issue a certificate of H.R. 2473: Mr. DOYLE, Mr. KLINK, and Mr. Sec. 108. Addition of offenses to the money documentation with appropriate endorse- MASCARA. laundering statute. ment for employment in the coastwise trade H.R. 2508: Mr. MONTGOMERY. Sec. 109. Expansion of Federal jurisdiction for the vessel Water Front Property; to the H.R. 2531: Mr. RIGGS, Mr. BEREUTER and over bomb threats. Committee on Transportation and Infra- Mr. MANZULLO. Sec. 110. Clarification of maritime violence structure. H.R. 2551: Mr. LEWIS of Georgia, Mr. jurisdiction. By Mr. YOUNG of Florida: SERRANO, Mr. ACKERMAN, and Mr. GIBBONS. Sec. 111. Possession of stolen explosives pro- H.R. 2721. A bill to authorize the Secretary H.R. 2651: Mr. BEVILL, Mr. DEAL of Georgia, hibited. of Transportation to issue a certificate of Mr. RAHALL, and Mr. LANTOS. Sec. 112. Study to determine standards for documentation with appropriate endorse- H.R. 2654: Mr. HOLDEN, Mr. JOHNSTON of determining what ammunition ment for employment in the coastwise trade Florida, Mr. EVANS, Ms. RIVERS, Ms. JACK- is capable of penetrating police for the vessel Broken Promise; to the Commit- SON-LEE, Ms. MCKINNEY, Mr. ACKERMAN, and body armor. tee on Transportation and Infrastructure. Ms. DELAURO. H.R. 2664: Mr. ACKERMAN, Mr. FATTAH, Ms. TITLE II—INCREASED PENALTIES f LOFGREN, Mr. MANZULLO, Mr. SAM JOHNSON, Sec. 201. Mandatory minimum for certain ADDITIONAL SPONSORS Mr. REED, Mr. PACKARD, Mr. SCHIFF, Mr. explosives offenses. CLEMENT, Mr. BROWNBACK, Mrs. LINCOLN, Mr. Sec. 202. Increased penalty for explosive Under clause 4 of rule XXII, sponsors JOHNSTON of Florida, and Mr. GREENWOOD. conspiracies. were added to public bills and resolu- H.R. 2676: Mr. COOLEY and Mr. COMBEST. Sec. 203. Increased and alternate conspiracy tions as follows: H.R. 2682: Mr. MCNULTY, Mr. HOUGHTON, penalties for terrorism offenses. Mrs. KELLY and Mr. SERRANO. H.R. 44: Mr. GOODLATTE. Sec. 204. Mandatory penalty for transferring H.J. Res. 89: Mr. SMITH of New Jersey. H.R. 104: Mr. HANCOCK and Mr. HOLDEN. a firearm knowing that it will H.J. Res. 127: Mr. BARTLETT of Maryland H.R. 123: Mr. BILIRAKIS. be used to commit a crime of and Mr. BILIRAKIS. H.R. 294: Mr. LEWIS of Georgia. violence. H. Con. Res. 63: Mr. TALENT, Mr. H.R. 357: Mr. LEVIN. Sec. 205. Mandatory penalty for transferring TORKILDSEN, Mr. SMITH of New Jersey, and H.R. 359: Mr. MFUME. an explosive material knowing Mr. STOCKMAN. H.R. 394: Mr. FRISA and Mr. QUILLEN. that it will be used to commit a H. Con. Res. 100: Mr. LUCAS, Mr. SHAW, Mr. H.R. 528: Mr. GRAHAM, Mr. BARTON of crime of violence. HALL of Texas, Mr. CLINGER, Mr. SKEEN, Mr. Texas, Mr. TAUZIN, Mr. MCKEON, Mr. KING, Sec. 206. Directions to Sentencing Commis- BARTON of Texas, Mr. BATEMAN, Mr. BEREU- Mr. DORNAN, Mr. BUNNING of Kentucky, Mr. sion. TER, Mr. BEVILL, Mr. BILBRAY, Mr. CAL- TALENT, Mr. DREIER, Mr. SHUSTER, Mr. TITLE III—INVESTIGATIVE TOOLS LAHAN, Mr. CHAMBLISS, Mrs. CHENOWETH, Mr. COYNE, Ms. FURSE, Mrs. LINCOLN, Mr. EVANS, HANSEN, Mr. CRAMER, Mr. DORNAN, Mrs. Sec. 301. Pen registers and trap and trace de- Mr. CRANE, and Ms. NORTON. KELLY, Mr. KIM, Mr. KINGSTON, Mr. KLUG, vices in foreign counterintel- H.R. 820: Mr. FRANKS of New Jersey, Mrs. Mr. MCHUGH, Mr. MANZULLO, Mrs. MYRICK, ligence investigations. SEASTRAND, and Mr. BISHOP. Mr. NORWOOD, Mr. PAYNE of Virginia, Mr. Sec. 302. Disclosure of certain consumer re- H.R. 885: Mr. SOLOMON, Mr. GILMAN, and POMBO, Mr. RADANOVICH, Mr. RICHARDSON, ports to the Federal Bureau of Mrs. LOWEY. Mr. SANFORD, Mr. SAXTON, Mr. SCHAEFER, Investigation. H.R. 1003: Mr. ANDREWS. Mrs. SEASTRAND, Mr. SISISKY, Mr. STEARNS, Sec. 303. Disclosure of business records held H.R. 1061: Mr. KENNEDY of Rhode Island and Mr. TEJEDA, Mr. THORNBERRY, Mr. TIAHRT, by third parties in foreign Mr. JOHNSTON of Florida. Mr. WHITFIELD, and Mr. WOLF. counterintelligence cases. H.R. 1073: Mr. THORNTON, Ms. BROWN of H. Res. 285: Mrs. CLAYTON, Mr. TORKILDSEN, Sec. 304. Study of tagging explosive mate- Florida, and Mr. OBERSTAR. Mr. MFUME, Ms. PELOSI, Mr. WATTS of Okla- rials, detection of explosives H.R. 1074: Mr. OBERSTAR. homa, Mr. WARD, Mr. FATTAH, Mr. FROST, and explosive materials, render- H.R. 1305: Ms. RIVERS and Mr. OWENS. Mr. BACHUS, Mr. VENTO, Mr. BALDACCI, Mr. ing explosive components inert, H.R. 1656: Mr. WYNN, Mr. DELLUMS, Mr. PETERSON of Minnesota, Mr. FARR, Mr. EVER- and imposing controls of pre- SMITH of New Jersey, Mr. ACKERMAN, Ms. ETT, Ms. LOFGREN, Mr. UNDERWOOD, Mr. cursors of explosives. BROWN of Florida, Ms. LOFGREN, and Mr. FRANK of Massachusetts, Mr. FILNER, Ms. Sec. 305. Application of statutory exclusion- EVANS. WOOLSEY, Mr. SANDERS, and Mr. CLAY. ary rule concerning intercepted H.R. 1718: Mr. CLINGER, Mr. FATTAH, Mr. wire or oral communications. MASCARA, Mr. KLINK, Mr. FOX, Mr. BORSKI, f Sec. 306. Exclusion of certain types of infor- Mr. MURTHA, Mr. MCHALE, Mr. ENGLISH of AMENDMENTS mation from wiretap-related Pennsylvania, Mr. MCDADE, Mr. HOLDEN, Mr. definitions. COYNE, Mr. DOYLE, and Mr. GEKAS. Under clause 6 of rule XXIII, pro- Sec. 307. Access to telephone billing records. H.R. 1745: Ms. DUNN of Washington. posed amendments were submitted as Sec. 308. Requirement to preserve record H.R. 1776: Mr. TOWNS, Mr. FRAZER, Ms. RIV- follows: evidence. ERS, Mr. RUSH, Ms. BROWN of Florida, and H.R. 1710 Mr. EVANS. Sec. 309. Detention hearing. OFFERED BY: MR. HYDE H.R. 1856: Mr. OLVER, Mr. FOX, Mr. Sec. 310. Reward authority of the Attorney FUNDERBURK, and Mrs. JOHNSON of Connecti- AMENDMENT NO. 1: Strike all after the en- General. cut. acting clause and insert in lieu thereof the Sec. 311. Protection of Federal Government H.R. 1883: Mr. PACKARD. following: buildings in the District of Co- H.R. 1933: Mr. ACKERMAN. SECTION 1. SHORT TITLE. lumbia. H.R. 1972: Mr. GRAHAM, Mrs. ROUKEMA, and This Act may be cited as the ‘‘Comprehen- Sec. 312. Study of thefts from armories; re- Mr. QUILLEN. sive Antiterrorism Act of 1995’’. port to the Congress. H.R. 1998: Mr. HAYWORTH, Mr. ALLARD, Mr. SEC. 2. TABLE OF CONTENTS. TITLE IV—NUCLEAR MATERIALS HEFLEY, Mr. KOLBE, Mr. CHRYSLER, and Mr. The table of contents for this Act is as fol- Sec. 401. Expansion of nuclear materials MCINNIS. lows: prohibitions. H.R. 2071: Ms. NORTON. Sec. 1. Short title. TITLE V—CONVENTION ON THE MARKING H.R. 2197: Mr. MARTINI. Sec. 2. Table of contents. OF PLASTIC EXPLOSIVES H.R. 2200: Mr. STOCKMAN, Mr. MILLER of Florida, Mr. BARRETT of Nebraska, and Mr. TITLE I—CRIMINAL ACTS Sec. 501. Definitions. MCKEON. Sec. 101. Protection of Federal employees. Sec. 502. Requirement of detection agents H.R. 2245: Mr. SERRANO, Mr. MCDERMOTT, Sec. 102. Prohibiting material support to for plastic explosives. and Mr. OWENS. terrorist organizations. Sec. 503. Criminal sanctions. H.R. 2276: Mr. DOYLE and Mr. MASCARA. Sec. 103. Modification of material support Sec. 504. Exceptions. H.R. 2323: Mr. GOODLING. provision. Sec. 505. Effective date. H 14004 CONGRESSIONAL RECORD — HOUSE December 5, 1995 TITLE VI—IMMIGRATION-RELATED Sec. 702. Assistance to foreign countries to title or imprisoned not more than 10 years, PROVISIONS procure explosive detection de- or both. Subtitle A—Removal of Alien Terrorists vices and other counter-terror- ‘‘(b) DEFINITION.—As used in this section, the term ‘material support or resources’ has PART 1—REMOVAL PROCEDURES FOR ALIEN ism technology. the meaning given that term in section 2339A TERRORISTS Sec. 703. Research and development to support counter-terrorism tech- of this title.’’. Sec. 601. Removal procedures for alien ter- nologies. (b) CLERICAL AMENDMENT.—The table of rorists. sections at the beginning of chapter 113B of TITLE VIII—MISCELLANEOUS Sec. 602. Funding for detention and removal title 18, United States Code, is amended by of alien terrorists. Sec. 801. Study of State licensing require- adding at the end the following new item: ments for the purchase and use PART 2—EXCLUSION AND DENIAL OF ASYLUM ‘‘2339B. Providing material support to terror- of high explosives. FOR ALIEN TERRORISTS ist organizations.’’. Sec. 611. Membership in terrorist organiza- Sec. 802. Compensation of victims of terrorism. SEC. 103. MODIFICATION OF MATERIAL SUPPORT tion as ground for exclusion. PROVISION. Sec. 803. Jurisdiction for lawsuits against Sec. 612. Denial of asylum to alien terror- Section 2339A of title 18, United States terrorist States. ists. Code, is amended read as follows: Sec. 613. Denial of other relief for alien ter- Sec. 804. Study of publicly available instruc- ‘‘§ 2339A. Providing material support to terrorists. tional material on the making rorists Subtitle B—Expedited Exclusion of bombs, destructive devices, and weapons of mass destruc- ‘‘(a) OFFENSE.—Whoever, within the United Sec. 621. Inspection and exclusion by immi- States, provides material support or re- gration officers. tion. Sec. 805. Compilation of statistics relating sources or conceals or disguises the nature, Sec. 622. Judicial review. location, source, or ownership of material Sec. 623. Exclusion of aliens who have not to intimidation of Government support or resources, knowing or intending been inspected and admitted. employees. Sec. 806. Victim Restitution Act of 1995. that they are to be used in preparation for or Subtitle C—Improved Information and in carrying out, a violation of section 32, 37, TITLE IX—HABEAS CORPUS REFORM Processing 351, 844(f) or (i), 956, 1114, 1116, 1203, 1361, 1363, PART 1—IMMIGRATION PROCEDURES Sec. 901. Filing deadlines. 1751, 2280, 2281, 2332, 2332a, or 2332b of this Sec. 631. Access to certain confidential INS Sec. 902. Appeal. title or section 46502 of title 49, or in prepa- files through court order. Sec. 903. Amendment of Federal rules of ap- ration for or in carrying out the conceal- Sec. 632. Waiver authority concerning notice pellate procedure. ment or an escape from the commission of of denial of application for Sec. 904. Section 2254 amendments. any such violation, shall be fined under this visas. Sec. 905. Section 2255 amendments. title, imprisoned not more than ten years, or Sec. 906. Limits on second or successive ap- PART 2—ASSET FORFEITURE FOR PASSPORT both. plications. AND VISA OFFENSES ‘‘(b) DEFINITION.—In this section, the term Sec. 907. Death penalty litigation proce- Sec. 641. Criminal forfeiture for passport and ‘material support or resources’ means cur- dures. rency or other financial securities, financial visa related offenses. Sec. 908. Technical amendment. Sec. 642. Subpoenas for bank records. services, lodging, training, safehouses, false Sec. 909. Severability. Sec. 643. Effective date. documentation or identification, commu- Subtitle D—Employee Verification by nications equipment, facilities, weapons, le- Security Services Companies TITLE I—CRIMINAL ACTS thal substances, explosives, personnel, trans- Sec. 651. Permitting security services com- SEC. 101. PROTECTION OF FEDERAL EMPLOYEES. portation, and other physical assets, except medicine or religious materials.’’. panies to request additional (a) HOMICIDE.—Section 1114 of title 18, documentation. United States Code, is amended to read as SEC. 104. ACTS OF TERRORISM TRANSCENDING NATIONAL BOUNDARIES. Subtitle E—Criminal Alien Deportation follows: (a) OFFENSE.—Title 18, United States Code, Improvements ‘‘§ 1114. Protection of officers and employees is amended by inserting after section 2332a Sec. 661. Short title. of the United States the following: Sec. 662. Additional expansion of definition ‘‘Whoever kills or attempts to kill any of- ‘‘§ 2332b. Acts of terrorism transcending na- of aggravated felony. ficer or employee of the United States or of tional boundaries Sec. 663. Deportation procedures for certain any agency in any branch of the United criminal aliens who are not per- ‘‘(a) PROHIBITED ACTS.— States Government (including any member ‘‘(1) Whoever, involving any conduct tran- manent residents. of the uniformed services) while such officer Sec. 664. Restricting the defense to exclu- scending national boundaries and in a cir- or employee is engaged in or on account of sion based on 7 years perma- cumstance described in subsection (b)— the performance of official duties, or any nent residence for certain ‘‘(A) kills, kidnaps, maims, commits an as- person assisting such an officer or employee criminal aliens. sault resulting in serious bodily injury, or Sec. 665. Limitation on collateral attacks on in the performance of such duties or on ac- assaults with a dangerous weapon any indi- underlying deportation order. count of that assistance, shall be punished, vidual within the United States; or Sec. 666. Criminal alien identification sys- in the case of murder, as provided under sec- ‘‘(B) creates a substantial risk of serious tem. tion 1111, or in the case of manslaughter, as bodily injury to any other person by destroy- Sec. 667. Establishing certain alien smug- provided under section 1112, or, in the case of ing or damaging any structure, conveyance, gling-related crimes as RICO- attempted murder or manslaughter, as pro- or other real or personal property within the predicate offenses. vided in section 1113.’’. United States or by attempting or conspiring Sec. 668. Authority for alien smuggling in- (b) THREATS AGAINST FORMER OFFICERS to destroy or damage any structure, convey- vestigations. AND EMPLOYEES.—Section 115(a)(2) of title 18, ance, or other real or personal property Sec. 669. Expansion of criteria for deporta- United States Code, is amended by inserting within the United States; tion for crimes of moral turpi- ‘‘, or threatens to assault, kidnap, or murder, tude. any person who formerly served as a person in violation of the laws of any State or the Sec. 670. Payments to political subdivisions designated in paragraph (1), or’’ after ‘‘as- United States shall be punished as prescribed for costs of incarcerating ille- saults, kidnaps, or murders, or attempts to in subsection (c). gal aliens. kidnap or murder’’. ‘‘(2) Whoever threatens to commit an offense under paragraph (1), or attempts or Sec. 671. Miscellaneous provisions. SEC. 102. PROHIBITING MATERIAL SUPPORT TO Sec. 672. Construction of expedited deporta- TERRORIST ORGANIZATIONS. conspires to do so, shall be punished as prescribed in subsection (c). tion requirements. (a) IN GENERAL.—That chapter 113B of title Sec. 673. Study of prisoner transfer treaty ‘‘(b) JURISDICTIONAL BASES.—The cir- 18, United States Code, that relates to ter- with Mexico. cumstances referred to in subsection (a) rorism is amended by adding at the end the Sec. 674. Justice Department assistance in are— following: bringing to justice aliens who ‘‘(1) any of the offenders travels in, or uses flee prosecution for crimes in ‘‘§ 2339B. Providing material support to ter- the mail or any facility of, interstate or for- the United States. rorist organizations eign commerce in furtherance of the offense Sec. 675. Prisoner transfer treaties. ‘‘(a) OFFENSE.—Whoever, within the United or to escape apprehension after the commis- Sec. 676. Interior repatriation program. States, knowingly provides material support sion of the offense; Sec. 677. Deportation of nonviolent offenders or resources in or affecting interstate or for- ‘‘(2) the offense obstructs, delays, or affects prior to completion of sentence eign commerce, to any organization which interstate or foreign commerce, or would of imprisonment. the person knows or should have known is a have so obstructed, delayed, or affected TITLE VII—AUTHORIZATION AND terrorist organization that has been des- interstate or foreign commerce if the offense FUNDING ignated under section 212(a)(3)(B)(iv) of the had been consummated; Sec. 701. Firefighter and emergency services Immigration and Nationality Act as a ter- ‘‘(3) the victim, or intended victim, is the training. rorist organization shall be fined under this United States Government, a member of the December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14005

uniformed services, or any official, officer, outside the United States in addition to the (c) STATUTE OF LIMITATIONS AMENDMENT.— employee, or agent of the legislative, execu- conduct occurring in the United States; Section 3286 of title 18, United States Code, tive, or judicial branches, or of any depart- ‘‘(2) the term ‘facility of interstate or for- is amended by— ment or agency, of the United States; eign commerce’ has the meaning given that (1) striking ‘‘any offense’’ and inserting ‘‘(4) the structure, conveyance, or other term in section 1958(b)(2) of this title; ‘‘any non-capital offense’’; real or personal property is, in whole or in ‘‘(3) the term ‘serious bodily injury’ has (2) striking ‘‘36’’ and inserting ‘‘37’’; part, owned, possessed, used by, or leased to the meaning prescribed in section 1365(g)(3) (3) striking ‘‘2331’’ and inserting ‘‘2332’’; the United States, or any department or of this title; (4) striking ‘‘2339’’ and inserting ‘‘2332a’’; agency thereof; ‘‘(4) the term ‘territorial sea of the United and ‘‘(5) the offense is committed in the terri- States’ means all waters extending seaward (5) inserting ‘‘2332b (acts of terrorism tran- torial sea (including the airspace above and to 12 nautical miles from the baselines of the scending national boundaries),’’ after ‘‘(use the seabed and subsoil below, and artificial United States determined in accordance with of weapons of mass destruction),’’. islands and fixed structures erected thereon) international law; and (d) PRESUMPTIVE DETENTION.—Section of the United States; or ‘‘(5) the term ‘Federal crime of terrorism’ 3142(e) of title 18, United States Code, is ‘‘(6) the offense is committed in those means an offense that— amended by inserting ‘‘, 956(a), or 2332b’’ places within the United States that are in ‘‘(A) is calculated to influence or affect the after ‘‘section 924(c)’’. the special maritime and territorial jurisdic- conduct of government by intimidation or (e) CONFORMING AMENDMENT.—Section 846 tion of the United States. coercion, or to retaliate against government of title 18, United States Code, is amended by Jurisdiction shall exist over all principals conduct; and striking ‘‘In addition to any other’’ and all and co-conspirators of an offense under this ‘‘(B) is a violation of— that follows through the end of the section. section, and accessories after the fact to any ‘‘(i) section 32 (relating to destruction of SEC. 105. CONSPIRACY TO HARM PEOPLE AND offense under this section, if at least one of aircraft or aircraft facilities), 37 (relating to PROPERTY OVERSEAS. such circumstances is applicable to at least violence at international airports), 81 (relat- (a) IN GENERAL.—Section 956 of chapter 45 one offender. ing to arson within special maritime and ter- of title 18, United States Code, is amended to ‘‘(c) PENALTIES.— ritorial jurisdiction), 175 (relating to biologi- read as follows: ‘‘(1) Whoever violates this section shall be cal weapons), 351 (relating to congressional, ‘‘§ 956. Conspiracy to kill, kidnap, maim, or punished— cabinet, and Supreme Court assassination, injure persons or damage property in a for- ‘‘(A) for a killing or if death results to any kidnapping, and assault), 831 (relating to nu- eign country person from any other conduct prohibited by clear weapons), 842(m) or (n) (relating to ‘‘(a)(1) Whoever, within the jurisdiction of this section by death, or by imprisonment plastic explosives), 844(e) (relating to certain the United States, conspires with one or for any term of years or for life; bombings), 844(f) or (i) (relating to arson and more other persons, regardless of where such ‘‘(B) for kidnapping, by imprisonment for bombing of certain property), 956 (relating to other person or persons are located, to com- any term of years or for life; conspiracy to commit violent acts in foreign mit at any place outside the United States ‘‘(C) for maiming, by imprisonment for not countries), 1114 (relating to protection of of- an act that would constitute the offense of more than 35 years; ficers and employees of the United States), murder, kidnapping, or maiming if commit- ‘‘(D) for assault with a dangerous weapon 1116 (relating to murder or manslaughter of ted in the special maritime and territorial or assault resulting in serious bodily injury, foreign officials, official guests, or inter- jurisdiction of the United States shall, if any by imprisonment for not more than 30 years; nationally protected persons), 1203 (relating of the conspirators commits an act within ‘‘(E) for destroying or damaging any struc- to hostage taking), 1361 (relating to injury of the jurisdiction of the United States to ef- ture, conveyance, or other real or personal Government property), 1362 (relating to de- fect any object of the conspiracy, be pun- property, by imprisonment for not more struction of communication lines), 1363 (re- ished as provided in subsection (a)(2). than 25 years; lating to injury to buildings or property ‘‘(2) The punishment for an offense under ‘‘(F) for attempting or conspiring to com- within special maritime and territorial juris- subsection (a)(1) of this section is— mit an offense, for any term of years up to diction of the United States), 1366 (relating ‘‘(A) imprisonment for any term of years the maximum punishment that would have to destruction of energy facility), 1751 (relat- or for life if the offense is conspiracy to mur- applied had the offense been completed; and ing to Presidential and Presidential staff as- der or kidnap; and ‘‘(G) for threatening to commit an offense sassination, kidnapping, and assault), 2152 ‘‘(B) imprisonment for not more than 35 under this section, by imprisonment for not (relating to injury of harbor defenses), 2155 years if the offense is conspiracy to maim. more than 10 years. (relating to destruction of national defense ‘‘(b) Whoever, within the jurisdiction of ‘‘(2) Notwithstanding any other provision materials, premises, or utilities), 2156 (relat- the United States, conspires with one or of law, the court shall not place on probation ing to production of defective national de- more persons, regardless of where such other any person convicted of a violation of this fense materials, premises, or utilities), 2280 person or persons are located, to damage or section; nor shall the term of imprisonment (relating to violence against maritime navi- destroy specific property situated within a imposed under this section run concurrently gation), 2281 (relating to violence against foreign country and belonging to a foreign with any other term of imprisonment. maritime fixed platforms), 2332 (relating to government or to any political subdivision ‘‘(d) LIMITATION ON PROSECUTION.—No in- certain homicides and violence outside the thereof with which the United States is at dictment shall be sought nor any informa- United States), 2332a (relating to use of peace, or any railroad, canal, bridge, airport, tion filed for any offense described in this weapons of mass destruction), 2332b (relating section until the Attorney General, or the airfield, or other public utility, public con- to acts of terrorism transcending national veyance, or public structure, or any reli- highest ranking subordinate of the Attorney boundaries), 2339A (relating to providing ma- General with responsibility for criminal gious, educational, or cultural property so terial support to terrorists), 2339B (relating situated, shall, if any of the conspirators prosecutions, makes a written certification to providing material support to terrorist or- that, in the judgment of the certifying offi- commits an act within the jurisdiction of the ganizations), or 2340A (relating to torture) of United States to effect any object of the con- cial, such offense, or any activity pre- this title; paratory to or meant to conceal its commis- spiracy, be imprisoned not more than 25 ‘‘(ii) section 236 (relating to sabotage of nu- years.’’. sion, is a Federal crime of terrorism. clear facilities or fuel) of the Atomic Energy ‘‘(e) PROOF REQUIREMENTS.— (b) CLERICAL AMENDMENT.—The item relat- Act of 1954; or ‘‘(1) The prosecution is not required to ing to section 956 in the table of sections at ‘‘(iii) section 46502 (relating to aircraft pi- prove knowledge by any defendant of a juris- the beginning of chapter 45 of title 18, United racy), or 60123(b) (relating to destruction of dictional base alleged in the indictment. States Code, is amended to read as follows: interstate gas or hazardous liquid pipeline ‘‘(2) In a prosecution under this section ‘‘956. Conspiracy to kill, kidnap, maim, or in- facility) of title 49. that is based upon the adoption of State law, jure persons or damage prop- ‘‘(h) INVESTIGATIVE AUTHORITY.—In addi- only the elements of the offense under State erty in a foreign country.’’. tion to any other investigatory authority law, and not any provisions pertaining to with respect to violations of this title, the SEC. 106. CLARIFICATION AND EXTENSION OF criminal procedure or evidence, are adopted. CRIMINAL JURISDICTION OVER CER- Attorney General shall have primary inves- ‘‘(f) EXTRATERRITORIAL JURISDICTION.— TAIN TERRORISM OFFENSES OVER- There is extraterritorial Federal jurisdic- tigative responsibility for all Federal crimes SEAS. tion— of terrorism, and the Secretary of the Treas- (a) AIRCRAFT PIRACY.—Section 46502(b) of ‘‘(1) over any offense under subsection (a), ury shall assist the Attorney General at the title 49, United States Code, is amended— including any threat, attempt, or conspiracy request of the Attorney General.’’. (1) in paragraph (1), by striking ‘‘and later to commit such offense; and (b) CLERICAL AMENDMENT.—The table of found in the United States’’; ‘‘(2) over conduct which, under section 3 of sections at the beginning of the chapter 113B (2) so that paragraph (2) reads as follows: this title, renders any person an accessory of title 18, United States Code, that relates ‘‘(2) There is jurisdiction over the offense after the fact to an offense under subsection to terrorism is amended by inserting after in paragraph (1) if— (a). the item relating to section 2332a the follow- ‘‘(A) a national of the United States was ‘‘(g) DEFINITIONS.—As used in this section— ing new item: aboard the aircraft; ‘‘(1) the term ‘conduct transcending na- ‘‘2332b. Acts of terrorism transcending na- ‘‘(B) an offender is a national of the United tional boundaries’ means conduct occurring tional boundaries.’’. States; or H 14006 CONGRESSIONAL RECORD — HOUSE December 5, 1995 ‘‘(C) an offender is afterwards found in the diction over the offense if (1) the victim is a struction of aircraft), section 37 (relating to United States.’’; and representative, officer, employee, or agent of violence at international airports), section (3) by inserting after paragraph (2) the fol- the United States, (2) an offender is a na- 115 (relating to influencing, impeding, or re- lowing: tional of the United States, or (3) an offender taliating against a Federal official by ‘‘(3) For purposes of this subsection, the is afterwards found in the United States.’’; threatening or injuring a family member),’’; term ‘national of the United States’ has the and (2) by inserting after ‘‘section 215 (relating meaning prescribed in section 101(a)(22) of (2) by adding at the end the following: ‘‘For to commissions or gifts for procuring the Immigration and Nationality Act (8 purposes of this subsection, the term ‘na- loans),’’ the following: ‘‘section 351 (relating U.S.C. 1101(a)(22)).’’. tional of the United States’ has the meaning to Congressional or Cabinet officer assas- (b) DESTRUCTION OF AIRCRAFT OR AIRCRAFT prescribed in section 101(a)(22) of the Immi- sination),’’; FACILITIES.—Section 32(b) of title 18, United gration and Nationality Act (8 U.S.C. (3) by inserting after ‘‘section 793, 794, or States Code, is amended— 1101(a)(22)).’’. 798 (relating to espionage),’’ the following: (1) by striking ‘‘, if the offender is later (g) VIOLENCE AT INTERNATIONAL AIR- ‘‘section 831 (relating to prohibited trans- found in the United States,’’; and PORTS.—Section 37(b)(2) of title 18, United actions involving nuclear materials), section (2) by inserting at the end the following States Code, is amended— 844 (f) or (i) (relating to destruction by explo- the following: ‘‘There is jurisdiction over an (1) by inserting ‘‘(A)’’ before ‘‘the offender sives or fire of Government property or prop- offense under this subsection if a national of is later found in the United States’’; and erty affecting interstate or foreign com- the United States was on board, or would (2) by inserting ‘‘; or (B) an offender or a merce),’’; have been on board, the aircraft; an offender victim is a national of the United States (as (4) by inserting after ‘‘section 875 (relating is a national of the United States; or an of- defined in section 101(a)(22) of the Immigra- to interstate communications),’’ the follow- fender is afterwards found in the United tion and Nationality Act (8 U.S.C. ing: ‘‘section 956 (relating to conspiracy to States. For purposes of this subsection, the 1101(a)(22)))’’ after ‘‘the offender is later kill, kidnap, maim, or injure certain prop- term ‘national of the United States’ has the found in the United States’’. erty in a foreign country),’’; (h) BIOLOGICAL WEAPONS.—Section 178 of meaning prescribed in section 101(a)(22) of (5) by inserting after ‘‘1032 (relating to con- title 18, United States Code, is amended— the Immigration and Nationality Act.’’. cealment of assets from conservator, re- (1) by striking ‘‘and’’ at the end of para- (c) MURDER OF FOREIGN OFFICIALS AND CER- ceiver, or liquidating agent of financial in- graph (3); TAIN OTHER PERSONS.—Section 1116 of title stitution),’’ the following: ‘‘section 1111 (re- (2) by striking the period at the end of 18, United States Code, is amended— lating to murder), section 1114 (relating to (1) in subsection (b), by adding at the end paragraph (4) and inserting ‘‘; and’’; and (3) by adding the following at the end: protection of officers and employees of the the following: United States), section 1116 (relating to mur- ‘‘(7) ‘National of the United States’ has the ‘‘(5) the term ‘national of the United States’ has the meaning prescribed in sec- der of foreign officials, official guests, or meaning prescribed in section 101(a)(22) of internationally protected persons),’’; the Immigration and Nationality Act (8 tion 101(a)(22) of the Immigration and Na- tionality Act (8 U.S.C. 1101(a)(22)).’’. (6) by inserting after ‘‘section 1203 (relat- U.S.C. 1101(a)(22)).’’; and ing to hostage taking),’’ the following: ‘‘sec- (2) in subsection (c), by striking the first SEC. 107. EXPANSION AND MODIFICATION OF WEAPONS OF MASS DESTRUCTION tion 1361 (relating to willful injury of Gov- sentence and inserting the following: ‘‘If the ernment property), section 1363 (relating to victim of an offense under subsection (a) is STATUTE. Section 2332a of title 18, United States destruction of property within the special an internationally protected person outside Code, is amended— maritime and territorial jurisdiction),’’; the United States, the United States may ex- (1) in subsection (a)— (7) by inserting after ‘‘section 1708 (theft ercise jurisdiction over the offense if (1) the (A) by inserting ‘‘AGAINST A NATIONAL OR from the mail),’’ the following: ‘‘section 1751 victim is a representative, officer, employee, WITHIN THE UNITED STATES’’ after ‘‘OF- (relating to Presidential assassination),’’; or agent of the United States, (2) an offender FENSE’’; (8) by inserting after ‘‘2114 (relating to is a national of the United States, or (3) an (B) by inserting ‘‘, without lawful author- bank and postal robbery and theft),’’ the fol- offender is afterwards found in the United ity’’ after ‘‘A person who’’; lowing: ‘‘section 2280 (relating to violence States.’’. (C) by inserting ‘‘threatens,’’ before ‘‘at- against maritime navigation), section 2281 (d) PROTECTION OF FOREIGN OFFICIALS AND tempts or conspires to use, a weapon of mass (relating to violence against maritime fixed CERTAIN OTHER PERSONS.—Section 112 of destruction’’; and platforms),’’; and title 18, United States Code, is amended— (D) by inserting ‘‘and the results of such (9) by striking ‘‘of this title’’ and inserting (1) in subsection (c), by inserting ‘‘‘na- use affect interstate or foreign commerce or, the following: ‘‘section 2332 (relating to ter- tional of the United States’,’’ before ‘‘and’’; in the case of a threat, attempt, or conspir- rorist acts abroad against United States na- and acy, would have affected interstate or for- tionals), section 2332a (relating to use of (2) in subsection (e), by striking the first eign commerce’’ before the semicolon at the weapons of mass destruction), section 2332b sentence and inserting the following: ‘‘If the end of paragraph (2); (relating to international terrorist acts tran- victim of an offense under subsection (a) is (2) in subsection (b)(2)(A), by striking ‘‘sec- scending national boundaries), section 2339A an internationally protected person outside tion 921’’ and inserting ‘‘section 921(a)(4) (relating to providing material support to the United States, the United States may ex- (other than subparagraphs (B) and (C))’’; terrorists) of this title, section 46502 of title ercise jurisdiction over the offense if (1) the (3) in subsection (b), so that subparagraph 49, United States Code’’. victim is a representative, officer, employee, (B) of paragraph (2) reads as follows: or agent of the United States, (2) an offender SEC. 109. EXPANSION OF FEDERAL JURISDIC- ‘‘(B) any weapon that is designed to cause TION OVER BOMB THREATS. is a national of the United States, or (3) an death or serious bodily injury through the offender is afterwards found in the United Section 844(e) of title 18, United States release, dissemination, or impact of toxic or Code, is amended by striking ‘‘commerce,’’ States.’’. poisonous chemicals, or their precursors;’’; (e) THREATS AND EXTORTION AGAINST FOR- and inserting ‘‘interstate or foreign com- (4) by redesignating subsection (b) as sub- EIGN OFFICIALS AND CERTAIN OTHER PER- merce, or in or affecting interstate or foreign section (c); and SONS.—Section 878 of title 18, United States commerce,’’. (5) by inserting after subsection (a) the fol- Code, is amended— SEC. 110. CLARIFICATION OF MARITIME VIO- lowing new subsection: (1) in subsection (c), by inserting ‘‘‘na- LENCE JURISDICTION. ‘‘(b) OFFENSE BY NATIONAL OUTSIDE THE tional of the United States’,’’ before ‘‘and’’; Section 2280(b)(1)(A) of title 18, United UNITED STATES.—Any national of the United and States Code, is amended— States who, without lawful authority and (1) in clause (ii), by striking ‘‘and the ac- (2) in subsection (d), by striking the first outside the United States, uses, or threatens, tivity is not prohibited as a crime by the sentence and inserting the following: ‘‘If the attempts, or conspires to use, a weapon of State in which the activity takes place’’; and victim of an offense under subsection (a) is mass destruction shall be imprisoned for any (2) in clause (iii), by striking ‘‘the activity an internationally protected person outside term of years or for life, and if death results, takes place on a ship flying the flag of a for- the United States, the United States may ex- shall be punished by death, or by imprison- ercise jurisdiction over the offense if (1) the ment for any term of years or for life.’’. eign country or outside the United States,’’. victim is a representative, officer, employee, SEC. 108. ADDITION OF OFFENSES TO THE SEC. 111. POSSESSION OF STOLEN EXPLOSIVES or agent of the United States, (2) an offender MONEY LAUNDERING STATUTE. PROHIBITED. is a national of the United States, or (3) an (a) MURDER AND DESTRUCTION OF PROP- Section 842(h) of title 18, United States offender is afterwards found in the United ERTY.—Section 1956(c)(7)(B)(ii) of title 18, Code, is amended to read as follows: States.’’. United States Code, is amended by striking ‘‘(h) It shall be unlawful for any person to (f) KIDNAPPING OF INTERNATIONALLY PRO- ‘‘or extortion;’’ and inserting ‘‘extortion, receive, possess, transport, ship, conceal, TECTED PERSONS.—Section 1201(e) of title 18, murder, or destruction of property by means store, barter, sell, dispose of, or pledge or ac- United States Code, is amended— of explosive or fire;’’. cept as security for a loan, any stolen explo- (1) by striking the first sentence and in- (b) SPECIFIC OFFENSES.—Section sive materials which are moving as, which serting the following: ‘‘If the victim of an of- 1956(c)(7)(D) of title 18, United States Code, is are part of, which constitute, or which have fense under subsection (a) is an internation- amended— been shipped or transported in, interstate or ally protected person outside the United (1) by inserting after ‘‘an offense under’’ foreign commerce, either before or after such States, the United States may exercise juris- the following: ‘‘section 32 (relating to the de- materials were stolen, knowing or having December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14007 reasonable cause to believe that the explo- offense the commission of which was the ob- (2) Section 3123(b)(1) of title 18, United sive materials were stolen.’’. ject of the conspiracy.’’. States Code, is amended in subparagraph (B), SEC. 112. STUDY TO DETERMINE STANDARDS FOR SEC. 203. INCREASED AND ALTERNATE CONSPIR- by striking ‘‘criminal’’. DETERMINING WHAT AMMUNITION ACY PENALTIES FOR TERRORISM SEC. 302. DISCLOSURE OF CERTAIN CONSUMER IS CAPABLE OF PENETRATING PO- OFFENSES. REPORTS TO THE FEDERAL BUREAU LICE BODY ARMOR. (a) TITLE 18 OFFENSES.— OF INVESTIGATION. The National Institute of Justice is di- (1) Sections 32(a)(7), 32(b)(4), 37(a), (a) IN GENERAL.—The Fair Credit Report- rected to perform a study of, and to rec- 115(a)(1)(A), 115(a)(2), 1203(a), 2280(a)(1)(H), ing Act (15 U.S.C. 1681 et seq.) is amended by ommend to Congress, a methodology for de- and 2281(a)(1)(F) of title 18, United States adding after section 623 the following: termining what ammunition, designed for Code, are each amended by inserting ‘‘or con- ‘‘SEC. 624. DISCLOSURES TO THE FEDERAL BU- handguns, is capable of penetrating police spires’’ after ‘‘attempts’’. REAU OF INVESTIGATION FOR FOR- body armor. Not later than 6 months after (2) Section 115(b)(2) of title 18, United EIGN COUNTERINTELLIGENCE PUR- the date of the enactment of this Act, the States Code, is amended by striking ‘‘or at- POSES. National Institute of Justice shall report to tempted kidnapping’’ both places it appears ‘‘(a) IDENTITY OF FINANCIAL INSTITUTIONS.— Congress the results of such study and such and inserting ‘‘, attempted kidnapping, or (1) Notwithstanding section 604 or any other recommendations. conspiracy to kidnap’’. provision of this title, a court or magistrate judge may issue an order ex parte, upon ap- TITLE II—INCREASED PENALTIES (3)(A) Section 115(b)(3) of title 18, United States Code, is amended by striking ‘‘or at- plication by the Director of the Federal Bu- SEC. 201. MANDATORY MINIMUM FOR CERTAIN tempted murder’’ and inserting ‘‘, attempted reau of Investigation (or the Director’s des- EXPLOSIVES OFFENSES. murder, or conspiracy to murder’’. ignee, whose rank shall be no lower than As- (a) INCREASED PENALTIES FOR DAMAGING (B) Section 115(b)(3) of title 18, United sistant Special Agent in Charge), directing a CERTAIN PROPERTY.—Section 844(f) of title 18, States Code, is amended by striking ‘‘and consumer reporting agency to furnish to the United States Code, is amended to read as 1113’’ and inserting ‘‘, 1113, and 1117’’. Federal Bureau of Investigation the names follows: (4) Section 175(a) of title 18, United States and addresses of all financial institutions (as ‘‘(f) Whoever damages or destroys, or at- Code, is amended by inserting ‘‘or conspires that term is defined in section 1101 of the tempts to damage or destroy, by means of to do so,’’ after ‘‘any organization to do so,’’. Right to Financial Privacy Act of 1978) at fire or an explosive, any personal or real (b) AIRCRAFT PIRACY.— which a consumer maintains or has main- property in whole or in part owned, pos- (1) Section 46502(a)(2) of title 49, United tained an account, to the extent that infor- sessed, or used by, or leased to, the United States Code, is amended by inserting ‘‘or mation is in the files of the agency. The States, or any department or agency thereof, conspiring’’ after ‘‘attempting’’. court or magistrate judge shall issue the or any institution or organization receiving (2) Section 46502(b)(1) of title 49, United order if the court or magistrate judge finds, Federal financial assistance shall be fined States Code, is amended by inserting ‘‘or that— under this title or imprisoned for not more conspiring to commit’’ after ‘‘committing’’. ‘‘(A) such information is necessary for the than 25 years, or both, but— SEC. 204. MANDATORY PENALTY FOR TRANSFER- conduct of an authorized foreign counter- ‘‘(1) if personal injury results to any person RING A FIREARM KNOWING THAT IT intelligence investigation; and other than the offender, the term of impris- WILL BE USED TO COMMIT A CRIME ‘‘(B) there are specific and articulable facts onment shall be not more than 40 years; OF VIOLENCE. giving reason to believe that the consumer— ‘‘(2) if fire or an explosive is used and its Section 924(h) of title 18, United States ‘‘(i) is a foreign power (as defined in sec- use creates a substantial risk of serious bod- Code, is amended— tion 101 of the Foreign Intelligence Surveil- ily injury to any person other than the of- (1) by inserting ‘‘or having reasonable lance Act of 1978) or a person who is not a fender, the term of imprisonment shall not cause to believe’’ after ‘‘knowing’’; and United States person (as defined in such sec- be less than 20 years; and (2) by striking ‘‘imprisoned not more than tion 101) and is an official of a foreign power; ‘‘(3) if death results to any person other 10 years, fined in accordance with this title, or than the offender, the offender shall be sub- or both.’’ and inserting ‘‘subject to the same ‘‘(ii) is an agent of a foreign power and is ject to the death penalty or imprisonment penalties as may be imposed under sub- engaging or has engaged in international ter- for any term of years not less than 30, or for section (c) for a first conviction for the use rorism (as that term is defined in section life.’’. or carrying of the firearm.’’. 101(c) of the Foreign Intelligence Surveil- (b) CONFORMING AMENDMENT.—Section 81 of SEC. 205. MANDATORY PENALTY FOR TRANSFER- lance Act of 1978) or clandestine intelligence title 18, United States Code, is amended by RING AN EXPLOSIVE MATERIAL activities that involve or may involve a vio- striking ‘‘fined under this title or imprisoned KNOWING THAT IT WILL BE USED TO lation of criminal statutes of the United COMMIT A CRIME OF VIOLENCE. not more than five years, or both’’ and in- States. Section 844 of title 18, United States Code, serting ‘‘imprisoned not more than 25 years ‘‘(2) An order issued under this subsection is amended by adding at the end the follow- or fined the greater of the fine under this shall not disclose that it is issued for pur- title or the cost of repairing or replacing any ing: ‘‘(o) Whoever knowingly transfers any ex- poses of a counterintelligence investigation. property that is damaged or destroyed, or DENTIFYING NFORMATION plosive materials, knowing or having reason- ‘‘(b) I I .—(1) Not- both’’. able cause to believe that such explosive ma- withstanding section 604 or any other provi- (c) STATUTE OF LIMITATION FOR ARSON OF- terials will be used to commit a crime of vio- sion of this title, a court or magistrate judge FENSES.— lence (as defined in section 924(c)(3) of this shall issue an order ex parte, upon applica- (1) Chapter 213 of title 18, United States title) or drug trafficking crime (as defined in tion by the Director of the Federal Bureau of Code, is amended by adding at the end the section 924(c)(2) of this title) shall be subject Investigation (or the Director’s designee, following: to the same penalties as may be imposed whose rank shall be no lower than Assistant ‘‘§ 3295. Arson offenses under subsection (h) for a first conviction for Special Agent in Charge), directing a consumer reporting agency to furnish identi- ‘‘No person shall be prosecuted, tried, or the use or carrying of the explosive mate- fying information respecting a consumer, punished for any non-capital offense under rials.’’. limited to name, address, former addresses, section 81 or subsection (f), (h), or (i) of sec- SEC. 206. DIRECTIONS TO SENTENCING COMMIS- places of employment, or former places of tion 844 of this title unless the indictment is SION. employment, to the Federal Bureau of Inves- found or the information is instituted within The United States Sentencing Commission tigation. The court or magistrate judge shall 7 years after the date on which the offense shall forthwith, in accordance with the pro- issue the order if the court or magistrate was committed.’’. cedures set forth in section 21(a) of the Sen- judge finds, that— (2) The table of sections at the beginning of tencing Act of 1987, as though the authority under that section had not expired, amend ‘‘(A) such information is necessary to the chapter 213 of title 18, United States Code, is the sentencing guidelines so that the chapter conduct of an authorized foreign counter- amended by adding at the end the following 3 adjustment relating to international terintelligence investigation; and new item: rorism only applies to Federal crimes of ter- ‘‘(B) there is information giving reason to ‘‘3295. Arson offenses.’’. rorism, as defined in section 2332b(g) of title believe that the consumer has been, or is, in (3) Section 844(i) of title 18, United States 18, United States Code. contact with a foreign power or an agent of Code, is amended by striking the last sen- TITLE III—INVESTIGATIVE TOOLS a foreign power (as defined in section 101 of tence. SEC. 301. PEN REGISTERS AND TRAP AND TRACE the Foreign Intelligence Surveillance Act of SEC. 202. INCREASED PENALTY FOR EXPLOSIVE DEVICES IN FOREIGN COUNTER- 1978). CONSPIRACIES. INTELLIGENCE INVESTIGATIONS. ‘‘(2) An order issued under this subsection Section 844 of title 18, United States Code, (a) APPLICATION.—Section 3122(b)(2) of title shall not disclose that it is issued for pur- is amended by adding at the end the follow- 18, United States Code, is amended by insert- poses of a counterintelligence investigation. ing: ing ‘‘or foreign counterintelligence’’ after ‘‘(c) COURT ORDER FOR DISCLOSURE OF ‘‘(n) Except as otherwise provided in this ‘‘criminal’’. CONSUMER REPORTS.—(1) Notwithstanding section, a person who conspires to commit (b) ORDER.— section 604 or any other provision of this any offense defined in this chapter shall be (1) Section 3123(a) of title 18, United States title, if requested in writing by the Director subject to the same penalties (other than the Code, is amended by inserting ‘‘or foreign of the Federal Bureau of Investigation (or penalty of death) as those prescribed for the counterintelligence’’ after ‘‘criminal’’. the Director’s designee, whose rank shall be H 14008 CONGRESSIONAL RECORD — HOUSE December 5, 1995 no lower than Assistant Special Agent in Intelligence and the Committee on Banking, carrier, public accommodation facility, Charge), a court may issue an order ex parte Housing, and Urban Affairs of the Senate physical storage facility, or vehicle rental directing a consumer reporting agency to concerning all requests made pursuant to facility to furnish any records in its posses- furnish a consumer report to the Federal Bu- subsections (a), (b), and (c). sion to the Federal Bureau of Investigation. reau of Investigation, after the court or mag- ‘‘(i) DAMAGES.—Any agency or department The court or magistrate judge shall issue the istrate finds, in a proceeding in camera, of the United States obtaining or disclosing order if the court or magistrate judge finds that— any consumer reports, records, or informa- that— ‘‘(A) the consumer report is necessary for tion contained therein in violation of this ‘‘(A) such records are necessary for the conduct of an authorized foreign coun- section is liable to any person harmed by the counter-terrorism or foreign counterintel- terintelligence investigation; and violation in an amount equal to the sum of— ligence purposes; and ‘‘(B) there are specific and articulable facts ‘‘(1) $100, without regard to the volume of ‘‘(B) there are specific and articulable facts giving reason to believe that the consumer consumer reports, records, or information in- giving reason to believe that the person to whose consumer report is sought— volved; whom the records pertain is— ‘‘(i) is an agent of a foreign power; and ‘‘(2) any actual damages sustained by the ‘‘(i) a foreign power; or ‘‘(ii) is engaging or has engaged in inter- person harmed as a result of the disclosure; ‘‘(ii) an agent of a foreign power and is en- national terrorism (as that term is defined in ‘‘(3) if the violation is found to have been gaging or has engaged in international ter- section 101(c) of the Foreign Intelligence willful or intentional, such punitive damages rorism (as that term is defined in section Surveillance Act of 1978) or clandestine in- as a court may allow; and 101(c) of the Foreign Intelligence Surveil- telligence activities that involve or may in- ‘‘(4) in the case of any successful action to lance Act of 1978) or clandestine intelligence volve a violation of criminal statutes of the enforce liability under this subsection, the activities that involve or may involve a vio- United States. costs of the action, together with reasonable lation of criminal statutes of the United ‘‘(2) An order issued under this subsection attorney fees, as determined by the court. States. shall not disclose that it is issued for pur- ‘‘(j) DISCIPLINARY ACTIONS FOR VIOLA- ‘‘(2) An order issued under this subsection poses of a counterintelligence investigation. TIONS.—If a court determines that any agen- shall not disclose that it is issued for pur- ‘‘(d) CONFIDENTIALITY.—(1) No consumer re- cy or department of the United States has poses of a counterintelligence investigation. porting agency or officer, employee, or agent violated any provision of this section and the ‘‘(b) No common carrier, public accommo- of a consumer reporting agency shall dis- court finds that the circumstances surround- dation facility, physical storage facility, or close to any person, other than officers, em- ing the violation raise questions of whether vehicle rental facility, or any officer, employees, or agents of a consumer reporting or not an officer or employee of the agency ployee, or agent of such common carrier, agency necessary to fulfill the requirement or department acted willfully or inten- public accommodation facility, physical to disclose information to the Federal Bu- tionally with respect to the violation, the storage facility, or vehicle rental facility, reau of Investigation under this section, that agency or department shall promptly initi- shall disclose to any person, other than the Federal Bureau of Investigation has ate a proceeding to determine whether or not those officers, agents, or employees of the sought or obtained the identity of financial disciplinary action is warranted against the common carrier, public accommodation fa- institutions or a consumer report respecting officer or employee who was responsible for cility, physical storage facility, or vehicle any consumer under subsection (a), (b), or the violation. rental facility necessary to fulfill the re- (c). ‘‘(k) GOOD-FAITH EXCEPTION.—Notwith- quirement to disclose the information to the ‘‘(2) No consumer reporting agency or offi- standing any other provision of this title, Federal Bureau of Investigation under this cer, employee, or agent of a consumer re- any consumer reporting agency or agent or section. porting agency shall include in any employee thereof making disclosure of ‘‘(c)(1) The Federal Bureau of Investigation consumer report any information that would consumer reports or identifying information may not disseminate information obtained indicate that the Federal Bureau of Inves- pursuant to this subsection in good-faith re- pursuant to this section outside the Federal tigation has sought or obtained such infor- liance upon a certification of the Federal Bu- Bureau of Investigation, except— mation or a consumer report. reau of Investigation pursuant to provisions ‘‘(A) to the Department of Justice or any ‘‘(e) PAYMENT OF FEES.—The Federal Bu- of this section shall not be liable to any per- other law enforcement agency, as may be reau of Investigation is authorized, subject son for such disclosure under this title, the necessary for the approval or conduct of a to the availability of appropriations, pay to constitution of any State, or any law or reg- foreign counterintelligence investigation; or the consumer reporting agency assembling ulation of any State or any political subdivi- ‘‘(B) where the information concerns a per- or providing reports or information in ac- sion of any State notwithstanding. son subject to the Uniform Code of Military cordance with procedures established under ‘‘(l) INJUNCTIVE RELIEF.—In addition to any Justice, to appropriate investigative au- this section, a fee for reimbursement for other remedy contained in this section, in- thorities within the military department such costs as are reasonably necessary and junctive relief shall be available to require concerned as may be necessary for the con- which have been directly incurred in search- compliance with the procedures of this sec- duct of a joint foreign counterintelligence ing, reproducing, or transporting books, pa- tion. In the event of any successful action investigation. pers, records, or other data required or re- under this subsection, costs together with ‘‘(2) Any agency or department of the Unit- quested to be produced under this section. reasonable attorney fees, as determined by ed States obtaining or disclosing any infor- ‘‘(f) LIMIT ON DISSEMINATION.—The Federal the court, may be recovered.’’. mation in violation of this paragraph shall Bureau of Investigation may not disseminate (b) CLERICAL AMENDMENT.—The table of be liable to any person harmed by the viola- information obtained pursuant to this sec- sections at the beginning of the Fair Credit tion in an amount equal to the sum of— tion outside of the Federal Bureau of Inves- Reporting Act (15 U.S.C. 1681a et seq.) is ‘‘(A) $100 without regard to the volume of tigation, except— amended by adding after the item relating to information involved; ‘‘(1) to the Department of Justice or any section 623 the following new item: ‘‘(B) any actual damages sustained by the other law enforcement agency, as may be ‘‘624. Disclosures to the Federal Bureau of person harmed as a result of the violation; necessary for the approval or conduct of a Investigation for foreign coun- ‘‘(C) if the violation is willful or inten- foreign counterintelligence investigation; or terintelligence purposes.’’. tional, such punitive damages as a court ‘‘(2) where the information concerns a per- may allow; and SEC. 303. DISCLOSURE OF BUSINESS RECORDS son subject to the Uniform Code of Military HELD BY THIRD PARTIES IN FOR- ‘‘(D) in the case of any successful action to Justice, to appropriate investigative au- EIGN COUNTERINTELLIGENCE enforce liability under this paragraph, the thorities within the military department CASES. costs of the action, together with reasonable concerned as may be necessary for the con- (a) IN GENERAL.—Title 18, United States attorney fees, as determined by the court. duct of a joint foreign counterintelligence Code, is amended by inserting after chapter ‘‘(d) If a court determines that any agency investigation. 121 the following: or department of the United States has vio- ‘‘(g) RULES OF CONSTRUCTION.—Nothing in lated any provision of this section and the ‘‘CHAPTER 122—ACCESS TO CERTAIN this section shall be construed to prohibit in- court finds that the circumstances surround- RECORDS formation from being furnished by the Fed- ing the violation raise questions of whether eral Bureau of Investigation pursuant to a ‘‘Sec. or not an officer or employee of the agency ‘‘2720. Disclosure of business records held by subpoena or court order, or in connection or department acted willfully or inten- third parties in foreign counter- with a judicial or administrative proceeding tionally with respect to the violation, the intelligence cases. to enforce the provisions of this Act. Noth- agency or department shall promptly initi- ing in this section shall be construed to au- ‘‘§ 2720. Disclosure of business records held ate a proceeding to determine whether or not thorize or permit the withholding of infor- by third parties in foreign counterintel- disciplinary action is warranted against the mation from the Congress. ligence cases officer or employee who was responsible for ‘‘(h) REPORTS TO CONGRESS.—On an annual ‘‘(a)(1) A court or magistrate judge may the violation. basis, the Attorney General shall fully in- issue an order ex parte, upon application by ‘‘(e) As used in this section— form the Permanent Select Committee on the Director of the Federal Bureau of Inves- ‘‘(1) the term ‘common carrier’ means a lo- Intelligence and the Committee on Banking tigation (or the Director’s designee, whose comotive, rail carrier, bus carrying pas- and Financial Services of the House of Rep- rank shall be no lower than Assistant Spe- sengers, water common carrier, air common resentatives, and the Select Committee on cial Agent in Charge), directing any common carrier, or private commercial interstate December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14009 carrier for the delivery of packages and (1) by inserting ‘‘or’’ at the end of subpara- ‘‘§ 3059. Reward authority of the Attorney other objects; graph (D); General ‘‘(2) the term ‘public accommodation facil- (2) by striking ‘‘or’’ at the end of subpara- ‘‘(a) The Attorney General may pay re- ity’ means any inn, hotel, motel, or other es- graph (E); and wards and receive from any department or tablishment that provides lodging to tran- (3) by striking subparagraph (F). agency, funds for the payment of rewards sient guests; SEC. 307. ACCESS TO TELEPHONE BILLING under this section, to any individual who ‘‘(3) the term ‘physical storage facility’ RECORDS. provides any information unknown to the means any business or entity that provides (a) SECTION 2709.—Section 2709(b) of title Government leading to the arrest or prosecu- space for the storage of goods or materials, 18, United States Code, is amended— tion of any individual for Federal felony of- or services related to the storage of goods or (1) in paragraph (1)(A), by inserting ‘‘local fenses. materials, to the public or any segment and long distance’’ before ‘‘toll billing ‘‘(b) If the reward exceeds $100,000, the At- thereof; and records’’; torney General shall give notice of that fact ‘‘(4) the term ‘vehicle rental facility’ (2) by striking ‘‘and’’ at the end of para- to the Senate and the House of Representa- means any person or entity that provides ve- graph (1); tives not later than 30 days before authoriz- hicles for rent, lease, loan, or other similar (3) by striking the period at the end of ing the payment of the reward. use, to the public or any segment thereof.’’. paragraph (2) and inserting ‘‘; and’’; and ‘‘(c) A determination made by the Attor- (b) CLERICAL AMENDMENT.—The table of (4) by adding at the end a new paragraph ney General as to whether to authorize an chapters at the beginning of part I of title 18, (3), as follows: award under this section and as to the United States Code, is amended by inserting ‘‘(3) request the name, address, length of amount of any reward authorized shall not after the item relating to chapter 121 the fol- service, and local and long distance toll bill- be subject to judicial review. lowing new item: ing records of a person or entity if the Direc- ‘‘(d) If the Attorney General determines that the identity of the recipient of a reward ...... tor or the Director’s designee (in a position ‘‘122. Access to certain records 2720’’. or of the members of the recipient’s imme- not lower than Deputy Assistant Director) SEC. 304. STUDY OF TAGGING EXPLOSIVE MATE- diate family must be protected, the Attorney RIALS, DETECTION OF EXPLOSIVES certifies in writing to the wire or electronic General may take such measures in connec- AND EXPLOSIVE MATERIALS, REN- communication service provider to which DERING EXPLOSIVE COMPONENTS tion with the payment of the reward as the the request is made that the information Attorney General deems necessary to effect INERT, AND IMPOSING CONTROLS sought is relevant to an authorized inter- OF PRECURSORS OF EXPLOSIVES. such protection. national terrorism investigation (as defined (a) STUDY.—The Attorney General, in con- ‘‘(e) No officer or employee of any govern- sultation with other Federal, State and local in section 2331 of this title).’’. mental entity may receive a reward under (b) SECTION 2703.—Section 2703(c)(1)(C) of officials with expertise in this area and such this section for conduct in performance of title 18, United States Code, is amended by other individuals as the Attorney General his or her official duties. inserting ‘‘local and long distance’’ before deems appropriate, shall conduct a study ‘‘(f) Any individual (and the immediate ‘‘telephone toll billing records’’. concerning— family of such individual) who furnishes in- (c) CIVIL REMEDY.—Section 2707 of title 18, (1) the tagging of explosive materials for formation which would justify a reward United States Code, is amended— under this section or a reward by the Sec- purposes of detection and identification; (1) in subsection (a), by striking ‘‘cus- (2) technology for devices to improve the retary of State under section 36 of the State tomer’’ and inserting ‘‘any other person’’; Department Basic Authorities Act of 1956 detection of explosives materials; (2) in subsection (c), inserting before the (3) whether common chemicals used to may, in the discretion of the Attorney Gen- period at the end the following: ‘‘, and if the eral, participate in the Attorney General’s manufacture explosive materials can be ren- violation is willful or intentional, such puni- dered inert and whether it is feasible to re- witness security program under chapter 224 tive damages as the court may allow, and, in of this title.’’. quire it; and the case of any successful action to enforce (b) CLERICAL AMENDMENT.—The table of (4) whether controls can be imposed on cer- liability under this section, the costs of the sections at the beginning of chapter 203 of tain precursor chemicals used to manufac- action, together with reasonable attorney title 18, United States Code, is amended by ture explosive materials and whether it is fees, as determined by the court’’; and striking the items relating to section 3059 feasible to require it. (3) by adding at the end the following: and 3059A and inserting the following new (b) REPORT.—Not later than 180 days after ‘‘(f) DISCIPLINARY ACTIONS FOR VIOLA- item: the date of the enactment of this Act, the TIONS.—If a court determines that any agen- ‘‘3059. Reward authority of the Attorney Attorney General shall submit to the Con- cy or department of the United States has gress a report that contains the results of General.’’. violated this chapter and the court finds (c) CONFORMING AMENDMENT.—Section 1751 the study required by this section. The At- that the circumstances surrounding the vio- of title 18, United States Code, is amended by torney General shall make the report avail- lation raise questions of whether or not an striking subsection (g). able to the public. officer or employee of the agency or depart- SEC. 311. PROTECTION OF FEDERAL GOVERN- SEC. 305. APPLICATION OF STATUTORY EXCLU- ment acted willfully or intentionally with MENT BUILDINGS IN THE DISTRICT SIONARY RULE CONCERNING INTER- respect to the violation, the agency or de- OF COLUMBIA. CEPTED WIRE OR ORAL COMMU- NICATIONS. partment shall promptly initiate a proceed- The Attorney General is authorized— Section 2515 of title 18, United States Code, ing to determine whether or not disciplinary (1) to prohibit vehicles from parking or is amended by adding at the end the follow- action is warranted against the officer or standing on any street or roadway adjacent ing: ‘‘This section shall not apply to the dis- employee who was responsible for the viola- to any building in the District of Columbia closure by the United States in a criminal tion.’’. which is in whole or in part owned, pos- trial or hearing or before a grand jury of the SEC. 308. REQUIREMENT TO PRESERVE RECORD sessed, used by, or leased to the Federal Gov- contents of a wire or oral communication, or EVIDENCE. ernment and used by Federal law enforce- evidence derived therefrom, if any law en- Section 2703 of title 18, United States Code, ment authorities; and forcement officers who intercepted the com- is amended by adding at the end the follow- (2) to prohibit any person or entity from munication or gathered the evidence derived ing: conducting business on any property imme- therefrom acted with the reasonably objec- ‘‘(f) REQUIREMENT TO PRESERVE EVI- diately adjacent to any such building. tive belief that their actions were in compli- DENCE.—A provider of wire or electronic SEC. 312. STUDY OF THEFTS FROM ARMORIES; ance with this chapter.’’. communication services or a remote comput- REPORT TO THE CONGRESS. SEC. 306. EXCLUSION OF CERTAIN TYPES OF IN- ing service, upon the request of a govern- (a) STUDY.—The Attorney General of the FORMATION FROM WIRETAP-RELAT- mental entity, shall take all necessary steps United States shall conduct a study of the ED DEFINITIONS. to preserve records, and other evidence in its extent of thefts from military arsenals (in- (a) DEFINITION OF ‘‘ELECTRONIC COMMUNICA- possession pending the issuance of a court cluding National Guard armories) of fire- TION’’.—Section 2510(12) of title 18, United order or other process. Such records shall be arms, explosives, and other materials that States Code, is amended— retained for a period of 90 days, which period are potentially useful to terrorists. (1) by striking ‘‘or’’ at the end of subpara- shall be extended for an additional 90-day pe- (b) REPORT TO THE CONGRESS.—Within 6 graph (B); riod upon a renewed request by the govern- months after the date of the enactment of (2) by inserting ‘‘or’’ at the end of subpara- mental entity.’’. this Act, the Attorney General shall submit graph (C); and SEC. 309. DETENTION HEARING. to the Congress a report on the study re- (3) by adding a new subparagraph (D), as Section 3142(f) of title 18, United States quired by subsection (a). follows: Code, is amended by inserting ‘‘(not includ- TITLE IV—NUCLEAR MATERIALS ‘‘(D) information stored in a communica- ing any intermediate Saturday, Sunday, or SEC. 401. EXPANSION OF NUCLEAR MATERIALS tions system used for the electronic storage legal holiday)’’ after ‘‘five days’’ and after PROHIBITIONS. and transfer of funds;’’ ‘‘three days’’. Section 831 of title 18, United States Code, (b) DEFINITION OF ‘‘READILY ACCESSIBLE TO SEC. 310. REWARD AUTHORITY OF THE ATTOR- is amended— THE GENERAL PUBLIC’’.—Section 2510(16) of NEY GENERAL. (1) in subsection (a), by striking ‘‘nuclear title 18, United States Code, is amended— (a) IN GENERAL.—Title 18, United States material’’ each place it appears and insert- Code, is amended by striking sections 3059 ing ‘‘nuclear material or nuclear byproduct through 3059A and inserting the following: material’’; H 14010 CONGRESSIONAL RECORD — HOUSE December 5, 1995 (2) in subsection (a)(1)(A), by inserting ‘‘or minimum concentration in the finished ex- date of this subsection, to fail to report to the environment’’ after ‘‘property’’; plosive is 0.2 percent by mass; the Secretary within 120 days after the effec- (3) so that subsection (a)(1)(B) reads as fol- ‘‘(2) 2,3-Dimethyl-2,3-dinitrobutane tive date of this subsection the quantity of lows: (DMNB), C6H12(NO2)2, molecular weight 176, such explosives possessed, the manufacturer ‘‘(B)(i) circumstances exist which are like- when the minimum concentration in the fin- or importer, any marks of identification on ly to cause the death of or serious bodily in- ished explosive is 0.1 percent by mass; such explosives, and such other information jury to any person or substantial damage to ‘‘(3) Para-Mononitrotoluene (p-MNT), as the Secretary may by regulations pre- property or the environment; or (ii) such cir- C7H7NO2, molecular weight 137, when the scribe.’’. cumstances are represented to the defendant minimum concentration in the finished ex- SEC. 503. CRIMINAL SANCTIONS. to exist;’’; plosive is 0.5 percent by mass; Section 844(a) of title 18, United States (4) in subsection (a)(6), by inserting ‘‘or the ‘‘(4) Ortho-Mononitrotoluene (o-MNT), Code, is amended to read as follows: environment’’ after ‘‘property’’; C7H7NO2, molecular weight 137, when the ‘‘(a) Any person who violates subsections (5) so that subsection (c)(2) reads as fol- minimum concentration in the finished ex- (a) through (i) or (l) through (o) of section lows: plosive is 0.5 percent by mass; and 842 of this title shall be fined under this ‘‘(2) an offender or a victim is a national of ‘‘(5) any other substance in the concentra- title, imprisoned not more than 10 years, or the United States or a United States cor- tion specified by the Secretary, after con- both.’’. poration or other legal entity;’’; sultation with the Secretary of State and SEC. 504. EXCEPTIONS. (6) in subsection (c)(3), by striking ‘‘at the the Secretary of Defense, which has been Section 845 of title 18, United States Code, time of the offense the nuclear material is in added to the table in part 2 of the Technical is amended— use, storage, or transport, for peaceful pur- Annex to the Convention on the Marking of (1) in subsection (a), by inserting ‘‘(l), (m), poses, and’’; Plastic Explosives. (n), or (o) of section 842 and subsections’’ (7) by striking ‘‘or’’ at the end of sub- ‘‘(q) ‘Plastic explosive’ means an explosive after ‘‘subsections’’; section (c)(3); material in flexible or elastic sheet form for- (2) in subsection (a)(1), by inserting ‘‘and (8) in subsection (c)(4), by striking ‘‘nu- mulated with one or more high explosives which pertains to safety’’ before the semi- clear material for peaceful purposes’’ and in- which in their pure form have a vapor pres- colon; and serting ‘‘nuclear material or nuclear byprod- sure less than 10¥4 Pa at a temperature of (3) by adding at the end the following: uct material’’; 25°C., is formulated with a binder material, ‘‘(c) It is an affirmative defense against (9) by striking the period at the end of sub- and is as a mixture malleable or flexible at any proceeding involving subsection (l), (m), section (c)(4) and inserting ‘‘; or’’; normal room temperature.’’. (n), or (o) of section 842 of this title if the (10) by adding at the end of subsection (c) SEC. 502. REQUIREMENT OF DETECTION AGENTS proponent proves by a preponderance of the the following: FOR PLASTIC EXPLOSIVES. evidence that the plastic explosive— ‘‘(5) the governmental entity under sub- Section 842 of title 18, United States Code, ‘‘(1) consisted of a small amount of plastic section (a)(5) is the United States or the is amended by adding at the end the follow- explosive intended for and utilized solely in threat under subsection (a)(6) is directed at ing: lawful— the United States.’’; ‘‘(l) It shall be unlawful for any person to ‘‘(A) research, development, or testing of (11) in subsection (f)(1)(A), by striking manufacture any plastic explosive which new or modified explosive materials; ‘‘with an isotopic concentration not in ex- does not contain a detection agent. cess of 80 percent plutonium 238’’; ‘‘(B) training in explosives detection or de- ‘‘(m)(1) it shall be unlawful for any person velopment or testing of explosives detection (12) in subsection (f)(1)(C) by inserting ‘‘en- to import or bring into the United States, or riched uranium, defined as’’ before ‘‘ura- equipment; or export from the United States, any plastic ‘‘(C) forensic science purposes; or nium’’; explosive which does not contain a detection (13) in subsection (f), by redesignating ‘‘(2) was plastic explosive which, within 3 agent. years after the effective date of this para- paragraphs (2), (3), and (4) as paragraphs (3), ‘‘(2) Until the 15-year period that begins graph, will be or is incorporated in a mili- (4), and (5), respectively; with the date of entry into force of the Con- tary device within the territory of the Unit- (14) by inserting after subsection (f)(1) the vention on the Marking of Plastic Explosives ed States and remains an integral part of following: with respect to the United States has ex- such military device, or is intended to be, or ‘‘(2) the term ‘nuclear byproduct material’ pired, paragraph (1) shall not apply to the is incorporated in, and remains an integral means any material containing any radio- importation or bringing into the United part of a military device that is intended to active isotope created through an irradiation States, or the exportation from the United become, or has become, the property of any process in the operation of a nuclear reactor States, of any plastic explosive which was agency of the United States performing mili- or accelerator;’’; imported, brought into, or manufactured in tary or police functions (including any mili- (15) by striking ‘‘and’’ at the end of sub- the United States before the effective date of tary reserve component) or the National section (f)(4), as redesignated; this subsection by or on behalf of any agency Guard of any State, wherever such device is (16) by striking the period at the end of of the United States performing military or located. For purposes of this subsection, the subsection (f)(5), as redesignated, and insert- police functions (including any military Re- term ‘military device’ includes shells, ing a semicolon; and serve component) or by or on behalf of the bombs, projectiles, mines, missiles, rockets, (17) by adding at the end of subsection (f) National Guard of any State. the following: ‘‘(n)(1) It shall be unlawful for any person shaped charges, grenades, perforators, and ‘‘(6) the term ‘national of the United to ship, transport, transfer, receive, or pos- similar devices lawfully manufactured exclu- States’ has the meaning prescribed in sec- sess any plastic explosive which does not sively for military or police purposes.’’. tion 101(a)(22) of the Immigration and Na- contain a detection agent. SEC. 505. EFFECTIVE DATE. tionality Act (8 U.S.C. 1101(a)(22)); and ‘‘(2)(A) During the 3-year period that be- The amendments made by this title shall ‘‘(7) the term ‘United States corporation or gins on the effective date of this subsection, take effect 1 year after the date of the enact- other legal entity’ means any corporation or paragraph (1) shall not apply to the shipment of this Act. other entity organized under the laws of the ment, transportation, transfer, receipt, or TITLE VI—IMMIGRATION-RELATED United States or any State, district, com- possession of any plastic explosive, which PROVISIONS monwealth, territory or possession of the was imported, brought into, or manufactured Subtitle A—Removal of Alien Terrorists United States.’’. in the United States before such effective PART 1—REMOVAL PROCEDURES FOR TITLE V—CONVENTION ON THE MARKING date by any person. ALIEN TERRORISTS OF PLASTIC EXPLOSIVES ‘‘(B) Until the 15-year period that begins SEC. 601. REMOVAL PROCEDURES FOR ALIEN SEC. 501. DEFINITIONS. on the date of entry into force of the Conven- TERRORISTS. Section 841 of title 18, United States Code, tion on the Marking of Plastic Explosives (a) IN GENERAL.—The Immigration and Na- is amended by adding at the end the follow- with respect to the United States has ex- tionality Act is amended— ing: pired, paragraph (1) shall not apply to the (1) by adding at the end of the table of con- ‘‘(o) ‘Convention on the Marking of Plastic shipment, transportation, transfer, receipt, tents the following: Explosives’ means the Convention on the or possession of any plastic explosive, which Marking of Plastic Explosives for the Pur- was imported, brought into, or manufactured ‘‘TITLE V—SPECIAL REMOVAL PROCEDURES pose of Detection, Done at Montreal on 1 in the United States before the effective date FOR ALIEN TERRORISTS March 1991. of this subsection by or on behalf of any ‘‘Sec. 501. Definitions. ‘‘(p) ‘Detection agent’ means any one of agency of the United States performing a ‘‘Sec. 502. Establishment of special removal the substances specified in this subsection military or police function (including any court; panel of attorneys to as- when introduced into a plastic explosive or military reserve component) or by or on be- sist with classified information. formulated in such explosive as a part of the half of the National Guard of any State. ‘‘Sec. 503. Application for initiation of spe- manufacturing process in such a manner as ‘‘(o) It shall be unlawful for any person, cial removal proceeding. to achieve homogeneous distribution in the other than an agency of the United States ‘‘Sec. 504. Consideration of application. finished explosive, including— (including any military reserve component) ‘‘Sec. 505. Special removal hearings. ‘‘(1) Ethylene glycol dinitrate (EGDN), or the National Guard of any State, possess- ‘‘Sec. 506. Consideration of classified infor- C2H4(NO3)2, molecular weight 152, when the ing any plastic explosive on the effective mation. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14011

‘‘Sec. 507. Appeals. ‘‘(b) CONTENTS OF APPLICATION.—Each ap- ‘‘(b) USE OF SAME JUDGE.—The special re- ‘‘Sec. 508. Detention and custody.’’; plication for a special removal proceeding moval hearing shall be held before the same and shall include all of the following: judge who granted the order pursuant to sec- (2) by adding at the end the following new ‘‘(1) The identity of the Department of Jus- tion 504 unless that judge is deemed unavail- title: tice attorney making the application. able due to illness or disability by the chief judge of the special removal court, or has ‘‘TITLE V—SPECIAL REMOVAL ‘‘(2) The approval of the Attorney General died, in which case the chief judge shall as- PROCEDURES FOR ALIEN TERRORISTS or the Deputy Attorney General for the filing of the application based upon a finding sign another judge to conduct the special re- ‘‘DEFINITIONS by that individual that the application satis- moval hearing. A decision by the chief judge ‘‘SEC. 501. In this title: fies the criteria and requirements of this pursuant to the preceding sentence shall not ‘‘(1) The term ‘alien terrorist’ means an title. be subject to review by either the alien or alien described in section 241(a)(4)(B). ‘‘(3) The identity of the alien for whom au- the Department of Justice. ‘‘(2) The term ‘classified information’ has thorization for the special removal proceed- ‘‘(c) RIGHTS IN HEARING.— the meaning given such term in section 1(a) ing is sought. ‘‘(1) PUBLIC HEARING.—The special removal of the Classified Information Procedures Act ‘‘(4) A statement of the facts and cir- hearing shall be open to the public. (18 U.S.C. App.). cumstances relied on by the Department of ‘‘(2) RIGHT OF COUNSEL.—The alien shall ‘‘(3) The term ‘national security’ has the Justice to establish that— have a right to be present at such hearing and to be represented by counsel. Any alien meaning given such term in section 1(b) of ‘‘(A) the alien is an alien terrorist and is financially unable to obtain counsel shall be the Classified Information Procedures Act physically present in the United States, and entitled to have counsel assigned to rep- (18 U.S.C. App.). ‘‘(B) with respect to such alien, adherence resent the alien. Such counsel shall be ap- ‘‘(4) The term ‘special attorney’ means an to the provisions of title II regarding the de- pointed by the judge pursuant to the plan for attorney who is on the panel established portation of aliens would pose a risk to the furnishing representation for any person fi- under section 502(e). national security of the United States. nancially unable to obtain adequate rep- ‘‘(5) The term ‘special removal court’ ‘‘(5) An oath or affirmation respecting each resentation for the district in which the means the court established under section of the facts and statements described in the hearing is conducted, as provided for in sec- 502(a). previous paragraphs. tion 3006A of title 18, United States Code. All ‘‘(6) The term ‘special removal hearing’ ‘‘(c) RIGHT TO DISMISS.—The Department of provisions of that section shall apply and, means a hearing under section 505. Justice retains the right to dismiss a re- for purposes of determining the maximum ‘‘(7) The term ‘special removal proceeding’ moval action under this title at any stage of amount of compensation, the matter shall be means a proceeding under this title. the proceeding. treated as if a felony was charged. ‘‘ESTABLISHMENT OF SPECIAL REMOVAL COURT; ‘‘CONSIDERATION OF APPLICATION ‘‘(3) INTRODUCTION OF EVIDENCE.—The alien PANEL OF ATTORNEYS TO ASSIST WITH CLAS- ‘‘SEC. 504. (a) IN GENERAL.—In the case of shall have a right to introduce evidence on SIFIED INFORMATION an application under section 503 to the spe- the alien’s own behalf. ‘‘SEC. 502. (a) IN GENERAL.—The Chief Jus- cial removal court, a single judge of the ‘‘(4) EXAMINATION OF WITNESSES.—Except as tice of the United States shall publicly des- court shall be assigned to consider the appli- provided in section 506, the alien shall have ignate 5 district court judges from 5 of the cation. The judge, in accordance with the a reasonable opportunity to examine the evi- United States judicial circuits who shall con- rules of the court, shall consider the applica- dence against the alien and to cross-examine stitute a court which shall have jurisdiction tion and may consider other information, in- any witness. to conduct all special removal proceedings. cluding classified information, presented ‘‘(5) RECORD.—A verbatim record of the ‘‘(b) TERMS.—Each judge designated under under oath or affirmation. The judge shall proceedings and of all testimony and evi- subsection (a) shall serve for a term of 5 consider the application (and any hearing dence offered or produced at such a hearing years and shall be eligible for redesignation, thereof) in camera and ex parte. A verbatim shall be kept. except that the four associate judges first so record shall be maintained of any such hear- ‘‘(6) DECISION BASED ON EVIDENCE AT HEAR- designated shall be designated for terms of ing. ING.—The decision of the judge in the hear- one, two, three, and four years so that the ‘‘(b) APPROVAL OF ORDER.—The judge shall ing shall be based only on the evidence intro- term of one judge shall expire each year. enter ex parte the order requested in the ap- duced at the hearing, including evidence in- ‘‘(c) CHIEF JUDGE.—The Chief Justice shall plication if the judge finds, on the basis of troduced under subsection (e). publicly designate one of the judges of the such application and such other information ‘‘(7) NO RIGHT TO ANCILLARY RELIEF.—In the special removal court to be the chief judge of (if any), that there is probable cause to be- hearing, the judge is not authorized to con- the court. The chief judge shall promulgate lieve that— sider or provide for relief from removal based rules to facilitate the functioning of the ‘‘(1) the alien who is the subject of the ap- on any of the following: court and shall be responsible for assigning plication has been correctly identified and is ‘‘(A) Asylum under section 208. the consideration of cases to the various an alien terrorist, and ‘‘(B) Withholding of deportation under sec- judges. ‘‘(2) adherence to the provisions of title II tion 243(h). ‘‘(d) EXPEDITIOUS AND CONFIDENTIAL NA- regarding the deportation of the identified ‘‘(C) Suspension of deportation under sec- TURE OF PROCEEDINGS.—The provisions of alien would pose a risk to the national secu- tion 244(a) or 244(e). section 103(c) of the Foreign Intelligence rity of the United States. ‘‘(D) Adjustment of status under section Surveillance Act of 1978 (50 U.S.C. 1803(c)) ‘‘(c) DENIAL OF ORDER.—If the judge denies 245. shall apply to proceedings under this title in the order requested in the application, the ‘‘(E) Registry under section 249. the same manner as they apply to proceed- judge shall prepare a written statement of ‘‘(d) SUBPOENAS.— ings under such Act. the judge’s reasons for the denial. ‘‘(1) REQUEST.—At any time prior to the ‘‘(e) ESTABLISHMENT OF PANEL OF SPECIAL ‘‘(d) EXCLUSIVE PROVISIONS.—Whenever an conclusion of the special removal hearing, ATTORNEYS.—The special removal court shall order is issued under this section with re- either the alien or the Department of Justice provide for the designation of a panel of at- spect to an alien— may request the judge to issue a subpoena torneys each of whom— ‘‘(1) the alien’s rights regarding removal for the presence of a named witness (which ‘‘(1) has a security clearance which affords and expulsion shall be governed solely by the subpoena may also command the person to the attorney access to classified informa- provisions of this title, and whom it is directed to produce books, papers, tion, and ‘‘(2) except as they are specifically ref- documents, or other objects designated ‘‘(2) has agreed to represent permanent erenced, no other provisions of this Act shall therein) upon a satisfactory showing that resident aliens with respect to classified in- be applicable. the presence of the witness is necessary for formation under sections 506 and 507(c)(2)(B) ‘‘SPECIAL REMOVAL HEARINGS the determination of any material matter. in accordance with (and subject to the pen- ‘‘SEC. 505. (a) IN GENERAL.—In any case in Such a request may be made ex parte except alties under) this title. which the application for the order is ap- that the judge shall inform the Department ‘‘APPLICATION FOR INITIATION OF SPECIAL proved under section 504, a special removal of Justice of any request for a subpoena by REMOVAL PROCEEDING hearing shall be conducted under this section the alien for a witness or material if compli- ‘‘SEC. 503. (a) IN GENERAL.—Whenever the for the purpose of determining whether the ance with such a subpoena would reveal evi- Attorney General has classified information alien to whom the order pertains should be dence or the source of evidence which has that an alien is an alien terrorist, the Attor- removed from the United States on the been introduced, or which the Department of ney General, in the Attorney General’s dis- grounds that the alien is an alien terrorist. Justice has received permission to introduce, cretion, may seek removal of the alien under Consistent with section 506, the alien shall in camera and ex parte pursuant to sub- this title through the filing with the special be given reasonable notice of the nature of section (e) and section 506, and the Depart- removal court of a written application de- the charges against the alien and a general ment of Justice shall be given a reasonable scribed in subsection (b) that seeks an order account of the basis for the charges. The opportunity to oppose the issuance of such a authorizing a special removal proceeding alien shall be given notice, reasonable under subpoena. under this title. The application shall be sub- all the circumstances, of the time and place ‘‘(2) PAYMENT FOR ATTENDANCE.—If an ap- mitted in camera and ex parte and shall be at which the hearing will be held. The hear- plication for a subpoena by the alien also filed under seal with the court. ing shall be held as expeditiously as possible. makes a showing that the alien is financially H 14012 CONGRESSIONAL RECORD — HOUSE December 5, 1995 unable to pay for the attendance of a witness to reply in rebuttal. The judge may allow ‘‘(B) in all cases the special removal hear- so requested, the court may order the costs any part of the argument that refers to evi- ing shall continue, the Department of Jus- incurred by the process and the fees of the dence received in camera and ex parte to be tice shall cause to be delivered to the alien witness so subpoenaed to be paid from funds heard in camera and ex parte. a statement that no summary is possible, appropriated for the enforcement of title II. ‘‘(h) BURDEN OF PROOF.—In the hearing the and the classified information submitted in ‘‘(3) NATIONWIDE SERVICE.—A subpoena Department of Justice has the burden of camera and ex parte may be used pursuant under this subsection may be served any- showing by clear and convincing evidence to section 505(e). where in the United States. that the alien is subject to removal because ‘‘(c) SPECIAL PROCEDURES FOR ACCESS AND ‘‘(4) WITNESS FEES.—A witness subpoenaed the alien is an alien terrorist. If the judge CHALLENGES TO CLASSIFIED INFORMATION BY under this subsection shall receive the same finds that the Department of Justice has met SPECIAL ATTORNEYS IN CASE OF LAWFUL PER- fees and expenses as a witness subpoenaed in this burden, the judge shall order the alien MANENT ALIENS.— connection with a civil proceeding in a court removed and detained pending removal from ‘‘(1) IN GENERAL.—The procedures described of the United States. the United States. If the alien was released in this subsection are that the judge (under pending the special removal hearing, the ‘‘(5) NO ACCESS TO CLASSIFIED INFORMA- rules of the special removal court) shall des- judge shall order the Attorney General to TION.—Nothing in this subsection is intended ignate a special attorney (as defined in sec- take the alien into custody. to allow an alien to have access to classified tion 501(4)), (and the alien facing deportation ‘‘(i) WRITTEN ORDER.—At the time of ren- under these procedures, may choose which information. dering a decision as to whether the alien ‘‘(e) INTRODUCTION OF CLASSIFIED INFORMA- special attorney shall be so designated, if the shall be removed, the judge shall prepare a TION.— alien makes that choice not later than 45 written order containing a statement of ‘‘(1) IN GENERAL.—Classified information facts found and conclusions of law. Any por- days after the date on which the alien re- that has been summarized pursuant to section of the order that would reveal the sub- ceives notice that the Government intends tion 506(b) and classified information for stance or source of information received in to use such procedures) to assist the alien which findings described in section camera and ex parte pursuant to subsection and the court— 506(b)(4)(B) have been made and for which no (e) shall not be made available to the alien ‘‘(A) by reviewing in camera the classified summary is provided shall be introduced (ei- or the public. information on behalf of the alien, and ther in writing or through testimony) in ‘‘(B) by challenging through an in camera ‘‘CONSIDERATION OF CLASSIFIED INFORMATION camera and ex parte and neither the alien proceeding the veracity of the evidence con- nor the public shall be informed of such evi- ‘‘SEC. 506. (a) CONSIDERATION IN CAMERA tained in the classified information. AND EX PARTE.—In any case in which the ap- dence or its sources other than through ref- ‘‘(2) RESTRICTIONS ON DISCLOSURE.—A spe- plication for the order authorizing the spe- erence to the summary (if any) provided pur- cial attorney receiving classified informa- cial procedures of this title is approved, the suant to such section. Notwithstanding the tion under paragraph (1)— judge who granted the order shall consider previous sentence, the Department of Justice ‘‘(A) shall not disclosure the information each item of classified information the De- may, in its discretion and after coordination to the alien or to any other attorney rep- partment of Justice proposes to introduce in with the originating agency, elect to intro- camera and ex parte at the special removal resenting the alien, and duce such evidence in open session. hearing and shall order the introduction of ‘‘(B) who discloses such information in vio- ‘‘(2) TREATMENT OF ELECTRONIC SURVEIL- such information pursuant to section 505(e) lation of subparagraph (A) shall be subject to LANCE INFORMATION.— if the judge determines the information to be a fine under title 18, United States Code, and ‘‘(A) USE OF ELECTRONIC SURVEILLANCE.— relevant. imprisoned for not less than 10 years nor The Government is authorized to use in a ‘‘(b) PREPARATION AND PROVISION OF WRIT- more than 25 years. special removal proceeding the fruits of elec- TEN SUMMARY.— ‘‘APPEALS tronic surveillance and unconsented physical ‘‘(1) PREPARATION.—The Department of ‘‘SEC. 507. (a) APPEALS OF DENIALS OF AP- searches authorized under the Foreign Intel- Justice shall prepare a written summary of PLICATIONS FOR ORDERS.—The Department of ligence Surveillance Act of 1978 (50 U.S.C. such classified information which does not Justice may seek a review of the denial of an 1801 et seq.) without regard to subsections pose a risk to national security. order sought in an application by the United (c), (e), (f), (g), and (h) of section 106 of that ‘‘(2) CONDITIONS FOR APPROVAL BY JUDGE States Court of Appeals for the District of Act. AND PROVISION TO ALIEN.—The judge shall ap- Columbia Circuit by notice of appeal which ‘‘(B) NO DISCOVERY OF ELECTRONIC SURVEIL- prove the summary so long as the judge finds must be filed within 20 days after the date of LANCE INFORMATION.—An alien subject to re- that the summary is sufficient— such denial. In such a case the entire record moval under this title shall have no right of ‘‘(A) to inform the alien of the general na- of the proceeding shall be transmitted to the discovery of information derived from elec- ture of the evidence that the alien is an alien Court of Appeals under seal and the Court of tronic surveillance authorized under the For- terrorist, and Appeals shall hear the matter ex parte. In eign Intelligence Surveillance Act of 1978 or ‘‘(B) to permit the alien to prepare a de- such a case the Court of Appeals shall review otherwise for national security purposes. Nor fense against deportation. questions of law de novo, but a prior finding shall such alien have the right to seek sup- The Department of Justice shall cause to be on any question of fact shall not be set aside pression of evidence. delivered to the alien a copy of the sum- unless such finding was clearly erroneous. ‘‘(C) CERTAIN PROCEDURES NOT APPLICA- mary. ‘‘(b) APPEALS OF DETERMINATIONS ABOUT BLE.—The provisions and requirements of ‘‘(3) OPPORTUNITY FOR CORRECTION AND SUMMARIES OF CLASSIFIED INFORMATION.—Ei- section 3504 of title 18, United States Code, RESUBMITTAL.—If the judge does not approve ther party may take an interlocutory appeal shall not apply to procedures under this the summary, the judge shall provide the De- to the United States Court of Appeals for the title. partment a reasonable opportunity to cor- District of Columbia Circuit of— ‘‘(3) RIGHTS OF UNITED STATES.—Nothing in rect the deficiencies identified by the court ‘‘(1) any determination by the judge pursu- this section shall prevent the United States and to submit a revised summary. ant to section 506(a)— from seeking protective orders and from as- ‘‘(4) CONDITIONS FOR TERMINATION OF PRO- ‘‘(A) concerning whether an item of evi- serting privileges ordinarily available to the CEEDINGS IF SUMMARY NOT APPROVED.— dence may be introduced in camera and ex United States to protect against the disclo- ‘‘(A) IN GENERAL.—If, subsequent to the op- parte, or sure of classified information, including the portunity described in paragraph (3), the ‘‘(B) concerning the contents of any sum- invocation of the military and state secrets judge does not approve the summary, the mary of evidence to be introduced in camera privileges. judge shall terminate the special removal and ex parte prepared pursuant to section ‘‘(f) INCLUSION OF CERTAIN EVIDENCE.—The hearing unless the judge makes the findings 506(b); or Federal Rules of Evidence shall not apply to described in subparagraph (B). ‘‘(2) the refusal of the court to make the hearings under this section. Evidence intro- ‘‘(B) FINDINGS.—The findings described in findings permitted by section 506(b)(4)(B). duced at the special removal hearing, either this subparagraph are, with respect to an In any interlocutory appeal taken pursuant in open session or in camera and ex parte, alien, that— may, in the discretion of the Department of to this subsection, the entire record, includ- ‘‘(i) the continued presence of the alien in ing any proposed order of the judge or sum- Justice, include all or part of the informa- the United States, and tion presented under section 504 used to ob- mary of evidence, shall be transmitted to the ‘‘(ii) the provision of the required sum- Court of Appeals under seal and the matter tain the order for the hearing under this sec- mary, tion. shall be heard ex parte. ‘‘(g) ARGUMENTS.—Following the receipt of would likely cause serious and irreparable ‘‘(c) APPEALS OF DECISION IN HEARING.— evidence, the attorneys for the Department harm to the national security or death or se- ‘‘(1) IN GENERAL.—Subject to paragraph (2), of Justice and for the alien shall be given rious bodily injury to any person. the decision of the judge after a special re- fair opportunity to present argument as to ‘‘(5) CONTINUATION OF HEARING WITHOUT moval hearing may be appealed by either the whether the evidence is sufficient to justify SUMMARY.—If a judge makes the findings de- alien or the Department of Justice to the the removal of the alien. The attorney for scribed in paragraph (4)(B)— United States Court of Appeals for the Dis- the Department of Justice shall open the ar- ‘‘(A) if the alien involved is an alien law- trict of Columbia Circuit by notice of appeal. gument. The attorney for the alien shall be fully admitted for permanent residence, the ‘‘(2) AUTOMATIC APPEALS IN CASES OF PER- permitted to reply. The attorney for the De- procedures described in subsection (c) shall MANENT RESIDENT ALIENS IN WHICH NO SUM- partment of Justice shall then be permitted apply; and MARY PROVIDED.— December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14013

‘‘(A) IN GENERAL.—Unless the alien waives ‘‘(A) for purposes of section 3145 of such 505(i) that an alien should not be removed, the right to a review under this paragraph, title an appeal shall be taken to the United the alien shall be released from custody. in any case involving an alien lawfully ad- States Court of Appeals for the District of ‘‘(B) CUSTODY PENDING APPEAL.—If the At- mitted for permanent residence who is de- Columbia Circuit, and torney General takes an appeal from such nied a written summary of classified infor- ‘‘(B) for purposes of section 3146 of such decision, the alien shall remain in custody, mation under section 506(b)(4) and with re- title the alien shall be considered released in subject to the provisions of section 3142 of spect to which the procedures described in connection with a charge of an offense pun- title 18, United States Code. section 506(c) apply, any order issued by the ishable by life imprisonment. ‘‘(2) CUSTODY AND REMOVAL.— judge shall be reviewed by the Court of Ap- ‘‘(2) NO REVIEW OF CONTINUED DETENTION.— ‘‘(A) CUSTODY.—If the judge decides pursu- peals for the District of Columbia Circuit. The determinations and actions of the Attor- ant to section 505(i) that an alien shall be re- ‘‘(B) USE OF SPECIAL ATTORNEY.—With re- ney General pursuant to section 508(c)(2)(C) moved, the alien shall be detained pending spect to any issue relating to classified infor- shall not be subject to judicial review, in- the outcome of any appeal. After the conclu- mation that arises in such review, the alien cluding application for a writ of habeas cor- sion of any judicial review thereof which af- shall be represented only by the special at- pus, except for a claim by the alien that con- firms the removal order, the Attorney Gen- torney designated under section 506(c)(1) on tinued detention violates the alien’s rights eral shall retain the alien in custody and re- behalf of the alien. under the Constitution. Jurisdiction over move the alien to a country specified under ‘‘(d) GENERAL PROVISIONS RELATING TO AP- any such challenge shall lie exclusively in subparagraph (B). PEALS.— the United States Court of Appeals for the ‘‘(B) REMOVAL.— ‘‘(1) NOTICE.—A notice of appeal pursuant District of Columbia Circuit. ‘‘(i) IN GENERAL.—The removal of an alien to subsection (b) or (c) (other than under ‘‘DETENTION AND CUSTODY shall be to any country which the alien shall designate if such designation does not, in the subsection (c)(2)) must be filed within 20 days ‘‘SEC. 508. (a) INITIAL CUSTODY.— judgment of the Attorney General, in con- after the date of the order with respect to ‘‘(1) UPON FILING APPLICATION.—Subject to sultation with the Secretary of State, impair which the appeal is sought, during which paragraphs (2) and (3), the Attorney General the obligation of the United States under time the order shall not be executed. may take into custody any alien with re- any treaty (including a treaty pertaining to ‘‘(2) TRANSMITTAL OF RECORD.—In an appeal spect to whom an application under section or review to the Court of Appeals pursuant extradition) or otherwise adversely affect 503 has been filed and, notwithstanding any the foreign policy of the United States. to subsection (b) or (c)— other provision of law, may retain such an ‘‘(A) the entire record shall be transmitted ‘‘(ii) ALTERNATE COUNTRIES.—If the alien alien in custody in accordance with the pro- refuses to designate a country to which the to the Court of Appeals, and cedures authorized by this title. alien wishes to be removed or if the Attorney ‘‘(B) information received pursuant to sec- ‘‘(2) SPECIAL RULES FOR PERMANENT RESI- General, in consultation with the Secretary tion 505(e), and any portion of the judge’s DENT ALIENS.—An alien lawfully admitted for of State, determines that removal of the order that would reveal the substance or permanent residence shall be entitled to a alien to the country so designated would im- source of such information, shall be trans- release hearing before the judge assigned to pair a treaty obligation or adversely affect mitted under seal. hear the special removal hearing. Such an United States foreign policy, the Attorney ‘‘(3) EXPEDITED APPELLATE PROCEEDING.—In alien shall be detained pending the special General shall cause the alien to be removed an appeal or review to the Court of Appeals removal hearing, unless the alien dem- to any country willing to receive such alien. pursuant to subsection (b) or (c): onstrates to the court that— ‘‘(C) CONTINUED DETENTION.—If no country ‘‘(A) REVIEW.—The appeal or review shall ‘‘(A) the alien, if released upon such terms is willing to receive such an alien, the Attor- be heard as expeditiously as practicable and and conditions as the court may prescribe ney General may, notwithstanding any other the Court may dispense with full briefing (including the posting of any monetary provision of law, retain the alien in custody. and hear the matter solely on the record of amount), is not likely to flee, and The Attorney General, in coordination with the judge of the special removal court and on ‘‘(B) the alien’s release will not endanger the Secretary of State, shall make periodic such briefs or motions as the Court may re- national security or the safety of any person efforts to reach agreement with other coun- quire to be filed by the parties. or the community. tries to accept such an alien and at least ‘‘(B) DISPOSITION.—The Court shall uphold The judge may consider classified informa- every 6 months shall provide to the attorney or reverse the judge’s order within 60 days tion submitted in camera and ex parte in representing the alien at the special removal after the date of the issuance of the judge’s making a determination under this para- hearing a written report on the Attorney final order. graph. General’s efforts. Any alien in custody pur- ‘‘(4) STANDARD FOR REVIEW.—In an appeal ‘‘(3) RELEASE IF ORDER DENIED AND NO RE- suant to this subparagraph shall be released or review to the Court of Appeals pursuant VIEW SOUGHT.— from custody solely at the discretion of the to subsection (b) or (c): ‘‘(A) IN GENERAL.—Subject to subparagraph Attorney General and subject to such condi- ‘‘(A) QUESTIONS OF LAW.—The Court of Ap- (B), if a judge of the special removal court tions as the Attorney General shall deem appeals shall review all questions of law de denies the order sought in an application propriate. novo. with respect to an alien and the Department ‘‘(D) FINGERPRINTING.—Before an alien is ‘‘(B) QUESTIONS OF FACT.—(i) Subject to of Justice does not seek review of such de- transported out of the United States pursu- clause (ii), a prior finding on any question of nial, the alien shall be released from cus- ant to this subsection, or pursuant to an fact shall not be set aside unless such finding tody. order of exclusion because such alien is ex- was clearly erroneous. ‘‘(B) APPLICATION OF REGULAR PROCE- cludable under section 212(a)(3)(B), the alien ‘‘(ii) In the case of a review under sub- DURES.—Subparagraph (A) shall not prevent shall be photographed and fingerprinted, and section (c)(2) in which an alien lawfully ad- the arrest and detention of the alien pursu- shall be advised of the provisions of section mitted for permanent residence was denied a ant to title II. 276(b). written summary of classified information ‘‘(b) CONDITIONAL RELEASE IF ORDER DE- ‘‘(d) CONTINUED DETENTION PENDING under section 506(b)(4), the Court of Appeals NIED AND REVIEW SOUGHT.— TRIAL.— shall review questions of fact de novo. ‘‘(1) IN GENERAL.—If a judge of the special ‘‘(1) DELAY IN REMOVAL.—Notwithstanding ‘‘(e) CERTIORARI.—Following a decision by removal court denies the order sought in an the provisions of subsection (c)(2), the Attor- the Court of Appeals pursuant to subsection application with respect to an alien and the ney General may hold in abeyance the re- (b) or (c), either the alien or the Department Department of Justice seeks review of such moval of an alien who has been ordered re- of Justice may petition the Supreme Court denial, the judge shall release the alien from moved pursuant to this title to allow the for a writ of certiorari. In any such case, any custody subject to the least restrictive con- trial of such alien on any Federal or State information transmitted to the Court of Ap- dition or combination of conditions of re- criminal charge and the service of any sen- peals under seal shall, if such information is lease described in section 3142(b) and clauses tence of confinement resulting from such a also submitted to the Supreme Court, be (i) through (xiv) of section 3142(c)(1)(B) of trial. transmitted under seal. Any order of re- title 18, United States Code, that will reason- ‘‘(2) MAINTENANCE OF CUSTODY.—Pending moval shall not be stayed pending disposi- ably assure the appearance of the alien at the commencement of any service of a sen- tion of a writ of certiorari except as provided any future proceeding pursuant to this title tence of confinement by an alien described in by the Court of Appeals or a Justice of the and will not endanger the safety of any other paragraph (1), such an alien shall remain in Supreme Court. person or the community. the custody of the Attorney General, unless ‘‘(f) APPEALS OF DETENTION ORDERS.— ‘‘(2) NO RELEASE FOR CERTAIN ALIENS.—If the Attorney General determines that tem- ‘‘(1) IN GENERAL.— The provisions of sec- the judge finds no such condition or com- porary release of the alien to the custody of tions 3145 through 3148 of title 18, United bination of conditions, the alien shall remain State authorities for confinement in a State States Code, pertaining to review and appeal in custody until the completion of any ap- facility is appropriate and would not endan- of a release or detention order, penalties for peal authorized by this title. ger national security or public safety. failure to appear, penalties for an offense ‘‘(c) CUSTODY AND RELEASE AFTER HEAR- ‘‘(3) SUBSEQUENT REMOVAL.—Following the committed while on release, and sanctions ING.— completion of a sentence of confinement by for violation of a release condition shall ‘‘(1) RELEASE.— an alien described in paragraph (1) or follow- apply to an alien to whom section 508(b)(1) ‘‘(A) IN GENERAL.—Subject to subparagraph ing the completion of State criminal pro- applies. In applying the previous sentence— (B), if the judge decides pursuant to section ceedings which do not result in a sentence of H 14014 CONGRESSIONAL RECORD — HOUSE December 5, 1995 confinement of an alien released to the cus- PART 2—EXCLUSION AND DENIAL OF sooner than 60 days prior to the termination tody of State authorities pursuant to para- ASYLUM FOR ALIEN TERRORISTS of the 2-year-designation period), the Sec- graph (2), such an alien shall be returned to SEC. 611. MEMBERSHIP IN TERRORIST ORGANI- retary of State, in consultation with the At- the custody of the Attorney General who ZATION AS GROUND FOR EXCLU- torney General, may redesignate the organi- shall proceed to carry out the provisions of SION. zation in conformity with the requirements subsection (c)(2) concerning removal of the (a) IN GENERAL.—Section 212(a)(3)(B) of the of this clause for designation of the organiza- alien. Immigration and Nationality Act (8 U.S.C. tion. ‘‘(e) APPLICATION OF CERTAIN PROVISIONS 1182(a)(3)(B)) is amended— ‘‘(VI) OTHER AUTHORITY TO REMOVE DES- RELATING TO ESCAPE OF PRISONERS.—For (1) in clause (i)— IGNATION.—The Secretary of State, in con- purposes of section 751 and 752 of title 18, (A) by striking ‘‘or’’ at the end of sultation with the Attorney General, may United States Code, an alien in the custody subclause (I), remove the terrorist organization designa- of the Attorney General pursuant to this (B) in subclause (II), by inserting ‘‘engaged tion from any organization previously des- title shall be subject to the penalties pro- in or’’ after ‘‘believe,’’, and ignated as such an organization, at any time, vided by those sections in relation to a per- (C) by inserting after subclause (II) the fol- so long as the Secretary publishes notice of son committed to the custody of the Attor- lowing: the removal in the Federal Register. The ney General by virtue of an arrest on a ‘‘(III) is a representative of a terrorist or- Secretary is not required to report to Con- charge of a felony. ganization, or gress prior to so removing such designation. ‘‘(f) RIGHTS OF ALIENS IN CUSTODY.— ‘‘(IV) is a member of a terrorist organiza- ‘‘(v) REPRESENTATIVE DEFINED.—In this ‘‘(1) FAMILY AND ATTORNEY VISITS.—An tion which the alien knows or should have subparagraph, the term ‘representative’ in- alien in the custody of the Attorney General known is a terrorist organization,’’; and cludes an officer, official, or spokesman of pursuant to this title shall be given reason- (2) by adding at the end the following: the organization and any person who directs, able opportunity to communicate with and ‘‘(iv) TERRORIST ORGANIZATION DEFINED.— counsels, commands or induces the organiza- receive visits from members of the alien’s ‘‘(I) DESIGNATION.—For purposes of this tion or its members to engage in terrorist family, and to contact, retain, and commu- Act, the term ‘terrorist organization’ means activity. The determination by the Sec- nicate with an attorney. a foreign organization designated in the Fed- retary of State or the Attorney General that ‘‘(2) DIPLOMATIC CONTACT.—An alien in the eral Register as a terrorist organization by an alien is a representative of a terrorist or- custody of the Attorney General pursuant to the Secretary of State, in consultation with ganization shall be subject to judicial re- this title shall have the right to contact an the Attorney General, based upon a finding view.’’. appropriate diplomatic or consular official of that the organization engages in, or has en- (b) EFFECTIVE DATE.—The amendments the alien’s country of citizenship or nation- gaged in, terrorist activity that threatens made by this section shall take effect on the ality or of any country providing representa- the national security of the United States. date of the enactment of this Act. tion services therefore. The Attorney Gen- ‘‘(II) PROCESS.—At least 3 days before des- SEC. 612. DENIAL OF ASYLUM TO ALIEN TERROR- eral shall notify the appropriate embassy, ignating an organization as a terrorist orga- ISTS. mission, or consular office of the alien’s de- nization through publication in the Federal (a) IN GENERAL.—Section 208(a) of the Im- tention.’’. Register, the Secretary of State, in consulta- migration and Nationality Act (8 U.S.C. (b) JURISDICTION OVER EXCLUSION ORDERS tion with the Attorney General, shall notify 1158(a)) is amended by adding at the end the FOR ALIEN TERRORISTS.—Section 106(b) of the the Committees on the Judiciary of the following: ‘‘The Attorney General may not Immigration and Nationality Act (8 U.S.C. House of Representatives and the Senate of grant an alien asylum if the Attorney Gen- 1105a(b)) is amended by adding at the end the the intent to make such designation and the eral determines that the alien is excludable following sentence: ‘‘Jurisdiction to review findings and basis for designation. The Sec- under subclause (I), (II), or (III) of section an order entered pursuant to the provisions retary of State, in consultation with the At- 212(a)(3)(B)(i) or deportable under section of section 235(c) concerning an alien exclud- torney General, shall create an administra- 241(a)(4)(B).’’. able under section 212(a)(3)(B) shall rest ex- tive record and may use classified informa- (b) EFFECTIVE DATE.—The amendment clusively in the United States Court of Ap- tion in making such a designation. Such in- made by subsection (a) shall take effect on peals for the District of Columbia Circuit.’’. formation is not subject to disclosure so long the date of the enactment of this Act and (c) CRIMINAL PENALTY FOR REENTRY OF as it remains classified, except that it may apply to asylum determinations made on or ALIEN TERRORISTS.—Section 276(b) of such be disclosed to a court ex parte and in cam- after such date. Act (8 U.S.C. 1326(b)) is amended— era under subclause (III) for purposes of judi- SEC. 613. DENIAL OF OTHER RELIEF FOR ALIEN (1) by striking ‘‘or’’ at the end of paragraph cial review of such a designation. The Sec- TERRORISTS. (1), retary of State, in consultation with the At- (a) WITHHOLDING OF DEPORTATION.—Section (2) by striking the period at the end of torney General, shall provide notice and an 243(h)(2) of the Immigration and Nationality paragraph (2) and inserting ‘‘; or’’, and opportunity for public comment prior to the Act (8 U.S.C. 1253(h)(2)) is amended by adding (3) by inserting after paragraph (2) the fol- creation of the administrative record under at the end the following new sentence: ‘‘For lowing new paragraph: this subclause. purposes of subparagraph (D), an alien who is described in section 241(a)(4)(B) shall be con- ‘‘(3) who has been excluded from the United ‘‘(III) JUDICIAL REVIEW.—Any organization sidered to be an alien for whom there are States pursuant to section 235(c) because the designated as a terrorist organization under reasonable grounds for regarding as a danger alien was excludable under section the preceding provisions of this clause may, to the security of the United States.’’. 212(a)(3)(B) or who has been removed from not later than 30 days after the date of the (b) SUSPENSION OF DEPORTATION.—Section the United States pursuant to the provisions designation, seek judicial review thereof in the United States Court of Appeals for the 244(a) of such Act (8 U.S.C. 1254(a)) is amend- of title V, and who thereafter, without the ed by striking ‘‘section 241(a)(4)(D)’’ and in- permission of the Attorney General, enters District of Columbia Circuit. Such review shall be based solely upon the administrative serting ‘‘subparagraph (B) or (D) of section the United States or attempts to do so shall 241(a)(4)’’. record, except that the Government may be fined under title 18, United States Code, (c) VOLUNTARY DEPARTURE.—Section and imprisoned for a period of 10 years, submit, for ex parte and in camera review, 244(e)(2) of such Act (8 U.S.C. 1254(e)(2)) is which sentence shall not run concurrently classified information considered in making amended by inserting ‘‘under section with any other sentence.’’. the designation. The court shall hold unlaw- 241(a)(4)(B) or’’ after ‘‘who is deportable’’. (d) ELIMINATION OF CUSTODY REVIEW BY HA- ful and set aside the designation if the court (d) ADJUSTMENT OF STATUS.—Section 245(c) BEAS CORPUS.—Section 106(a) of such Act (8 finds the designation to be arbitrary, capri- of such Act (8 U.S.C. 1255(c)) is amended— U.S.C. 1105a(a)) is amended— cious, an abuse of discretion, or otherwise (1) by striking ‘‘or’’ before ‘‘(5)’’, and (1) by adding ‘‘and’’ at the end of paragraph not in accordance with law, lacking substan- (2) by inserting before the period at the end (8), tial support in the administrative record the following: ‘‘, or (6) an alien who is de- (2) by striking ‘‘; and’’ at the end of para- taken as a whole or in classified information portable under section 241(a)(4)(B)’’. graph (9) and inserting a period, and submitted to the court under the previous (e) REGISTRY.—Section 249(d) of such Act (8 (3) by striking paragraph (10). sentence, contrary to constitutional right, U.S.C. 1259(d)) is amended by inserting ‘‘and (e) EFFECTIVE DATE.—The amendments power, privilege, or immunity, or not in ac- is not deportable under section 241(a)(4)(B)’’ made by this section shall take effect on the cord with the procedures required by law. after ‘‘ineligible to citizenship’’. date of the enactment of this Act and shall ‘‘(IV) CONGRESSIONAL AUTHORITY TO REMOVE (f) EFFECTIVE DATE.—The amendments apply to all aliens without regard to the date DESIGNATION.—The Congress reserves the au- made by this section shall take effect on the of entry or attempted entry into the United thority to remove, by law, the designation of date of the enactment of this Act and shall States. an organization as a terrorist organization apply to applications filed before, on, or SEC. 602. FUNDING FOR DETENTION AND RE- for purposes of this Act. after such date if final action has not been MOVAL OF ALIEN TERRORISTS. ‘‘(V) SUNSET.—Subject to subclause (IV), taken on them before such date. In addition to amounts otherwise appro- the designation under this clause of an orga- Subtitle B—Expedited Exclusion priated, there are authorized to be appro- nization as a terrorist organization shall be SEC. 621. INSPECTION AND EXCLUSION BY IMMI- priated for each fiscal year (beginning with effective for a period of 2 years from the date GRATION OFFICERS. fiscal year 1996) $5,000,000 to the Immigration of the initial publication of the terrorist or- (a) IN GENERAL.—Subsection (b) of section and Naturalization Service for the purpose of ganization designation by the Secretary of 235 of the Immigration and Nationality Act detaining and removing alien terrorists. State. At the end of such period (but no (8 U.S.C. 1225) is amended to read as follows: December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14015

‘‘(b)(1)(A) If the examining immigration of- ‘‘(B) The provisions of subparagraph (A) (b) PRECLUSION OF COLLATERAL ATTACKS.— ficer determines that an alien seeking shall not apply— Section 235 of such Act (8 U.S.C. 1225) is entry— ‘‘(i) to an alien crewman, amended by adding at the end the following ‘‘(i) is excludable under section 212(a)(6)(C) ‘‘(ii) to an alien described in paragraph new subsection: or 212(a)(7), and (1)(A) or (1)(C)(iii)(I), or ‘‘(d) In any action brought for the assess- ‘‘(ii) does not indicate either an intention ‘‘(iii) if the conditions described in section ment of penalties for improper entry or re- to apply for asylum under section 208 or a 273(d) exist. entry of an alien under section 275 or section fear of persecution, ‘‘(3) The decision of the examining immi- 276, no court shall have jurisdiction to hear the officer shall order the alien excluded gration officer, if favorable to the admission claims collaterally attacking the validity of from the United States without further hear- of any alien, shall be subject to challenge by orders of exclusion, special exclusion, or de- ing or review. any other immigration officer and such chal- portation entered under this section or sec- ‘‘(B) The examining immigration officer lenge shall operate to take the alien whose tions 236 and 242.’’. shall refer for an interview by an asylum of- privilege to enter is so challenged, before a (c) CLERICAL AMENDMENT.—The item relat- ficer under subparagraph (C) any alien who is special inquiry officer for a hearing on exclu- ing to section 106 in the table of contents of excludable under section 212(a)(6)(C) or sion of the alien.’’. such Act is amended to read as follows: 212(a)(7) and has indicated an intention to (b) CONFORMING AMENDMENT.—Section ‘‘Sec. 106. Judicial review of orders of depor- apply for asylum under section 208 or a fear 237(a) of such Act (8 U.S.C. 1227(a)) is amend- tation and exclusion, and spe- of persecution. ed— cial exclusion.’’. ‘‘(C)(i) An asylum officer shall promptly (1) in the second sentence of paragraph (1), conduct interviews of aliens referred under SEC. 623. EXCLUSION OF ALIENS WHO HAVE NOT by striking ‘‘Deportation’’ and inserting BEEN INSPECTED AND ADMITTED. subparagraph (B). ‘‘Subject to section 235(b)(1), deportation’’, ‘‘(ii) If the officer determines at the time (a) IN GENERAL.—Section 241 of the Immi- and of the interview that an alien has a credible gration and Nationality Act (8 U.S.C. 1251) is (2) in the first sentence of paragraph (2), by fear of persecution (as defined in clause (v)), amended by adding at the end the following striking ‘‘If’’ and inserting ‘‘Subject to sec- the alien shall be detained for an asylum new subsection: tion 235(b)(1), if’’. hearing before an asylum officer under sec- ‘‘(d) Notwithstanding any other provision (c) EFFECTIVE DATE.—The amendments tion 208. of this title, an alien found in the United made by this section shall take effect on the ‘‘(iii)(I) Subject to subclause (II), if the of- States who has not been admitted to the first day of the first month that begins more ficer determines that the alien does not have United States after inspection in accordance than 90 days after the date of the enactment a credible fear of persecution, the officer with section 235 is deemed for purposes of of this Act. shall order the alien excluded from the Unit- this Act to be seeking entry and admission ed States without further hearing or review. SEC. 622. JUDICIAL REVIEW. to the United States and shall be subject to ‘‘(II) The Attorney General shall promul- (a) PRECLUSION OF JUDICIAL REVIEW.—Sec- examination and exclusion by the Attorney gate regulations to provide for the imme- tion 106 of the Immigration and Nationality General under chapter 4. In the case of such diate review by a supervisory asylum office Act (8 U.S.C. 1105a) is amended— an alien the Attorney General shall provide at the port of entry of a determination under (1) by amending the section heading to by regulation an opportunity for the alien to subclause (I). read as follows: establish that the alien was so admitted.’’. ‘‘(iv) The Attorney General shall provide ‘‘JUDICIAL REVIEW OF ORDERS OF DEPORTATION (b) EFFECTIVE DATE.—The amendment information concerning the asylum inter- AND EXCLUSION, AND SPECIAL EXCLUSION’’; and made by subsection (a) shall take effect on view described in this subparagraph to aliens (2) by adding at the end the following new the first day of the first month beginning who may be eligible. An alien who is eligible subsection: more than 90 days after the date of the en- for such interview may consult with a person ‘‘(e)(1) Notwithstanding any other provi- actment of this Act. or persons of the alien’s choosing prior to sion of law, and except as provided in this the interview or any review thereof, accord- Subtitle C—Improved Information and subsection, no court shall have jurisdiction ing to regulations prescribed by the Attor- Processing to review any individual determination, or ney General. Such consultation shall be at PART 1—IMMIGRATION PROCEDURES to entertain any other cause or claim, aris- no expense to the Government and shall not ing from or relating to the implementation SEC. 631. ACCESS TO CERTAIN CONFIDENTIAL delay the process. INS FILES THROUGH COURT ORDER. ‘‘(v) For purposes of this subparagraph, the or operation of section 235(b)(1). Regardless of the nature of the action or claim, or the (a) LEGALIZATION PROGRAM.—Section term ‘credible fear of persecution’ means (I) 245A(c)(5) of the Immigration and National- that it is more probable than not that the party or parties bringing the action, no court shall have jurisdiction or authority to ity Act (8 U.S.C. 1255a(c)(5)) is amended— statements made by the alien in support of (1) by inserting ‘‘(i)’’ after ‘‘except that the the alien’s claim are true, and (II) that there enter declaratory, injunctive, or other equitable relief not specifically authorized in Attorney General’’, and is a significant possibility, in light of such (2) by inserting after ‘‘title 13, United statements and of such other facts as are this subsection nor to certify a class under Rule 23 of the Federal Rules of Civil Proce- States Code’’ the following: ‘‘and (ii) may au- known to the officer, that the alien could es- thorize an application to a Federal court of tablish eligibility for asylum under section dure. ‘‘(2) Judicial review of any cause, claim, or competent jurisdiction for, and a judge of 208. such court may grant, an order authorizing ‘‘(D) As used in this paragraph, the term individual determination covered under disclosure of information contained in the ‘asylum officer’ means an immigration offi- paragraph (1) shall only be available in ha- application of the alien to be used— cer who— beas corpus proceedings, and shall be limited ‘‘(I) for identification of the alien when ‘‘(i) has had professional training in coun- to determinations of— there is reason to believe that the alien has try conditions, asylum law, and interview ‘‘(A) whether the petitioner is an alien, if been killed or severely incapacitated; or techniques; and the petitioner makes a showing that the pe- ‘‘(II) for criminal law enforcement pur- ‘‘(ii) is supervised by an officer who meets titioner’s claim of United States nationality poses against the alien whose application is the condition in clause (i). is not frivolous; to be disclosed if the alleged criminal activ- ‘‘(E)(i) An exclusion order entered in ac- ‘‘(B) whether the petitioner was ordered ity occurred after the legalization applica- cordance with subparagraph (A) is not sub- specially excluded under section 235(b)(1)(A); tion was filed and such activity involves ter- ject to administrative appeal, except that and rorist activity or poses either an immediate the Attorney General shall provide by regu- ‘‘(C) whether the petitioner can prove by a risk to life or to national security, or would lation for prompt review of such an order preponderance of the evidence that the peti- be prosecutable as an aggravated felony, but against an alien who claims under oath, or tioner is an alien lawfully admitted for per- without regard to the length of sentence as permitted under penalty of perjury under manent residence and is entitled to such re- that could be imposed on the applicant’’. section 1746 of title 28, United States Code, view as is provided by the Attorney General (b) SPECIAL AGRICULTURAL WORKER PRO- after having been warned of the penalties for pursuant to section 235(b)(1)(E)(i). GRAM.—Section 210(b) of such Act (8 U.S.C. falsely making such claim under such condi- ‘‘(3) In any case where the court deter- 1160(b)) is amended— tions, to have been lawfully admitted for mines that an alien was not ordered spe- (1) in paragraph (5), by inserting ‘‘, except permanent residence. cially excluded, or was not properly subject ‘‘(ii) In any action brought against an alien to special exclusion under the regulations as allowed by a court order issued pursuant under section 275(a) or section 276, the court adopted by the Attorney General, the court to paragraph (6)’’ after ‘‘consent of the shall not have jurisdiction to hear any claim may order no relief beyond requiring that alien’’, and attacking the validity of an order of exclu- the alien receive a hearing in accordance (2) in paragraph (6), by inserting after sub- sion entered under subparagraph (A). with section 236, or a determination in ac- paragraph (C) the following: ‘‘(2)(A) Except as provided in subparagraph cordance with section 235(c) or 273(d). ‘‘Notwithstanding the previous sentence, the (B), if the examining immigration officer de- ‘‘(4) In determining whether an alien has Attorney General may authorize an applica- termines that an alien seeking entry is not been ordered specially excluded, the court’s tion to a Federal court of competent juris- clearly and beyond a doubt entitled to enter, inquiry shall be limited to whether such an diction for, and a judge of such court may the alien shall be detained for a hearing be- order was in fact issued and whether it re- grant, an order authorizing disclosure of in- fore a special inquiry officer. lates to the petitioner.’’. formation contained in the application of H 14016 CONGRESSIONAL RECORD — HOUSE December 5, 1995

the alien to be used (i) for identification of (b) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendments the alien when there is reason to believe that made by subsection (a) shall apply to re- made by subsection (a) shall apply to convic- the alien has been killed or severely inca- quests for documents made on or after the tions entered on or after the date of the en- pacitated, or (ii) for criminal law enforce- date of the enactment of this Act with re- actment of this Act, except that the amendment purposes against the alien whose appli- spect to individuals who are or were hired ment made by subsection (a)(3) shall take ef- cation is to be disclosed if the alleged crimi- before, on, or after the date of the enactment fect as if included in the enactment of sec- nal activity occurred after the special agri- of this Act. tion 222 of the Immigration and Nationality cultural worker application was filed and Subtitle E—Criminal Alien Deportation Technical Corrections Act of 1994. such activity involves terrorist activity or Improvements SEC. 663. DEPORTATION PROCEDURES FOR CER- TAIN CRIMINAL ALIENS WHO ARE poses either an immediate risk to life or to SEC. 661. SHORT TITLE. NOT PERMANENT RESIDENTS. national security, or would be prosecutable This subtitle may be cited as the ‘‘Crimi- (a) ADMINISTRATIVE HEARINGS.—Section as an aggravated felony, but without regard nal Alien Deportation Improvements Act of 242A(b) of the Immigration and Nationality to the length of sentence that could be im- 1995’’. posed on the applicant.’’. Act (8 U.S.C. 1252a(b)), as added by section SEC. 662. ADDITIONAL EXPANSION OF DEFINI- 130004(a) of the Violent Crime Control and TION OF AGGRAVATED FELONY. SEC. 632. WAIVER AUTHORITY CONCERNING NO- Law Enforcement Act of 1994 (Public Law TICE OF DENIAL OF APPLICATION (a) IN GENERAL.—Section 101(a)(43) of the 103–322), is amended— FOR VISAS. Immigration and Nationality Act (8 U.S.C. (1) in paragraph (2)— Section 212(b) of the Immigration and Na- 1101(a)(43)), as amended by section 222 of the (A) by striking ‘‘and’’ at the end of sub- tionality Act (8 U.S.C. 1182(b)) is amended— Immigration and Nationality Technical Cor- paragraph (A) and inserting ‘‘or’’, and (1) by redesignating paragraphs (1) and (2) rections Act of 1994 (Public Law 103–416), is (B) by amending subparagraph (B) to read as subparagraphs (A) and (B); amended— as follows: (2) by striking ‘‘If’’ and inserting ‘‘(1) Sub- (1) in subparagraph (J), by inserting ‘‘, or ‘‘(B) had permanent resident status on a ject to paragraph (2), if’’; and an offense described in section 1084 (if it is a conditional basis (as described in section 216) (3) by adding at the end the following new second or subsequent offense) or 1955 of that at the time that proceedings under this sec- paragraph: title (relating to gambling offenses),’’ after tion commenced.’’; ‘‘(2) With respect to applications for visas, ‘‘corrupt organizations)’’; (2) in paragraph (3), by striking ‘‘30 cal- the Secretary of State may waive the appli- (2) in subparagraph (K)— endar days’’ and inserting ‘‘14 calendar cation of paragraph (1) in the case of a par- (A) by striking ‘‘or’’ at the end of clause days’’; ticular alien or any class or classes of aliens (i), (3) in paragraph (4)(B), by striking excludable under subsection (a)(2) or (a)(3).’’. (B) by redesignating clause (ii) as clause (iii), and ‘‘proccedings’’ and inserting ‘‘proceedings’’; PART 2—ASSET FORFEITURE FOR (C) by inserting after clause (i) the follow- (4) in paragraph (4)— PASSPORT AND VISA OFFENSES ing new clause: (A) by redesignating subparagraphs (D) and SEC. 641. CRIMINAL FORFEITURE FOR PASSPORT ‘‘(ii) is described in section 2421, 2422, or (E) as subparagraphs (F) and (G), respec- AND VISA RELATED OFFENSES. 2423 of title 18, United States Code (relating tively; and Section 982 of title 18, United States Code, to transportation for the purpose of prostitu- (B) by adding after subparagraph (C) the is amended— tion) for commercial advantage; or’’; following new subparagraphs: (1) in subsection (a), by inserting after (3) by amending subparagraph (N) to read ‘‘(D) such proceedings are conducted in, or paragraph (5) the following new paragraph: as follows: translated for the alien into, a language the ‘‘(6) The court, in imposing sentence on a ‘‘(N) an offense described in paragraph alien understands; person convicted of a violation of, or conspir- (1)(A) or (2) of section 274(a) (relating to ‘‘(E) a determination is made for the acy to violate, section 1541, 1542, 1543, 1544, or alien smuggling) for which the term of im- record at such proceedings that the individ- 1546 of this title, or a violation of, or conspir- prisonment imposed (regardless of any sus- ual who appears to respond in such a pro- acy to violate, section 1028 of this title if pension of imprisonment) is at least 5 ceeding is an alien subject to such an expe- committed in connection with passport or years;’’; dited proceeding under this section and is, in visa issuance or use, shall order that the per- (4) by amending subparagraph (O) to read fact, the alien named in the notice for such son forfeit to the United States any prop- as follows: proceeding;’’. erty, real or personal, which the person used, ‘‘(O) an offense (i) which either is falsely (5) by adding at the end the following new or intended to be used, in committing, or fa- making, forging, counterfeiting, mutilating, paragraph: cilitating the commission of, the violation, or altering a passport or instrument in viola- ‘‘(5) No alien described in this section shall and any property constituting, or derived tion of section 1543 of title 18, United States be eligible for any relief from deportation from, or traceable to, any proceeds the per- Code, or is described in section 1546(a) of that the Attorney General may grant in the son obtained, directly or indirectly, as a re- such title (relating to document fraud) and Attorney General’s discretion.’’. sult of such violation.’’; and (ii) for which the term of imprisonment im- (b) LIMIT ON JUDICIAL REVIEW.—Subsection (2) in subsection (b)(1)(B), by inserting ‘‘or posed (regardless of any suspension of such (d) of section 106 of the Immigration and Na- (a)(6)’’ after ‘‘(a)(2)’’. imprisonment) is at least 18 months;’’ tionality Act (8 U.S.C. 1105a), as added by SEC. 642. SUBPOENAS FOR BANK RECORDS. (5) in subparagraph (P), by striking ‘‘15 section 130004(b) of the Violent Crime Con- Section 986(a) of title 18, United States years’’ and inserting ‘‘5 years’’, and by strik- trol and Law Enforcement Act of 1994 (Public Code, is amended by inserting ‘‘1028, 1541, ing ‘‘and’’ at the end; Law 103–322), is amended to read as follows: ‘‘(d) Notwithstanding subsection (c), a peti- 1542, 1543, 1544, 1546,’’ before ‘‘1956’’. (6) by redesignating subparagraphs (O), (P), tion for review or for habeas corpus on behalf SEC. 643. EFFECTIVE DATE. and (Q) as subparagraphs (P), (Q), and (U), respectively; of an alien described in section 242A(c) may The amendments made by this subtitle (7) by inserting after subparagraph (N) the only challenge whether the alien is in fact an shall take effect on the first day of the first following new subparagraph: alien described in such section, and no court month that begins more than 90 days after ‘‘(O) an offense described in section 275(a) shall have jurisdiction to review any other the date of the enactment of this Act. or 276 committed by an alien who was pre- issue.’’. Subtitle D—Employee Verification by viously deported on the basis of a conviction (c) PRESUMPTION OF DEPORTABILITY.—Sec- Security Services Companies for an offense described in another subpara- tion 242A of the Immigration and National- ity Act (8 U.S.C. 1252a) is amended by insert- SEC. 651. PERMITTING SECURITY SERVICES COM- graph of this paragraph;’’; and PANIES TO REQUEST ADDITIONAL (8) by inserting after subparagraph (Q), as ing after subsection (b) the following new DOCUMENTATION. so redesignated, the following new subpara- subsection: ‘‘(c) PRESUMPTION OF DEPORTABILITY.—An (a) IN GENERAL.—Section 274B(a)(6) of the graphs: alien convicted of an aggravated felony shall Immigration and Nationality Act (8 U.S.C. ‘‘(R) an offense relating to commercial be conclusively presumed to be deportable 1324b(a)(6)) is amended— bribery, counterfeiting, forgery, or traffick- from the United States.’’. (1) by striking ‘‘For purposes’’ and inserting in vehicles the identification numbers of (d) EFFECTIVE DATE.—The amendments ing ‘‘(A) Except as provided in subparagraph which have been altered for which a sentence made by this section shall apply to all aliens (B), for purposes’’, and of 5 years’ imprisonment or more may be im- against whom deportation proceedings are (2) by adding at the end the following new posed; initiated after the date of the enactment of subparagraph: ‘‘(S) an offense relating to obstruction of this Act. ‘‘(B) Subparagraph (A) shall not apply to a justice, perjury or subornation of perjury, or SEC. 664. RESTRICTING THE DEFENSE TO EXCLU- request made in connection with an individ- bribery of a witness, for which a sentence of SION BASED ON 7 YEARS PERMA- ual seeking employment in a company (or di- 5 years’ imprisonment or more may be im- NENT RESIDENCE FOR CERTAIN vision of a company) engaged in the business posed; CRIMINAL ALIENS. of providing security services to protect per- ‘‘(T) an offense relating to a failure to ap- The last sentence of section 212(c) of the sons, institutions, buildings, or other pos- pear before a court pursuant to a court order Immigration and Nationality Act (8 U.S.C. sible targets of international terrorism (as to answer to or dispose of a charge of a fel- 1182(c)) is amended by striking ‘‘has served defined in section 2331(1) of title 18, United ony for which a sentence of 2 years’ impris- for such felony or felonies’’ and all that fol- States Code).’’. onment or more may be imposed; and’’. lows through the period and inserting ‘‘has December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14017 been sentenced for such felony or felonies to SEC. 668. AUTHORITY FOR ALIEN SMUGGLING IN- this Act, the Secretary of State and the At- a term of imprisonment of at least 5 years, if VESTIGATIONS. torney General shall submit to the Congress the time for appealing such conviction or Section 2516(1) of title 18, United States a report that describes the use and effective- sentence has expired and the sentence has Code, is amended— ness of the Prisoner Transfer Treaty with become final.’’. (1) by striking ‘‘and’’ at the end of para- Mexico (in this section referred to as the SEC. 665. LIMITATION ON COLLATERAL ATTACKS graph (n), ‘‘Treaty’’) to remove from the United States ON UNDERLYING DEPORTATION (2) by redesignating paragraph (o) as para- aliens who have been convicted of crimes in ORDER. graph (p), and the United States. (a) IN GENERAL.—Section 276 of the Immi- (3) by inserting after paragraph (n) the fol- (b) USE OF TREATY.—The report under sub- gration and Nationality Act (8 U.S.C. 1326) is lowing new paragraph: section (a) shall include the following infor- amended by adding at the end the following ‘‘(o) a felony violation of section 1028 (re- mation: new subsection: lating to production of false identification (1) The number of aliens convicted of a ‘‘(c) In a criminal proceeding under this documents), section 1542 (relating to false criminal offense in the United States since section, an alien may not challenge the va- statements in passport applications), section November 30, 1977, who would have been or lidity of the deportation order described in 1546 (relating to fraud and misuse of visas, are eligible for transfer pursuant to the subsection (a)(1) or subsection (b) unless the permits, and other documents) of this title Treaty. alien demonstrates that— or a violation of section 274, 277, or 278 of the (2) The number of aliens described in para- ‘‘(1) the alien exhausted any administra- Immigration and Nationality Act (relating graph (1) who have been transferred pursuant tive remedies that may have been available to the smuggling of aliens); or’’. to the Treaty. to seek relief against the order; SEC. 669. EXPANSION OF CRITERIA FOR DEPOR- (3) The number of aliens described in para- ‘‘(2) the deportation proceedings at which TATION FOR CRIMES OF MORAL graph (2) who have been incarcerated in full the order was issued improperly deprived the TURPITUDE. compliance with the Treaty. alien of the opportunity for judicial review; (a) IN GENERAL.—Section 241(a)(2)(A)(i)(II) (4) The number of aliens who are incarcer- and of the Immigration and Nationality Act (8 ated in a penal institution in the United ‘‘(3) the entry of the order was fundamen- U.S.C. 1251(a)(2)(A)(i)(II)) is amended to read States who are eligible for transfer pursuant tally unfair.’’. as follows: to the Treaty. (b) EFFECTIVE DATE.—The amendment ‘‘(II) is convicted of a crime for which a (5) The number of aliens described in para- made by subsection (a) shall apply to crimi- sentence of one year or longer may be im- graph (4) who are incarcerated in State and nal proceedings initiated after the date of posed,’’. local penal institutions. the enactment of this Act. (b) EFFECTIVE DATE.—The amendment (c) EFFECTIVENESS OF TREATY.—The report SEC. 666. CRIMINAL ALIEN IDENTIFICATION SYS- made by subsection (a) shall apply to aliens under subsection (a) shall include the rec- TEM. against whom deportation proceedings are ommendations of the Secretary of State and Section 130002(a) of the Violent Crime Con- initiated after the date of the enactment of the Attorney General to increase the effec- trol and Law Enforcement Act of 1994 (Public this Act. tiveness and use of, and full compliance Law 103–322) is amended to read as follows: SEC. 670. PAYMENTS TO POLITICAL SUBDIVI- with, the Treaty. In considering the rec- ‘‘(a) OPERATION AND PURPOSE.—The Com- SIONS FOR COSTS OF INCARCERAT- ommendations under this subsection, the missioner of Immigration and Naturalization ING ILLEGAL ALIENS. Secretary and the Attorney General shall shall, under the authority of section Amounts appropriated to carry out section consult with such State and local officials in 242(a)(3)(A) of the Immigration and National- 501 of the Immigration Reform and Control areas disproportionately impacted by aliens ity Act (8 U.S.C. 1252(a)(3)(A)), operate a Act of 1986 for fiscal year 1995 shall be avail- convicted of criminal offenses as the Sec- criminal alien identification system. The able to carry out section 242(j) of the Immi- retary and the Attorney General consider ap- criminal alien identification system shall be gration and Nationality Act in that fiscal propriate. Such recommendations shall ad- used to assist Federal, State, and local law year with respect to undocumented criminal dress the following areas: enforcement agencies in identifying and lo- aliens incarcerated under the authority of (1) Changes in Federal laws, regulations, cating aliens who may be subject to deporta- political subdivisions of a State. and policies affecting the identification, tion by reason of their conviction of aggra- SEC. 671. MISCELLANEOUS PROVISIONS. prosecution, and deportation of aliens who vated felonies.’’. (a) USE OF ELECTRONIC AND TELEPHONIC have committed a criminal offense in the SEC. 667. ESTABLISHING CERTAIN ALIEN SMUG- MEDIA IN DEPORTATION HEARINGS.—The sec- United States. GLING-RELATED CRIMES AS RICO- ond sentence of section 242(b) of the Immi- (2) Changes in State and local laws, regula- PREDICATE OFFENSES. gration and Nationality Act (8 U.S.C. 1252(b)) tions, and policies affecting the identifica- Section 1961(1) of title 18, United States is amended by inserting before the period the tion, prosecution, and deportation of aliens Code, is amended— following: ‘‘; except that nothing in this sub- who have committed a criminal offense in (1) by inserting ‘‘section 1028 (relating to section shall preclude the Attorney General the United States. fraud and related activity in connection with from authorizing proceedings by electronic (3) Changes in the Treaty that may be nec- identification documents) if the act indict- or telephonic media (with the consent of the essary to increase the number of aliens con- able under section 1028 was committed for alien) or, where waived or agreed to by the victed of crimes who may be transferred pur- the purpose of financial gain,’’ before ‘‘sec- parties, in the absence of the alien’’. suant to the Treaty. tion 1029’’; (b) CODIFICATION.— (4) Methods for preventing the unlawful re- (2) by inserting ‘‘section 1542 (relating to (1) Section 242(i) of such Act (8 U.S.C. entry into the United States of aliens who false statement in application and use of 1252(i)) is amended by adding at the end the have been convicted of criminal offenses in passport) if the act indictable under section following: ‘‘Nothing in this subsection shall the United States and transferred pursuant 1542 was committed for the purpose of finan- be construed to create any substantive or to the Treaty. cial gain, section 1543 (relating to forgery or procedural right or benefit that is legally en- (5) Any recommendations of appropriate false use of passport) if the act indictable forceable by any party against the United officials of the Mexican Government on pro- under section 1543 was committed for the States or its agencies or officers or any other grams to achieve the goals of, and ensure full purpose of financial gain, section 1544 (relat- person.’’. compliance with, the Treaty. ing to misuse of passport) if the act indict- (2) Section 225 of the Immigration and Na- (6) An assessment of whether the rec- able under section 1544 was committed for tionality Technical Corrections Act of 1994 ommendations under this subsection require the purpose of financial gain, section 1546 (Public Law 103–416) is amended by striking the renegotiation of the Treaty. (relating to fraud and misuse of visas, per- ‘‘and nothing in’’ and all that follows (7) The additional funds required to imple- mits, and other documents) if the act indict- through ‘‘1252(i))’’. ment each recommendation under this sub- able under section 1546 was committed for (3) The amendments made by this subsection. the purpose of financial gain, sections 1581– section shall take effect as if included in the SEC. 674. JUSTICE DEPARTMENT ASSISTANCE IN 1588 (relating to peonage and slavery),’’ after enactment of the Immigration and National- BRINGING TO JUSTICE ALIENS WHO ‘‘section 1513 (relating to retaliating against ity Technical Corrections Act of 1994 (Public FLEE PROSECUTION FOR CRIMES IN a witness, victim, or an informant),’’; Law 103–416). THE UNITED STATES. (3) by striking ‘‘or’’ before ‘‘(E)’’; and SEC. 672. CONSTRUCTION OF EXPEDITED DEPOR- (a) ASSISTANCE TO STATES.—The Attorney (4) by inserting before the period at the end TATION REQUIREMENTS. General, in cooperation with the Commis- the following: ‘‘, or (F) any act which is in- No amendment made by this Act shall be sioner of Immigration and Naturalization dictable under the Immigration and Nation- construed to create any substantive or pro- and the Secretary of State, shall designate ality Act, section 274 (relating to bringing in cedural right or benefit that is legally en- an office within the Department of Justice and harboring certain aliens), section 277 (re- forceable by any party against the United to provide technical and prosecutorial assist- lating to aiding or assisting certain aliens to States or its agencies or officers or any other ance to States and political subdivisions of enter the United States), or section 278 (re- person. States in efforts to bring to justice aliens lating to importation of alien for immoral SEC. 673. STUDY OF PRISONER TRANSFER TREA- who flee prosecution for crimes in the United purpose) if the act indictable under such sec- TY WITH MEXICO. States. tion of such Act was committed for the pur- (a) REPORT TO CONGRESS.—Not later than (b) REPORT TO CONGRESS.—Not later than pose of financial gain’’. 180 days after the date of the enactment of one year after the date of the enactment of H 14018 CONGRESSIONAL RECORD — HOUSE December 5, 1995 this Act, the Attorney General shall compile ity Act (8 U.S.C. 1326) amended by adding at of Crime Act of 1984 (42 U.S.C. 10603(d)(3)) is and submit to the Congress a report which the end the following new subsection: amended— assesses the nature and extent of the prob- ‘‘(c) Any alien deported pursuant to sec- (1) by inserting ‘‘crimes involving terror- lem of bringing to justice aliens who flee tion 242(h)(2) who enters, attempts to enter, ism,’’ before ‘‘driving while intoxicated’’; prosecution for crimes in the United States. or is at any time found in, the United States and SEC. 675. PRISONER TRANSFER TREATIES. (unless the Attorney General has expressly (2) by inserting a comma after ‘‘driving consented to such alien’s reentry) shall be (a) NEGOTIATION.—Congress advises the while intoxicated’’. incarcerated for the remainder of the sen- President to begin to negotiate and renego- (b) FOREIGN TERRORISM.—Section tence of imprisonment which was pending at tiate, not later than 90 days after the date of 1403(b)(6)(B) of the Victims of Crime Act of the time of deportation without any reduc- the enactment of this Act, bilateral prisoner 1984 (42 U.S.C. 10603(b)(6)(B)) is amended by tion for parole or supervised release. Such transfer treaties. The focus of such negotia- inserting ‘‘are outside the United States (if alien shall be subject to such other penalties the compensable crime is terrorism, as de- tions shall be to expedite the transfer of relating to the reentry of deported aliens as aliens unlawfully in the United States who fined in section 2331 of title 18, United States may be available under this section or any Code), or’’ before ‘‘are States not having’’. are incarcerated in United States prisons, to other provision of law.’’. ensure that a transferred prisoner serves the SEC. 803. JURISDICTION FOR LAWSUITS AGAINST balance of the sentence imposed by the Unit- TITLE VII—AUTHORIZATION AND TERRORIST STATES. FUNDING ed States courts, and to eliminate any re- (a) EXCEPTION TO FOREIGN SOVEREIGN IMMU- quirement of prisoner consent to such a SEC. 701. FIREFIGHTER AND EMERGENCY SERV- NITY FOR CERTAIN CASES.—Section 1605 of transfer. ICES TRAINING. title 28, United States Code, is amended— The Attorney General may award grants in (b) CERTIFICATION.—The President shall (1) in subsection (a)— consultation with the Federal Emergency submit to the Congress, annually, a certifi- (A) by striking ‘‘or’’ at the end of para- Management Agency for the purposes of pro- cation as to whether each prisoner transfer graph (5); viding specialized training or equipment to treaty in force is effective in returning (B) by striking the period at the end of enhance the capability of metropolitan fire aliens unlawfully in the United States who and emergency service departments to re- paragraph (6) and inserting ‘‘; or’’; and have committed offenses for which they are spond to terrorist attacks. To carry out the (C) by adding at the end the following new incarcerated in the United States to their purposes of this section, there is authorized paragraph: country of nationality for further incarcer- to be appropriated $5,000,000 for fiscal year ‘‘(7) not otherwise covered by paragraph ation. 1996. (2), in which money damages are sought SEC. 676. INTERIOR REPATRIATION PROGRAM. SEC. 702. ASSISTANCE TO FOREIGN COUNTRIES against a foreign state for personal injury or Not later than 180 days after the date of TO PROCURE EXPLOSIVE DETEC- death that was caused by an act of torture, enactment of this Act, the Attorney General TION DEVICES AND OTHER extrajudicial killing, aircraft sabotage, hos- and the Commissioner of Immigration and COUNTER-TERRORISM TECH- tage taking, or the provision of material sup- Naturalization shall develop and implement NOLOGY. port or resources (as defined in section 2339A a program in which aliens who previously There is authorized to be appropriated not of title 18) for such an act if such act or pro- have illegally entered the United States not to exceed $10,000,000 for fiscal years 1996 and vision of material support is engaged in by less than 3 times and are deported or re- 1997 to the President to provide assistance to an official, employee, or agent of such for- turned to a country contiguous to the United foreign countries facing an imminent danger eign state while acting within the scope of of terrorist attack that threatens the na- States will be returned to locations not less his or her office, employment, or agency, ex- tional interest of the United States or puts than 500 kilometers from that country’s bor- cept that— United States nationals at risk— der with the United States. ‘‘(A) an action under this paragraph shall (1) in obtaining explosive detection devices SEC. 677. DEPORTATION OF NONVIOLENT OF- not be instituted unless the claimant first and other counter-terrorism technology; and affords the foreign state a reasonable oppor- FENDERS PRIOR TO COMPLETION (2) in conducting research and development OF SENTENCE OF IMPRISONMENT. tunity to arbitrate the claim in accordance projects on such technology. (a) IN GENERAL.—Section 242(h) of the Im- with accepted international rules of arbitra- migration and Nationality Act (8 U.S.C. SEC. 703. RESEARCH AND DEVELOPMENT TO SUP- tion; PORT COUNTER-TERRORISM TECH- ‘‘(B) an action under this paragraph shall 1252(h)) is amended to read as follows: NOLOGIES. not be maintained unless the act upon which ‘‘(h)(1) Except as provided in paragraph (2), There are authorized to be appropriated an alien sentenced to imprisonment may not not to exceed $10,000,000 to the National In- the claim is based occurred while the indi- be deported until such imprisonment has stitute of Justice Science and Technology vidual bringing the claim was a national of been terminated by the release of the alien Office— the United States (as that term is defined in from confinement. Parole, supervised re- (1) to develop technologies that can be used section 101(a)(22) of the Immigration and Na- lease, probation, or possibility of rearrest or to combat terrorism, including technologies tionality Act); and further confinement in respect of the same in the areas of— ‘‘(C) the court shall decline to hear a claim offense shall not be a ground for deferral of (A) detection of weapons, explosives, under this paragraph if the foreign state deportation. chemicals, and persons; against whom the claim has been brought es- ‘‘(2) The Attorney General is authorized to (B) tracking; tablishes that procedures and remedies are deport an alien in accordance with applica- (C) surveillance; available in such state which comport with ble procedures under this Act prior to the (D) vulnerability assessment; and fundamental fairness and due process.’’; and completion of a sentence of imprisonment— (E) information technologies; (2) by adding at the end the following new ‘‘(A) in the case of an alien in the custody (2) to develop standards to ensure the ade- subsection: of the Attorney General, if the Attorney quacy of products produced and compatibil- ‘‘(e) For purposes of paragraph (7) of sub- General determines that (i) the alien is con- ity with relevant national systems; and section (a)— fined pursuant to a final conviction for a (3) to identify and assess requirements for ‘‘(1) the terms ‘torture’ and ‘extrajudicial nonviolent offense (other than alien smug- technologies to assist State and local law en- killing’ have the meaning given those terms gling), and (ii) such deportation of the alien forcement in the national program to com- in section 3 of the Torture Victim Protection is appropriate and in the best interest of the bat terrorism. Act of 1991; United States; or ‘‘(2) the term ‘hostage taking’ has the TITLE VIII—MISCELLANEOUS ‘‘(B) in the case of an alien in the custody meaning given that term in Article 1 of the of a State (or a political subdivision of a SEC. 801. STUDY OF STATE LICENSING REQUIRE- International Convention Against the Tak- MENTS FOR THE PURCHASE AND ing of Hostages; and State), if the chief State official exercising USE OF HIGH EXPLOSIVES. authority with respect to the incarceration The Secretary of the Treasury, in con- ‘‘(3) the term ‘aircraft sabotage’ has the of the alien determines that (i) the alien is sultation with the Federal Bureau of Inves- meaning given that term in Article 1 of the confined pursuant to a final conviction for a tigation, shall conduct a study of State li- Convention for the Suppression of Unlawful nonviolent offense (other than alien smug- censing requirements for the purchase and Acts Against the Safety of Civil Aviation.’’. gling), (ii) such deportation is appropriate use of commercial high explosives, including (b) EXCEPTION TO IMMUNITY FROM ATTACH- and in the best interest of the State, and (iii) detonators, detonating cords, dynamite, MENT.— submits a written request to the Attorney water gel, emulsion, blasting agents, and (1) FOREIGN STATE.—Section 1610(a) of title General that such alien be so deported. boosters. Not later than 180 days after the 28, United States Code, is amended— ‘‘(3) Any alien deported pursuant to this date of the enactment of this Act, the Sec- (A) by striking the period at the end of subsection shall be notified of the penalties retary shall report to Congress the results of paragraph (6) and inserting ‘‘, or’’; and under the laws of the United States relating this study, together with any recommenda- (B) by adding at the end the following new to the reentry of deported aliens, particu- tions the Secretary determines are appro- paragraph: larly the expanded penalties for aliens de- priate. ‘‘(7) the judgment relates to a claim for ported under paragraph (2).’’. SEC. 802. COMPENSATION OF VICTIMS OF TER- which the foreign state is not immune under (b) REENTRY OF ALIEN DEPORTED PRIOR TO RORISM. section 1605(a)(7), regardless of whether the COMPLETION OF TERM OF IMPRISONMENT.— (a) REQUIRING COMPENSATION FOR TERROR- property is or was involved with the act upon Section 276 of the Immigration and National- IST CRIMES.—Section 1403(d)(3) of the Victims which the claim is based.’’. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14019

(2) AGENCY OR INSTRUMENTALITY.—Section (e) EXEMPTION.—The United States Secret such in-kind payments as may be agreeable 1610(b)(2) of such title is amended— Service is not required to participate in any to the victim and the offender. A restitution (A) by striking ‘‘or (5)’’ and inserting ‘‘(5), statistical reporting activity under this sec- order shall direct the offender to give appro- or (7)’’; and tion with respect to any direct or indirect priate notice to victims and other persons in (B) by striking ‘‘used for the activity’’ and threats made against any individual for cases where there are multiple victims or inserting ‘‘involved in the act’’. whom the United States Secret Service is other persons who may receive restitution, (c) APPLICABILITY.—The amendments made authorized to provide protection. and where the identity of such victims and by this title shall apply to any cause of ac- SEC. 806. VICTIM RESTITUTION ACT OF 1995. other persons can be reasonably determined. ‘‘(4) An in-kind payment described in para- tion arising before, on, or after the date of (a) ORDER OF RESTITUTION.—Section 3663 of the enactment of this Act. title 18, United States Code, is amended— graph (3) may be in the form of— SEC. 804. STUDY OF PUBLICLY AVAILABLE IN- (1) in subsection (a)— ‘‘(A) return of property; STRUCTIONAL MATERIAL ON THE (A) in paragraph (1)— ‘‘(B) replacement of property; or MAKING OF BOMBS, DESTRUCTIVE (i) by striking ‘‘may order, in addition to ‘‘(C) services rendered to the victim or to a DEVICES, AND WEAPONS OF MASS person or organization other than the vic- DESTRUCTION. or, in the case of a misdemeanor, in lieu of any other penalty authorized by law’’ and in- tim. (a) STUDY.—The Attorney General, in con- ‘‘(e) When the court finds that more than 1 serting ‘‘shall order’’; and sultation with such other officials and indi- offender has contributed to the loss of a vic- (ii) by adding at the end the following: viduals as the Attorney General deems ap- tim, the court may make each offender lia- ‘‘The requirement of this paragraph does not propriate, shall conduct a study concern- ble for payment of the full amount of res- affect the power of the court to impose any ing— titution or may apportion liability among other penalty authorized by law. In the case (1) the extent to which there are available the offenders to reflect the level of contribu- of a misdemeanor, the court may impose res- to the public material in any medium (in- tion and economic circumstances of each of- titution in lieu of any other penalty author- cluding print, electronic, or film) that in- fender. structs how to make bombs, other destruc- ized by law.’’; ‘‘(f) When the court finds that more than 1 tive devices, and weapons of mass destruc- (B) by adding at the end the following: victim has sustained a loss requiring restitution; ‘‘(4) In addition to ordering restitution to tion by an offender, the court shall order full (2) the extent to which information gained the victim of the offense of which a defend- restitution to each victim but may provide from such material has been used in inci- ant is convicted, a court may order restitu- for different payment schedules to reflect dents of domestic and international terror- tion to any person who, as shown by a pre- the economic circumstances of each victim. ism; ponderance of evidence, was harmed phys- ‘‘(g)(1) If the victim has received or is enti- (3) the likelihood that such information ically, emotionally, or pecuniarily, by un- tled to receive compensation with respect to may be used in future incidents of terrorism; lawful conduct of the defendant during— a loss from insurance or any other source, and ‘‘(A) the criminal episode during which the the court shall order that restitution be paid (4) the application of existing Federal laws offense occurred; or to the person who provided or is obligated to to such material, the need and utility, if ‘‘(B) the course of a scheme, conspiracy, or provide the compensation, but the restitu- any, for additional laws, and an assessment pattern of unlawful activity related to the tion order shall provide that all restitution of the extent to which the First Amendment offense.’’; to victims required by the order be paid to protects such material and its private and (2) in subsection (b)(1)(B) by striking ‘‘im- the victims before any restitution is paid to commercial distribution. practical’’ and inserting ‘‘impracticable’’; such a provider of compensation. (b) REPORT.—Not later than 180 days after (3) in subsection (b)(2) by inserting ‘‘emo- ‘‘(2) The issuance of a restitution order the date of the enactment of this Act, the tional or’’ after ‘‘resulting in’’; shall not affect the entitlement of a victim Attorney General shall submit to the Con- (4) in subsection (b)— to receive compensation with respect to a gress a report that contains the results of (A) by striking ‘‘and’’ at the end of para- loss from insurance or any other source until the study required by this section. The At- graph (4); the payments actually received by the vic- torney General shall make the report avail- (B) by redesignating paragraph (5) as para- tim under the restitution order fully com- able to the public. graph (6); and pensate the victim for the loss, at which SEC. 805. COMPILATION OF STATISTICS RELAT- (C) by inserting after paragraph (4) the fol- time a person that has provided compensa- ING TO INTIMIDATION OF GOVERN- lowing new paragraph: tion to the victim shall be entitled to receive MENT EMPLOYEES. ‘‘(5) in any case, reimburse the victim for any payments remaining to be paid under (a) FINDINGS.—Congress finds that— lost income and necessary child care, trans- the restitution order. (1) threats of violence and acts of violence portation, and other expenses related to par- ‘‘(3) Any amount paid to a victim under an are mounting against Federal, State, and ticipation in the investigation or prosecu- order of restitution shall be set off against local government employees and their fami- tion of the offense or attendance at proceed- any amount later recovered as compensatory lies in attempts to stop public servants from ings related to the offense; and’’; damages by the victim in— performing their lawful duties; (5) in subsection (c) by striking ‘‘If the ‘‘(A) any Federal civil proceeding; and (2) these acts are a danger to our constitu- court decides to order restitution under this ‘‘(B) any State civil proceeding, to the ex- tional form of government; and section, the’’ and inserting ‘‘The’’; tent provided by the law of the State. (3) more information is needed as to the ex- (6) by striking subsections (d), (e), (f), (g), ‘‘(h) A restitution order shall provide tent of the danger and its nature so that and (h); that— steps can be taken to protect public servants (7) by redesignating subsection (i) as sub- ‘‘(1) all fines, penalties, costs, restitution at all levels of government in the perform- section (m); and payments and other forms of transfers of ance of their duties. (8) by inserting after subsection (c) the fol- money or property made pursuant to the (b) STATISTICS.—The Attorney General lowing: sentence of the court shall be made by the shall acquire data, for the calendar year 1990 ‘‘(d)(1) The court shall order restitution to offender to an entity designated by the Di- and each succeeding calendar year about a victim in the full amount of the victim’s rector of the Administrative Office of the crimes and incidents of threats of violence losses as determined by the court and with- United States Courts for accounting and and acts of violence against Federal, State, out consideration of— payment by the entity in accordance with and local government employees in perform- ‘‘(A) the economic circumstances of the of- this subsection; ance of their lawful duties. Such data shall fender; or ‘‘(2) the entity designated by the Director include— ‘‘(B) the fact that a victim has received or of the Administrative Office of the United (1) in the case of crimes against such em- is entitled to receive compensation with re- States Courts shall— ployees, the nature of the crime; and spect to a loss from insurance or any other ‘‘(A) log all transfers in a manner that (2) in the case of incidents of threats of vi- source. tracks the offender’s obligations and the cur- olence and acts of violence, including verbal ‘‘(2) Upon determination of the amount of rent status in meeting those obligations, un- and implicit threats against such employees, restitution owed to each victim, the court less, after efforts have been made to enforce whether or not criminally punishable, which shall specify in the restitution order the the restitution order and it appears that deter the employees from the performance of manner in which and the schedule according compliance cannot be obtained, the court de- their jobs. to which the restitution is to be paid, in con- termines that continued recordkeeping (c) GUIDELINES.—The Attorney General sideration of— under this subparagraph would not be useful; shall establish guidelines for the collection ‘‘(A) the financial resources and other as- and of such data, including what constitutes suf- sets of the offender; ‘‘(B) notify the court and the interested ficient evidence of noncriminal incidents re- ‘‘(B) projected earnings and other income parties when an offender is 30 days in arrears quired to be reported. of the offender; and in meeting those obligations; and (d) ANNUAL PUBLISHING.—The Attorney ‘‘(C) any financial obligations of the of- ‘‘(3) the offender shall advise the entity General shall publish an annual summary of fender, including obligations to dependents. designated by the Director of the Adminis- the data acquired under this section. Other- ‘‘(3) A restitution order may direct the of- trative Office of the United States Courts of wise such data shall be used only for re- fender to make a single, lump-sum payment, any change in the offender’s address during search and statistical purposes. partial payment at specified intervals, or the term of the restitution order. H 14020 CONGRESSIONAL RECORD — HOUSE December 5, 1995 ‘‘(i) A restitution order shall constitute a in violation of the Constitution or laws of should not issue. The certificate or the state- lien against all property of the offender and the United States is removed, if the appli- ment shall be forwarded to the court of ap- may be recorded in any Federal or State of- cant was prevented from filing by such State peals with the notice of appeal and the file of fice for the recording of liens against real or action; the proceedings in the district court. If the personal property. ‘‘(C) the date on which the constitutional district judge has denied the certificate, the ‘‘(j) Compliance with the schedule of pay- right asserted was initially recognized by the applicant for the writ may then request issu- ment and other terms of a restitution order Supreme Court, if the right has been newly ance of the certificate by a circuit judge. If shall be a condition of any probation, parole, recognized by the Supreme Court and made such a request is addressed to the court of or other form of release of an offender. If a retroactively applicable to cases on collat- appeals, it shall be deemed addressed to the defendant fails to comply with a restitution eral review; or judges thereof and shall be considered by a order, the court may revoke probation or a ‘‘(D) the date on which the factual predi- circuit judge or judges as the court deems term of supervised release, modify the term cate of the claim or claims presented could appropriate. If no express request for a cer- or conditions of probation or a term of super- have been discovered through the exercise of tificate is filed, the notice of appeal shall be vised release, hold the defendant in con- due diligence. deemed to constitute a request addressed to tempt of court, enter a restraining order or ‘‘(2) The time during which a properly filed the judges of the court of appeals. If an ap- injunction, order the sale of property of the application for State post-conviction or peal is taken by a State or its representa- defendant, accept a performance bond, or other collateral review with respect to the tive, a certificate of appealability is not re- take any other action necessary to obtain pertinent judgment or claim shall not be quired.’’. compliance with the restitution order. In de- counted toward any period of limitation SEC. 904. SECTION 2254 AMENDMENTS. termining what action to take, the court under this subsection.’’. Section 2254 of title 28, United States Code, shall consider the defendant’s employment is amended— SEC. 902. APPEAL. status, earning ability, financial resources, (1) by amending subsection (b) to read as the willfulness in failing to comply with the Section 2253 of title 28, United States Code, follows: restitution order, and any other cir- is amended to read as follows: ‘‘(b)(1) An application for a writ of habeas cumstances that may have a bearing on the ‘‘§ 2253. Appeal corpus on behalf of a person in custody pur- defendant’s ability to comply with the res- ‘‘(a) In a habeas corpus proceeding or a suant to the judgment of a State court shall titution order. proceeding under section 2255 before a dis- not be granted unless it appears that— ‘‘(k) An order of restitution may be en- trict judge, the final order shall be subject to ‘‘(A) the applicant has exhausted the rem- forced— review, on appeal, by the court of appeals for edies available in the courts of the State; or ‘‘(1) by the United States— the circuit in which the proceeding is held. ‘‘(B)(i) there is an absence of available ‘‘(A) in the manner provided for the collec- ‘‘(b) There shall be no right of appeal from State corrective process; or tion and payment of fines in subchapter B of a final order in a proceeding to test the va- ‘‘(ii) circumstances exist that render such chapter 229 of this title; or lidity of a warrant to remove to another dis- process ineffective to protect the rights of ‘‘(B) in the same manner as a judgment in trict or place for commitment or trial a per- the applicant. a civil action; and son charged with a criminal offense against ‘‘(2) An application for a writ of habeas ‘‘(2) by a victim named in the order to re- the United States, or to test the validity of corpus may be denied on the merits, not- ceive the restitution, in the same manner as such person’s detention pending removal pro- withstanding the failure of the applicant to exhaust the remedies available in the courts a judgment in a civil action. ceedings. of the State. ‘‘(l) A victim or the offender may petition ‘‘(c)(1) Unless a circuit justice or judge is- the court at any time to modify a restitution ‘‘(3) A State shall not be deemed to have sues a certificate of appealability, an appeal waived the exhaustion requirement or be es- order as appropriate in view of a change in may not be taken to the court of appeals the economic circumstances of the of- topped from reliance upon the requirement from— unless the State, through counsel, expressly fender.’’. ‘‘(A) the final order in a habeas corpus pro- ROCEDURE FOR ISSUING ORDER OF RES- waives the requirement.’’; (b) P ceeding in which the detention complained TITUTION.—Section 3664 of title 18, United (2) by redesignating subsections (d), (e), of arises out of process issued by a State States Code, is amended— and (f) as subsections (e), (f), and (g), respec- court; or (1) by striking subsection (a); tively; ‘‘(B) the final order in a proceeding under (2) by redesignating subsections (b), (c), (3) by inserting after subsection (c) the fol- section 2255. lowing new subsection: (d), and (e) as subsections (a), (b), (c), and (d); ‘‘(2) A certificate of appealability may (3) by amending subsection (a), as redesig- ‘‘(d) An application for a writ of habeas issue under paragraph (1) only if the appli- corpus on behalf of a person in custody pur- nated by paragraph (2), to read as follows: cant has made a substantial showing of the ‘‘(a) The court may order the probation suant to the judgment of a State court shall denial of a constitutional right. service of the court to obtain information not be granted with respect to any claim ‘‘(3) The certificate of appealability under pertaining to the amount of loss sustained that was adjudicated on the merits in State paragraph (1) shall indicate which specific by any victim as a result of the offense, the court proceedings unless the adjudication of issue or issues satisfy the showing required financial resources of the defendant, the fi- the claim— by paragraph (2).’’. nancial needs and earning ability of the de- ‘‘(1) resulted in a decision that was con- fendant and the defendant’s dependents, and SEC. 903. AMENDMENT OF FEDERAL RULES OF trary to, or involved an unreasonable appli- such other factors as the court deems appro- APPELLATE PROCEDURE. cation of, clearly established Federal law, as priate. The probation service of the court Rule 22 of the Federal Rules of Appellate determined by the Supreme Court of the shall include the information collected in Procedure is amended to read as follows: United States; or the report of presentence investigation or in ‘‘Rule 22. Habeas corpus and section 2255 ‘‘(2) resulted in a decision that was based a separate report, as the court directs.’’; and proceedings on an unreasonable determination of the facts in light of the evidence presented in the (4) by adding at the end thereof the follow- ‘‘(a) APPLICATION FOR THE ORIGINAL WRIT.— State court proceeding.’’; ing new subsection: An application for a writ of habeas corpus (4) by amending subsection (e), as redesig- ‘‘(e) The court may refer any issue arising shall be made to the appropriate district nated by paragraph (2), to read as follows: in connection with a proposed order of res- court. If application is made to a circuit titution to a magistrate or special master ‘‘(e)(1) In a proceeding instituted by an ap- judge, the application shall be transferred to plication for a writ of habeas corpus by a for proposed findings of fact and rec- the appropriate district court. If an applica- ommendations as to disposition, subject to a person in custody pursuant to the judgment tion is made to or transferred to the district of a State court, a determination of a factual de novo determination of the issue by the court and denied, renewal of the application issue made by a State court shall be pre- court.’’. before a circuit judge shall not be permitted. sumed to be correct. The applicant shall TITLE IX—HABEAS CORPUS REFORM The applicant may, pursuant to section 2253 have the burden of rebutting the presump- SEC. 901. FILING DEADLINES. of title 28, United States Code, appeal to the tion of correctness by clear and convincing Section 2244 of title 28, United States Code, appropriate court of appeals from the order evidence. is amended by adding at the end the follow- of the district court denying the writ. ‘‘(2) If the applicant has failed to develop ing new subsection: ‘‘(b) CERTIFICATE OF APPEALABILITY.—In a the factual basis of a claim in State court ‘‘(d)(1) A 1-year period of limitation shall habeas corpus proceeding in which the deten- proceedings, the court shall not hold an evi- apply to an application for a write of habeas tion complained of arises out of process is- dentiary hearing on the claim unless the ap- corpus by a person in custody pursuant to sued by a State court, an appeal by the applicant shows that— the judgment of a State court. The limita- plicant for the writ may not proceed unless ‘‘(A) the claim relies on— tion period shall run from the latest of— a district or a circuit judge issues a certifi- ‘‘(i) a new rule of constitutional law, made ‘‘(A) the date on which the judgment be- cate of appealability pursuant to section retroactive to cases on collateral review by came final by the conclusion of direct review 2253(c) of title 28, United States Code. If an the Supreme Court, that was previously un- or the expiration of the time for seeking appeal is taken by the applicant, the district available; or such review; judge who rendered the judgment shall ei- ‘‘(ii) a factual predicate that could not ‘‘(B) the date on which the impediment to ther issue a certificate of appealability or have been previously discovered through the filing an application created by State action state the reasons why such a certificate exercise of due diligence; and December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14021 ‘‘(B) the facts underlying the claim would ‘‘(b)(1) A claim presented in a second or in State custody who are subject to a capital be sufficient to establish by clear and con- successive habeas corpus application under sentence. It shall apply only if the provisions vincing evidence that but for constitutional section 2254 that was presented in a prior ap- of subsections (b) and (c) are satisfied. error, no reasonable factfinder would have plication shall be dismissed. ‘‘(b) This chapter is applicable if a State found the applicant guilty of the underlying ‘‘(2) A claim presented in a second or suc- establishes by statute, rule of its court of offense.’’; and cessive habeas corpus application under sec- last resort, or by another agency authorized (5) by adding at the end the following new tion 2254 that was not presented in a prior by State law, a mechanism for the appoint- subsections: application shall be dismissed unless— ment, compensation, and payment of reason- ‘‘(h) Except as provided in section 408 of ‘‘(A) the applicant shows that the claim re- able litigation expenses of competent coun- the Controlled Substances Act, in all pro- lies on a new rule of constitutional law, sel in State post-conviction proceedings ceedings brought under this section, and any made retroactive to cases on collateral re- brought by indigent prisoners whose capital subsequent proceedings on review, the court view by the Supreme Court, that was pre- convictions and sentences have been upheld may appoint counsel for an applicant who is viously unavailable; or on direct appeal to the court of last resort in or becomes financially unable to afford coun- ‘‘(B)(i) the factual predicate for the claim the State or have otherwise become final for sel, except as provided by a rule promulgated could not have been discovered previously State law purposes. The rule of court or stat- by the Supreme Court pursuant to statutory through the exercise of due diligence; and ute must provide standards of competency authority. Appointment of counsel under ‘‘(ii) the facts underlying the claim, if for the appointment of such counsel. this section shall be governed by section proven and viewed in light of the evidence as ‘‘(c) Any mechanism for the appointment, 3006A of title 18. a whole, would be sufficient to establish by compensation, and reimbursement of counsel ‘‘(i) The ineffectiveness or incompetence of clear and convincing evidence that, but for as provided in subsection (b) must offer counsel during Federal or State collateral constitutional error, no reasonable counsel to all State prisoners under capital post-conviction proceedings shall not be a sentence and must provide for the entry of ground for relief in a proceeding arising factfinder would have found the applicant under section 2254.’’. guilty of the underlying offense. an order by a court of record— ‘‘(3)(A) Before a second or successive appli- ‘‘(1) appointing one or more counsels to SEC. 905. SECTION 2255 AMENDMENTS. cation permitted by this section is filed in represent the prisoner upon a finding that Section 2255 of title 28, United States Code, the district court, the applicant shall move the prisoner is indigent and accepted the is amended— in the appropriate court of appeals for an offer or is unable competently to decide (1) by striking the second and fifth undes- order authorizing the district court to con- ignated paragraphs; and whether to accept or reject the offer; sider the application. (2) by adding at the end the following new ‘‘(2) finding, after a hearing if necessary, ‘‘(B) A motion in the court of appeals for undesignated paragraphs: that the prisoner rejected the offer of coun- ‘‘A 1-year period of limitation shall apply an order authorizing the district court to sel and made the decision with an under- to a motion under this section. The limita- consider a second or successive application standing of its legal consequences; or tion period shall run from the latest of— shall be determined by a three-judge panel of ‘‘(3) denying the appointment of counsel ‘‘(1) the date on which the judgment of the court of appeals. upon a finding that the prisoner is not indi- conviction becomes final; ‘‘(C) The court of appeals may authorize gent. ‘‘(2) the date on which the impediment to the filing of a second or successive applica- ‘‘(d) No counsel appointed pursuant to sub- making a motion created by governmental tion only if it determines that the applica- sections (b) and (c) to represent a State pris- action in violation of the Constitution or tion makes a prima facie showing that the oner under capital sentence shall have pre- laws of the United States is removed, if the application satisfies the requirements of this viously represented the prisoner at trial or movant was prevented from making a mo- subsection. on direct appeal in the case for which the ap- tion by such governmental action; ‘‘(D) The court of appeals shall grant or pointment is made unless the prisoner and ‘‘(3) the date on which the right asserted deny the authorization to file a second or counsel expressly request continued rep- was initially recognized by the Supreme successive application not later than 30 days resentation. Court, if that right has been newly recog- after the filing of the motion. ‘‘(e) The ineffectiveness or incompetence of ‘‘(E) The grant or denial of an authoriza- nized by the Supreme Court and made retro- counsel during State or Federal post-conviction by a court of appeals to file a second or actively applicable to cases on collateral re- tion proceedings in a capital case shall not successive application shall not be appeal- view; or be a ground for relief in a proceeding arising able and shall not be the subject of a petition ‘‘(4) the date on which the facts supporting under section 2254. This limitation shall not for rehearing or for a writ of certiorari. the claim or claims presented could have preclude the appointment of different coun- ‘‘(4) A district court shall dismiss any been discovered through the exercise of due sel, on the court’s own motion or at the reclaim presented in a second or successive ap- diligence. quest of the prisoner, at any phase of State ‘‘Except as provided in section 408 of the plication that the court of appeals has au- or Federal post-conviction proceedings on Controlled Substances Act, in all proceed- thorized to be filed unless the applicant the basis of the ineffectiveness or incom- ings brought under this section, and any sub- shows that the claim satisfies the require- petence of counsel in such proceedings. ments of this section.’’. sequent proceedings on review, the court ‘‘§ 2262. Mandatory stay of execution; dura- may appoint counsel for a movant who is or SEC. 907. DEATH PENALTY LITIGATION PROCE- tion; limits on stays of execution; succes- becomes financially unable to afford counsel DURES. sive petitions (a) ADDITION OF CHAPTER TO TITLE 28, UNIT- shall be in the discretion of the court, except ‘‘(a) Upon the entry in the appropriate as provided by a rule promulgated by the Su- ED STATES CODE.—Title 28, United States Code, is amended by inserting after chapter State court of record of an order under sec- preme Court pursuant to statutory author- tion 2261(c), a warrant or order setting an ity. Appointment of counsel under this sec- 153 the following new chapter: execution date for a State prisoner shall be tion shall be governed by section 3006A of ‘‘CHAPTER 154—SPECIAL HABEAS CORPUS stayed upon application to any court that title 18. PROCEDURES IN CAPITAL CASES would have jurisdiction over any proceedings ‘‘A second or successive motion must be ‘‘Sec. certified as provided in section 2244 by a filed under section 2254. The application ‘‘2261. Prisoners in State custody subject to shall recite that the State has invoked the panel of the appropriate court of appeals to capital sentence; appointment contain— post-conviction review procedures of this of counsel; requirement of rule chapter and that the scheduled execution is ‘‘(1) newly discovered evidence that, if of court or statute; procedures proven and viewed in light of the evidence as subject to stay. for appointment. ‘‘(b) A stay of execution granted pursuant a whole, would be sufficient to establish by ‘‘2262. Mandatory stay of execution; dura- clear and convincing evidence that no rea- to subsection (a) shall expire if— tion; limits on stays of execu- ‘‘(1) a State prisoner fails to file a habeas sonable factfinder would have found the tion; successive petitions. movant guilty of the offense; or corpus application under section 2254 within ‘‘2263. Filing of habeas corpus application; the time required in section 2263; ‘‘(2) a new rule of constitutional law, made time requirements; tolling retroactive to cases on collateral review by ‘‘(2) before a court of competent jurisdic- rules. tion, in the presence of counsel, unless the the Supreme Court, that was previously un- ‘‘2264. Scope of Federal review; district court available.’’. prisoner has competently and knowingly adjudications. waived such counsel, and after having been SEC. 906. LIMITS ON SECOND OR SUCCESSIVE AP- ‘‘2265. Application to State unitary review advised of the consequences, a State prisoner PLICATIONS. procedure. (a) CONFORMING AMENDMENT TO SECTION under capital sentence waives the right to ‘‘2266. Limitation periods for determining pursue habeas corpus review under section 2244(a).—Section 2244(a) of title 28, United applications and motions. States Code, is amended by striking ‘‘and the 2254; or petition’’ and all that follows through ‘‘by ‘‘§ 2261. Prisoners in State custody subject to ‘‘(3) a State prisoner files a habeas corpus such inquiry.’’ and inserting ‘‘, except as pro- capital sentence; appointment of counsel; petition under section 2254 within the time vided in section 2255.’’. requirement of rule of court or statute; pro- required by section 2263 and fails to make a (b) LIMITS ON SECOND OR SUCCESSIVE APPLI- cedures for appointment substantial showing of the denial of a Fed- CATIONS.—Section 2244(b) of title 28, United ‘‘(a) This chapter shall apply to cases aris- eral right or is denied relief in the district States Code, is amended to read as follows: ing under section 2254 brought by prisoners court or at any subsequent stage of review. H 14022 CONGRESSIONAL RECORD — HOUSE December 5, 1995 ‘‘(c) If one of the conditions in subsection of counsel following trial for the purpose of for effective preparation, taking into ac- (b) has occurred, no Federal court thereafter representation on unitary review, and entry count the exercise of due diligence. shall have the authority to enter a stay of of an order, as provided in section 2261(c), ‘‘(iii) No delay in disposition shall be per- execution in the case, unless the court of ap- concerning appointment of counsel or waiver missible because of general congestion of the peals approves the filing of a second or suc- or denial of appointment of counsel for that court’s calendar. cessive application under section 2244(b). purpose. No counsel appointed to represent ‘‘(iv) The court shall transmit a copy of ‘‘§ 2263. Filing of habeas corpus application; the prisoner in the unitary review proceed- any order issued under clause (i) to the Di- rector of the Administrative Office of the time requirements; tolling rules ings shall have previously represented the United States Courts for inclusion in the re- ‘‘(a) Any application under this chapter for prisoner at trial in the case for which the appointment is made unless the prisoner and port under paragraph (5). habeas corpus relief under section 2254 must ‘‘(2) The time limitations under paragraph counsel expressly request continued rep- be filed in the appropriate district court not (1) shall apply to— resentation. later than 180 days after final State court af- ‘‘(A) an initial application for a writ of ha- ‘‘(c) Sections 2262, 2263, 2264, and 2266 shall firmance of the conviction and sentence on beas corpus; apply in relation to cases involving a sen- direct review or the expiration of the time ‘‘(B) any second or successive application tence of death from any State having a uni- for seeking such review. for a writ of habeas corpus; and tary review procedure that qualifies under ‘‘(b) The time requirements established by ‘‘(C) any redetermination of an application this section. References to State ‘post-con- subsection (a) shall be tolled— for a writ of habeas corpus following a re- viction review’ and ‘direct review’ in such ‘‘(1) from the date that a petition for cer- mand by the court of appeals or the Supreme sections shall be understood as referring to tiorari is filed in the Supreme Court until Court for further proceedings, in which case unitary review under the State procedure. the date of final disposition of the petition if the limitation period shall run from the date The reference in section 2262(a) to ‘an order a State prisoner files the petition to secure the remand is ordered. review by the Supreme Court of the affirm- under section 2261(c)’ shall be understood as ‘‘(3)(A) The time limitations under this ance of a capital sentence on direct review referring to the post-trial order under subsection shall not be construed to entitle an by the court of last resort of the State or section (b) concerning representation in the applicant to a stay of execution, to which other final State court decision on direct re- unitary review proceedings, but if a tran- the applicant would otherwise not be enti- view; script of the trial proceedings is unavailable tled, for the purpose of litigating any appli- ‘‘(2) from the date on which the first peti- at the time of the filing of such an order in cation or appeal. tion for post-conviction review or other col- the appropriate State court, then the start ‘‘(B) No amendment to an application for a lateral relief is filed until the final State of the 180-day limitation period under sec- writ of habeas corpus under this chapter court disposition of such petition; and tion 2263 shall be deferred until a transcript shall be permitted after the filing of the an- ‘‘(3) during an additional period not to ex- is made available to the prisoner or counsel swer to the application, except on the ceed 30 days, if— of the prisoner. grounds specified in section 2244(b). ‘‘(A) a motion for an extension of time is ‘‘§ 2266. Limitation periods for determining ‘‘(4)(A) The failure of a court to meet or filed in the Federal district court that would applications and motions comply with a time limitation under this section shall not be a ground for granting re- have jurisdiction over the case upon the fil- ‘‘(a) The adjudication of any application lief from a judgment of conviction or sen- ing of a habeas corpus application under sec- under section 2254 that is subject to this tion 2254; and tence. chapter, and the adjudication of any motion ‘‘(B) The State may enforce a time limita- ‘‘(B) a showing of good cause is made for under section 2255 by a person under sen- the failure to file the habeas corpus application under this section by petitioning for a tence of death, shall be given priority by the writ of mandamus to the court of appeals. tion within the time period established by district court and by the court of appeals this section. The court of appeals shall act on the petition over all noncapital matters. for a writ or mandamus not later than 30 ‘‘§ 2264. Scope of Federal review; district ‘‘(b)(1)(A) A district court shall render a days after the filing of the petition. court adjudications final determination and enter a final judg- ‘‘(5)(A) The Administrative Office of Unit- ‘‘(a) Whenever a State prisoner under cap- ment on any application for a writ of habeas ed States Courts shall submit to Congress an ital sentence files a petition for habeas cor- corpus brought under this chapter in a cap- annual report on the compliance by the dis- pus relief to which this chapter applies, the ital case not later than 180 days after the trict courts with the time limitations under district court shall only consider a claim or date on which the application is filed. this section. claims that have been raised and decided on ‘‘(B) A district court shall afford the par- ‘‘(B) The report described in subparagraph the merits in the State courts, unless the ties at least 120 days in which to complete (A) shall include copies of the orders submit- failure to raise the claim properly is— all actions, including the preparation of all ted by the district courts under paragraph ‘‘(1) the result of State action in violation pleadings and briefs, and if necessary, a hear- (1)(B)(iv). of the Constitution or laws of the United ing, prior to the submission of the case for ‘‘(c)(1)(A) A court of appeals shall hear and States; decision. render a final determination of any appeal of ‘‘(2) the result of the Supreme Court rec- ‘‘(C)(i) A district court may delay for not an order granting or denying, in whole or in ognition of a new Federal right that is made more than one additional 30-day period be- part, an application brought under this chap- retroactively applicable; or yond the period specified in subparagraph ter in a capital case not later than 120 days ‘‘(3) based on a factual predicate that could (A), the rendering of a determination of an after the date on which the reply brief is not have been discovered through the exer- application for a writ of habeas corpus if the filed, or if no reply brief is filed, not later cise of due diligence in time to present the court issues a written order making a find- than 120 days after the date on which the an- claim for State or Federal post-conviction ing, and stating the reasons for the finding, swering brief is filed. ‘‘(B)(i) A court of appeals shall decide review. that the ends of justice that would be served whether to grant a petition for rehearing or ‘‘(b) Following review subject to sub- by allowing the delay outweigh the best in- other request for rehearing en banc not later sections (a), (d), and (e) of section 2254, the terests of the public and the applicant in a than 30 days after the date on which the peti- court shall rule on the claims properly be- speedy disposition of the application. fore it. tion for rehearing is filed unless a responsive ‘‘(ii) The factors, among others, that a pleading is required, in which case the court ‘‘§ 2265. Application to State unitary review court shall consider in determining whether shall decide whether to grant the petition procedure a delay in the disposition of an application is not later than 30 days after the date on ‘‘(a) For purposes of this section, a ‘uni- warranted are as follows: which the responsive pleading is filed. tary review’ procedure means a State proce- ‘‘(I) Whether the failure to allow the delay ‘‘(ii) If a petition for rehearing or rehear- dure that authorizes a person under sentence would be likely to result in a miscarriage of ing en banc is granted, the court of appeals of death to raise, in the course of direct re- justice. shall hear and render a final determination view of the judgment, such claims as could ‘‘(II) Whether the case is so unusual or so of the appeal not later than 120 days after be raised on collateral attack. This chapter complex, due to the number of defendants, the date on which the order granting rehear- shall apply, as provided in this section, in re- the nature of the prosecution, or the existing or rehearing en banc is entered. lation to a State unitary review procedure if ence of novel questions of fact or law, that it ‘‘(2) The time limitations under paragraph the State establishes by rule of its court of is unreasonable to expect adequate briefing (1) shall apply to— last resort or by statute a mechanism for the within the time limitations established by ‘‘(A) an initial application for a writ of ha- appointment, compensation, and payment of subparagraph (A). beas corpus; reasonable litigation expenses of competent ‘‘(III) Whether the failure to allow a delay ‘‘(B) any second or successive application counsel in the unitary review proceedings, in a case, that, taken as a whole, is not so for a writ of habeas corpus; and including expenses relating to the litigation unusual or so complex as described in ‘‘(C) any redetermination of an application of collateral claims in the proceedings. The subclause (II), but would otherwise deny the for a writ of habeas corpus or related appeal rule of court or statute must provide stand- applicant reasonable time to obtain counsel, following a remand by the court of appeals ards of competency for the appointment of would unreasonably deny the applicant or en banc or the Supreme Court for further such counsel. the government continuity of counsel, or proceedings, in which case the limitation pe- ‘‘(b) To qualify under this section, a uni- would deny counsel for the applicant or the riod shall run from the date the remand is tary review procedure must include an offer government the reasonable time necessary ordered. December 5, 1995 CONGRESSIONAL RECORD — HOUSE H 14023 ‘‘(3) The time limitations under this sec- 28, United States Code, is amended by adding and, if so authorized, shall order the pay- tion shall not be construed to entitle an ap- after the item relating to chapter 153 the fol- ment of fees and expenses therefor under plicant to a stay of execution, to which the lowing new item: paragraph (10). No ex parte proceeding, com- applicant would otherwise not be entitled, ‘‘154. Special habeas corpus pro- munication, or request may be considered for the purpose of litigating any application cedures in capital cases ...... 2261’’. pursuant to this section unless a proper or appeal. showing is made concerning the need for con- (c) EFFECTIVE DATE.—Chapter 154 of title ‘‘(4)(A) The failure of a court to meet or fidentiality. Any such proceeding, commu- 28, United States Code (as added by sub- comply with a time limitation under this nication, or request shall be transcribed and section (a)) shall apply to cases pending on section shall not be a ground for granting re- made a part of the record available for appel- or after the date of enactment of this Act. lief from a judgment of conviction or sen- late review.’’. tence. SEC. 908. TECHNICAL AMENDMENT. ‘‘(B) The State may enforce a time limita- Section 408(q) of the Controlled Substances SEC. 909. SEVERABILITY. tion under this section by applying for a writ Act (21 U.S.C. 848(q)) is amended by amend- If any provision of this title, an amend- of mandamus to the Supreme Court. ing paragraph (9) to read as follows: ment made by this title, or the application ‘‘(5) The Administrative Office of United ‘‘(9) Upon a finding that investigative, ex- of such provision or amendment to any per- States Courts shall submit to Congress an pert, or other services are reasonably nec- son or circumstance is held to be unconstitu- annual report on the compliance by the essary for the representation of the defend- tional, the remainder of this title, the courts of appeals with the time limitations ant, whether in connection with issues relat- amendments made by this title, and the ap- under this section.’’. ing to guilt or the sentence, the court may plication of the provisions of such to any (b) TECHNICAL AMENDMENT.—The table of authorize the defendant’s attorneys to ob- person or circumstances shall not be affected chapters at the beginning of part VI of title tain such services on behalf of the defendant thereby. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, TUESDAY, DECEMBER 5, 1995 No. 192 Senate The Senate met at 9:30 a.m. and was We will recess from 12:30 to 2:15 for tion from a moneymaking enterprise called to order by the President pro the weekly policy conference meetings. for lawyers into a better means of re- tempore [Mr. THURMOND]. Following the securities litigation, covery for investors. The PRESIDENT pro tempore. The we will resume consideration of H.R. The present system is a feeding fren- Senate will be led in prayer by the Sen- 1833, the partial-birth abortions bill. zy for plaintiffs’ lawyers who prey on ate Chaplain, Dr. Lloyd John Ogilvie. Rollcall votes, therefore, will be ex- companies with volatile stock prices, pected during today’s session. eat up the companies’ profits with a PRAYER strike suit and move on to the next f The Chaplain, Dr. Lloyd John victim. Lawyers are now able to file a PRIVATE SECURITIES LITIGATION Ogilvie, offered the following prayer: baseless securities class action lawsuit REFORM ACT OF 1995—CON- against a company, claiming millions Gracious God, thank You for Your FERENCE REPORT of dollars in damages, and coerce huge love that never gives up on us. Help us settlements. About 300 securities class discover the power of resting in You Mr. D’AMATO. Mr. President, I sub- action lawsuits are filed each year. The and receiving assurance and encourage- mit a report of the committee of con- same lawyers, and in some cases the ment of Your amazing grace. Here we ference on H.R. 1058 and ask for its im- same plaintiffs, the world’s unluckiest are at the beginning of another day. mediate consideration. investors, show up in these lawsuits You know our needs and are prepared The PRESIDING OFFICER (Mr. time after time. to meet those needs with exactly the FRIST). The report will be stated. Frequently, the same complaint right gift of Your spirit. You are The legislative clerk read as follows: comes out of a word processor barely present, impinging with inspiration to The committee on conference on the dis- changed. In one infamous case, a law- lift our spirits; hovering with hope to agreeing votes of the two Houses on the suit against Philip Morris claimed press us on. All through this day there amendments of the Senate to the bill (H.R. fraud in the ‘‘toy industry.’’ In other will be magnificent moments when we 1058) to reform Federal securities litigation, words, the forms are set, the stock overcome the temptation of trying to and for other purposes, having met, after full and free conference, have agreed to rec- price drops, and bang, the suit is filed make it on our own strength, and in- ommend and do recommend to their respec- with the same plaintiffs hired—in stead, yield to the inflow of your wis- tive Houses this report, signed by a majority many cases, the plaintiff owns only 10 dom, insight, vision, and guidance. Our of the conferees. shares of stock. We have seen some souls are meant to be containers and The PRESIDING OFFICER. Without cases where the same plaintiffs appears transmitters of Your power. We thank objection, the Senate will proceed to in as many as 13 lawsuits. They are You in advance for a stunning day in the consideration of the conference re- professional plaintiffs. which we are blessed by being carried port. A drop in a public company’s stock by Your presence rather than being (The conference report is printed in price, a failed product development bogged down by trying to carry our the House proceedings of the RECORD of project, or even adverse market condi- problems. In the Lord’s name. Amen. November 28, 1995.) tions that affect earnings, can trigger f Mr. D’AMATO. Mr. President, today, one or more securities fraud lawsuits. RESERVATION OF LEADER TIME the Senate will vote on the conference Many times the complaint simply al- report to H.R. 1058, the Private Securi- leges that management’s predictions The PRESIDENT pro tempore. Under ties Litigation Reform Act of 1995. about the company’s future did not the previous order, the leadership time This legislation has been 4 years in come true. is reserved. the making. It is a thoughtful and Once discovery begins, plaintiffs’ The able Senator from New York is carefully crafted bill. The provisions in counsel begins a fishing expedition for recognized. the conference report are balanced to evidence. One witness told a securities f make the legal system fairer and bet- subcommittee that his company pro- ter for investors. The current system duced 1,500 boxes of documents during SCHEDULE does not protect investors, it exploits discovery in this type of case. The dis- Mr. D’AMATO. Mr. President, we will them. Now, the system is not fair to in- covery ended up costing the company consider the conference report, as was vestors and is not fair to American $1.4 million. indicated, to H.R. 1058, the securities business. Plaintiffs’ lawyers know that The threat of a protracted securities litigation bill. There is an 8-hour time and take advantage. It is time to re- class action lawsuit is powerful. Com- limitation on the conference report. form the securities class action litiga- panies pony up huge settlements rather

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S17933

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17934 CONGRESSIONAL RECORD — SENATE December 5, 1995 than face the time and expense of a nancial interest in the outcome of the pay for only the share of damages they class action lawsuit. The lawyers do case should be the lead plaintiff. caused under a system of proportionate not just go after the money in the com- Third, the conference report allows liability. pany’s pockets, they also name other companies to talk about the future of This bill does not leave small inves- deep pockets—the company’s lawyers, the company without the threat of a tors out in the cold. Small investors accountants, underwriters and direc- lawsuit. are always compensated for 100 percent tors—as defendants to assure a hefty The conference report will get more of their damages if they have a net settlement will be paid out. The plain- information to shareholders about the worth of $200,000 or less. tiffs’ lawyers are rarely disappointed. future prospects of a company. The The conference report does not Almost 93 percent of the cases settle at conference report codifies existing law change the system of liability for dean average settlement cost of $8.6 mil- to provide a safe harbor to companies fendants who knowingly commit secu- lion. that make forward-looking statements rities violations. Anyone who has In 1994 alone, companies or their in- accompanied by meaningful cautionary knowingly committed a securities vio- surers paid out $1.4 billion to settle statements. lation will still be liable for 100 percent these cases. The so-called victims of Now, corporate management is afraid of the damages. That’s fair. the fraud recover pennies on the dollar to make statements about the future of Fifth, the conference report improves and the lawyers pocket the rest. While the company, knowing that incorrect the settlement process by getting more the lawyer’s share is taken out, the projections will inevitably lead to a information to investors about a pro- class members get about 6 cents on the lawsuit. One study found that over posed settlement and restricting the dollar. Frequently, the only egregious two-thirds of venture capital firms amount attorneys may recover in fees. The conference report enables the offense is committed when the com- were reluctant to discuss their per- plaintiffs to receive a favorable settle- pany’s shareholders are forced to pick formance with analysts or the public ment rather that the attorneys. All too up the tab. because of the threat of litigation. often, plaintiffs’ lawyers take the The conference report reforms the The conference report includes a safe money and run. The legislation re- system for securities litigation. harbor that fairly balances the need for quires counsel to the class to inform First, the conference report makes it a free flow of information to the mar- investors about the terms of a proposed harder to file frivolous complaints and ketplace and the need for investor pro- settlement and to be available to an- sanctions attorneys who do. tection. swer questions about the settlement. The conference report stops abusive The conference report creates a two- The conference report also restricts securities litigation before it starts. It pronged safe harbor. The first prong the percentage of the recovery that gives safe harbor protection if there is will help to weed out frivolous com- goes to the lawyers. Lawyers fees now a good enough warning about why the plaints before companies have to start sometimes add up to more than 50 per- forward-looking statement may not paying enormous legal bills. cent of the entire settlement. This leg- The legislation creates a uniform come true. islation puts more of the settlement The safe harbor does not give a li- standard for complaints that allege se- money into the pockets of investors by cense to lie. The second prong does not curities fraud. This standard is already limiting the lawyers portion to a rea- the law in New York. It requires a give safe harbor protection when for- sonable percentage of the settlement plaintiff plead facts giving rise to a ward-looking statements are made amount. strong inference of the defendant’s with actual knowledge that the state- Sixth, the conference report also con- fraudulent intent. ment is false or misleading. tains other provisions that make the The conference report also provides a The conference report safe harbor system for securities litigation reform strong disincentive for lawyers to file does not cover areas where there is po- fairer and better for investors. abusive lawsuits. The legislation does tential for abuse. For example, the safe The legislation requires auditors to not contain a loser pays provision, harbor does not cover IPO’s, financial be on the lookout for wrongdoing and which would go too far. Instead, the statement information, penny stocks report any evidence of fraud to the bill requires courts to make findings or limited partnerships. There is no SEC. The conference report also rein- about whether an attorney filed a friv- safe harbor for brokers. states the SEC’s authority—which the olous complaint, motion or responsive The conference report safe harbor is Supreme Court put into question in the pleading and to sanction attorneys who balanced. The conference committee Central Bank of Denver case—to bring do. worked with the SEC to make sure the actions against defendants who know- Second, the conference report makes safe harbor is safe for investors as well ingly aid and abet securities fraud. sure that the victims of securities as companies. I would like to include in The bill prohibits document destruc- fraud bring the lawsuit—not profes- the RECORD as if read in its entirety, a tion by making it unlawful for a party sional plaintiffs. letter from the SEC to me, dated No- to destroy documents once a complaint The conference report puts control of vember 16, 1995, supporting the safe is filed. Finally, the bill makes sure the lawsuit into the hands of the vic- harbor provision. that small investors are always com- tims. Right now, there often is no vic- Fourth, the conference report modi- pensated for 100 percent of their dam- tim, just a professional plaintiff whose fies the system of liability so that deep ages if they have a net worth of $200,000 name appears in lawsuit after lawsuit. pocket peripheral defendants cannot be or less. Professional plaintiffs are paid well coerced into paying more than their In summary, the bill will put a stop for their services, usually in the form share of the damages. to abusive securities litigation. It will of a bounty payment. News accounts The conference report reduces the co- curtail the use of professional plain- report that one individual, a retired ercive effect of unlimited liability by tiffs. It will empower real investors, es- lawyer, appeared as lead plaintiff in making peripheral defendants liable pecially pension funds and other insti- 300–400 lawsuits. Last year, an Ohio only for the share of damages they tutional investors, to take control of judge refused to permit class certifi- caused. Now, all defendants are on the the lawsuit. cation, noting that the lead defendant hook for 100 percent of the damages— This legislation is aimed at weeding had filed 182 class actions in the last 12 even if they are only responsible for 1 out frivolous cases by making it harder years. percent. to file factually baseless complaints. It The conference report discourages In class action lawsuits with hun- also provides that each defendant is the use of professional plaintiffs by dreds of plaintiffs, the potential liabil- liable for only his or her fair share of eliminating bonus payments to name ity can be staggering. Deep pocket de- the damages, making it more difficult plaintiffs and prohibiting referral fees. fendants who may only be 1 percent for lawyers to coerce settlements from The conference report encourages liable routinely settle for much more the deep pocket defendants—that is, real investors, especially pension funds rather than face paying 100 percent of the defendant that has some assets or and other institutional investors, to the damages. money. At the same time, it will make take control of the lawsuit. It provides The conference report changes that accountants report fraud to the au- that the plaintiff with the largest fi- by requiring peripheral defendants to thorities.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17935 Finally, this bill creates a safe har- caution’’ doctrine that has developed under not restored these investor protections that bor from private lawsuits about for- the case law. While the trade-off requires were removed by the Supreme Court; how- ward-looking statements. The legisla- that class action attorneys must have well ever, we recognize that amendments on both tion will solve the problem of abusive written and carefully researched pleadings at subjects were defeated in the course of this the outset of the lawsuit, we feel this is nec- legislative effort, thereby making it difficult securities litigation without pre- essary to create a viable safe harbor, given to include such provisions in this bill. The venting investors from bringing meri- that it does not prevent Commission enforce- conference bill raises other minor issues, but torious lawsuits. ment actions, and excludes the greatest op- the language in the conference report hope- I congratulate my Senate colleagues portunities for harm to investors. fully will prevent any unintended con- for all the time and effort they have Outside of the safe harbor provisions, we sequences. We remain grateful to you and put into this important legislation. I have consistently advocated reversal of Su- your staff, as well as the other members and particularly would like to thank Sen- preme Court decisions of Lampf and Central their staffs, for the willingness to engage in Bank. It is unfortunate that Congress has a dialogue with us aimed at getting a better ators DODD and DOMENICI, who intro- not restored these investor protections that deal for all investors. duced this legislation more than 4 were removed by the Supreme Court; how- Thank you for your consideration. years ago. ever, we recognize that amendments on both Sincerely, I thank Senator GRAMM, the chair- subjects were defeated in the course of this ARTHUR LEVITT, man of the Securities Subcommittee, legislative effort, thereby making it difficult Chairman. for his leadership. And I thank the to include such provisions in the bill. The STEVEN M.H. WALLMAN, staff who has worked so hard on this conference bill raises other minor issues, but Commissioner. bill. Our staff director, Howard Menell; the language in the conference report hope- Mr. D’AMATO. Mr. President, let me the Banking Committee staff: Laura fully will prevent any unintended con- conclude by simply saying that this sequences. We remain grateful to you and bill may not be the perfect solution Unger, Bob Giuffra, Wayne Abernathy, your staff, as well as the other members and Mitchell Feuer, and Andrew their staffs, for the willingness to engage in and, indeed, there may be some unin- Lowenthal; Senator DOMENICI’s staff: a dialogue with us aimed at getting a better tended consequences that create prob- Denise Ramonas and Brian deal for investors. lems. This Senator and, I know, Sen- Benczkowski, and the other key staff Thank you for your consideration. ator DODD and Senator DOMENICI and members, including Robert Cresanti, Signed Arthur Levitt, chairman. all of my colleagues are ready to deal Dave Berson, Peter Hong, and Carol Mr. President, I ask unanimous con- with any problems that may come Grunberg, who have been indispensable sent that this letter be printed in the about. to this process. RECORD. But let me say this, too. First, in this I also want to thank the SEC, the Se- There being no objection, the letter bill we go after the greatest abuse that curity and Exchange Commission, its was ordered to be printed in the is taking place, which is lawyers who staff, and the judicial conference, and RECORD, as follows: do not represent the general public but represent themselves. They have for all the others who have made this piece U.S. SECURITIES AND of legislation successful. EXCHANGE COMMISSION, hire plaintiffs who are not really ag- The conference report is balanced. It Washington, DC, November 15, 1995. grieved, who own minimal, in some hits the bullseye of the target, cur- Hon. ALFONSE M. D’AMATO, cases as little as 10 shares, of stock. As tailing abusive securities litigation, Chairman, Committee on Banking, Housing, soon as there is a price variation, these while allowing investors to bring meri- and Urban Affairs, U.S. Senate, Wash- lawyers race to the courthouse so that torious lawsuits. Once this bill be- ington, DC. they can file a claim so they will con- DEAR MR. CHAIRMAN: As we approach the trol the case. There is little regard for comes law, investors will have a sys- end of the long road traveled on securities tem of redress that serves them and litigation reform, you have asked that we the company, little regard for the real not entrepreneurial lawyers. provide our views of the current draft of the aggrieved investors. We have changed Mr. President, let me take the time legislation. At the outset, let us express our that significantly. No longer will there now to indicate that on November 15 I appreciation for your willingness to heed the be permitted professional plaintiffs. received a letter from the Securities concerns of the Commission regarding the Second, for the first time we say that and Exchange Commission, signed by draft conference report dated October 23, the court shall look at the facts as Chairman Levitt, and Steve Wallman, 1995. Together we have sought to achieve the they relate to the questions: Is there a most responsible reform possible. pension fund? Is there a large investor a Commissioner. And let me ask that I While the Commission has raised a number be permitted to read the letter into the of concerns about earlier versions of this leg- involved whose interests should be pro- RECORD. islation, we believe the draft conference re- tected? The court will look at these DEAR MR. CHAIRMAN: As we approach the port dated November 9th responds to our questions as they relate to the lawyer’s end of the long road traveled on securities principal concerns. We understand the need representation so that we have law- litigation reform, you have asked we provide for a greater flow of useful information to in- yers, who really represent the ag- our views of the current draft of the legisla- vestors and the markets and we share your grieved investors, controlling the case, tion. At the outset, let us express our appre- desire to protect companies and their share- not a string of professional, sharks, ciation for your willingness to heed the con- holders from the costs of frivolous litigation. sharks for hire. cerns of the Commission regarding the draft The safe harbor provisions of the draft bills Third, we have made it more difficult conference report October 23, 1995. Together have been of particular interest to us. While we have sought to achieve the most respon- we could not support earlier attempts at a to bring suits that are aimed at forcing sible reform possible. safe harbor compromise, the current version settlements. While the Commission has raised a number represents a workable balance that we can Fourth, we answer questions which of concerns about earlier versions of this leg- support since it should encourage companies are long overdue. Should we hold some- islation, we believe the draft conference re- to provide valuable forward-looking informa- body responsible for the total loss, if port dated November 9th responds to our tion to investors while, at the same time, it there is a loss, if they have been minor principal concerns. We understand the need limits the opportunity for abuse. The need of participants and if they have been re- for a greater flow of useful information to in- legitimate businesses to have a mechanism sponsible for 1 or 2 or 3 or 4 percent of for early dismissal of frivolous lawsuits ar- vestors in the markets and we share your de- the loss, because they are wealthy or sire to protect companies and their share- gues in favor of the codification of the ‘‘be- holders from the costs of frivolous litigation. speaks caution’’ doctrine that has developed have a member of the board of direc- The safe harbor provisions of the draft bill under the case law. While the trade-off re- tors who has deep pockets? Do we want have been of particular interest to us. While quires that class action attorneys must have to encourage people to participate in we could not support earlier attempts at a well written and carefully researched plead- corporate governance, or do we want to safe harbor compromise, the current version ings at the outset of the lawsuit, we feel this discourage it; do we want to make it represents a workable balance that we can is necessary to create a viable safe harbor, impossible for large firms to come in support since it should encourage companies given that it does not prevent Commission and use their expertise because they to provide valuable forward-looking informa- enforcement actions, and excludes the great- tion to investors while, at the same time, it est opportunities for harm to investors. are afraid of being sued so they say, limits the opportunity for abuse. The need of Outside of the safe harbor provisions, we ‘‘No, I do not want to audit your books; legitimate businesses to have a mechanism have consistently advocated reversal of Su- the exposure is too great’’? for early dismissal of frivolous lawsuits ar- preme Court decisions of Lampf and Central Do we really want to have a system gues in favor of codification of the ‘‘bespeaks Bank. It is unfortunate that Congress has where people are forced—forced—to

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17936 CONGRESSIONAL RECORD — SENATE December 5, 1995 give up and settle a case because if examples that are always cited are ex- the period of time in which investors there is even the slightest doubt as it amples of frivolous suits. And I do not may bring securities fraud actions. By relates to liability, they may be facing know of any difference in here, that we a 5-to-4 vote—in other words, a very huge, huge losses. These companies, ought to find ways to get at those and closely divided Supreme Court—the therefore, are forced to settle even that those are an abuse of the system. Court held that the applicable statute when they know they have not com- But this bill goes way beyond that. of limitations is 1 year after the plain- mitted any tortious acts, but the risk This bill will make it more difficult for tiff knew of the violation and in no of the jury finding any evidence in the investors to bring and recover damages event more than 3 years after the vio- way of negligence, even a small, in legitimate fraud actions—legitimate lation occurred. These time periods are minute amount, might jeopardize the fraud actions. shorter than the statute of limitations company with huge claims? As the editors of Money magazine for private securities actions which ex- So what you literally have is a group concluded, this legislation hurts inves- isted under the law of 31 of the 50 of bandits who force companies into tors. In fact, the December editorial of States. settlements of millions and millions of Money magazine warns, ‘‘Now only Regulators have testified unani- dollars. Is that fair to those compa- Clinton can stop Congress from hurting mously that this shorter period does nies? Is that fair to the shareholders? I small investors like you.’’ not allow individual investors adequate do not think so. What we have said in At every stage of the legislative proc- time to discover and pursue violations this conference report is, if you are ess, this bill has been amended to make of securities law. Testifying before the negligent, if you have committed a it more difficult for investors to bring Banking Committee in 1991, SEC Chair- tortious act, you should be held respon- legitimate suits. As it has moved man Richard Breeden stated, and I sible for the percentage of losses due to through the process, provisions favor- quote, able to investors have been taken out. your tortious act, not that the full con- The timeframes set forth in the [Supreme] sequences of somebody else’s actions Balanced provisions in the legislation Court’s decision is unrealistically short and should fall on you simply because you have been made harmful to investors. will do undue damage to the ability of pri- are a person who has some money and Individual investors, local govern- vate litigants to sue. some resources. That is wrong. That is ments and pension plans all will be Chairman Breeden pointed out that not fair. hurt by this legislation. All will find it in many cases, and I quote, ‘‘events If you are intentionally defrauding more difficult to bring fraud actions only come to light years after the investors? That is a different matter. and to recover full damages as a result original distribution of securities and You will be held. I think this is fair. I of the measure now before the Senate. the cases could well mean that by the think this is reasonable. That is why this bill is opposed by a time investors discover they have a I understand that there are some pro- broad coalition of regulators, State and case, they are already barred from the visions that some of my colleagues local government officials, labor courthouse.’’ In other words, if the per- have some differences with, but I think unions, consumer groups and investor petrator of the wrong can conceal it overall we have moved forward in a organizations, and by literally dozens long enough under this very shortened very conscientious manner in the at- and dozens of editorials in major news- statute of limitations, the victim will tempt to have a fair and balanced sys- papers and magazines across the coun- have no remedy. tem, so that those who truly have com- try. The FDIC and the States securities mitted tortious actions will be held ac- I want to review just some of the regulators joined the SEC in favor of countable for their actions, and they areas in which this negative trend took overturning the Lampf decision. What will not be held accountable for other place in the course of the legislative happened to this provision that was in people’s actions, nor will they be forced consideration of this legislation. the legislation as originally introduced to make settlements that are indeed First, the statute of limitations. The by Senators DOMENICI and DODD? It dis- unfair. We have eliminated a terribly process of hurting investors began in appeared when the Banking Committee unscrupulous practice that I believe is the Banking Committee when it de- met to consider this bill. Despite the a stain on the legal profession. leted the extension of the statute of fact that all the securities regulators I have stood up and I have battled on limitations. The bill originally intro- recommended it, despite the fact that behalf of litigants and on behalf of the duced by Senators DOMENICI and DODD, Senators DOMENICI and DODD had in- attorneys who represent them, so that who have had a keen interest in this cluded it in their original bill, despite they may have a level playing field. matter, Senate bill 240, that original the fact that the Banking Committee But the law as it exists today is not a bill as introduced by them extended had approved this provision before in level playing field. And there have been the statute of limitations for security 1991, despite the fact that it was the and there are a handful who have fraud suits—that is, the period of time one clearly proinvestor provision in the abused the system. We are attempting available to investors to discover that bill, the provision was dropped. to deal with those abuses. they have been defrauded and to file a I want to thank my colleagues for claim. This was in fact the one clearly Let me make clear that the statute their participation. I certainly want to proinvestor provision in that bill intro- of limitations issue has nothing to do thank Senator BENNETT for his job in duced by Senators DOMENICI and DODD. with frivolous cases. The current stat- terms of working with us. I urge my It responded to the experts in this ute of limitations keeps worthy cases colleagues to vote in favor of the final area—the Federal and State securities from the courthouse. Both Republican passage. And I thank the Chair. regulators—all of whom agree that the SEC chairmen and Democratic SEC Mr. SARBANES addressed the Chair. current statute of limitations is too chairmen have told us that the statute The PRESIDING OFFICER (Mr. short to protect investors. of limitations imposed by the Supreme KYL). The Senator from Maryland. For over 40 years, courts held that Court in 1991 is too short. It allows con Mr. SARBANES. Mr. President, later the statute of limitations for private artists to perpetrate frauds, and it pre- today the Senate will vote on the final rights of action under section 10(b) of vents defrauded investors from seeking version of the securities litigation bill the Securities Exchange Act of 1934, restitution. which has been brought back from con- the principal antifraud provision of the When the statute of limitations pro- ference. Supporters of the bill argue Federal securities laws, was the stat- vision disappeared from the bill, the that it is a balanced response to a ute of limitations determined by appli- bill moved down the path of being an widespread problem; namely, frivolous cable State law. While these statutes unbalanced effort. At that point, the securities litigation. What should be varied from State to State, they gen- bill began to tilt away from individual clear to all Senators, however, is that erally afforded securities fraud victims investors, away from pension funds and this bill is not—is not—a balanced re- sufficient time to discover that they county treasurers, in favor of corporate sponse to that problem. had been defrauded and sufficient time insiders and the attorneys and ac- This legislation will affect far more to bring suit. countants who advise them. than frivolous suits. When the argu- In 1991, in the Lampf case, the Su- When the Banking Committee ments are made for the legislation, the preme Court significantly shortened dropped the lengthening of the statute

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17937 of limitations provision, it went be- are relied upon by investors. Because this is tion: An award of reasonable attorneys’ yond deterring frivolous lawsuits and conduct that should be deterred, Congress fees and other expenses incurred as a began hurting investors. should enact legislation to restore aiding direct result of a violation. That ap- I want to underscore that because and abetting liability in private actions. plied, in the bill passed by the Senate, that is the basic point that must be un- The North American Securities Ad- both to the plaintiff and to the defend- derstood about this conference report. ministrators Association, the Associa- ant. Again and again it goes beyond deter- tion of States Securities Regulators, The conference changed this pre- ring frivolous lawsuits and hurts inves- and the Association of the Bar of the sumption so that it no longer applies tors. City of New York also endorsed res- equally to plaintiffs and defendants. Let me turn now to another example toration of aiding and abetting liabil- Under the conference provision now be- of this proposition, that is, the aiding ity in private actions. fore us, if the defendant substantially and abetting issue. Failure to include This bill, unfortunately, restores violates rule 11, he pays only reason- the extension of the statute of limita- only the SEC’s ability to go after able attorneys’ fees and other expenses tions removed the balance from this aiders and abettors of violations of the incurred as a direct result of the viola- bill and tilted it toward corporate securities laws and then only in part— tion; namely, the provision that was in wrongdoers. The Banking Committee only in part. The provision in the bill the Senate-passed bill. But now under could have added some balance to the is limited to violations of section 10(b) the conference-reported measure, if the bill by restoring the ability of inves- of the Securities Exchange Act and to plaintiff substantially violates rule 11, tors to sue the accountants and attor- defendants who act knowingly. It ig- he pays all attorneys’ fees incurred in neys who aid and abet securities fraud. nores the recommendation made by the the action, not just those resulting from the violation. This was recommended by the SEC, the SEC, the States securities regulators Disparate treatment. The bill, as State securities regulators, and various and the bar association that aiding and abetting liability be fully restored for sent out of the Senate, had balanced bar associations. Again, however, the treatment with respect to plaintiffs committee hurt investors by leaving the SEC and private litigants as well. By ignoring the needs of individual in- and defendants. Now we have this dis- this key provision out of the bill. parate treatment, and there is no jus- Prior to 1994, courts in every circuit vestors, the committee further tilted this bill toward the corporate insiders tification for it. Its true purpose, I in the country had recognized the abil- think, is to scare investors from bring- ity of investors to sue aiders and abet- and their professional advisers who abuse the investor. ing meritorious fraud suits. When the tors of securities frauds. Most courts conference removed the balance from required that an investor show that a The effort in the Banking Com- mittee, which I have alluded to with this provision, it was not deterring securities fraud was committed, that frivolous lawsuits, it was hurting in- the aider and abettor gave substantial respect to the statute of limitation and the aiders and abettors provision, vestors. assistance to the fraud, and that the The conference further hurt investors which tilted this bill away from the in- aider and abettor intended to deceive by changing the pleading standard pro- vestor, that effort was continued in the investors or behaved recklessly toward vision of the bill. Pleading standard re- conference committee. Consider what the fraud. In other words, the investor fers to what an investor must show in had to show that the aider and abettor happened in the conference committee order to initiate a securities fraud law- either intended to deceive the investors to the provision that directly addresses suit. The bill reported by the Senate or behaved recklessly toward the fraud. the filing of frivolous cases. Banking Committee codified the plead- Aiding and abetting liability was most Rule 11 of the Federal Rules of Civil ing standard adopted by the U.S. Court often asserted against lawyers, ac- Procedure is the principal sanction of Appeals for the Second Circuit. This countants, appraisers, and other pro- against the filing of frivolous lawsuits standard says investors who seek to fessionals whose assistance is often in the Federal courts. Rule 11 requires file securities fraud cases must ‘‘spe- crucial to perpetrating a fraud. all cases filed in the Federal courts to cifically allege facts giving rise to a In 1994, in the Central Bank of Den- be based on reasonable legal arguments strong inference that the defendant ver case, the Supreme Court elimi- and supported by facts. That is the reacted with a required state of mind.’’ nated the right of investors to sue quirement of rule 11. The case is to be This standard, it should be noted, is aiders and abettors of securities fraud. based on reasonable legal arguments more stringent than the Federal Rules Writing for the four dissenters—this and supported by facts. of Civil Procedure and is the minority was another 5-to-4 opinion—Justice As passed by the Senate, this bill review among the circuit courts. Never- Stevens criticized the five-member ma- quired the courts to include specific theless, that was the standard adopted jority for ‘‘reach[ing] out to overturn a findings in securities class actions re- by the Banking Committee. most considerable body of precedent.’’ garding compliance by all parties and When the bill came to the Senate While the issue was not directly before attorneys with rule 11(b) of the Federal floor, the Senate adopted an amend- the Court, Justice Stevens warned that Rules of Civil Procedure. That is the ment to this provision offered by the the decision would also eliminate the way the Senate passed it. If a court distinguished Senator from Pennsyl- SEC’s ability to pursue aiders and found the violation of rule 11 by either vania, Senator SPECTER. Senator SPEC- abettors of securities fraud; in other the plaintiff or the defendant, the TER’s amendment codified into the leg- words, not only a private cause of ac- court was required to impose sanc- islation additional second circuit hold- tion, but the SEC’s ability as well. tions. That provision was balanced. ings clarifying the standard they had One of the lead sponsors of this legis- The sanctions would have applied earlier enunciated. These additional lation, Senator DODD, stated at a Secu- equally to plaintiffs and to defendants. holdings state that a plaintiff may rities Subcommittee hearing in May It was intended as a deterrent to frivo- meet the pleading standard by alleging 1994, and I quote: lous cases, and it might well have facts showing the defendant had mo- worked in an efficacious manner. Aiding and abetting liability has been tive and opportunity to commit fraud, critically important in deterring individuals What happened to this balanced pro- or constituting strong circumstantial from assisting possible fraudulent acts by vision, between plaintiffs and defend- evidence of state of mind. In other others. ants, in conference? The balance was words, the second circuit laid down Testifying at that hearing, the Chair- removed so that it now applies more this standard and then had subsequent man of the SEC stressed the impor- harshly to investors than the corporate opinions that elaborated upon it and tance of restoring aiding and abetting insiders. The Senate bill had contained developed it, and Senator SPECTER said liability for private investors, and I a presumption that the appropriate that if you are going to include the sec- quote: sanction for failure of the complaint or ond circuit standard as initially enun- the responsive pleading or motion to Persons who knowingly or recklessly assist ciated, you should also include the fur- the perpetration of a fraud may be insulated comply with rule 11 was an award of ther holdings by the second circuit from liability to private parties if they act reasonable attorneys’ fees and other clarifying this standard. behind the scenes and do not themselves expenses incurred as a direct result of This, I think, was the one proinvestor make statements directly or indirectly that the violation. That was the presump- amendment adopted on the Senate

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17938 CONGRESSIONAL RECORD — SENATE December 5, 1995 floor. What happened to this amend- portionate liability rules not just to quired that projections be accompanied ment in conference? It disappeared. It suits brought under the antifraud pro- by disclaimers specifically tailored to was dropped from the legislation. This visions of the Securities and Exchange the projections. The courts have not is part of this process that I have been Act of 1934, as under the bill passed by accepted boilerplate disclaimers. They outlining here of now you see it, now the Senate, but to suits brought under have required that the projections be you don’t. Of course, the person who the Securities Act of 1933, as well. So accompanied by disclaimers specifi- bears the brunt of that is the investor. the conference, again, took this bill cally tailored to the projections. If The draft conference report deleted down the path of reducing protections companies want to immunize their pro- the Specter amendment, leaving inves- and remedies for investors and projections, they must alert investors to tors without the protection of the addi- viding an additional sheltered area for the specific risks affecting those pro- tional second circuit holdings. Once those who practice corporate fraud and jections. again, a proinvestor provision that abuse. In the areas, then, of the statute The bill before the Senate today does would have provided some balance to of limitations, aiding and abetting li- not include this requirement of specific the bill was removed. ability, rule 11 sanctions, pleading cautionary language to alert investors. Let me turn briefly to the propor- standards, and proportional liability, The Association of the Bar of the City tionate liability provisions of the bill, this legislation before us hurts the in- of New York warned of this provision: which reduce the amount of damages vestor, and it has been made signifi- The proposed statutory language, while su- that defrauded investors can recover cantly worse by the actions in the con- perficially appearing to track the concepts from people who have participated in ference. and standards of the leading cases in this committing the fraud. This provision is Before I conclude the discussion of field, in fact radically departs from them and not targeted at frivolous suits and the substance of the bill, let me now could immunize artfully packaged and inten- never has been. It affects even legiti- turn to the so-called safe harbor provi- tional misstatements and omissions of known facts. mate securities fraud suits and, there- sion, and I underscore ‘‘so-called.’’ This fore, is harmful to all investors. The bill creates a statutory exemption from That letter was signed for the bar as- conference found a way, though, to tilt liability for forward-looking state- sociation by Stephen Friedman, a the legislation even further away from ments. Forward-looking statements former SEC Commissioner. Under this the investor and toward the corporate are broadly defined in the bill to in- bill, fraud artists will be able to shield insider. clude both oral and written state- themselves from liability simply by ac- The legislation changes the rule for ments. Examples include projections of companying their fraudulent state- liability for securities fraud from joint financial items such as revenues and ments with general cautions that ac- and several liability to proportionate income for the quarter or for the year, tual results may differ. I predict that liability. Under the current rule of estimates of dividends to be paid to this provision will come back to haunt joint and several liability, all fraud shareholders, and statements of future us in the years to come. participants are liable for the entire economic performance, such as sales Because this bill hurts investors, be- amount of the victim’s damages—both trends and development of new prod- cause it makes it harder for defrauded fraud participants who intended to ucts. In short, forward-looking state- investors to bring suits, because it mislead investors and fraud partici- ments include precisely the type of in- makes it harder for defrauded investors pants whose conduct was reckless. The formation that is important to inves- to recover losses, dozens and dozens of rationale for this in the law, which has tors deciding whether to purchase a newspapers around the country have been the traditional holding over the particular stock. expressed their opposition. From the The SEC currently has a safe harbor years, is that a fraud cannot succeed Bangor Daily News to the Miami Her- regulation for forward-looking state- without the assistance of each partici- ald, from the Minneapolis Star Tribune ments that protects specified forward- pant, so each wrongdoer is held equally to the San Francisco Chronicle, edi- looking statements that were made in liable. torial pages have argued this bill is a documents filed with the SEC. As origi- Let me just observe that the reck- bad deal for investors and urged a Pres- nally introduced, the bill could have lessness standard for liability is a very idential veto. The headline of the Wis- allowed the SEC to continue its effort demanding standard, and it is one usu- consin State Journal editorial sums up to conduct a comprehensive review of ally applied to a company’s profes- the argument nicely: ‘‘The Securities safe harbor regulations. However, the sional advisers, such as accountants, Reform Act goes too far.’’ I ask unani- committee abandoned this approach in attorneys, and underwriters. mous consent to have printed at the favor of enacting a statutory safe har- The bill limits joint and several li- end of my remarks some sampling of bor. ability under the Federal securities law these editorial comments. I am aware of the letter that the The PRESIDING OFFICER. Without to certain defendants, specifically ex- chairman read from the SEC about the cluding defendants whose conduct was objection, it is so ordered. safe harbor provision, but I remain (See exhibit No. 1.) reckless. The bill, thus, reduces the ac- concerned that the safe harbor provi- countability of accountants and attor- Mr. SARBANES. A New York Times sion before us today will, for the first editorial last week stated: neys whose conduct is found to be reck- time, provide protection for fraudulent less. This change will hurt investors in The securities bill that Congress is about statements under the Federal securi- to pass addresses a nagging problem, frivo- cases where the principal framer of the ties laws. For the first time, fraudulent lous lawsuits by investors against corpora- fraud is bankrupt, has fled, or other- statements will receive protection tions, but in such cavalier fashion that it wise cannot pay investors damages. In under the Federal securities laws. may end up sheltering some forms of fraud those cases, the innocent victims of The American Bar Association wrote against investors. President Clinton should fraud will be denied full recovery of the President last week that the safe veto the bill and demand at least two fixes to their damages. harbor ‘‘has been transformed not sim- protect truly defrauded investors.’’ Unfortunately, this provision became ply into a shelter for the reckless, but Citing the failure to extend the stat- even worse in conference for the inves- for the intentional wrongdoer as well.’’ ute of limitations and to restore aiding tors. The bill passed by the Senate did Projections by corporate insiders will and abetting liability, the Times nothing to disturb liability under the be protected no matter how unreason- warned that ‘‘provisions threaten to securities law for reckless conduct. The able, no matter how misleading, no shut off valid suits’’ and suggested that conference, however, added language matter how fraudulent, if accompanied ‘‘a well-targeted veto might force this that could call liability for reckless by boilerplate, cautionary language. bill back on the right track.’’ conduct into question. The language of Let me just take a moment to ex- No publication has editorialized more the conference report could be read as plain this. It is claimed by its sup- strongly against this bill than Money inviting the courts to eliminate all li- porters that this draft codified the magazine. For 4 months in a row, ability for reckless conduct under the legal doctrine applied by the courts Money magazine has devoted editorial securities fraud provisions. The con- known as bespeaks caution. columns to this bill. In September 1995, ference further added language that Now, as I understand it, all courts Money magazine warned ‘‘Congress could be read as applying the new pro- that have applied this doctrine have re- aims at lawyers and ends up shooting

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17939 small investors in the back.’’ In Octo- Despite changes in the safe harbor provi- ists and punishing America’s individual ber, they urged ‘‘Let’s stop this Con- sion relating to forward-looking statements, investors, pension funds, and local gov- gress from helping crooks cheat inves- there are still loopholes in that provision ernments. tors like you.’’ In November, they were that would allow false predictions to be For all of the reasons I have de- made and that will shield a company from li- hopeful that ‘‘Your 1,000 letters of pro- ability. scribed, I oppose this legislation and I test may stop this Congress from jeop- Aiders and abettors of fraud would still re- urge my colleagues to vote against this ardizing investors.’’ This month they main immune from civil liability and would bill. stated: not have to pay back fraud victims for the EXHIBIT 1 . . . the new bill jeopardizes small inves- losses they suffer. [From the New York Times, Nov. 30, 1995] The ‘‘draft conference report’’ maintains tors in several ways. . . . The bill helps ex- OVERDRAWN SECURITIES REFORM ecutives get away with lying. . . . Investors the short three-year statute of limitations The securities bill that Congress is about who sue and lose could be forced to pay the that will allow a wrongdoer who can conceal to pass addresses a nagging problem, frivo- winner’s court costs. . . . Even accountants his fraud to be completely let off the hook. lous lawsuits by investors against corpora- who okay fraudulent books will get protec- Eleven State attorneys general wrote tions, but in such cavalier fashion that it tion. to express their opposition. They said, may end up sheltering some forms of fraud Investors around the country agree ‘‘If enacted, this legislation would se- against investors. President Clinton should with Money magazine’s analysis that verely curtail our efforts to fight secu- veto the bill and demand at least two fixes to this bill hurts investors and are voicing rities fraud and to recover damages for protect truly defrauded investors. their opposition. The National Council our citizens if any of our State or local The bill seeks with good reason to protect of Individual Investors, an independent funds suffer losses due to fraud.’’ They corporate officials who issue honest but un- intentionally optimistic predictions of cor- membership organization of individual went on to say, ‘‘This is unwise public policy in light of rising securities fraud porate profitability. In some past cases, op- investors, has written to the President portunistic shareholders have waited for a to ‘‘express opposition to the recent and substantial losses suffered by company’s stock price to fall, then sued on draft report,’’ saying, ‘‘The draft con- States and public institutions from the grounds that their money-losing invest- ference report fails to treat the Amer- high-risk derivatives investments.’’ ments were based on fraudulent misrepresen- ican investor fairly.’’ The American Bar Association and the tations of the company’s financial prospects. The labor movement has said, ‘‘This Association of the Bar of the City of Their game was to use these ‘‘strike’’ suits bill tips the scales of justice in favor of New York oppose this bill as well. to threaten companies with explosively expensive litigation in the cynical attempt to the companies and at the expense of When this measure originally came to the Senate floor, I received a com- win lucrative settlements. stockholders and pension plans.’’ Such suits are a real, if infrequent, prob- The Fraternal Order of Police wrote munication from the securities com- lem that can discourage responsible manage- the President urging him ‘‘to reject a missioner of the State of Maryland, ment from issuing information that inves- bill which would make it less risky for Robert McDonald. I expect that most tors ought to know. The bill would stymie white collar criminals to steal from po- Senators received similar letters from these suits in part by immunizing pre- lice pension funds * * *.’’ their State securities commissioners. dictions of corporate profitability that are A coalition of consumer groups, in- In that letter, Commissioner McDon- accompanied by descriptions of important ald opposed the bill, writing: factors—like pending government regulatory cluding the Consumer Federation of action—that could cause financial pre- Our financial markets depend not so much America, Consumers Union, USPIRG, dictions to prove false. But the language is on money as on public confidence. The con- and Public Citizens also oppose this ambiguous, leading critics to charge that it fidence that investors have in the American bill. would protect corporate officials who know- financial marketplace will be shattered if ingly issue false information. The President But perhaps most telling about this they believe that they have little recourse should ask Congress for clarification. bill is the opposition of hundreds and against those who have committed securities Some provisions of the bill would protect hundreds of State and local govern- fraud. ment officials. The National League of investors by, for example, requiring account- Now, the managers of this bill in ants to report suspected fraud. But other Cities, the National Association of their conference report state at the provisions threaten to shut off valid suits. Counties, and the Government Finance outset, The bill would prevent private litigants from Officers Association all oppose this leg- The overriding purpose of our Nation’s se- going after lawyers and accountants for inat- islation. curities laws is to protect investors and to tention that allows corporate fraud. Worse, Keep in mind that State and local in- maintain confidence in the securities mar- the bill limits the authority of the Securities vestors issue securities—State and kets, so that our national savings, capital and Exchange Commission to use account- local governments raise money formation, and investment may grow for the ants and others for aiding fraud. The bill through bond issues. As issuers of secu- benefit of all Americans. would also provide a short statute of limitation that could easily run out before inves- rities, it is asserted by the supporters So, they pick up the first part of tors discover they have been victimized. of this legislation, they would stand to Commissioner McDonald’s statement Mr. Clinton should demand that Congress benefit from the bill. Why, then, do about ‘‘our financial markets depend extend the statue of limitations so that in- they oppose it? Because they also pur- not so much on money as on public vestors will have time to file suit after they chase securities as well. They invest confidence,’’ but the supporters of this discover fraud. He should also demand that taxpayers’ money and retirees’ money bill ignore the second part of Commis- the bill restore the S.E.C.’s full authority to in securities and sometimes are victim- sioner McDonald’s warning that the use accountants who contribute to corporate ized by unscrupulous brokers. confidence of investors will be shat- fraud. So far, Mr. Clinton has been curiously restrained. A well-targeted veto might force Orange County, CA, lost over $2 bil- tered ‘‘if they believe they have little this bill back on the right track. lion in leveraged derivative invest- recourse against those who have [comments. In my own State of Maryland, mitted] securities fraud.’’ [From Money, December 1995] Charles County lost nearly $3 million The editors of Money magazine NOW ONLY CLINTON CAN STOP CONGRESS FROM in derivatives. Orange County is cur- wrote, ‘‘this bill will undermine the HURTING SMALL INVESTORS LIKE YOU rently suing the brokers who sold it public’s confidence in our financial (By Frank Lalli) these securities. When such scandals markets. And without that confidence, The debate over Congress’ reckless securi- occur again, and they will, this bill will this country is nowhere.’’ ties litigation reform has come down to this make it harder for taxpayers to bring By making it harder for investors to question: Will President Clinton decide to securities fraud actions and recover bring legitimate securities fraud suits, protect investors, or will he give companies losses. by reducing investors’ recoveries when a license to defraud shareholders? Let me quote further from the letter they win securities fraud suits, by con- Late in October, Republican congressional of these government officials who are sistently hurting investors and helping staffers agreed on a so-called compromise corporate insiders and their account- version of the misguided House and Senate seeking meaningful remedies in case bills. Unfortunately, the new bill jeopardizes they are defrauded: ants and attorneys—in other words, by small investors in several ways. Yet it will The following are the major concerns State going way beyond anything necessary likely soon be sent to Clinton for his signa- and local government have with the latest to deal with the frivolous lawsuits— ture. The President should not sign it. He ‘‘draft conference report’’: this bill will end up rewarding con art- should veto it. Here’s why:

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17940 CONGRESSIONAL RECORD — SENATE December 5, 1995 The bill helps executives get away with antidotes to costly, frivolous lawsuits pur- Well, often it doesn’t. Investing has risks, lying. Essentially, lying executives get two sued by greedy lawyers. including market downturns. When investors escape hatches. The bill protects them if, Opponents believe the critical elements of sue over mere bad luck, they cost companies say, they simply call their phony earnings both bills, but especially as reflected in the money, clog courts, and drain profits from forecast a forward-looking statement and conference version, are destructive of con- other investors. add some cautionary boiler-plate language. sumer interests. In the best Washington hy- Trouble is, by trying to stop this abuse, In addition, if they fail to do that and an in- perbole, they refer to it as ‘‘The Crooks and Congress mistook a simple answer for the vestor sues, the plaintiffs still have to prove Swindlers Protection Act’’ because of the right answer. Its solution, in plain terms, the executives actually knew the statement manner in which it tilts the courtroom in was to declare virtually all promises by all was untrue when they issued it, an ex- favor of corporate defendants in securities companies to be safe from legal challenge. tremely difficult standard of proof. Further- and fraud cases. Under this ‘‘remedy,’’ company executives more, if executives later learn that their From the perspective of those who are in- now can promise investors anything they original forecast was false, the bill specifi- terested in Congress making good choices in like, with not so much as a nod to reality. cally says they have no obligation to retract the public interest, the act has two more They can’t legally lie about the past, but if or correct it. problems. It is an extremely complex area of their claims are ‘‘forward-looking,’’ they can High-tech executives, particularly those in policy—one that can cause the eyes of a CPA promise you the moon to get you to invest, California’s Silicon Valley, have lobbied re- to glaze over—and it is an extension of the and no one can sue them later for being mis- lentlessly for this broad protection. As one catechism of the contract. Consequently, it leading. congressional source told Money’s Wash- is an issue that has been exposed to very lit- Well, almost no one. The bill would allow ington, D.C. bureau chief Teresa Tritch: tle sunlight in open debate and it will be de- legal action in the case of egregious, delib- ‘‘High-tech execs want immunity from liabil- fended as political gospel by some Repub- erate fraud, but you’d have to prove that it ity when they lie.’’ Keep that point in mind licans. was intentional. And you’d have just three the next time your broker calls pitching Sen. William Cohen voted against the Sen- years to discover the fraud and furnish your some high-tech stock based on the corpora- ate version of the act. Sen. Snowe supported proof. tion’s optimistic predictions. it. As a result, the campaign to persuade the It’s rare enough to prove outright intent Investors who sue and lose could be forced delegation is focused on her office. Critics of under the best circumstances, but under this to pay the winner’s court costs. The idea is the act make excellent arguments against bill, if executives can stiff-arm you for just to discourage frivolous lawsuits. But this bill specific provisions, including loser-pays, 36 months (not a big challenge), they’d be is overkill. For example, if a judge rules that which will discourage aggrieved small inves- home free. And then—in another hair-raising just one of many counts in your complaint tors from filing suit; and restrictions on provision of the bill—you’d be stuck for the was baseless, you could have to pay the de- legal standards of liability, which limit company’s entire legal bill. Facing such a fendant firm’s entire legal costs. In addition, plaintiffs’ opportunities to fully recover le- risk, no small investor, no matter how badly the judge can require plaintiffs in a class ac- gitimate damages. cheated, would ever dare sue. tion to put up a bond at any time covering Another example, the provision of the act This bill evidently struck many members the defendant’s legal fees just in case they narrowing the time window for bringing suit, of Congress as a simple answer to a nagging eventually lose. The result: Legitimate law- was the target of a letter from Stephen L. problem. It’s nothing of the kind. The prob- suits will not get filed. Diamond, securities administrator for the lem is real enough, but its solution isn’t sim- Even accountants who okay fraudulent state’s Bureau of Banking to Sens. Cohen ple. And it certainly doesn’t reside in a law books will get protection. Accounts who are and Snowe. ‘‘A good portion of the several authorizing phony statements to investors. reckless, as opposed to being co-conspirators, million dollars in restitution we have ob- President Clinton should veto this blunder. would face only limited liability. What’s tained for Maine citizens during my tenure,’’ Then, when the fight over the budget is over, more, new language opens the way for the Diamond wrote in June, ‘‘would have been Congress can take time to think up a more U.S. Supreme Court to let such practitioners irretrievably lost if we had been subject to a rational solution to the problem. off the hook entirely. If such a lax standard three-year limitations period.’’ became the law of the land, the accounting Diamond pointed out that under Maine [From the Star Tribune, Nov. 17, 1995] law, there ‘‘is no absolute outside limit’’ for profession’s fiduciary responsibility to inves- SECURITIES BILL tors and clients alike would be reduced to a commencing a suit for securities fraud. The Securities Litigation Reform Act has Give Sen. Richard Bryan, D-Nev., credit for sick joke. the potential to save consumers nothing, being a good friend to American investors. Moreover, the bill fails to re-establish an protect white-collar criminals and add to the Since late October, Bryan has stymied pas- investor’s right to sue hired guns, such as ac- burden of the victims of fraud. sage of ill-designed legislation that would countants, lawyers and bankers, who assist It could have serious consequences for curb investors’ rights to sue for securities dishonest companies. And it neglects to Maine taxpayers, investors and retirees. On fraud, Bryan’s move is buying time to mar- lengthen the tight three-year time limit in- record opposing the House version are mu- shal enough opposition to give the bill the vestors now have to discover a fraud and sue. nicipalities of all sizes, from the small, Clif- fate it deserves—either significant alteration Knowledgeable sources say the White ton and Berwick, to the state’s largest, Port- or death. What opponents need most, though, House is weighing the bill’s political con- land and Lewiston. is support from the top—President Clinton. sequences, and business interests are press- The CMO (collaterized mortgage obliga- At first glance, the legislation appears rea- ing him hard to sign it. ‘‘The President tion) disaster that struck Auburn, concern sonable. The bill seeks to protect public wants the good will of Silicon Valley,’’ says about the integrity and solvency of govern- companies and their underwriters from frivo- one source. ‘‘Without California, Clinton is ment and private pension accounts and 401k lous lawsuits by disgruntled investors. It nowhere.’’ plans, and public awareness of the threats to would provide legal protection for companies We think the President should focus on a the security of investments of an aging popu- whose earings forecasts turn out to be inac- higher concern. Our readers sent more than lation all are reasons for members of the curate, and would limit the liability of ac- 1,500 letters in support of our past three edi- Maine delegation to treat this issue with ut- counting firms, legal advisers and others torials denouncing this legislation. As that most respect, and caution: do no harm. This who fail to detect fraud. The bill also would mail attests, this bill will undermine the one could hurt. ban ‘‘professional plaintiffs’’ who repeatedly public’s confidence in our financial markets. sue companies for even minor losses. And without that confidence, this country is [From the Miami Herald, Nov. 14, 1995] Proponents argue that more and more in- nowhere. LIARS’ BILL OF RIGHTS? vestors are forsaking the win-some-lose- While most of the country is paying atten- some attitude of investing, opting instead to [From the Banger Daily News, Nov. 30, 1995] tion to the feud over the federal budget, a sue if they lose money because of unexpected DO NO HARM sinister piece of legislation is making its events, particularly sudden and steep drops Among the most dramatic but least dis- way through Congress unnoticed. This bill in stock prices. Recent high-profile securi- cussed spin-offs of the Contract With Amer- lets companies report false information to ties court cases seem to prove their point. ica is securities litigation reform legislation, investors. That’s right, it essentially li- From the ongoing Orange County fiasco to which earlier this year quietly passed both censes fraud. It has passed both houses in Piper Jaffray’s stumblings a year ago, many houses of Congress in different forms, but slightly different forms. A compromise bill investors, both government and private, this week could become part of a public spec- will be written soon. If it passes, President have gone to court to recoup losses. tacle, highlighted by a presidential veto. Clinton ought to slay it in its tracks. However, securities cases gain notoriety House Republicans argued in the contract, This bill is a story of good intentions. mainly because they rarely occur. The num- which set the tone for the early months of Some companies have been plagued by frivo- ber of securities class-action lawsuits na- this session, that accumulated legal abuses lous lawsuits from investors who aren’t tionwide has fallen to 290 in 1994 from 305 in cost American consumers $300 billion a year. happy with the company’s performance. The 1974. In fact, such cases represented little Proponents characterize H.R. 1058 and S. 240, investors allege, in essence, that the com- more than 1 percent of new federal civil the two bills on which a conference company had forecast good results and then cases filed last year. The statistics show that promise of the Securities Litigation Reform didn’t deliver. That, say the plaintiffs, con- curbing investors’ rights to sue amounts to a Act is expected to be voted on this week, as stitutes fraud. solution in search of a problem.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17941 Indeed, there would be problems if this leg- rities Litigation Reform Act of 1995. The cover losses. In Chairman Levitt’s letter of islation passed unaltered. The bill would conference agreement significantly weakens May 25, 1995, to Chairman D’Amato and eliminate the current legal standard of joint- the ability of stockholders and pension plans members of the Senate Banking Committee, and-several liability, which holds even those to successfully sue companies which use he indicated that failure to resolve this issue peripherally involved in fraud to a high de- fraudulent information in forward-looking was one of two ‘‘important issues’’ for the gree of liability. Thus, firms providing ac- statements that project economic growth Commission. We are disappointed that you counting and other services to corporate cli- and earnings. There is a new ‘‘safe harbor’’ have not unequivocally stated that this is ents would have less incentive to be alert to provision in this conference agreement that still a serious concern to the SEC, as it is to wrongdoing. In addition, this legislation allows evidence of misleading economic in- state and local governments. would have a chilling effect on even many formation to be discounted in court if it is The ‘‘draft conference report’’ maintains valid complaints; it would require a plaintiff accompanied by ‘‘appropriate cautionary the short three-year statute of limitations who lost a case to pay the defendant’s court language.’’ that will allow a wrongdoer who can conceal costs. The AFL–CIO believes this compromise his fraud to be completely let off the hook. The bill’s opponents have begun to make a will vastly increase the difficulties that in- The current statute of limitations is widely stink. A couple of weeks ago, Minnesota At- vestors and pension plans would have in re- regarded as too short. Despite the May 25, torney General Hubert Humphrey III joined covering economic losses. Similarly, the 1995, statements to the Senate that this too 13 other attorneys general in asking Clinton joint and several liability provisions in this was an ‘‘important issue’’ for the Commis- to veto the bill in its current form. A day bill provide added, and unwarranted, protec- sion, the most recent draft does not include earlier a coalition representing hundreds of tion for unscrupulous companies, stock- an extension. state and local government officials an- brokers, accountants and lawyers. The latest draft adds language opening the nounced its opposition. Consumer groups In short, this bill tips the scales of justice way for the Supreme Court to eliminate any have fought the legislation all summer. in favor of the companies and at the expense implied private right of action under the fed- But the opponents need help. Though the of stockholders and pension plans. Both of eral securities laws for victims of fraud by Senate passed the bill by a veto-proof mar- these latter groups are forced to rely exclu- imposing a ‘‘rule of construction’’ stating gin, a veto threat from Clinton could prompt sively on information provided by these com- that nothing in the legislation ‘‘shall be needed changes in the measure. That threat panies when evaluating a stock, but this in- deemed to create or ratify any implied right should come now, while political momentum formation would not be able to be used in of action.’’ Given the historic role of private favors the opposition. court to recover economic damages for mis- suits in keeping the markets honest, and the leading information. SEC’s previous support for such actions as a [From the San Francisco Chronicle, Nov. 27, The Congress should reject the conference complement to its own enforcement activi- 1995] agreement on H.R. 1058. ties, we are surprised that no objection was Sincerely, raised in your letter to the inclusion of this OPENING THE DOOR TO FRAUD PEGGY TAYLOR, new language. If a House-Senate conference committee Director. The pleading standard has been changed in meeting tomorrow does not result in signifi- the new draft from requiring that the com- cant changes to legislation regarding invest- SECURITIES AND EXCHANGE COMMISSION, plaint ‘‘specifically allege’’ facts giving rise ment fraud lawsuits, President Clinton Washington, DC. to a state of mind—an already harsh stand- should quickly veto the bill. DEAR CHAIRMAN LEVITT AND COMMISSIONER ard—to a ‘‘state with particularity’’ stand- Compromise has softened some of the anti- WALLMAN: On behalf of a coalition of state ard. This is a much more difficult standard consumer aspects of the legislation, which and local government officials, the above or- and will make it even more difficult for has the stated goal of eliminating frivolous ganizations wish to express our concern over plaintiffs to bring suit. Combined with the class-action securities fraud lawsuits. But your November 15, 1995, letter to Senator deletion of the Specter amendment, this despite the worthwhile aim, the provisions of Alfonse D’Amato regarding your views on raises the pleading standard to one different a draft conference report on H.R. 1058 and S the most recent ‘‘draft conference report’’ on from that employed by the Second Circuit. 240 go far beyond curbing trivial court ac- securities litigation reform. Our organiza- Under the newest draft, fraud victims face tions and instead would wipe out important tions have worked closely with the Commis- a potential ‘‘loser pays’’ sanction and a pos- protections against hustlers of fraudulent se- sion over the years on numerous issues of sible bond requirement at the beginning of a curities. importance to the securities markets. Al- case, which could discourage many investors In a letter asking Clinton to veto the bill, though your letter did not specifically en- from seeking a recovery of their losses. In San Francisco’s chief administrative officer, dorse the ‘‘draft conference report,’’ pro- addition, the victim will now have to show Bill Lee, noted that the legislation would ponents of this legislation are already rep- that a shift of full attorneys’ fees and costs ‘‘erode investor protections in a number of resenting your letter as an SEC endorse- to the plaintiff would impose an ‘‘unreason- ways: it fails to restore the liability of aiders ment. We remain opposed not only to the able burden’’ on the plaintiff or his attorney and abettors of fraud for their actions; it latest version of the safe harbor provision in and that the failure to shift fees would not limits many wrongdoers from providing full the legislation, on which your letter focused, impose a greater burden on the defendants. compensation to innocent fraud victims, by but to several other provisions in the bill The strength and stability of our nation’s eroding joint and several liability; it could which are critical to us and which we under- securities markets depend on investor con- force fraud victims to pay the full legal fees stood were critical to you as well. fidence in the integrity, fairness and effi- of large corporate defendants if they lose; it We support efforts to deter frivolous secu- ciency of these markets. To maintain this provides a blanket shield from liability for rities lawsuits. We believe, however, that confidence, investors must have effective companies that make knowingly fraudulent any legislation to accomplish this must also remedies against those persons who violate predictions about an investment’s perform- maintain an appropriate balance that en- the antifraud provisions of the federal secu- ance and risks; and it would preserve a short, sures the rights of investors to seek recovery rities laws. In recent years, we have seen three-year statute of limitations for bringing against those who engage in fraud in the se- how investment losses caused by securities fraud actions, even if fraud is not discovered curities markets. We believe that H.R. 1058, laws violations can adversely affect state until after that time.’’ S. 240, and the various versions of the ‘‘draft and local governments and their taxpayers. Securities fraud lawsuits are the primary conference report’’ all fall short in achieving Indeed, you, Chairman Levitt have addressed means for individuals, local governments this balance, and erode the ability of inves- many of our members personally over the and other investors to recover losses from in- tors to seek recovery in the cases of fraud. past year to underscore just this concern vestment fraud—whether that fraud is re- The following are the major concerns state about the markets. lated to money invested in stocks, bonds, and local governments have with the latest Access to full and fair compensation mutual funds, individual retirement ac- ‘‘draft conference report:’’ Despite changes through the civil justice system is an impor- counts, pensions or employee benefit plans. in the safe harbor provision relating to for- tant safeguard for state and local govern- As the draft report stands, investors would ward-looking statements, there are still ment issuers and investors alike and is a be the losers. And their hopes of receiving loopholes in that provision that would allow strong deterrent to securities fraud. Because convictions in suits similar to those against false predictions to be made and that will of the importance of this issue, we are re- such well-known con men as Michael Milken shield a company from liability. Deliberately questing a meeting with you to discuss your and Ivan Boseky would be severely ham- false forward-looking statements are still recent letter to Senator D’Amato and to con- pered. immunized under this draft as long as they vey our concerns about the unwise public In the name of the little guy, Clinton are accompanied by cautionary language. policy outlined in the ‘‘draft conference re- should not let that happen. Aiders and abettors of fraud would still report.’’ We stand ready to work with you in main immune from civil liability and would vigorously opposing this legislation, particu- AMERICAN FEDERATION OF LABOR, not have to pay back fraud victims for the larly in light of other efforts—budgetary and CONGRESS OF INDUSTRIAL ORGANI- losses they suffer. If aiders and abettors are statutory—to further weaken the regulatory ZATIONS, immune from liability, as issuers of debt se- protections provided to state and local gov- Washington, DC, November 29, 1995. curities, state and local governments would ernment investors and others. Betsy Dotson DEAR SENATOR: The AFL–CIO opposes the become the ‘‘deep pockets,’’ and as investors of GFOA will follow up on our meeting re- conference agreement on H.R. 1058, the Secu- they would be limited in their ability to request with your staff.

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FRATERNAL ORDER OF POLICE, fully immunizing them from any responsi- Attorney General of NATIONAL LEGISLATIVE PROGRAM, bility for their wrongful actions; A ‘‘loser New Mexico. Washington, DC, November 29, 1995. pays’’ provision imposing a significant risk WINSTON BRYANT, Hon. WILLIAM JEFFERSON CLINTON, of fraud victims having to pay the defend- Attorney General of President of the United States, ants’ full legal fees; Arkansas. Washington, DC. Severe restrictions on the joint and several ROBERT A. BUTTERWORTH, DEAR PRESIDENT CLINTON: On behalf Na- liability of wrongdoers, making it impossible Attorney General of tional the Fraternal Order of Police, I urge for many victims to fully recover their Florida. you to veto the ‘‘Securities Litigation Re- losses; Preservation of an inadequately short TOM MILLER, form Act’’ (HR1058/S240). The recently re- statute of limitations (one year after dis- Attorney General of leased draft of the House/Senate conference covery and three years after the fraud was Iowa. report clearly reflects a dramatic reduction committed); Highly onerous pleading stand- HUBERT H. HUMPHREY III, in the ability of private, institutional and ards; and Elimination of liability under the Attorney General of government investors to seek redress when federal racketeering statute, except after a Minnesota. victimized by investor fraud. criminal conviction. JEREMIAH J. NIXON, As a matter of fact, the single most signifi- Such extraordinary limitations on our Attorney General of cant result of this legislation would be to states’ ability to recover citizens’ tax dollars Missouri. is of grave concern to us. create a privileged class of criminals, in that JOSEPH P. MAZUREK, As our states’ chief law enforcement offi- it virtually immunizes lawyers, brokers, ac- Attorney General of cers, we cannot countenance such a weak- countants and their accomplices from civil Montana. ening of critical enforcement against white- liability in cases of securities fraud. FRANKIE SUE DEL PAPA, collar fraud. Private actions, as a com- This bad end is reached because of several Attorney General of plement to government enforcement, have provisions of the legislation: first, it fails to Nevada. proven to be extremely effective in deterring restore the liability of aiders and abettors of HEIDI HEITKAMP, securities fraud and in compensating injured fraud for their actions; second, it limits Attorney General of wrongdoers from providing full compensa- investors. This longstanding practice has deterred even greater fraud in the markets and North Dakota. tion to victims of fraud by eroding joint and CHARLES BURSON, several liability; third, it could force fraud has reduced the burdens that would otherwise accrue as a result of the government Attorney General of victims to pay the full legal fees of corporate Tennessee. defendants if the defrauded party loses; and, having to fully police the markets. If investors are limited in their right to JAMES DOYLE, finally, it retains the short three year stat- initiate private causes of action, we fear that Attorney General of ute of limitations for bringing fraud actions, victims will turn more and more to the state Wisconsin. even in cases where the fraud is not discov- enforcement agencies, such as the Attorney ered until after three years has elapsed. The PRESIDING OFFICER. The Sen- Mr. President, our 270,000 members stand General, for solutions. There will be more de- ator from Utah. with you in your commitment to a war on mands on our offices to pursue wrongdoers Mr. BENNETT. Mr. President, I unfor fraud, thus increasing the burden on our crime; the men and women of the F.O.P. are derstand the Senator from Nevada taxpayers’ resources. The legislation would the foot soldiers in that war. On their behalf, simply force another unfunded mandate on wishes to speak. I will not take a great I urge you to reject a bill which would make the states. deal of time. I do want to respond, how- it less risky for white collar criminals to Effective private enforcement of securities ever, while the walls are still ringing steal from police pension funds while the po- fraud rests on the ability of defrauded inves- lice are risking their lives against violent with the oratory of my friend from tors to take legal action against wrongdoers. Maryland, to some of the particular criminals. Yet there is little, if anything, in the draft Please veto HR1058/S240. points that he made. Then I will allow conference report that would enhance the Sincerely, ability of defrauded investors to seek redress the Senator from Nevada to proceed. GILBERT G. GALLEGOS, in the courts, provide enhanced protection I come at this with some background National President. for investors or ensure the continued hon- because I have been the CEO of a com- esty and fairness of our markets. The major pany that has been involved in litiga- ATTORNEY GENERAL OF NEW MEXICO, provisions of the draft pose significant obsta- tion, and I have members of my family Santa Fe, NM, October 27, 1995. cles to meritorious fraud actions. Hon. WILLIAM J. CLINTON, who have been involved in this cir- While H.R. 1058/S240 would achieve its goal cumstance. I also am not a lawyer and The White House, of affording a measure of protection to large Washington, DC. corporations and accounting, banking and have a little difficulty following the DEAR PRESIDENT CLINTON: As Attorneys brokerage firms, it goes so far beyond what twists and turns of the lawyers talking General of our respective states, we strongly is necessary for that goal that it would like- about the intricacies of rule this or oppose H.R. 1058/S240, the Securities Litiga- ly result in a dramatic increase in securities rule that. tion Reform Act. The ‘‘draft conference re- fraud as the threat of punishment declines. The overall point that I think has to port,’’ which is the basis of agreement be- This would hurt our entire economy as in- tween the House and Senate bills, would se- be made here is simply this. There is vestors lose confidence in the integrity of no division between companies and in- verely penalize victims of securities fraud— our financial markets. This is unwise public consumers, workers, senior citizens, state policy in light of rising securities fraud and vestors. Investors own the company. and local governments. The principal effect substantial losses suffered by states and pub- That which damages the company, of this legislation would be to shield wrong- lic institutions from high-risk derivatives damages the owners of the company, doers from liability for securities fraud com- investments. who are the investors. So, when the mitted against an unsuspecting public. As custodians of the tax dollars of our citi- Senator from Maryland talks about Any securities litigation reform must zens, our states have a vested interest in pitting investors against the company, achieve a balance between protecting the keeping the securities markets safe and se- he is talking about pitting people rights of defrauded investors and protecting cure for investors. The stakes could not be honest companies from unwarranted litiga- higher for consumers since it is often their against themselves. He implies that tion. Abusive practices should be deterred retirement savings that are lost in securities this bill helps the company to the det- and sternly sanctioned. However, Congress frauds. Moreover, the states’ economic riment of the investors. That, frankly, must keep open the doorway to the Amer- health, tied inexorably to the nation’s econ- is impossible. If the company thrives, ican system of civil justice for investors to omy, depends on continued investor con- who gets the money? The investors, the seek recovery of what has been wrongfully fidence. There must be appropriate recourse stockholders. If the company survives taken from them. to the courts for all investors. If enacted, this legislation would severely We join the federal and state securities a market problem and becomes strong- curtail our efforts to fight securities fraud regulators, the state and local government er as a result, who benefits? The stock- and to recover damages for our citizens if finance officers, mayors and other public of- holder, the owner of the company. The any of our state or local funds suffer losses ficials, labor groups, and all major senior two are not separate, in spite of the due to fraud. There are several provisions in citizen and consumer groups in opposing fact that we have had all of this rhet- both bills that would make it exceedingly H.R. 1058/S240. oric implying that they are. difficult, if not impossible, for consumers Given the draft conference report released The most significant problem, from and state and local governments to use the on October 24th, we strongly urge you to my perspective, with this whole issue federal courts to recoup losses due to fraud: veto the legislation if it is presented to you Broad immunity from liability for fraudu- without substantial amendment to the provi- has been the attempt to divide the two lent corporate predictions and projections; sions outlined above. and imply that the company is doing Failure to reinstitute liability for ‘‘aiders Sincerely, something to damage the investor and and abettors’’ under private actions, thereby TOM UDALL, doing it deliberately for the benefit of

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17943 the company. It simply does not wash. Who is damaged by this bill under who need the services of that lawyer It simply does not track. that scenario? The lawyer. Not the and who need the services of that ac- Where have these lawsuits come shareholder, not the investors; they are countant that this bill is written as it from? They have come from lawyers benefited by this bill. is. who have not sought to protect inves- One other point I will make and then So, Mr. President, I intend to come tors and not sought to help the com- we can hear from the Senator from Ne- back to this theme often as we go pany, but to enrich themselves. I will vada. This bill says there will be a pro- through this debate. Let us not lose give you one example that dem- portionate liability, saying if someone sight of what it is we are trying to do onstrates the power of this cir- was involved in a loss that was 3 per- here. We are trying to protect the in- cumstance. Let us say we have a com- cent that someone’s fault, that some- vestor, and the investor, by definition, pany with 100 shares. Let us keep it one is only liable for 3 percent of the is the person who owns the company. very simple. We have a company with damages. Anything that damages the company 100 shares. We have an investor who Oh, that is terrible, we are told. What damages the investor. Anything that owns 1 of those 100 shares. We have an- a chilling effect that will have. Why, chills the company’s access to sound other investor who owns 99 of those accountants and lawyers supporting legal advice and sound accounting shares. Keep it very, very simple. the company will be immediately up to counsel damages the investor. Any- The lawyer would rush to court and their eyeballs in fraud because they thing that causes the company to pay file a class action suit on behalf of the know they are only liable for a propor- blackmail, out-of-court settlements shareholder who owns one share on the tionate amount. damages the company, which damages grounds that the company has been That makes for interesting rhetoric the investor. So let us understand through this damaged. And when the shareholder on the floor of the Senate. It has little whole debate what the conference re- who owns 99 shares shows up and says, or no relevance to the real world. Let port does, what the bill does, what the ‘‘I would like to have a say in how this me give an example out of my own ex- committee approach does is to protect suit is prosecuted because it is going to perience. I was an investor in a company that the investor. As we listen to rhetoric, damage my 99 shares,’’ under the saying let us protect the investor and was trying to develop a particular min- present law we are told, no, the inves- punish the company, let us always ing project in the Western States. Un- tor with the one share got to the court keep that basic principle in mind: The fortunately for me and my fellow in- before you did and he controls the suit owner of the company is the investor. and therefore he can make all kinds of vestors, we did not do very well. For a With that, Mr. President, I suggest claims he wants to in favor of the variety of reasons, a variety of prob- the absence of a quorum. shareholders. lems, we ultimately had to close down The PRESIDING OFFICER. The The shareholder who owns 99 percent the operation. In the process of doing clerk will call the roll. of the stock says, ‘‘Don’t do me any fa- that whole activity we engaged the The bill clerk proceeded to call the vors. Don’t stand there and file this services of a very fine lawyer in Los roll. suit; it is going to damage my interests Angeles, one of the premier lawyers of Mr. BRYAN. Mr. President, I ask and, frankly, damage the interests of Los Angeles. And he gave us sound unanimous consent that the order for the shareholder who has one share as legal advice. He helped us through. the quorum call be rescinded. well, proportionately.’’ Ah, but it does A disgruntled supplier working with The PRESIDING OFFICER. Without not matter, because the shareholder us on that circumstance kept trying to objection, it is so ordered. who has one share as well has a side find some way to drag the lawyer who Mr. BRYAN. I thank the Chair. I re- deal with the lawyer and he is a profes- was helping us into a management serve to myself such time as I may sional plaintiff and the lawyer will pay role. He kept pushing and probing. I need at this point. him for filing the suit so the lawyer could not understand why. What in the Mr. President, the Senate today is will get the settlement. That is inevi- world did he want to get the lawyer in- considering the legislation that may tably what happens. volved in the management kinds of de- well have dramatic consequences for Finally, the company says, ‘‘It is cisions of this company that did not go the operations of our securities mar- going to cost us $1 million to fight this anywhere? kets. America’s securities markets are case.’’ Finally, the fellow leveled with me. the envy of the world. Our markets are ‘‘OK,’’ says the lawyer, ‘‘you don’t He said, ‘‘If we can get into that law- the safest, and they enjoy universal in- want to spend the $1 million? That is yer’s errors and omissions policy and vestor confidence. American companies have been able fine with me. Let us settle it out of prove that somehow he was involved in to prosper in large part because of a management decision we think was a court for $750,000.’’ their ability to raise capital in our fi- Management says, ‘‘We are not in the mistake, his insurance company will nancial markets. We should all be business of fighting lawsuits; we are in pay us a big payoff just to keep it out proud of these markets, yet, at the the business of producing products. of court.’’ same time, we must be extremely care- The lawyer we were dealing with was Faced with that kind of blackmail, we ful not to jeopardize this investor con- have to do the best thing—for whom? careful enough that did not happen. fidence. We have to do the best thing for our But that was the motivation. Not to Even though our securities markets shareholders. It will damage our share- try to solve the problem, but to tap are the world’s safest, we still have our holders $1 million to go to court. We into the deep pocket of the insurance share of bad apples. There will always can save them $250,000 if we pay this company for errors and omissions in- be people who feel it is necessary to cut guy his blackmail and send him on his surance that this lawyer prudently car- corners, or that they can get away with way.’’ ried for his firm. financial wrongdoing. We have not seen So they pay the $750,000. The lawyer So they were looking for every pos- the last of the Keatings, the Boeskys, takes his contingency fee, pays off his sible technicality to get past the man- the Milkens, the Icahns of the 1980’s, professional plaintiff on the side deal, agement of the firm—the firm, being who penalize the American public by and walks away saying, ‘‘I have pro- bankrupt, had no money to offer—and their commitment to greed and ava- tected shareholder rights,’’ when what into the errors and omissions policy rice, and with horrendous cost to the he has really done is looted the com- and the insurance policy of the lawyer. investors, to the public, and to public pany. As I say, fortunately he was not suc- institutions as a result of their actions. What this bill says, what this con- cessful. But that kind of attitude is the The legislation we are considering ference report says, is in a cir- kind of attitude that causes lawyers to today will make it more difficult, in cumstance like that the shareholder say, ‘‘I will not help you,’’ which my judgment, to bring legitimate fraud with 99 of those 100 shares can go to causes his accountant to say, ‘‘I will cases and will make it more difficult to court and say, ‘‘I am in control of this not take your account, I will not give recover stolen assets. suit, not the one who has one share, you the expert advice you will need be- That having been said, Mr. President, and I move to dismiss.’’ And the issue cause I will get caught up in this.’’ And let me be clear that the legislation be- is over. it is to protect who? It is the investors fore us today, although it purports to

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17944 CONGRESSIONAL RECORD — SENATE December 5, 1995 deal with the issue of frivolous law- what frivolous lawsuit legislation re- Around SEC and Prosecutors,’’ and the suits, is in point of fact a smokescreen, form ought to be about. But this goes subhead of the story ‘‘White-Collar if you will, the Trojan horse, as I have so much further and, in my judgment, Crooks Serve Little Jail Time, Leave characterized it, to really get at the is more about protecting misconduct Billions in Fines Unpaid, The Bad Guys heart and substance of this legislation, and fraud than it is about frivolous Are Winning.’’ which is to insulate and immunize per- lawsuits. Mr. President, this does not appear in petrators of fraud from legitimate in- Let me point out first, for those who the American Trial Lawyers Associa- vestor recovery. If this legislation were may not be familiar with what is in- tion Journal. This appears in one of the about frivolous lawsuits, sign me up; volved in bringing a securities action, icons of the business publications in count me as being on board. There are let me make a disclosure at the outset America, the Wall Street Journal. In some provisions that enjoy universal I have neither been plaintiff, defend- effect, there is more investor fraud, not support. They are incorporated in this ant, nor as a lawyer have I represented less. And even with the resources avail- bill. Let me mention a couple of them. anyone in a securities action. But this able at the SEC, this article concludes There are included in the provisions is what is involved in bringing a securi- that the bad guys, in fact, are winning. a requirement that plaintiffs certify ties fraud case. I offer this as a somber and hopefully individually in each of these securities First, a person must prove that he or sobering assessment that there is mas- actions that the actions are brought in she actually purchased the securities. sive fraud out there and that we have good faith, that they are not acting in The person must prove that the fraud, not seen the last of the Ivan Boeskys a frivolous fashion, that, indeed, they the manipulation or deception was in and the Mike Milkens or the Charles are not part of the referral process, all connection with the purchase or sale of Keatings. Those are not just some part of which I think make a lot of sense a security. The person must prove that of a historic record that no longer con- and deal with some of the concerns a defendant acted with scienter, that cerns us in America. There are folks that have been raised by my colleagues is, an intent to deceive or a reckless out there every day who, through on the other side of the aisle. disregard for the truth or the falsity of whatever artifice and device, continue There are further provisions that the statement. to perpetrate investor fraud. And that prohibit the payment of referral fees to It needs to be emphasized that neg- ought to suggest to us in this delibera- brokers. That, in my judgment, is le- ligence, simple ordinary negligence, is tive body that we ought to proceed gitimate and is designed specifically to not the kind of misconduct that is a with some caution as we approach se- deal with the issue of potential frivo- predicate for a securities action. So curities litigation reform. lous lawsuits. The concern is that we anyone who makes a statement inad- Mr. President, I ask unanimous con- should not give stockbrokers, or any- vertently or is involved in negligent sent that the Wall Street Journal arti- one else, incentives for referral of po- action does not come within the pur- cle of Friday, May 12, 1995, be printed tential securities fraud cases, and, in- view of the provisions of the Securities in the RECORD. deed, these actions ought to be prohib- Act of 1934. Mr. BRYAN. Let me just also invite ited and the legislation does that. A person must prove a defendant’s my colleagues’ attention, in a similar The legislation also deals with the misstatement or nondisclosure was ma- vain—here is a similar business publi- issue of banning bonus payments to terial, not just incidental, but mate- cation called Crain’s New York Busi- class plaintiffs, and I think this, too, rial. A person must prove that he or ness, the date of which is December 4th deals with the issue of frivolous law- she reasonably relied on the defend- through the 10th, 1995. It cannot be suits. It requires the lawyer who has an ant’s misstatement. A person must much more contemporary than that. interest in securities, who brings the prove how he or she was damaged. And, That is this very week. And its head- action, to have his actions reviewed for finally, a person must prove a defend- line indicates ‘‘New Scams for a new potential conflict of interest. That, I ant’s conduct caused the damages. generation.’’ The subhead is, ‘‘Driven think, is highly appropriate, and it Now, those are reasonably difficult by high-tech rip-offs, financial fraud is calls for improved settlement notice to things to prove. And they ought to be. soaring.’’ That, Mr. President, is a pub- class members in terms of the proposed They ought to be. I do not have any lication of this very week, ‘‘financial terms of the settlement. It contains quarrel with that. These actions ought fraud is soaring.’’ And I again ask provisions that limit attorneys fees. not to be taken lightly. Our colleagues unanimous consent that this publica- In the original version of this bill, as point out that there is a great expense tion be printed in the RECORD. it passed the Senate, it dealt with the involved in defending class actions. I There being no objection, the article sanction provisions of rule 11, saying acknowledge that. But that is the bur- was ordered to be printed in the that those persons, whether they be at- den of proof that plaintiffs must sub- RECORD, as follows: torneys on behalf of plaintiffs or de- mit themselves to under the current [From the Wall Street Journal, May 12, 1995] fendants, who take frivolous actions, law. And it is a rather substantial bur- HOW CAREER SWINDLERS RUN RINGS AROUND den of proof, Mr. President. As I have can, indeed, have the full sanction of SEC AND PROSECUTORS indicated, with respect to frivolous ac- the law brought against them. (By John R. Emshwiller) And this was done in an even and tions this Senator has no sympathy, fair-minded way. That, Mr. President, and the full provisions of rule 11 under SANTA MONICA, CA.—For more than a quarter century, Ramon D’Onofrio has been play- in my judgment, deals with the bona the Federal rules, as strengthened by ing games with the law—and mostly win- fide, legitimate question of frivolous the version passed by the Senate before ning. lawsuits. If that is what this legisla- this bill went into conference, appro- The 67-year-old Mr. D’Onofrio, operating tion was all about, we would not be priately deals in a balanced fashion out of a modest office suite at the airport having this debate on the floor today. I when there has in fact been a finding here, is a master stock swindler. He is re- concur and I suspect that all of my col- that a lawsuit has been filed frivo- sponsible for fleecing the public out of tens leagues want to work to eliminate lously by a plaintiff or actions by de- of millions of dollars in the course of numerous stock manipulations, say officials who some of the abuses that have occurred fendants’ attorneys are frivolous. have tangled with him in about 20 civil and in the system. But, Mr. President, that Let me talk for a moment about criminal investigations. A federal appeals requires a laser-like action to specifi- what is happening in the market. And court once referred to him as ‘‘ubiquitously cally craft legislation that deals with I would invite my colleagues’ attention criminal.’’ some of the practices that have been to a recent Wall Street Journal article. Mr. D’Onofrio has been convicted of fraud- abused. We are not just talking about some re- related crimes five times and is once again The referral fees to brokers, the mote contingent fraud that may occur under investigation, people familiar with the bonus payments, the potential con- in the marketplace. We are dealing case say. Yet he hasn’t spent a day in prison flicts of interest, the improved notice with the reality in which, as the Wall in the past 20 years—and he served only about a year behind bars before that. His to class members of the terms of a set- Street Journal fairly recently pointed most recent criminal conviction came in tlement, the limitation of attorney out in a May article earlier this year, 1991; he received probation. While the Securi- fees and the strengthened sanction pro- in a front page story, the title of which ties and Exchange Commission has ‘‘perma- visions of rule 11. That, my friends, is is ‘‘How Career Swindlers Run Rings nently’’ enjoined Mr. D’Onofrio from future

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17945 violations of securities laws, it has done so 1982 court injunction requiring disclosure of Of the thousands of white-collar cases filed seven different times. Meanwhile, he has left his significant stock holdings, an order that by the federal prosecutors annually, only unpaid about $11.5 million in fines and civil resulted from an earlier SEC lawsuit over several dozen involve alleged securities judgments. stock manipulation. Mr. D’Onofrio pleaded fraud, according to records of various gov- BILLIONS IN UNCOLLECTED FINES guilty, was given probation and continued ernment agencies. The SEC keeps only what his career unimpeded. an agency spokesman terms a ‘‘spongy’’ Mr. D’Onofrio isn’t alone. Hundreds of ca- Mr. D’Onofrio declined numerous requests count of such cases. reer swindlers, many of whom have infil- for an interview for this article. ‘‘Some peo- POOR RECORD KEEPING trated legitimate industries ranging from se- ple do talk to the press and some people Though Justice Department officials agree curities to health care, are laughing all the don’t,’’ says his attorney, Ira Sorkin, the that drug cases have been getting more and way to the bank—with other people’s money. former head of the SEC’s New York regional more attention, they insist that the agency’s ‘‘If you have the aptitude and you’re enough office. Mr. D’Onofrio ‘‘falls into the latter commitment to prosecuting white-collar of a sociopath, there are few places where category,’’ adds Mr. Sorkin, who won’t talk the pickings are as easy’’ as swindling, says about his client either. (As an assistant U.S. cases hasn’t diminished. They note that in Scott Stapf, investor-education adviser for attorney in New York 20 years ago, Mr. recent years the department has focused in- the North American Securities Administra- Sorkin helped prosecute a criminal case in creasingly on particularly complex and time- tors Association, a group of state regulators. which Mr. D’Onofrio was an unindicted co- consuming white-collar cases. While not Data gathered from government agencies conspirator.) great in number, these prosecutions tend to show that it takes far longer to bring white- Contempt isn’t the only criminal charge have a significant impact, they say. collar criminals to justice than perpetrators available in swindling cases; frequently, Nonetheless, the scarcity of government of other crimes. Once apprehended and con- scam artists can be prosecuted criminally record keeping in this area seems to under- victed, swindlers generally receive light sen- under fraud or racketeering laws. But Philip score the relatively low priority given to tences—frequently nothing more than proba- Feigin, a Colorado regulator and current white-collar crime. The Federal Bureau of tion and a fine. Often, as with Mr. D’Onofrio, president of the North American Securities Investigation, for example, annually gathers they aren’t compelled to pay back what they Administrators Association, bemoans a ‘‘vi- from more than 16,000 local and state law-en- have stolen; extraordinarily, about $4.48 bil- cious cycle’’ in which securities regulators, forcement agencies detailed statistics on lion in uncollected federal criminal fines and investigators and prosecutors often relegate crime ranging from murder to auto theft. restitution payments is currently out- criminal statutes to an ‘‘afterthought.’’ That survey doesn’t include fraud, for which much less detailed information is assembled. standing. BURIED BY DOCUMENTS FBI officials say they are working on a new While nobody argues that high-priority One reason is that white-collar criminal reporting system that will gather more in- battles against drugs and street crime should cases often eat up enormous amounts of time formation on white-collar crimes, but they be neglected, many white-collar-crime inves- and resources. Stewart Walz, a veteran fed- don’t expect it to be in place before the end tigators contend that the devastating impact eral prosecutor and former head of the crimi- of fraud isn’t sufficiently appreciated. Rough of the decade. nal section of the U.S. attorney’s office in For its part, the SEC has established no estimates by government agencies and oth- Salt Lake City, recalls one complex white- ers indicate that white-collar crime costs formal system for identifying or tracking re- collar case several years ago that required a peat offenders. Nor does it always know their Americans more than $100 billion annually. quarter of his section’s attorneys for a five- And increasingly, free-lance stock swindlers whereabouts. During a recent interview, month trial. Although multiple convictions Thomas Newkirk, an associate director for are joining forces with organized crime, to resulted, Mr. Walz asks: ‘‘How many other the benefit of both. enforcement, proclaims that Thomas Quinn cases went unprosecuted?’’ is safely ensconced in a European jail. But VICTIM COMMITTED SUICIDE On average, it takes more than 10 months Mr. Quinn, one of the major stock manipula- for a white-collar criminal case to be filed in ‘‘These are people who are stealing mil- tors of the 1980s—who regulators say was re- court from the time it is referred to a federal lions from working-class Americans. These sponsible for as much as several hundred prosecutor’s office, according to national are people who ruin lives,’’ says John Per- million dollars in investor losses world- statistics gathered by the Transactional kins, until recently Missouri securities com- wide—has been out of jail for months and is Records Access Clearinghouse at Syracuse missioner. The former regulator still recalls living on Long Island, N.Y. Mr. Quinn says University in New York. That is nearly three a Thanksgiving Day nearly 20 years ago he isn’t involved in the securities business times as long as for the average drug case. when a local farmer, after having mortgaged and ‘‘never will be again. I am just trying to Complex, document-laden white-collar cases his property and lost the money in an invest- get on with my life.’’ ment swindle, committed suicide by shoot- frequently take years to complete. William McLucas, the SEC’s enforcement When prosecutors do bring fraud charges, ing himself in the head. Quinton Darence chief, says there ‘‘should be a place in the they often end up disappointed with the sen- Cloninger, who was convicted of helping run system’’ to deal ‘‘harshly’’ with securities- tences that result. The latest federal prison that swindle, was out of prison after three law recidivist, and that the agency does its statistics show that the median jail term for years—and back in the investment business. best to make sure they are brought to jus- fraud is just 12 months; even violators of por- He couldn’t be located for comment. tice. But he also notes that the SEC has to nography and prostitution laws receive 33 Over the years, Mr. D’Onofrio and his ilk regulate thousands of public companies and months behind bars, while drug traffickers have benefited richly from the fact that civil investment advisers and a vast mutual-fund are sent away for a median of 60 months. A authorities don’t have much enforcement industry. ‘‘We have a whole lot of market re- check of state sentencing statistics in Cali- clout without the backing of the criminal- alities we are trying to keep pace with,’’ he fornia and Florida, two centers of white-col- justice system. Criminal prosecutors, in says. ‘‘So we must make some hard judg- lar crime, also shows large disparities in sen- turn, aren’t always interested in white-collar ments about where to put resources.’’ offenses—and may be becoming less so. tences between fraud and drug trafficking. CASES MOVE SLOWLY Consider the SEC civil injunctions that James Sepulveda, a prosecutor in the dis- Mr. D’Onofrio and others so often ignore. trict attorney’s office of Contra Costa Coun- Some of these judgment calls have made Violations of such injunctions—which often ty in Northern California, says he has helped life easier for Mr. D’Onofrio. The two most bar the individual from working in the secu- convict hundreds of white-collar criminals recent SEC lawsuits against him—one filed rities industry—can lead to criminal-con- during the past 14 years. Some 90% of them, in Los Angeles federal court in 1993, the tempt charges and jail time. But, SEC offi- he estimates, received probation: ‘‘The bad other in New York federal court last Sep- cials concede, contempt is a rarely used guys are winning,’’ he says. tember—were years in the making and in- Such experiences have made prosecutors weapon. Records supplied by the SEC show volve alleged stock manipulations that oc- increasingly reluctant to take on many po- that only a handful of criminal-contempt curred, in some cases, more than a half-dec- tentially promising cases. These days, if a cases have been brought in the past five ade earlier. case is worth less than $1 million, some big- Such time lags aren’t uncommon, SEC offi- years. city prosecutors won’t even touch it, experts cials say. The continuing criminal investiga- RELUCTANT PROSECUTORS say. tion, which involves some of the same activi- For one thing, the agency has to persuade A major factor is the nation’s war on ties as the two civil cases, also seems to be a U.S. attorney’s office to prosecute a con- drugs, which has been overwhelming pros- moving at a glacial pace. Hovhanness tempt case. The chances of that happening ecutors’ offices, courts and prisons. In 1985, ‘‘John’’ Freeland, an alleged D’Onofrio con- are usually ‘‘slim to none,’’ says one SEC at- for instance, only 34% of the federal prison federate in one of the civil cases, pleaded torney, particularly since criminal-contempt population was serving time for drug-related guilty to criminal stock fraud in a related cases usually don’t produce long sentences. crimes. Today, the figure is 62%. As recently case in New York federal court. He entered Many prosecutors are loath to put in time on as the early 1980s, the average federal pros- that plea more than two years ago but hasn’t a case where the potential payoff is small. ecutor handled about the same number of been sentenced yet. Mr. Freeland, who is In 1990, at the SEC’s request, the U.S. at- white-collar and drug cases each year, ac- back in the business world, declines to be torney’s office in Salt Lake City did bring a cording to the Syracuse University group. interviewed, and prosecutors won’t comment criminal-contempt case against Mr. By 1993, that same prosecutor was handling on the criminal case. D’Onofrio. According to a complaint filed in nearly twice as many drug matters as white- When charges are brought against Mr. federal court there, Mr. D’Onofrio violated a collar cases. D’Onofrio, he is as likely to quit as to fight.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17946 CONGRESSIONAL RECORD — SENATE December 5, 1995 Indeed, Mr. D’Onofrio’s success with the law business with the firm, he was involved in fi- attracted to technology because they have has stemmed partly from his willingness to nancing and stock transactions for First seen the way it has changed their own lives. cooperate when caught. This has helped keep Capital, despite an outstanding court order Many are also searching for the next Micro- his incarceration time to a minimum, even barring him from ‘‘acting as a promoter, soft Corp. Instead, they are being lured into though by the early 1970s he was clearing as finder, consultant, agent or other person who phony deals in interactive video, mobile tele- much as $1 million annually in stock manip- engages in . . . the issuance or trading of any phones, pager systems and wireless cable. ulations, according to one court ruling. security.’’ Repeated requests for comment Technology is not only transforming the In one early instance of cooperation, Mr. from company officials, left by phone and in products sold by these investing hucksters; D’Onofrio agreed to be the main witness person at the firm’s office, received no reit is also dramatically changing how they do against his former business associate and sponse. business. Today’s snake oil salesmen are onetime state-court judge, Joseph Pfingst, in MADERA STOCK COLLAPSED reaching more people than ever by broad- a bankruptcy-fraud case in Brooklyn, N.Y. casting their message over the Internet, as Madera Chairman Daniel Lezak says of Mr. Mr. D’Onofrio was sentenced to probation well as radio and television. They bounce D’Onofrio that ‘‘it was my impression that after helping get Mr. Pfingst convicted; the their offers off satellites and communicate he helped run the firm.’’ Mr. Lezak says, and former New York judge got a four-month via conference calls, 900 numbers and late- SEC filings confirm, that First Capital ar- term. night infomercials. ranged the transfer of millions of new shares Carefully mimicking legitimate providers MAKING ‘‘A LOT OF MONEY’’ of Madera stock to itself or offshore buyers of investment advice, scam artists have mas- In another case against an alleged co-con- at no cost or at deep discounts through Reg- tered direct mail techniques, lifting new spirator, Mr. D’Onofrio testified readily to ulation S and other transactions. Mr. Lezak headlines and even stories to make their ap- his own role as a ‘‘manipulator of stocks’’ says he believes much of that stock was peals sound authoritative. who causes ‘‘the price of the stock to rise by quickly dumped in the U.S., a move he be- Mr. Bloch went one important step further. fraudulent means and in the process makes a lieves contributed to Madera stock’s drop- He co-opted legitimate media, employing 200 lot of money,’’ according to a federal-court ping to about 10 cents a share from a high radio stations, satellite technology and a opinion. But Mr. D’Onofrio has always been last year of more than $3. Mr. Lezak says he telemarketing operation to broaden his extremely secretive concerning anything fired First Capital as Madera’s investment reach. Once in investors’ living rooms, he that might interfere with his continuing banker, but says he still sometimes consults studded his show with noted experts. A prosperity. In one case, he was jailed 22 days with firm officials, string of book titles and frequent public ap- for contempt rather than discuss his over- Mr. D’Onofrio has had serious heart prob- pearances cemented his credibility with lis- seas bank accounts. lems of late, law-enforcement officials say. teners desperate for a trustworthy, acces- Lately, Mr. D’Onofrio has been dabbling in But he appears to be passing his accumu- sible financial adviser. new business ventures, aided by a 1990 SEC lated knowledge to others, including his 34- By some estimates, people like Mr. Bloch rule change. ‘‘Regulation S’’ allows a com- year-old son Mark, who for the past several are costing Americans $100 billion a year. pany to sell stock overseas without going years has been working with his father. The Securities and Exchange Commission’s through the time-consuming and expensive Already, the younger Mr. D’Onofrio has caseload has climbed 30% in five years, while disclosure procedures normally required to been the subject of three SEC injunctions for at the same time, criminal convictions by sell new stock in the U.S. The idea is to give alleged securities-law violations. He recently state regulators have quadrupled. Invest- companies a tool for raising capital. Such is pleaded guilty in connection with federal ment fraud complaints to state and federal the latitude of Regulation S that the SEC conspiracy and fraud charges filed in Los An- agencies are soaring, with 50,000 logged by doesn’t even track which firms do such geles federal court as part of the criminal in- the Federal Trade Commission in the past transactions. vestigation that also involves his father. three years. Law-enforcement officials say they believe Mark D’Onofrio remains free pending sen- Mr. D’Onofrio and others have been using tencing, scheduled for later this year. His at- AMERICANS FACE LIFE WITH FEWER FINANCIAL Regulation S to obtain millions of shares of torney, Mr. Sorkin, says the son, like the fa- GUARANTEES stock, which they fail to pay for or buy at a ther, doesn’t talk to the press. Behind this rise in financial fraud is a sea deep discount, then resell to the public be- But Mr. Brandon, the Work Recovery exec- change in personal investing patterns. A new fore the price of the stock crashes. utive, recalls a dinner conversation where generation of Americans is facing life with The SEC has voiced concern about possible Mark D’Onofrio talked of how he ‘‘was proud fewer financial guarantees. Many no longer Regulation S abuses but has done little to of his father’s doggedness’’ and wanted ‘‘to believe that Social Security will provide for curb them. In 1991, the agency did file suit in follow in his father’s footsteps.’’ their retirement. Medicare programs are Washington, D.C., federal court against sev- There being no objection, the article under siege. The number of workers with eral defendants in a Regulation S trans- fully company-funded pensions is dwindling. action involving a small Tucson, Ariz., com- was ordered to be printed in the Home values, once the foundation of a typ- pany, Work Recovery Inc. The SEC obtained RECORD, as follows: ical family’s net worth, are eroding. injunctions and disgorgement orders against [From Crain’s New York Business, Dec. 4–10, Facing the prospect of outliving their sav- the defendants, whom the agency charged 1995] ings, more people are buying stocks, bonds with failing to pay for 1.5 million Work Re- NEW SCAMS FOR A NEW GENERATION and mutual funds—one in three American covery shares and then illegally selling a families, compared with only one in 17 in DRIVEN BY HIGH-TECH RIP-OFFS, FINANCIAL substantial number of these shares to U.S. 1980. Each week, these newly minted inves- FRAUD IS SOARING investors. tors plow some $9.6 billion into mutual funds Though one of Mr. D’Onofrio’s firms was (By Judy Temes and Geri Willis) alone. Work Recovery’s investment banker, the John Chilelli believed in two things: tech- But most are ill-prepared for this new bur- SEC didn’t name him or the firm in its suit. nology and radio talk show host Sonny den. Lacking investing skills, the postwar The agency declines to say why. Work Re- Bloch. generation confronts an array of complex covery later sued Mr. D’Onofrio and others Looking for a way off the rough-and-tum- products and is dazzled by thousands of opin Denver federal court and won a default ble docks of Bayonne, N.J., the longshore- tions. For example, there are now twice as judgment of nearly $9.5 million in April 1993. man, 37, plunged nearly half his savings— many mutual funds—5,600—as there are It remains unpaid. $22,000—into a high-tech investment in pag- stocks listed on the New York Stock Ex- In a 1992 interview, Work Recovery Presi- ing systems last fall. His dream was to earn change. dent Thomas Brandon recalled being im- enough to leave his 90-hour-a-week job oper- Investors are confused because even legiti- pressed by Mr. D’Onofrio’s plush office suite, ating a crane to buy a Pizza Hut franchise. mate firms can’t be entirely trusted. Big chauffeured limousine and seeming dedica- ‘‘I figured if Bloch had his own show all brokerages still pay incentives to salesmen tion to helping small companies such as his these years, and he’s telling people to buy to hype products. The media adds to this raise capital through Regulation S trans- this, it’s gotta be on the up-and-up,’’ ex- charged environment by tantalizing inves- actions. Mr. Brandon said the pitch ‘‘was al- plains Mr. Chilelli. tors with the possibility of high returns. most evangelical in tone.’’ But federal authorities say Mr. Bloch lined ‘‘Quit young and enjoy the rest of your life,’’ Mr. D’Onofrio and his associates recently his own pockets working in collusion with a beguiles a recent Money magazine cover. latched onto another small publicly traded number of advertisers to hustle ill-advised ‘‘Investors are clearly more vulnerable,’’ company, Madera International Inc., a and fraudulent high-tech investments to says Arthur Levitt, chairman of the SEC. Calabasas, Calif., firm with a bizarre past loyal listeners, ultimately stealing $21 mil- At stake is nothing less than the future that included plans for an automatic-weap- lion. prospects of millions of investors: their re- ons factory in China. By last year, Madera Mr. Bloch says he is innocent of any tirement funds, their children’s college edu- had a new business—exporting timber from wrongdoing, but today he sits in jail await- cation money and the resources to care for Nicaragua—and a new investment banker, ing trial. their aging parents. First Capital Network Inc. The Bloch case is emblematic of how tech- The longshoreman, Mr. Chilelli, has been Mr. D’Onofrio has been operating from nology has unleashed an unprecedented wave forced to put his dreams on hold. ‘‘I feel fool- First Capital’s Santa Monica office. Accord- of investment fraud that is ripping off con- ish,’’ he says. But, he asks, ‘‘How do you tell ing to several individuals who have done sumers for billions of dollars. Investors are what to invest in? Who do you trust?’’

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TECHNOLOGY BLINDS INVESTORS Salesmen from Breakthrough took Mr. TARGETING THE SAVINGS OF RETIREES Bob Shifman was getting a sick feeling in LaCava and a dozen other investors to a le- Some investors are so mesmerized by the the pit of his stomach as he listened to a gitimate conference at the Newark Marriott promise of high-tech products that they even slick promoter pitch wireless cable tele- hotel held by paging equipment manufac- entrust their retirement money to these vision to a roomful of retirees last June. turer Motorola, which knew nothing about products. Richard Horne described wireless as the Breakthrough. A limo ride and dinner were In an elaborate ruse, Jerry Allison and cellular telephone of the 1990s, a techno- part of the package. Qualified Pension Investments Inc. of logical miracle capable of providing better Mr. LaCava forked over $22,200 that night Scottsdale, Ariz., convinced retirees to sign service at lower costs. Why, he asked, would in a five-for-three deal, buying licenses in over their entire retirement accounts to the reasonable people invest in an unpredictable Kansas City, Mo., Louisville, Ky., and three ‘‘IRA approved’’ pension administrator. stock market or in real estate with such a other cities. ‘‘There is no such legal statement as ‘IRA ‘‘tremendous opportunity’’ available? BIG FEES FOR USELESS LICENSES approved,’’’ says Kenneth Lench, SEC ‘‘This is an excellent place to park your He never received the licenses. Principal branch chief, whose Washington office filed a money,’’ Mr. Horne concluded. QPI complaint. Even as the room erupted into applause, Michael McGuinness, using the name Mi- chael Taylor, put off Mr. LaCava for two QPI should have acted as a disinterested Mr. Shifman thought of the $15,000 in savings third party in administering the accounts. he had sunk into the enterprise. The Jersey months, cancelling meetings and blaming the delays on government bureaucrats. In- Instead, Mr. Allison’s company allowed City retiree had planned to give the money backers of phony wireless cable operations to to his two adult children and six grand- vestors finally stopped buying the excuses and reported Breakthrough to postal inspec- mail QPI brochures to prospects alongside children. their own promotional materials. In return, Eleven months later, the U.S. Attorney’s tors last December. Mr. McGuinness pleaded the Scottsdale company stuffed those retire- office filed an indictment charging the oper- guilty to charges of mail fraud earlier this ment accounts full of worthless wireless ators of the wireless venture, known as year. cable investments. The company took in $270 Greater Columbia Basin, with defrauding Like Mr. LaCava, many investors have million of retirement money from 14,500 peo- consumers of a total of $21 million. made millions off such new technologies as Among those implicated were Sonny cellular telephones, heightening interest in ple nationwide between 1991 and 1994. Bloch, James Barschow, Joseph Glenski, high technology. Holding out the promise of Mr. Allison faces a trial on the SEC com- Bruce Schroeder and Milton Sonneberg. Five similar huge returns, hustlers charge unso- plaint that he misappropriated at least $4.5 others have pleaded guilty to felony charges phisticated investors as much as $7,500 to file million in retirement funds. A subsequent re- that they worked with Mr. Bloch, including a license application that could be filed with ceiver’s report shows that as much as $9.5 Steven Wiegner. Mr. Wiegner, who was presi- the Federal Communications Commission for million may be missing. dent of Mr. Bloch’s Independent Broad- as little as $50. They justify the expense by SCAM ARTISTS IMITATE WALL STREET casters Network, pleaded guilty last week promising engineering, and population stud- Scam artists also have followed Wall and is cooperating with the government. ies. Street into complex financial instruments. Mr. Horne, meanwhile, has been named as Often, the studies are never delivered. Chuckles Kohli of Princeton-based Sigma a defendant in an investor suit against Co- When they are delivered, they usually prove Inc. said he could make investors returns of lumbia, but lawyers representing investors worthless. And that’s just the beginning of 10% a month using derivatives and exchange- have been unable to track him down. the subterfuge. traded options to develop lucrative currency Crooks are selling schemes and products Investors are often misled about the capa- arbitrages. with a high-tech spin to a generation that bility of the technology or simply the loca- ‘‘All the banks are getting rich doing swap has eagerly watched laptop computers, cel- tion of the licenses that they apply for. Lit- derivatives,’’ an elderly investor later told lular phones and interactive multimedia tle is said about the heavy responsibilities authorities. ‘‘I wanted to share in it.’’ change the way people work and play. that accompany the ownership of a license, Another individual pumped more than Con artists use this fascination to lure in- such as a requirement that owners build $100,000, just about all of his retirement fund, vestors into a variety of ploys that use inter- transmission towers and stations costing into a portfolio managed by Mr. Kohli. active video, mobile telephones, pager sys- hundreds of thousands of dollars. ‘‘There were these people I knew who were tems and wireless cable. But the smartest Investors in Manhattan-based Metropoli- living a lot better than I was, driving nicer ones don’t stop there. They pitch Wall tan Communications Corp. were told that cars, without the income I had,’’ says the 52- Street’s own computer-based products and their specialized mobile-radio licenses would year-old father of three. ‘‘I said, ‘Oh shoot, I trading techniques—derivatives and arbi- become part of a nationwide wireless tele- could live like that, too.’’’ trage—to a gullible public eager to emulate phone network, according to an FTC com- Mr. Kohli took in about $40 million from the securities industry’s savviest traders. plaint. For an initial investment of $7,000, in- investors, according to court documents ‘‘Technology has the interest of people,’’ vestors were allegedly told, they could make filed by the Commodity Futures Trading says Stephen Gurwitz, an attorney at the as much as $58,000 a year before expenses. Commission and the U.S. Attorney’s office in FTC. ‘‘The schemes follow the headlines.’’ In less than two years, roughly 2,500 inves- Newark. tors funneled $28 million into the deal. About PERSONALLY ENDORSED BY SONNY BLOCH He allegedly violated a host of securities half of them signed separate agreements to Wireless cable fraud alone costs investors rules: He never registered as a commodity lease their licenses to a manager, expecting half a billion dollars each year, the FTC esti- pool operator, and he mingled investor dol- the manager in turn to pay them a stream of mates. The SEC has filed 21 wireless cases in lars. During his four years in business, he income that would resemble an annuity. the past three years. The FTC, which inves- never filed a single tax return. And to top it The manager was really a sister company tigates instances of misrepresentation, has all off, he lost $20 million of investors’ of Metropolitan. Both companies, authorities filed 14 high-tech cases since 1990, five this money while telling them they were reaping say, lacked the capital to properly build the year alone. huge returns. towers that would make the system work. Such a scam cost Ray LaCava $30,000— He squandered another $5 million on ex- The company tired to mislead regulators money he received from a car accident that penses, which included a personal limo driv- by building at least 300 temporary towers, disabled him for life. Well invested, Mr. er, go-go dancers and a strip bar. according to Danny Goodman, who was ap- LaCava thought, that money could buy his He was indicted for mail fraud and is now pointed by the U.S. District Court to take daughter an annuity, or perhaps even set her in jail awaiting trial. up in business. over the company last year. In each location, A paging license seemed ideal. The Long the company would broadcast for a day or THE UNDERSIDE OF THE INTERNET Island resident had made a successful high- two, pull down the tower, shove it into a van Forget the old boiler rooms were high-pres- tech investment before; he says he netted and move it to the location of the next li- sure swindlers pitched penny stocks and half a million dollars a decade earlier on a cense, where workers would go through the other risky investments. Today’s hustlers cellular phone license. same motions. have jettisoned the phone banks for com- ‘‘I knew paging was up and coming,’’ re- ‘‘Metropolitan thought it would fool inves- puters, modems and the Internet to broaden calls Mr. LaCava. ‘‘I was noticing more and tors,’’ says Mr. Goodman. It did—until the their audience and lower their costs. They’re more people with beepers.’’ FTC stepped in. The agency filed a com- using computer-generated mailing lists, sat- When salesmen from Manhattan-based plaint against Metropolitan in January 1994 ellite transmissions and radio networks to Breakthrough Technologies Inc. called last and froze the assets of its central players. appeal to millions of potential targets. fall, Mr. LaCava was primed to listen. For Metropolitan principal Sheldon Jackler The new scam artist appears on late-night $7,400 per license, Breakthrough would con- signed a consent order last year agreeing to television and uses desktop technology to duct engineering studies and file an applica- cease operations. But he has since decided to produce pitches that mimic those of legiti- tion for Mr. LaCava to ensure him of a prime fight the government’s case and disputes mate personal investing experts. operating area. The company was personally some of the government’s claims. His lawyer, These tools have made financial fraud so endorsed by Sonny Bloch, who described Stephen Hill, says Metropolitan had every easy to perpetrate that one search for cyber- Breakthrough President Michael Taylor as intention of making the system operable, crooks nabbed a 19-year-old hacker peddling his ‘‘good friend.’’ Says Mr. LaCava. ‘‘That but its plan was interrupted by the court-im- an investment in eel farms. His tools: a per- clinched it for me.’’ posed receivership. sonal computer and an active imagination.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17948 CONGRESSIONAL RECORD — SENATE December 5, 1995 Nowhere does the possibility for abuse Others are also using computers to find tion is lawsuits brought by private in- loom larger than on the Internet and on-line and track good targets. In one of the fastest- vestors as part of a class action pro- services, where investor chat lines burn 24 growing telemarketing ploys, ‘‘recovery ceeding. hours a day with stock tips and ideas. rooms,’’ fraud artists use computers to build Let me again invoke the Wall Street While activists criticize on-line services lists of people who have already been de- for their unwitting role as purveyors of por- frauded so they can be tapped again. Journal, if I may. This was an article nographic pictures, the real smut is often fi- According to an FTC complaint, Meridian that appeared in December 1993. Its nancial. A recent visit to America Online Capital Management Inc. promised to re- premise was ‘‘Suits by Firms’’—that is found these dubious offers: cover money that victims had lost in tele- other companies—‘‘Exceed Those by In- Stop Paying Income Taxes Legally . . . marketing schemes, sometimes passing itself dividuals.’’ Let me just read one para- Get a letter from the IRS stating: ‘‘You are off as a regulatory agency. For 10% of their graph, if I may, that I think illustrates not liable for income taxes.’’ This is honest, original loss, the Las Vegas firm told inves- the thrust of this article. legal and REAL. tors, it would launch a class-action suit, or $250,000 by Christmas or Sooner!!! Call the tap a performance bond said to be posted by Preliminary data in the first-ever study of World’s Most Profitable Number. the first round of crooks. litigation patterns of Fortune 1000 compa- Get out of the DEBT Cycle! . . . Stop put- ‘‘The idea was to entice consumers to send nies show that businesses’ contract disputes ting your banker’s kids through school or good money after bad,’’ says FTC staff attor- with each other constitute the largest single paying for his new swimming pool! ney James Reilly Dolan. category of lawsuits filed in federal court. Investors who would be wary of a tele- Meridian collected $1.6 million from 800 Let me repeat that because I know marketer are less suspicious of an electronic people, many of them New Yorkers, in just that it tends to run counter to the pre- pitch—particularly when it is personalized. eight months. ‘‘There is a clubby mentality. It’s like vailing myth about what is actually Acting on a request from the FTC, a court occurring in the so-called litigation ex- hanging out at the campfire at Malibu,’’ says froze Meridian’s assets in August, and the Mark S. Herr, New Jersey consumer affairs company is no longer in business. plosion. director. Mr. Dolan says such pitches are particu- Preliminary data in the first-ever study of A recent SEC case shows how electronic larly convincing because the swindlers know litigation patterns of Fortune 1000 compa- schemers get close to their prospects. The details about the victims, often including nies show that businesses’ contract disputes initial hook was an ad on Compuserve, where the exact amounts they have lost. with each other constitute the largest single subscribers were promised ‘‘High Returns for Lists of potential targets cost $5 a name category of lawsuits filed in federal court. Investors!!’’ last July. People who responded for initial leads, but $15 for the names of peo- I know that is not the accepted view, to that pitch were mailed an authentic-look- ple who’ve already been fooled once. and it goes contrary to the convening contract describing a $12,000 ‘‘prime Hackers’ use of technology is also giving tional wisdom that is being espoused bank’’ investment. them a leg up in evading their trackers. Once Gene Block, a Durham, N.C., business con- a cyber-huckster gets a hint that someone is on the floor that there is this explosion sultant, gained the trust of investors by on his tail, he can easily move on. of class action lawsuits. But that is chatting with them through e-mail. He ‘‘You cancel your account with your on- what the Wall Street Journal has to promised that their investments would dou- line service and vaporize,’’ says Richard Lee, say. ble in just six months and were protected by assistant regional director in the SEC’s New Mr. President, I ask unanimous con- top bank guarantees, says the SEC in a com- York office. sent that the Wall Street Journal arti- plaint. Regulators lack the tools to go after some cle to which I have made reference, of But Mr. Block was really a member of an of the more subtle misrepresentation that international ring that marketed these occurs on the Internet. Investor bulletin Friday, December 3, 1993, be printed in phony investments, scoring $1 million for board postings are singed only by names the RECORD. their efforts. So far, the SEC has recovered similar to CB handles. Because of the ano- There being no objection, the article $250,000 from the bank accounts of the nymity, people can easily camouflage their was ordered to be printed in the scheme’s originator, Renate Haag, who is be- identities. A stock touter, for example, can RECORD, as follows: lieved to have fled to her native Germany. be a broker, a savvy penny-stock promoter [From the Wall Street Journal, Dec. 3, 1993] But the scheme is noting new. The SEC has or even the president of the company. SUITS BY FIRMS EXCEED THOSE BY 24 other prime bank cases on the books, and Mr. Herr, the New Jersey consumer affairs INDIVIDUALS more are on the way. director, concedes that regulators are play- ‘‘In the old days, you had the boiler rooms ing catch-up. (By Milo Geyelin) where you had to hire 20 people to make ‘‘We are in the embryonic stage,’’ he says. Businesses may be their own worst en- thousands of phone calls to sell fraudulent ‘‘Right now, the bad guys are ahead of the emies when it comes to the so-called litiga- securities. Now one person can do this by the good guys.’’ tion explosion. push of a button,’’ says James B. Adelman, Preliminary data in the first-ever study of former head of enforcement of the SEC’s Mr. BRYAN. With that background, one might rightly inquire, why should litigation patterns of Fortune 1000 compa- Boston office. nies show that businesses’ contract disputes Mr. Block faces a trial on the SEC com- the Congress be considering legislation with each other constitute the largest single plaint. His attorney, Paul Prew, doesn’t deny that makes it more difficult for de- category of lawsuits filed in federal court. that his client participated, but says, ‘‘He frauded investors to bring and win Trailing behind are personal-injury suits and was used as a pawn by people who knew bet- cases? The simple answer is that those product-liability cases brought by individ- ter or should’ve known better.’’ who advocate this conference report in uals. Con artists are combining PC power with its present form, in my judgment—and This result—while limited to federal other technology. Richard Welch, formerly courts—seems to challenge companies’ fre- the operator of a fantasy telephone sex line, I say this with all due respect—are leg- islating by anecdote and clearly lawyer quent claims that personal-injury plaintiffs’ drew on his knowledge of 900 numbers to de- lawyers are the main engines of litigation in velop a Ponzi scheme in which people were bashing. America. And it may force some companies invited to invest in a worldwide lottery serv- I understand that lawyers are a dif- to review their own penchant for using the ice said to be sponsored by North American ficult group to love. I fully acknowl- courts to resolve commercial disputes. Indian tribes. edge that some of my lawyer friends The finding is part of an ongoing study by The con was a one-two punch that started have been guilty of misconduct and University of Wisconsin sociologist Joel Rog- with telephone and fax solicitations. Early that there are indeed frivolous lawsuits ers and RAND Institute for Civil Justice sen- investors in the ruse then used e-mail and ior researcher Terence Dunworth. Ulti- computer bulletin boards to recruit others, filed. But in our effort to focus on frivolous lawsuits, in my judgment, the mately, by looking at 1,908 companies that according to a complaint filed by the SEC. have been ranked among the Fortune 1000 By harnessing the power of these tech- provisions of this piece of legislation from 1971 to 1991, the study will chart federal nologies, Mr. Welch and his coconspirators effectively emasculate private investor trends industry by industry and company by drew in 20,000 people in a four-month period. protection. company. The agency is still trying to locate Mr. During the debate today, we will hear The results so far, presented in draft form Welch, who has not responded to the com- repeatedly how often our high-tech- at a symposium at the University of Wiscon- plaint. nology companies are sued. What we sin’s Institute for Legal Studies two weeks SCAM ARTISTS DIALING FOR DOLLARS will not hear a lot about is suits ago, also show that the once-steady annual But crooks don’t have to be experienced brought by one company against an- increases in overall legal filings involving Net surfers to benefit from technology: Sim- Fortune 1000 companies peaked in 1987 and ple PC desktop publishing software allows other. Mr. President, this legislation have declined 21% since then. Similarly, stock front-runners, for example, to design does nothing and says nothing about business litigation involving smaller compa- professional-looking newsletters to push up one company’s right to sue another nies and individuals peaked in 1986 and has the prices of the stocks they hold. company. The sole focus of this legisla- since dropped 12%.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17949 When cases are broken down by category, through arbitration and mediation. ‘‘When this is too short, and, indeed, when we the study shows that labor and civil-rights you have businesses suing businesses,’’ says discussed changes in this legislation in claims have increased in recent years. So Shelby R. Rogers Jr., general counsel for the 1993, my colleagues on the Banking have filings involving a single product such Texas Medical Association, in Houston, ‘‘you Committee said, ‘‘Yes, we would be as asbestos-related injuries. Otherwise, prod- find that getting to the courthouse takes a uct-liability suits against Fortune 1000 com- number of years . . . and as a result we see willing to go along with this change in panies have actually dropped, from a high of many more businesses going to different the statute of limitations, but it must 3,500 in 1985 to 1,500 in 1991. forms of alternative dispute resolution.’’ be done in the broader context of over- ‘‘I know that business doesn’t want to hear But Mr. Rogers, of the Texas Medical Asso- all reform.’’ that, but these data don’t seem to lie,’’ says ciation, says he is yet to be persuaded that Mr. President, that is what we are Mr. Rogers. federal litigation trends bear any relation to The reasons for the various litigation pat- what’s happening in jurisdictions such as the purporting to do today. Disagree as I terns are far from clear, however. For exam- Texas state courts, long regarded as among may with the thrust of much of which, ple, says Mr. Rogers, the high incidence of the most pro-plaintiff in the country. And in my judgment, undermines the abil- commercial legal disputes among businesses even Mr. Dunworth concedes there’s ‘‘a great ity of innocent private investors to re- may be the result of their litigiousness or deal of uncertainty about what’s taken place cover from fraud, this is a comprehen- may just reflect the increase in the number in state courts.’’ But he adds: ‘‘if there are sive review, but I think it is indicative of contracts in effect—and thus potentially significant trends at work (generally), they of the bias that infects this legislation, subject to dispute—in a growing economy. surely must be evident in federal courts.’’ that this has nothing to do with pro- In either event, the results suggest that by Lawyers at big firms nationwide rank pointing the finger at plaintiffs’ lawyers, Cravath, Swaine & Moore as their toughest tecting investors, this purports in no business leaders and advocates of legal re- competitor, followed by Skadden, Arps, way to be fair and balanced. This is form may be bypassing other contributors to Slate, Meagher & Flom and Wachtell, simply designed to immunize perpetra- the overburdened civil-justice system, at Lipton, Rosen & Katz. The three New York- tors of wrongdoing from legal responsi- least in the federal courts. based firms are followed by Wilmer, Cutler & bility, from their reckless misconduct In response to the study’s finding, legal-re- Pickering, of Washington, D.C. that has caused great loss to individual The survey of about 1,300 large-firm law- form advocates voiced skepticism about investors, to pension funds, to securi- what the federal-court results may mean. yers at 158 firms was conducted by Global ‘‘The overwhelming majority of product-li- Research, an arm of London-based ties portfolios held by cities, counties, ability claims are filed in state courts,’’ says Euromoney Publications PLC, as part of a States, and universities and colleges in Victor Schwartz, a lawyer-lobbyist in Wash- larger study of law-firm management prac- America, because although we have ington, D.C., who represents backers of a tices. tried, there has been an unwillingness, proposed federal law to rein in some product- In addition to leading the overall rankings, a refusal to right the statute of limita- liability claims. Cravath was first choice in three of the 19 tions problem. State courts are generally regarded by subspecialties in which respondents also plaintiffs’ lawyers as friendlier forums for were asked to nominate blockbuster com- That has nothing to do with being personal-injury and product-liability claims petitors. The hard-charging Wall Street frivolous—nothing to do with being than federal courts, and most suits against firm, whose partners have been known to frivolous. The statute of limitations local businesses and manufacturers would boast that its cafeteria is as crowded at din- bar that currently operates prevents more likely be filed in local courts. But com- ner as it is at lunch, was seen as dominating the most meritorious of cases from prehensive state-court data are nearly im- in tax, securities and asset finance. being brought if it exceeds the current possible to compile. So studies of state sys- Skadden eclipsed others in mergers and ac- quisitions, while Wachtell led in banking; 1 year from the point of detection, 3 tems have been confined to a limited number years overall bar. The Securities and of courts. Thus, few useful comparisons can the second-ranked firm in both categories be made with the federal numbers. was New York-based Shearman & Sterling. Exchange Commission has testified Responds RAND researcher Mr. Dunworth: Other champions included Fulbright & Ja- that even with the enormous resources ‘‘It’s better to light a candle than to curse worski, Houston (arbitration and litigation); brought to bear by the Federal Govern- the darkness. Even if that’s all you’re doing Weil, Gotshal & Manges, New York (bank- ment, all of the investigators, all of the by looking at federal courts, you’re further ruptcy); Simpson, Thacher & Bartlett, New staff, that it takes them more than 2 ahead than you were.’’ York (antitrust); O’Melveny & Myers, Los years to conduct such an investigation Angeles (corporate); and Sidley & Austin, Messrs. Rogers and Dunworth relied on a before they are prepared to bring an ac- computer database of more than four million Chicago (environment). tion involving investor fraud under the federal lawsuits between 1971 and 1991 to (Mr. CAMPBELL assumed the chair.) identify 2.48 million suits that involved at Mr. BRYAN. Mr. President, there are Securities Act. How much longer does least one business entity. Fortune 1000 com- a number of reasons why I oppose this it take a private investor without all of panies were involved either as plaintiffs or legislation, and I would like to very the resources available to the Federal defendants in 457,358 of those suits, or nearly Government to, indeed, conduct such 20%, according to the study. Not surpris- briefly make reference to some of the primary reasons. My colleague, Sen- an investigation and make a deter- ingly, they were defendants in virtually all mination whether individually or as a ator SARBANES, indicated in a very personal-injury cases (95%) and in most labor class they have been subjected to in- and civil-rights cases (85%). In contract dis- thoughtful and very comprehensive vestor fraud. putes, Fortune 1000 companies sued each statement why he was opposed, and I other as often as they were sued. share and associate myself with his Aiding and abetting. The great case, To get a more detailed look at how For- comments. and we will say more about this later tune 1000 companies compared with other If this was designed to be balanced this afternoon, but the Keating case is litigants—such as other businesses, govern- legislation, something that fairly dealt one that has become a symbolic case ments and individuals—the study examined involving the amount of investor fraud 405,908 cases that landed in federal court with the frivolous lawsuit problem in solely because the parties came from dif- America, and yet at the same time pro- by Mr. Keating’s actions. Ultimately, ferent states, thus creating so-called diver- tecting private investors who have $262 million was recovered in that case sity of jurisdiction. Since 1985, records in been defrauded, I think it would be on behalf of investors. That is recov- such cases have indicated whether either very easy to craft a piece of legisla- ered. That means that there has been a party is a corporation, large or small. tion. determination that, indeed, investor According to these records, 43% of the civil Every regulating body that I know fraud occurred and that the individuals lawsuits involving Fortune 1000 companies of, from the Securities and Exchange bringing that action were, indeed, dam- between 1985 and 1991 were contract disputes. aged to that extent. For smaller corporations, the percentage was Commission to the North American As- even higher—51%. Taken together, business sociation of Securities Administrators, Seventy percent of the recovery in disagreements, whether among individuals, all have urged upon us to deal with a that case—70 percent—was by those companies or corporations, made up nearly serious problem concerning an unduly who are aiders and abettors. Mr. half of all federal litigation in this sample. restrictive and shortened statute of Keating himself, having become bank- Federal suits over contracts outpaced any limitations. The Lampf case of 1991 rupt, or judgment proof, was unable to other single category of litigation. shortened the statute of limitations for respond in damages. That is, plaintiffs Yet even these cases are on the decline now. Contract lawsuits peaked at 10,253 in class action suits to 1 year from the filing against him could not recover 1987 and dropped 30% to 7,182 in 1991. A key point of discovery, a 3-year bar. Every- from Mr. Keating because he did not reason, corporate legal experts say, is com- one who is involved in protecting in- have any money, and yet there were panies’ growing willingness to settle disputes vestors from fraud acknowledges that those who were involved in this very

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17950 CONGRESSIONAL RECORD — SENATE December 5, 1995 crafty, complicated, extensive, com- sible in any way at all. Again, this has statements that are false, totally prehensive and pervasive fraud—law- nothing, absolutely nothing, to do with false—we are not talking about mis- yers, accountants, and others—whose a frivolous lawsuit. leading or inaccurate; we are talking actions substantially contributed to Rule 11 is the provision under the about totally false statements—are this fraud who would be aiders and Federal Rules of Civil Procedure that protected. That is, those who offer abettors who, under this legislation, is available to sanction lawyers who those statements now enjoy no liabil- are now immunized. bring frivolous lawsuits. I believe that ity if they simply add cautionary lan- We sought to restore the provisions the proponents of this legislation, in guage. ‘‘Yes, this stock is going to tri- of aiding and abetting, having nothing the Senate version, hit it right on the ple, but there may be a contingency to do, Mr. President, with a frivolous mark. Whether one is a plaintiff’s law- out there in the future that if the econ- lawsuit. We are talking about individ- yer or a defendant’s lawyer, if that omy goes sideways on us, that may not uals who have been determined to have lawyer is involved in frivolous action, happen.’’ Just cautionary language. been guilty of reckless misconduct that the full sanction of the law ought to That is pretty outrageous, in my view, caused damage to private investors; attach, and that lawyer ought to pay once again, this having nothing to do, they are now going to be immunized the cost as a result of undertaking that in my view, with frivolous lawsuits but from this liability. That has nothing to frivolous action. I have no quarrel with having everything to do with pro- do with the frivolous action, the pro- that at all. That is the way it was when tecting those individuals who make portionate liability that Senator SAR- it left the Senate, Mr. President. But statements that turn out to be inac- BANES talked about extensively. what has occurred is part of this ongo- curate and misleading and immunizing Again, the whole theory of our sys- ing and skewing process, having noth- them from liability. tem of American jurisprudence is one ing to do with frivolous lawsuits. Ev- Now, our securities investor protec- of balancing the scales of justice. On erything is weighted in this legislation tion system in America is really predi- one hand, we are talking about individ- toward protecting those who per- cated on three individual pillars—two uals who are totally innocent. All they petrate fraud and those attorneys who of them governmental, one in the private sector. Clearly, the Securities and did was to respond to an entreaty or a represent them, because now the full Exchange Commission at the Federal sales approach to buy securities, subse- force of the sanction only applies to level has the ability to assist in pro- quently finding themselves defrauded plaintiffs’ lawyers. Defendants’ lawyers tecting the marketplace from fraud as a result of the purchase of those se- who are guilty of frivolous actions are and to provide the measure of investor curities, and, subsequently, it is deter- not subjected to the same standard. It confidence that has characterized the mined that individuals who are reck- has been pointed out by Senator SAR- American securities market. Many of less in their actions—ordinary neg- BANES that the pleading requirements my colleagues who have had State ex- ligence, there is no liability for ordi- are more difficult. That, too, has noth- perience know that each of the States nary negligence. So those simple mising to do with frivolous lawsuits. have securities offices which also serve takes, mishaps that all of us are aware Finally, although it is a bit arcane, as an adjunct to protect the public of in life, we are not talking about that are the so-called safe harbor provi- from investor fraud. But recognized as kind of conduct. We are talking about sions. I want to comment for a moment being extremely important in policing reckless misconduct. on safe harbor. Prior to 1979, one could the market and providing for that in- We are now saying that in terms of not make what is called a forward- vestor confidence that characterizes balancing, who should accept the ben- looking statement—that is, predictive and distinguishes the American securi- efit, who should bear the burden, we conduct about the security because ties market as no other securities mar- are now saying, Mr. President, that such and such is going to happen next ket in the world is the ability of pri- those individuals who are guilty of week, next month, or next year. The vate investors, through class actions, reckless misconduct, that their liabil- reason why that is the rule is that be- to bring cases themselves. The SEC ity is limited only to the proportion cause those kinds of future predictions fully acknowledges that, and so it is that the court finds them to be respon- have been the subject, historically, of that protection which is being under- sible. overstatements, making it very easy to mined by this legislation. The practical consequences of that, mislead people by false encouragement: In fact, the Congressional Budget Of- as in the Keating case, for example, ‘‘Buy this stock and you are going to fice, which is invoked with a level of where you have the primary perpe- be a big-time winner’’—that type of respect and devotion that I have not trator bankrupt, is that the innocent thing. seen in my previous 61⁄2 years here in investor is unable to secure full recov- In 1979, for the first time, they per- this institution, has estimated that as ery, because what we are talking about mitted forward-looking statements. I a result of what this piece of legisla- in this legislation is to limit that li- do not come to the floor as a Member tion does in terms of preventing access ability to the proportionate amount. of this institution as an expert in secu- by private investors who are victimized So if the determination is made that rities law. Whether that was a good by fraud, it would require another $25 there is only a 20-percent liability or provision in the law, I do not know. to $50 million a year in addition to the fault found with respect to the reckless But in doing so, the SEC did recognize existing budget of the SEC to offset defendant and that the 80-percent li- that there was great risk and great that loss. That is, it is recognized ability under this hypothetical would danger because those people who sell under the current system that the SEC be the primary defender and the pri- and offer these securities oftentimes cannot adequately police the securities mary defender is bankrupt, that is it. get carried away and make such opti- market, and its philosophical predicate That is it, even though it is the con- mistic and rosy predictions that people is that the private investor, through duct of the reckless defendant that are misled. And so the standard that the class action mechanism, is a very contributed to the loss. That, Mr. was employed was that you could make important function. We now, in my President, has absolutely nothing to do these forward-looking statements and judgment, render that private class of with a frivolous lawsuit. That is a you were protected from liability if action much less viable in protecting value judgment as to who ought to be your statements were made, first, in the marketplace. Some 11 attorneys protected: the innocent investor or the good faith and, second, with a reason- general have complained about these individual whose reckless conduct con- able basis. changes and have characterized this as tributed to the loss. As I say, I am not an expert in this an unfunded mandate. For eons of time under the common area, but that strikes me as being a We hear repeatedly, and we will hear law, in those situations the public pol- pretty reasonable standard. There is no during the course of the day, that this icy has always been weighing these liability, even though the statements legislation is absolutely necessary be- scales of justice that the burden ought may be inaccurate or misleading, if cause the mainspring of the private en- to fall on the individual whose reckless they were made in good faith and with terprise system that all of us respect conduct contributed to the loss rather a reasonable basis. and acknowledge as having created the than to have that burden borne by the Now, Mr. President, as a result of the highest standard of living for us in innocent investor who was not respon- action taken by the conference, even America, or anyplace in the world, is

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17951 that as a result of these lawsuits, pri- well for us in America, admittedly re- worse now than it was as it left the vate investor actions, the securities quiring the fine tuning I alluded to in floor of the Senate. market has been limited in terms of those provisions that, in my opinion, With respect to the provisions deal- the ability of the entrepreneur, the deal legitimately with the frivolous ing with the safe harbor provisions, the startup company, to generate the kind lawsuits. pleading requirements, the balance of of capital needed to bring new products This is a meat ax approach. Make no equity and fairness of rule 11, the pro- and services into the marketplace. We mistake, its purpose is not to protect portionate liability provisions have will hear that ad nauseam. against frivolous lawsuits. It is to limit been made much more onerous. All of Here are the facts. The Dow Jones in- liability or to insulate liability from a these provisions, including the RICO dustrial average recently exceeded the whole category of persons whose con- provisions which, as the bill left the 5,000 mark. In 1995, we have seen the duct caused the investor loss. Senate, concluded that, if any indi- Dow Jones rise higher in 1 year than at The conference report would preclude vidual were convicted of a RICO fraud, any previous year in its history. Initial many consumer institutions and State then all that were involved would be public offerings—that is, the mecha- and local governments from recovering subject to RICO sanctions in terms of nism used to generate this capital by their losses in Federal courts when the measure of damages that can be renew companies and other companies they are defrauded in the financial covered—that has been greatly elimi- who are wishing to develop a new prod- market. nated. uct or service—have risen by 9,000 per- The conference report takes the Perhaps even more perniciously, the cent in the last 20 years. The capital worst features of the Senate bill and provision that left the Senate dealt raised as a consequence of those new combines them with many of the most with the Securities Act of 1934. Now we offerings has increased by 58,000 per- dangerous provisions in the House have brought in the Securities Act of cent. That is good news for Americans. version. 1933 which deals with a whole different I am pleased to hear it. I think all of This legislation will harm con- category of actions and we have ap- my colleagues should be. But it does sumers, consumers who have savings in plied many if not all of the provisions not make the argument that the pro- retirement funds, stocks, bonds, mu- of that. I invite my colleagues’ atten- ponents of this bill assert that this leg- tual funds, or other investments. In tion to that. islation—to immunize this whole cat- fact, it will harm taxpayers who de- I yield the floor. egory of malefactors—is necessary in pend on the financial stability of their Mr. BENNETT. Mr. President, I will order that businesses can generate the State and local governments in places allow my colleagues to proceed, but I kind of capital needed to bring new like Orange County, as an example. did want to respond briefly to some of products into the marketplace. That is why, notwithstanding the ef- the comments made by the Senator We will also hear that investors in- forts of the proponents of this bill to from Nevada, having been on the floor variably sue every time the stock drops portray this—if you are for starting en- through his entire statement. I think to any degree, regardless of their rea- trepreneurial companies, if you are for there are a few points we need to make sons. Let me again make the point, Mr. eliminating frivolous lawsuits in the and then I will sit down and let my col- President, that the evidence simply marketplace, you should support this league proceed. does not support this. legislation; if you want to help the As I took notes from the comments In fact, the University of California trial lawyers, you should be opposed to of the Senator from Nevada, his first study of 589 stocks that dropped more it. That is not what this is all about. point listed how difficult it is to prove than 20 percent in 5 days showed that That is why the National Association fraud. He gave us seven things he said only 3 percent were sued by investors. of State Financial Officers—those are hard to prove. I agree with him This is a far cry from the perception would be the State treasurers, comp- completely. These are hard to prove. that proponents of this legislation will trollers, however the State financial They are also very easy to allege and try to paint. portfolio is managed—the national as- an alleging of these things is what We will also hear investor suits are sociation of these groups has expressed leads to the settlements out of court filed just to get a quick settlement. its strong opposition. So, too, has the that are the problem for many of the Here again, the evidence is to the con- National Association of County Treas- companies we are dealing with. trary. The SEC testified that surveys urers and Financial Officers. The na- Second, he quotes from the Wall show most judges in these cases believe tional association that deals with mu- Street Journal. He quotes from Crain’s, frivolous litigation is not a major prob- nicipal financial officers and the na- saying fraud is soaring; the Wall Street lem and could be dealt with adequately tional association that deals with the Journal headline, ‘‘The Bad Guys are through prompt dismissals. portfolios and securities managed by Winning.’’ We have also heard there has been an America’s universities and colleges My only comment is if indeed that is explosion of these class actions. Mr. also oppose this legislation. so, why are not the Bill Lerach’s of this President, that is simply not true. Of Also, the National Council of Senior world going after those bad guys in- all of the civil actions brought in the Citizens, the National League of Cities, stead of conducting the kind of prac- Federal court system—all of them, the National Association of Counties— tice that we have seen described here from soup to nuts, all of them—about I will not belabor the record with all of on the floor in the previous debate? 0.1 percent involve class action secu- these—the Fraternal Order of Police, Third, he makes the point that the rity cases—0.12 percent is the precise all have expressed their strong opposi- biggest number of suits are between number. tion, and for the same reason that I companies, not class action suits on be- If you look at a table over the last 20 have alluded to, because it is far, far half of the individual investors. He years from 1974 to 1993, you will see beyond what is needed to address the says this bill does not address that. that the number of cases filed have re- legitimate concern of frivolous law- I agree with him, this bill does not mained essentially the same. This is a suits as it relates to securities actions. address that. If he feels that is a prob- document prepared by the Office of the I know there are a number of my col- lem that needs to be addressed, he can U.S. Courts, indicating that about 270, leagues who need to speak. I will just file a bill that addresses that. The fact 260 are actions filed a year—no be very brief. Let me say I will com- this bill does not address that does not change—even though in the past 20 ment in more detail. Some of you who mean that the issues the bill does ad- years the population in America has voted for this legislation when it dress are not meritorious and need not grown substantially. passed the Senate—some said on the be addressed. Of the 14,000 companies listed on the floor and to a number of us, ‘‘Look, if Then he talks about the statute of exchange, about 120 each year find this thing moves in the wrong direc- limitation. There has been a lot of de- themselves being sued; about 120. tion in conference, I will reconsider my bate about that. I only make the point I think we just need to put that in position.’’ To those of my colleagues that this bill does not change the perspective as we go through legisla- who voted albeit somewhat reluctantly present level of the statute of limitation here that radically changes the for this legislation when it passed the tion. We are not talking about putting system that has worked essentially Senate, let me say that it is materially a heavier statute of limitation burden

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17952 CONGRESSIONAL RECORD — SENATE December 5, 1995 than currently exists. We are talking does not, as some claim, inflexibly re- dicting the stock will triple when we about allowing the current law to con- quire courts to stay discovery every talk about a safe harbor. We are talk- tinue. time a motion to dismiss is filed. It ing about safe harbor for people who Fifth, he talks about the great loss would have had no effect if this bill had make statements that they believe are to cities and pension funds that cannot passed—it would have no effect on the true at the time and then will get be recovered if we cannot go after the damage awards. Joint and several li- trapped in this kind of activity that I aiders and the abettors. Earlier in his ability would still have been available have described later on. statement he said we are being given under the fact circumstance of Finally, we come to the point where evidence by anecdote on the part of Keating. the Senator from Nevada says there is those of us in support of this bill, but I could go on and on. The point I no need for this. There has been no ex- he gives us no anecdote to show the want to make is very clear. It is a red plosion of these strike suits. This is great loss by cities and pension funds herring in this debate to talk about not a phenomenon that has suddenly except the anecdote that we hear again Charles Keating and the S&L disaster hit us. and again—and he brought it up under because this legislation would have had I close by quoting. He quotes from these circumstances—of Charles no impact whatsoever on the Govern- appropriate publications. I have a few Keating. ment’s ability to proceed in criminal that I would like to quote from. The Well, I take some time to make the action or an individual investors’ abil- first one, the Washington Post on the record very clear on Charles Keating, ity to proceed in class actions against 18th of November, 1995. Referring, in an because we hear that again and again Charles Keating. editorial, to this bill it says: as the anecdote of what we will lose if The comment was made that the safe The bill was a response to a genuine out- this bill is passed. I will make these harbor will now allow people to lie. No, rage. A small number of lawyers have devel- points, Mr. President. it will not. If you make a false state- oped a technique of pouncing on any company whose stock price suddenly drops Most of the losses from the savings ment, the one referred to as an exam- sharply. They then comb through past state- and loan scandal did not result from se- ple by the Senator from Nevada, ‘‘The ments by the company to find the conven- curities fraud. They resulted from out- stock is going to triple,’’ this bill does tional expressions of hope for the future— right criminal activity and looting the not protect you because you cannot and sue on grounds that those statements assets of the companies. They do not make a prediction about what is going have misled and defrauded investors. That’s fall under the purview of this bill at to happen to the stock under current a highly strained definition of fraud, but the all. They are simply irrelevant to this SEC regulations and not be called in present state of law makes this kind of suit very dangerous to a company. Although discussion. Even those S&L losses that violation of those regulations for that. these are nominally shareholders’ suits, they did result in part from securities fraud What you can say is we believe we generally are instigated and controlled en- would have been recoverable under this will be able to make the marketplace tirely by the lawyers. The companies most bill. It does not in any way, ex post with our widget on such and such a vulnerable to this destructive tactic are a facto, go back and say, if this bill had date, and that we will have X numbers particularly valuable kind—small, recently been in law at the time, you could not of copies of that widget. established high-tech firms whose stock have gotten this recovery, you could But why would any executive make prices tend to be volatile. not have gotten this recovery. that statement if he did not believe it And then from the Economist maga- Why do I say that? Here are the rea- were the case? Nothing could be more zine dated December 2, 1995, in another sons. Statements by Keating and his damaging to his company or his rep- editorial, ‘‘Suits or Straitjackets,’’ the cohorts would have failed every one of utation or his credibility as an execu- subhead says ‘‘The American Congress the stringent preconditions in the con- tive than for him to make that kind of wants to make it harder for some ference report safe harbor provision for statement, meeting in front of securi- shareholders to sue companies for forward-looking statements. Every one ties analysts at the time of an IPO. fraud. This would be a good thing.’’ of Keating’s statements and his peo- You want to be very careful to preserve The editorial says the following: ple’s statements would have been ac- your credibility with the investment Class-action lawsuits, in which a bunch of tionable had this report been law. community. investors join together to sue a firm whose No, this is not the problem, CEO’s shares have fallen sharply, are a growing Second, the conference report would problem for America’s high-tech companies. not have immunized the alleged aiders making statements to securities ana- More than 650 such suits have been filed in and abettors because the conference re- lysts. I will tell you what the problem the past four years alone, including ones port authorizes the SEC to take en- is and why we need a safe harbor. Let against each of the ten biggest firms in Sil- forcement action against aiders and us say, within your company you have icon Valley. There is nothing wrong with in- abettors, and the Keating investors two engineers who are examining your vestors using the courts to protect their would have recovered fully even with- product. Engineer A says, ‘‘I do not rights. But a growing number of these suits like the way this thing works. I would are being brought by those who are victims out those aiding and abetting claims. not of corporate misinformation, but of their Third, the conference report would like to fine tune it.’’ Engineer B says, own (and their lawyers’) greed. As a result, not have rendered Keating’s actions ‘‘I disagree with you. I think it works many managers now hesitate to offer inves- time barred. It would have no impact just fine and it is ready for market.’’ tors any predictions at all, lest they end up on the statute of limitations in those Along comes one of these strike suits in court. areas because, as I say, it does not and the discovery starts and the lawyer That is why Congress is about to pass a change current law, and all of the ac- gets ahold of engineer A’s position and measure that would make frivolous securi- immediately he stands up and says, ties lawsuits harder to bring. Among other tions under Keating were brought with- things, the bill, which should clear both the in the applicable timeframe. Therefore, ‘‘Mr. Chairman,’’ speaking to the CEO House and Senate easily, does three things. the Keating thing does not apply there of the company, ‘‘you have within your First, it allows firms to issue forecasts to in- as an anecdote. files a document where one of your em- vestors providing that they list all of the im- We must understand that Keating’s ployees told you absolutely this prod- portant factors—a change in interest rates, fraud did not apply to forward-looking uct was defective.’’ He is quoting engi- say, or a slump in the consumer-electronics statements. They made flat statements neer A. He conveniently does not quote industry—that could affect them. Second, a of error about the past. They lied flat engineer B, who disagrees with him. defendant’s auditors and equity underwriters out about what had been done. This bill And, there you are, you have made a would no longer be liable for the full extent of shareholders’ losses, but only for those does not protect anybody who is going false statement. And, ‘‘If you did not that are caused by their own misbehavior. to lie flat out about the past. know the product was defective, you Third, the bill encourages judges to slap The conference report would not have should have known the product was defines on lawyers who bring groundless suits. empowered Keating’s cohorts to con- fective.’’ The final paragraph of the editorial trol the litigation. Under this bill, they That is the problem. That is the kind summarizes it very well. It says: would be as liable as they were in pre- of thing that happens over and over As a general rule, it is a good idea to allow vious law. It would not have delayed or again in these circumstances, and that shareholders to protect themselves. This imposed any obstacles to the actions is why people settle. We are not talk- would not change under the proposed legisla- that were taken. The conference report ing about CEO’s standing up and pre- tion. And in exchange for reform, they would

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17953 get more (and better) corporate information Class-action lawsuits, in which a bunch of Mr. BENNETT. Mr. President, I on which to base their investment decisions. investors join together to sue a firm whose thank the Chair. I thank my col- Mr. Clinton faces a choice. Either he can shares have fallen sharply, are a growing leagues. The distinguished Senator veto the bill on the mistaken ground that he problem for America’s high-tech companies. from Connecticut, one of the original is protecting shareholders’ rights, or he can More than 650 such suits have been filed in cosponsors of this bill and one of lead- sign it and help put more money in their the past four years alone, including ones pockets. against each of the ten biggest firms in Sil- ers of this fight for more years than I icon Valley. There is nothing wrong with in- have been in the Senate, is now on his Mr. President, I ask unanimous con- feet, and I am delighted to yield to him sent that the full text of both edi- vestors using the courts to protect their rights. But a growing number of these suits such time as he may require. torials be printed in the RECORD. are being brought by those who are victims The PRESIDING OFFICER. The Sen- There being no objection, the mate- not of corporate misinformation, but of their ator from Connecticut. rial was ordered to be printed in the own (and their lawyers’) greed. As a result, Mr. DODD. Mr. President, first of all, RECORD, as follows: many managers now hesitate to offer inves- I would like to thank my colleague [From the Washington Post, Nov. 18, 1995] tors any predictions at all, lest they end up from Utah for his eloquent statement in court. ANTIDOTE TO THE STRIKE SUIT in response to some of the charges that That is why Congress is about to pass a It started off last winter as a flamboyant measure that would make frivolous securi- were raised about this piece of legisla- ideological statement. But the bill to curb ties lawsuits harder to bring. Among other tion and the inclusion of editorial com- shareholders’ strike suits has now been whit- things, the bill, which should clear both the ment and note of major publications tled and sanded by many hands into a truly House and Senate easily, does three things. about the worthiness of this legisla- useful piece of legislation. An intemperate First, it allows firms to issue forecasts to in- tion. initiative is turning out to be much more vestors providing that they list all of the im- Mr. President, let me begin by laying promising than seemed possible last March, portant factors—a change in interest rates, out for our colleagues some idea of the when the House originally passed it. say, or a slump in the consumer-electronics amount of labor and work that has The bill was a response to a genuine out- industry—that could affect them. Second, a rage. A small number of lawyers have devel- gone into this bill. We are here today defendant’s auditors and equity underwriters debating a conference report, the final oped a technique of pouncing on any com- would no longer be liable for the full extent pany whose stock price suddenly drops of shareholders’ losses, but only for those step in the legislative process before sharply. They then comb through past state- that are caused by their own misbehaviour. this bill is either sent to the President ments by the company to find the conven- Third, the bill encourages judges to slap for his signature or veto. I think it is tional expressions of hope for the future— fines on lawyers who bring groundless suits. important to note how much effort and and sue on grounds that those statements Although the bill has broad support in how much work have gone into pro- have misled and disfrauded investors. That’s Congress, President Clinton may still be ducing this bill that our colleagues will a highly strained definition of fraud, but the tempted to veto it, party because it is bit- be asked to vote on later today. present state of the law makes this kind of terly opposed by two of his biggest sup- suit very dangerous to a company. Although Mr. President, Senator DOMENICI and porters: consumer advocates and trial law- I began this effort more than 4 years these are nominally shareholders’ suits, they yers. Not only will the bill give managers a generally are instigated and controlled en- license to lie, these groups say, but firms’ ago. In fact, the effort and discussion tirely by the lawyers. The companies most auditors and underwriters will no longer began even earlier than that, but the vulnerable to this destructive tactic are a have any incentive to catch them in the act. first bill was introduced 4 years ago, particularly valuable kind—small, recently The bill’s critics also fear that when share- and the House bill was introduced at established high-tech firms whose stock holders do have a legitimate gripe against a roughly the same time. So we have prices tend to be volatile. company, lawyers may be deterred from been at this for some 1600 days, if you The new Republican majority in the House bringing the case by the threat of a penalty want to put it in category of days. This rushed to defend them. It was one of the if it is ultimately thrown out. promises in the Contract With America. But is not something that just sort of came UNINFORMED they overdid it. In their zeal to do away with up a few weeks ago. I know that it was constraints on the entrepreneur, they wrote These fears sound reasonable enough. But mentioned in this so-called Contract sweeping language that would have pro- they ignore a crucial fact: financial markets With America, but the bill has a his- tected a lot of real fraud—and would also thrive on information. The more investors tory that predates that by several have protected those lawyers and account- know about what managers are thinking, the years. It has been considered, in fact, better they are able to gauge the risk of in- ants who earn fees by turning a blind eye to Mr. President, in three Congresses now. it. vesting, and to commit their resources accordingly. They need not (and should not) This will be the first time in three Con- The Securities and Exchange Commission gresses we are actually going to vote objected vigorously. To their credit, the con- treat the views they receive as gospel. In- gressional Republicans slowed down and deed, firms’ shareholders have proven time on a bill that will allow it to go to the took another look. After months of negotia- and again that they can be better than man- executive branch. tion the SEC’s chairman, Arthur Levitt, has agers at deciding what is important. The We have had 12 congressional hear- now given his assent to a much-modified problem with the explosion of frivolous law- ings on the bill before us. We have version of the bill. It would succeed in mak- suits is that it is discouraging companies heard from almost 100 witnesses on this ing spurious fraud suits much riskier to the from giving out much-needed information. legislation. We have almost 5,000 pages plaintiff, but without hampering investors As a result, the entire market suffers. Admittedly, striking the right balance be- of testimony that have been accumu- who have real grievances. lated. We have had a total number of Before President Clinton signs it, the ad- tween protecting shareholders’ rights and encouraging more openness is tricky. But six staff reports totaling 300 pages. We ministration needs to address one remaining have had some 103 submissions to the point. The statute of limitations in these the bill’s trade-off is a good one. Although cases is now only three years. With highly the reforms make it harder to bring ground- record, and we have had testimony complex investments increasingly common, less lawsuits, they do not prevent regulators from eight Members of Congress both it can easily be a matter of years before cus- from prosecuting swindlers. Nor do they let pro and con on this. The SEC, the Se- tomers discover a fraud. Five years is a more auditors and underwriters off the hook— curities and Exchange Commission, has reasonable limit. With that further improve- though by limiting their liability they make testified on 13 different appearances. ment, this bill would make securities law it harder for class-action lawyers to win settlements from firms that have simply fallen The Chairman of the Securities and Ex- much fairer both to companies and to share- change Commission has testified four holders. on hard times. A mere drop in a company’s share price usually is not evidence of fraud times and his predecessor has testified but the consequence of plan bad luck. four times. [From the Economist, Dec. 2–8, 1995] As a general rule, it is a good idea to allow So, Mr. President, what we are talk- SUITS OR STRAITJACKETS? shareholders to protect themselves. This ing about here today is a piece of legis- It is a familiar story. Soaraway Shares Inc, would not change under the proposed legisla- lation that has been considered in a budding Silicon Valley firm, launches a tion. And in exchange for reform, they would great detail. The bill passed the U.S. sexy new software product for the Internet. get more (and better) corporate information Senate by a vote of 69 to 30 several Its managers predict booming sales and on which to base their investment decisions. boundless profits. Suitably impressed, inves- Mr. Clinton faces a choice. Either he can months ago and by a vote of 325 to 90 in tors pile in and the firm’s share price takes veto the bill on the mistaken ground that he the other body after extensive hearings off. But a year later the product flops, the is protecting shareholders’ rights, or he can there. And obviously, with those vote shares plummet—and disgruntled investors sign it and help put more money in their totals, it was passed on a bipartisan head for the nearest courtroom. pockets. basis in both Chambers.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17954 CONGRESSIONAL RECORD — SENATE December 5, 1995 So I think it is important for our col- just a few moments ago, while he dis- expanding plants and, most impor- leagues and the public at large to know agrees with this bill, has brought very tantly, creating the jobs in this coun- that this is how the Congress ought to worthwhile ideas and suggestions and try, the good-paying jobs that are crit- do its business. This bill has been note to the legislative process; Senator ical for the health and well-being of changed, it has been worked upon, it BOXER of California, as well, who dis- this Nation. has been reformed, it has been ana- agrees with the bill but who has offered In other words, Mr. President, the lyzed, and in 1,000 different ways, over some positive insight as to how we consequences, in my view, of failing to the past 4 years. might proceed. approve this conference report could We have put a great deal of time and I also would be remiss if I did not rec- not be higher. Mr. President, we have effort into producing a bill that we ognize those people who work for these gone well beyond the day, as I said ear- think—those of us who have authored Members, who spent literally hundreds lier, when we must argue about wheth- it and supported it—by and large deals of hours in negotiations. I mentioned er the securities litigation system is with what everyone now admits and ac- the amount of time spent at hearings broken. It is painfully clear, Mr. Presi- knowledges is a serious problem. Prior and pages of testimony. I cannot even dent, to almost everyone, including the to this, Mr. President, when we first of- begin to calculate the number of legis- opponents, that the idea that there are fered the legislation, there was the lative staff hours spent in negotiations no problems is just wrong, and there threshold debate of whether or not and efforts to work on this product are massive flaws in the system as it is there was any problem at all. In fact, that now is before us in this conference currently operating. many of the people who have spoken report. Certainly, Andy Lowenthal of In fact, just last January, Mr. Presi- here today against this bill argued ini- my office, who is seated to my left, has dent, Arthur Levitt, the Chairman of tially very strenuously that there was done a tremendous job on this bill, the Securities and Exchange Commis- no problem at all—none whatsoever. along with Diana Huffman of my office sion stated—this is last January at one So I am encouraged at least that we and Courtney Ward; from Senator of our hearings: ‘‘There is no denying,’’ have put aside the debate and discus- D’AMATO’s office, Howard Menell, Bob he said, ‘‘that there are real problems sion about whether or not we are ad- Guiffra, and Laura Unger have done a in the current system—problems that dressing a legitimate problem. Even tremendous amount of work; and Sen- need to be addressed not just because the opponents of this legislation now ator DOMENICI’s office, Denise Ramonas of abstract rights and responsibilities admit that there was a serious problem and Brian Benczkowski have done tre- but’’—listen to this, Mr. President— that needed to be addressed. They dis- mendous work; Mitchell Feuer in Sen- ‘‘because investors in markets are agree with certain provisions here. ator SARBANES’ office, along with Brian being hurt by litigation excesses.’’ Most of their disagreements deal with McTigue in Senator BOXER’s office. The problems in private securities what we were not able to include in the There are many others. I apologize litigation have become so deep, Mr. legislation. I will get to this in more for not referencing all of them, but I President, and so deep rooted that we detail in a moment. want our colleagues to know and oth- do not have the luxury, in my view, of But as one who offered a number of ers that, again, in addition to the work idly waiting for the courts or some reg- the suggestions, two particularly that the Members do, the staff’s participa- ulatory body to fix them for us. Every- did not make it into the bill, you do tion and involvement has been signifi- one who knows anything about the not make the good the enemy of the cant. present system—everyone—will tell perfect here. We have a very sound So, Mr. President, I am very pleased you it must be changed, that it does piece of legislation that deals with a to be standing here this morning as the not work, except for a few of the attor- legitimate issue, and that does not deal Senate begins the final consideration neys who benefit as a result of the cur- with every single problem Members of the conference report on S. 240 and rent system. would like. But there is certainly no the House companion bill, H.R. 1058, One of the core problems, Mr. Presi- reason whatsoever to disregard and to the Private Securities Litigation Re- dent, afflicting private actions under reject this legislation in its entirety. form Act. This legislation is fundamen- rule 10(b) is that such actions were That would be a huge mistake. Even tally important not only for thousands never expressly authorized by the Con- editorial comment that disagrees with of American businesses, but more im- gress. This is not based on some laws the bill, Mr. President, acknowledges portantly I think to literally tens of we passed here but instead have been the tremendous work product and the millions of American investors. That is construed, if you will, and refined by positive things included in this legisla- what this bill is all about. It is not the court systems in this country, with tion. about the businesses. It is not about Congress sort of going along because So, Mr. President, again, because at the trial bar. It is about the investors, we never acted to change it. It was not the end of these debates sometimes the the people who take their hard-earned as a result of legislation passed people who have done such a tremen- money and invest it in American busi- through long and extensive debates but dous amount of work are rarely noted ness and industry that provide the rather interpretations by the courts or recognized, let me begin by thank- quality of life and growth in this coun- over the years. ing my colleague from New Mexico try that we have seen over the past We all know what that leads to, Mr. with whom I have worked so very, very number of decades. President. It is precisely the lack of closely on this legislation, our col- Passage of this legislation, we be- congressional involvement that has league and the chairman of the Bank- lieve, will help restore integrity and created conflicting legal standards for ing Committee, Senator D’AMATO, for fairness to the country’s private secu- bringing such actions and has created his leadership on this and moving ag- rities litigation system. And through so many holes within the foundation of gressively in this Congress to see to it this reform, Mr. President, the bill will the private action that it threatens the that we complete the hearing process defer, we believe, abusive and frivolous very system itself—unequal justice, a and the legislative business of the Sen- lawsuits that needlessly drain mil- patchwork. Just watch where a lot of ate, and, of course, my colleague from lions—in fact, billions—of dollars out the lawsuits are brought, and you will Utah, who has been tremendously help- of our emerging industries, the biotech understand exactly what I am talking ful on this bill as well. industries, the high-tech firms that are about. Let me also compliment and thank the businesses and industries that There is forum shopping going on all my colleagues who disagree with us. drive the engine of this country’s econ- over the country because the trial bar Senator SARBANES has been tremen- omy in the 21st century. in this particular area of law knows dously cooperative and helpful in see- These are not just small questions. that in certain jurisdictions they are ing to it that we would have a debate Each dollar that a company must favored and others they are not. So you and has not engaged in the kind of pro- spend on responding to America’s have this tremendously unequal sys- cedural tactics that were available to meritless securities lawsuits, known as tem all over the country because we him to delay consideration of this leg- strike suits, is a dollar that could in- have not acted over the years to try islation. Senator BRYAN, whom our col- stead go to improving investor return, and clarify the situation as to how in- leagues had the privilege of hearing increasing research and development, vestors ought to be treated regardless

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17955 of where they live in this country. As Kenneth Janke, president of the did, of the $33 million settlement. Re- That is one of the core problems that National Association of Investors member, this is a lawyer saying this is we attempt to address with this legis- Corp., which I might point out rep- a showpiece case. He picked this one lation, for us as a body, the legislative resents more than 325,000 individual in- out. I did not pick it out. This is the body, to speak clearly and intelligently vestors, said recently in a letter to attorney talking now. And $33 million as to how this system ought to work President Clinton, ‘‘Too many times, was in the settlement. They asked the across the country. class action suits are initiated against court for $20 million of the $33 million. So, I would submit, Mr. President, to companies which result in filling the That is what they asked for. And they my colleagues, that Congress is the coffers of lawyers with little or no ben- are claiming this is a system that does only institution that is equipped to efit to shareowners. Those types of not need to be fixed. comprehensively address these myriad ‘nuisance’ suits,’’ he says, ‘‘do little to My God, what are they talking about problems in a thoughtful and moderate enhance a return for shareowners.’’ He here? So $20 million in request of $33 manner. My confidence in the legisla- says, ‘‘The money spent by corpora- million. They got $11 million, by the tive process, Mr. President, is borne tions on frivolous lawsuits would bet- way. That is what the courts gave out by this conference report before us ter serve all shareowners if it remained them: $11 million. They asked for $20 today and the years we have spent in in the company, resulting in higher net million but got $11 million. Of course, putting it together. This legislation profits and earnings per share.’’ the attorneys for the defense, they got carefully and considerably balances the Or take, if you will, Mr. President, $3 million. The investors recovered 6.5 needs of our emerging high-growth in- the statement of Ralph Whitworth of percent of the recoverable damages—6.5 dustries with the rights of investors, the American Shareholders Associa- percent—and this is a case identified large and small, Mr. President. tion, who told the Securities Sub- by the trial bar as a showpiece example I am proud of the spirit of fairness committee more than 2 years ago in his of how well the system works. That is and equity that permeates this bill. In testimony, ‘‘The winners in these suits the best piece of evidence they may order to understand why so much time are invariably the lawyers who collect offer, that is what they think. This and effort is being expended to fix the huge contingency fees, professional kind of settlement might well be satis- securities litigation system, I think it ‘plaintiffs’ who collect bonuses, and, in factory for the entrepreneurial attor- is important to remember the vital cases where fraud has been committed, neys, but it does little to benefit com- role that private securities litigation executives and board members who use panies, investors, or even the plaintiffs plays in ensuring the integrity and suc- corporate funds and corporate-owned on whose behalf these suits have been cess of America’s capital markets. And insurance policies to escape personal brought. The second area of abuse is frivolous I take no back seat to anyone in my liability. The one constant,’’ he says, litigation. Companies, particularly in determination to see to it that the pri- ‘‘is that the shareholders pay for it vate litigation system is maintained, the high-technology and biotech indus- all.’’ And that is what we try to stop tries, face groundless securities litiga- because it is a vital ingredient to pro- here. tion days or even hours after an- tecting consumer and investor con- Even institutional investors, Mr. nouncements are made. In fact, the fidence. President, who invest on behalf of mil- chilling consequence of these lawsuits The private securities litigation sys- lions of individual Americans—in fact, is that companies, especially new com- tem is far too important to allow a few most investors invest through their in- panies, in emerging industries, in my entrepreneurial lawyers to manipu- stitutional investor—these individuals, view the industries of the 21st century late—that is what they do—to manipu- municipal, State, or private pension in this country, frequently only release late and abuse the system to the degree funds, have expressed their concerns as the minimum of information required that they have done over recent years. well. by law so that they will not be held lia- Let me be clear, Mr. President: Pri- Mary-Ellen Anderson of the Con- ble for any innocent forward-looking vate securities litigation is an indis- necticut Retirement & Trust Funds statements that the corporation may pensable tool with which defrauded in- testified before our committee that the make. vestors can recover their losses with- participants in the pension funds—and These predatory lawsuits—and there out having to rely on Government I quote her here: is no other way to describe them—have intervention. It is precisely, Mr. Presi- . . . are the ones who are hurt if a system had the result of thwarting 15 years of dent, because of this important role allows someone to force us to spend huge efforts by the Securities and Exchange that the legislation does not impinge sums of money in legal costs . . . when the Commission to encourage companies to on the ability of legitimate aggrieved plaintiff is disappointed in his or her invest- provide more information about their ment. investors to file suits and, if successful, future expectations for earnings and collect judgments or settlements from Our pensions and jobs, she says, de- products. I refer my colleagues to the the parties that defrauded them. pend upon our employment by and in- comments made by our colleague from I have maintained from the outset, vestment in our companies. If we sad- Utah in talking about the importance Mr. President, of this reform effort dle our companies with large unproduc- of these forward-looking statements. It that securities lawsuits brought by pri- tive costs, ‘‘* * * we cannot be sur- is precisely this kind of information vate investors are critical to ensuring prised if our jobs and our raises come that is demanded, and rightfully so, by public and global confidence in our up short as our population ages.’’ investors who are looking to make the capital markets. That is not the issue (Mr. ASHCROFT assumed the chair.) most prudent investment decisions. here. And it is to this high standard Mr. DODD. Mr. President, one of the The conference report, we think, pro- which this conference report seeks to biggest vulnerabilities of the securities vides a mechanism for investors not return private securities litigation ac- class action lawsuits is that plaintiffs’ only to obtain this positive informa- tions. attorneys appear—appear—to control tion but to also obtain information But, Mr. President, the current sys- the settlement of the case with little about what the company views as its tem has drifted. It has drifted so far or no influence from either the named important risk factors in the coming from its original goal that we see more plaintiffs or the larger class of inves- months of their plans. opportunistic lawyers profiting from tors. For example, during the extensive Let me quote the recent comments of abusive suits that take advantage of hearings on the issue before the Sub- J. Kenneth Blackwell, the State Treas- the system than we see corporate committee on Securities, a lawyer for urer of Ohio. I might point out since wrongdoers exposed by it. While some one of these firms cited one case, and I the Presiding Officer—excuse me, the have charged that the beneficiaries of quote him, as ‘‘a showpiece’’—those are Presiding Officer is not from Ohio, he this legislation are just thousands of his words, not mine—‘‘a showpiece of is from Missouri. That is the second American companies, the people who how well the existing system works.’’ time I made that mistake, but he may will be most harmed by our failure the This particular case settled before be interested in this. J. Kenneth enact reforms will be the millions of trial for $33 million, Mr. President. The Blackwell manages more than $105 bil- investors who do not participate in lawyers asked the court—they asked lion in pension funds. These are his these class action lawsuits. the court—for $20 million, the lawyers statements. He said:

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17956 CONGRESSIONAL RECORD — SENATE December 5, 1995 Intelligent investment strategy requires $15,000 contract that Peat Marwick had trial bar. They do not want that to maximum possible disclosure, and if I’m not to do some accounting for a business— happen at all. offered frank assessments of various compa- a $15,000 contract to do some account- Second, this legislation enhances ex- nies’ potential, how can I rest assured that isting provisions designed to deter Ohio’s pensioners’ money is being invested ing for the firm. They ended up expend- wisely? ing $7 million to defend themselves fraud and restores enforcement authority to the Securities and Exchange That statement, I think, deserves against a $15,000 contract. Of course, Commission. That was lost, Mr. Presi- being listened to. In fact, the safe har- what has happened is these accounting dent, in the 1994 Supreme Court case, bor for forward-looking statements firms are not taking on these clients contained in the conference report is any longer. So you do not get the ac- the Central Bank case. We, in this bill, strongly supported by the Securities counting from the big seven or rep- restore what the Central Bank took and Exchange Commission itself. utable accounting firms because of this away from the SEC here. Let me quote a letter which we re- kind of problem. The minute they take Third, the conference provides a ceived from Arthur Levitt. It says: on a client for $15,000, they can look to meaningful safe harbor for legitimate The current version of this bill represents end up paying a bill of $7 million, or forward-looking statements so that a workable balance that we can support more in some cases. issuers are encouraged to—instead of since it should encourage companies to pro- The current Chairman of the SEC, discouraged from—make much-needed vide valuable forward-looking information to Arthur Levitt, as well as two former disclosures. investors while at the same time it limits Chairmen, Richard Breeden and David Fourth, it makes it easier to impose the opportunity for abuse. Ruder, have all spoken out against sanctions on those attorneys who vio- The Supreme Court, in Blue Chip abuses of joint and several liability. late their basic professional ethics. Stamps versus Manner Drugstore, has Chairman Levitt said at the April 6 Fifth, it rationalizes the liability of also voiced serious concern about the hearing of our committee that he was deep-pocket defendants, while pro- vulnerability of securities class action concerned ‘‘about accountants being tecting the ability of small investors to suits to abusive practices. Let me unfairly charged for amounts that go fully collect all damages awarded them quote from the Supreme Court decision far beyond their involvement in par- through a trial or settlement. in that case: ticular fraud.’’ Let me go over the points in a little In the field of Federal securities laws gov- Again, this is borne out in a recent more detail. First, on empowering in- erning disclosure of information, even a article in the Wall Street Journal vestors. The conference report—this complaint which by objective standards may which chronicled the stunning number bill—takes a number of steps to guar- have very little success at trial has a settle- of audit clients dropped by the big six antee that investors, not their maraud- ment value— ing attorneys, decide whether to, one, Has a settlement value. accounting firms over the past few years. I quote the article: bring a case, two, whether to settle the to the plaintiff out of any proportion to its Peat Marwick, the fourth largest American case and, three, how much the lawyer prospect of success at trial. should receive. Again, I do not think it The decision goes on to say: accounting firm, is dropping approximately 50 to 100 audit clients annually, up from zero is a terribly radical idea that we would The very pendency of the lawsuit may frus- 5 years ago. . . allow them to decide whether or not to trate or delay normal business activity of Arthur Anderson has either dropped or de- bring a case—after all, they are the in- the defendant which is totally unrelated to clined to audit more than 100 companies over the lawsuit. jured parties, we are being told—or the past 2 years. whether they want to settle it all or Mr. President, a third area of abuse Does anyone believe that is sound, not. Maybe they do not want to settle. is that the current framework for as- that is good, that is the way we ought Maybe they think they have such a sessing liability is simply unfair and to be doing business, how to encourage good case they would like to go to creates a powerful incentive to sue these accounting firms to be involved trial. That ought to be their decision, those with the deepest pockets, regard- with these new industries starting up? not the lawyer’s. less of their relative complicity in the I hope not. Third, how much the lawyers get, alleged fraud. Again, the current system has de- The current system of joint and sev- rather than being decided by the law- volved to the point where it favors eral liability encourages plaintiffs’ at- yers, let the plaintiffs decide what those lawyers who are looking out for torneys to seek out any possible cor- their attorneys should be receiving. their own financial interests over the poration or individuals that may have The conference report strongly en- extensive insurance coverage or deep interests of virtually everyone else. courages the courts—‘‘encourages,’’ I pockets. That is why they are brought As was the case with S. 240 that was emphasize that—to appoint the inves- in. It is not because even the plaintiffs’ passed by this body, the conference re- tor with the greatest financial interest attorneys think they are necessarily port contains a number of significant in the case—often an institutional in- culpable, but it is because they have and balanced initiatives to deal with vestor like a pension fund—to be the the deep pockets, they have the insur- these complex problems. Let me ad- lead plaintiff. After all, they are the ance behind them that they are dress what we attempt to do with this ones who are at the greatest risk. If brought into the lawsuits. That is why bill. there is real fraud, they have the most they are brought in—there is no illu- First, the conference report empow- to lose. If the lawsuit is frivolous and sion about it—even if they have noth- ers investors so that they, not their at- millions are going to be spent to defend ing to do with the claimed alleged torneys, have the greater control over the suit, they lose as well. This plain- fraud. the class action cases by allowing the tiff will have the right to select their Although these defendants could fre- plaintiffs with the greatest claim to be own counsel and to pursue the case on quently win the case if it were to go to named plaintiff and allowing that behalf of the class. trial, the expense of protracted litiga- plaintiff to select their counsel. So for the first time in a long time, tion makes it more economical for What an outrageous and radical Mr. President, securities litigation at- them to settle with plaintiffs’ attor- thought this is, the idea that we might torneys will have a real client to an- neys. That is what they do, they settle, insist that at least to offer—you do not swer to. We are beginning to end the because going to court would be far have to force it—but you offer to the days when a plaintiff’s attorney can more costly down the road over an ex- plaintiff who is going to be most af- crow—again, I will quote such a plain- tended period of years. fected by the lawsuit to have an oppor- tiff’s attorney. In Forbes magazine, lis- One example was chronicled in a re- tunity to become the lead plaintiff. All ten to what this attorney said: ‘‘I have cent Wall Street Journal just this past you have to do is offer it, Mr. Presi- the greatest practice of law in the June. I quote from that story: dent. We are not demanding, we are en- world because I have no clients.’’ ‘‘I The jury ruled in Peat Marwick’s favor in couraging, and they might be able to have the greatest practice in the 1993, but the firm spent $7 million to defend decide which law firm would represent world,’’ he said, talking about securi- itself. them. ties litigation cases, ‘‘because I have The court ruled in their favor. And That is considered a radical idea no clients.’’ ‘‘I bring the case,’’ he says. what was this about? It was about a here, needless to say opposed by the ‘‘I hire the plaintiff. I do not have some

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17957 client telling me what to do. I decide clearly spell out important facts, such Mr. President, auditors, under this bill, what I want to do.’’ That is what this as how much investors are getting or are required to take additional new is all about. That is why this bill is im- giving up by settling, how much their steps to detect fraud, and if they find portant. That is what we want to stop lawyers will receive in the settlement. fraud, they must—not may, but must— here—we want to stop these situations Again, let me emphasize here, in many be reported to the Securities and Ex- in which a bunch of attorneys decide cases, settlement is the wrong conclu- change Commission. They must look what they are going to do, and we want sion. An aggrieved plaintiff may want for the fraud—the auditors, the private to have the aggrieved plaintiffs decid- to go to court. They ought to have the companies—and if they find any, they ing what they are going to do. That is right, these investors. Plaintiffs ought have to report it. That has never been why this bill is important. Of course, to have the right to decide whether or required before. That is a new stand- this presumption can be challenged, as not they want a settlement and make ard, a new bar that we have raised here I said earlier—the presumption of the the decision themselves after listening to try and deter fraud in the first in- most injured plaintiff being the lead to intelligent arguments about what is stance. Nobody has mentioned that plaintiff, if other class members feel the best course of action. part. If they do, it is in just a passing that the lead plaintiff is not fairly or This means, under this bill, plaintiffs way. accurately representing the class. So will be able to make an informed deci- The conference report maintains cur- we are not insisting or legally requir- sion about whether or not the settle- rent standards of joint and several li- ing it. We are just asking the courts to ment is in their best interest or in ability just for those persons who step forward and ask the most injured their lawyer’s best interest. Currently, knowingly, Mr. President, engage in a party to come forward. the actual plaintiffs only receive, on fraudulent scheme, thus keeping a This change, we feel, Mr. President, average, 14 cents or less of every settle- heavy financial penalty for those who will also end the unsavory practice of ment dollar. But the plaintiffs’ attor- would commit knowing securities rushing to the courthouse. That is neys receive 33 cents, on average, of fraud. what happens under the present sys- each settlement dollar. That is 14 cents Perhaps most significant, the bill re- tem. The first person to show up in the for the shareholders, the investors, and stores the ability of the Securities and courthouse gets the case—the first per- 33 cents for the lawyers. You do not Exchange Commission to pursue those son. This is a hallmark of the current need to be a rocket scientist to under- who knowingly aid and abet securities system of the securities class action stand that this system is broken, when fraud. My colleagues who oppose this litigation. plaintiffs, investors, are getting that bill talk about our failure to get all of Last June, I received a letter from minor return in these cases and the the aiding and abetting back in it. I do Raytheon Co., one of the Nation’s larg- lawyers are collecting more than twice not disagree. est high technology firms. Raytheon, what they are getting. But what we have been able to do in Mr. President, made a tender offer of The conference report puts an end to this bill which could not get done—you $64 a share for E-Systems, Inc., another this outrageous practice, called the would not get it done if you just had a company. That is a 41 percent premium ‘‘lodestar’’ approach, by encouraging freestanding aiding and abetting provi- over the closing market price. Putting courts to award attorney’s fees based sion. I do not think it would pass. I dis- aside whether or not you think that is upon a reasonable percentage of the agree with that. I think we should. fair or not, nonetheless, most people total amount of the settlement or judg- To hear my colleagues say how bad thought it was a pretty fair offer. But ment. this bill is because we do not deal with I am not here to argue the fairness or The New York Times stated just 2 all of the things they would like in aid- unfairness of the offer. Let me allow, if weeks ago in an article entitled ‘‘Math ing and abetting, yet we get the class I can, Raytheon to explain what hap- of Class Action Suits; Winning $2.19 actions covered after the Supreme pened next in a letter that I received Cents Costs $91.33.’’ Court rules against us. Instead of de- from them: It says: nouncing this bill, they ought to be Notwithstanding the widely held view that Many class actions end with plaintiffs win- adding far more support to what we the proposed transaction was eminently fair ning meager awards, while their lawyers were able to accomplish here and make to E-System’s shareholders, the first of eight walk away with millions of dollars in fees. a major step forward. purported class action lawsuits was filed Taken together, Mr. President, these This is a power diminished by the within 90 minutes after the courthouse doors provisions should ensure that de- Central Bank decision of last year’s opened on the day that the transaction was frauded investors are not cheated a sec- Supreme Court case. In fact, some re- announced. ond time by a few unscrupulous law- cent SEC enforcement actions have An hour and a half later, one of eight yers who skim their exorbitant fees been dismissed, Mr. President, because lawsuits was filed in court. I do not right off the top of any settlement. One Federal courts are ruling that the care how good a lawyer you are, you do of the areas of the conference report Commission had its aiding and abet- not go around and find plaintiffs in an that has received too little attention, ting authority taken away by the Cen- hour and a half with a public an- in my view, is the effort to deter fraud. tral Bank decision. We are restoring nouncement about an offer to buy an- We have been talking about how you that in this bill and giving the SEC the other company. That is exactly what deal with it when fraud has arisen, power that they are being denied by we are talking about here, racing to when there is an allegation of fraud. lower court rulings around the coun- the courthouse. Do not look at the What we try to do with this bill that try. facts and examine whether or not it is we have worked on for more than 4 The conference report clarifies cur- right or wrong; file the lawsuit and im- years now, through the number of rent requirements that lawyers should mediately trigger the kind of costs as- hearings we have held and the wit- have some facts—again, a radical idea sociated with it. What about investors nesses we have heard from, is deter- here—should have some facts to back in that case, Mr. President? What hap- mine how we deter fraud from occur- up their assertion of security fraud by pens to them in that case—the inves- ring in the first place so that investors adopting most of the reasonable stand- tors in Raytheon, the investors in E- are really protected? One of the areas, ards established by the U.S. Second Systems? Do the lawyers think about as I said, that received very little at- Circuit Court of Appeals. them at all, or the cost to those par- tention, in the midst of all of the hot This legislation, therefore, is using a ticular firms, and just answer the air blowing from the plaintiffs’ bar are pleadings standard that has been suc- pleadings once a lawsuit is filed? Does those provisions that provide new pro- cessfully tested, Mr. President, in the anybody care about them at all under tections, Mr. President, that have real world. This is not some arbitrary the present system? It does not appear never existed before for investors standard pulled out of a hat. Again, so. against fraud. this is a standard that has been used Mr. President, the conference report I commend my colleague, Senator and tested and been tried. We include requires notice—a radical idea here DOMENICI, and others, for really work- that in this bill, as well. again—of settlement arrangements ing to see to it that we have these pro- Mr. SPECTER. Will the Senator that are sent to investors, who must visions in the bill. For the first time, yield?

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17958 CONGRESSIONAL RECORD — SENATE December 5, 1995 Mr. DODD. Let me finish my re- looking statement may be accom- reau extrapolates an income of $43,800 marks, and I will be glad to yield. I am panied by ‘‘meaningful cautionary to a net worth of those investors of almost through. statements that identify important $150,000. Furthermore, Mr. President, the bill factors that could cause’’ the pre- That is why we chose the $200,000 requires the court’s settlement to de- diction not to come true, or if a com- level and below, so that the majority of termine whether any attorney had vio- pany or officer fails to meet that test, investors—the majority of investors, lated rule 11 of the Code of Civil Proce- all that a plaintiff must do is prove the small investors—would not be ad- dure, which prohibits lawyers from fil- that the person actually knew that the versely affected by the proportional li- ing claims that they know to be false statement was false or misleading. ability standards included in the bill. or frivolous. Mr. President, that is the very We tried in this bill to see to it that Of course, the lawyers want the sta- scienter standard written by our good those smaller investors would not be tus quo for business and no standards friend and colleague from Maryland, adversely affected. at all for themselves in this area. Senator SARBANES, and proposed by While the bill will fully protect small In the event of a violation of the him during the Senate floor consider- investors so they will recover all of the complaint, the bill requires that the ation of S. 240 in June. losses to which they are entitled, the court find a substantial violation of Quite honestly, it is hard for this bill establishes a proportional liability rule 11 to have occurred in order for Member to envision how anyone could system to discourage the naming of the any sanctions to be triggered. lie in their predictive statements and deep pocket defendants that I talked Mr. President, let me emphasize what still be covered by this safe harbor; about earlier. this does. This is in the filing of a law- this insulation from abuse is no doubt The court would be required to deter- suit. It turns out it is a tough standard a key reason why the safe harbor is mine the relative liability of all the de- to meet. But if the court determines strongly supported by the Securities fendants, and thus deep-pocket defend- that the attorneys knew that this was and Exchange Commission in their let- ants would only be liable to pay a set- a frivolous lawsuit, that the allega- ter of support of this bill. tlement about equal to their relative tions are false, then it can go after As the Commission stated: role in the alleged fraud. What a rad- those attorneys that bring the lawsuit. The need of legitimate businesses to have a ical idea that is as well. A defendant Now, the same standard applies in mechanism for early dismissal of frivolous who is 10 percent responsible for the the defense attorneys’ response to the lawsuits argues in favor of a codification of fraudulent actions would be required to pleadings. And they say that is unfair. the bespeaks caution doctrine that has de- pay 10 percent of the settlement It is not unfair at all. It is the plain- veloped under the case law. While the trade- amount. That is just fair. That is equi- tiff’s attorneys that are bringing the off requires that class action attorneys must table. have well written and carefully researched case in the first instance. We are say- I would say, quickly, again, we pro- pleadings at the outset of the lawsuit, we tect smaller investors. We say, for ing that if, in fact, the lawyers knew feel this is necessary to create a viable safe them we are going to have a different this was frivolous and false, then they harbor. Given that it does not prevent Com- standard, but for those who are above ought to be held accountable for doing mission enforcement actions, and excludes that line, to go after someone who is that. If attorneys on the other side in the greatest opportunities for harm to inves- only fractionally involved and say that the filing of pleadings also engage in tors. you ought to pay the whole amount any false or frivolous allegations, then, The idea that this conference report here ought to strike every person in they, too, will be held accountable for contains any license to lie is simply this country as fundamentally unfair, those statements. We think this is a and totally untrue and, particularly in and that is what we try to change in fair and adequate standard to be ap- light of the strong support of the Secu- this bill. However, as I said, in the rities and Exchange Commission, rep- plied to the attorneys. event of an insolvent defendant, all the The conference report does not resents just a last, in my view, des- other defendants would be required to change existing standards of conduct. perate attempt by opponents of this contribute as much as an additional 50 It does put some teeth, however, into legislation to derail the process. percent of their proportional share of a The legislation before us, Mr. Presi- the enforcement of these standards. I settlement to ensure that investors re- dent, preserves the rights of investors point out what has happened over the ceive as close to 100 percent of their whose losses are 10 percent or more of years. While the rules have existed, just settlements as possible. By cre- their total net worth of $200,000. These nothing has ever been done with them ating a two-tiered system of both pro- in the past. In fact, they have been sit- small investors will still be able to portional liability and joint and sev- ting there almost as idle pieces of hold all defendants responsible for pay- eral liability, the conference report paper with no real meaning at all. ing off settlements regardless of the preserves the best features of both sys- The conference report provides a relative guilt of each of the named par- tems. moderate and thoughtful statutory ties. Having spent so much time on what safe harbor for predictive statements This is the modification for the joint is in the conference report, let me made by companies that are registered and several sections. This threshold, I briefly spend a few minutes, if I can, with the SEC. think, should more than protect the discussing a few of the things the con- Mr. President, this is one of the most vast majority of individual investors ference report does not do. contentious parts of the bill. It pro- participating in the markets today. The PRESIDING OFFICER. The vides no such safety for third parties, Let me tell you why I say that. A Chair will advise the Senator from like brokers, or in the case of merger 1993 census report stated that the aver- Connecticut, under the previous order, offers, tenders, rollups or issuance of age net worth, Mr. President, of an the hour of 12:30 having arrived, the penny stocks. That is not where the American family was about $47,000. Senate would stand in recess until 2:15 safe harbor applies. That is their net worth, $47,000. While p.m. By adopting this provision, the Sen- in 1990, the New York Stock Exchange Mr. DODD. Mr. President, I ask unan- ate will encourage responsible corpora- study found the median income—the imous consent to proceed for 5 addi- tions to make the kind of disclosures income, now, the median income—for tional minutes, if I could, to complete about projected activities that are cur- individual investors was $43,800 a year, the statement. rently missing in today’s investment which, according to the census data ex- The PRESIDING OFFICER. Is there climate. trapolates to a net worth of roughly objection? Since the safe harbor has been the $150,200. Mr. SPECTER. Reserving the right subject of so much attention, Mr. Let me explain that again. The words to object, under the procedural state- President, it is worth spending a little can be confusing. The average Amer- ment, I ask unanimous consent that time to delve into the details of these ican family has a net worth of some- debate on the bill be extended for 15 provisions. thing in excess of $47,000 a year; the av- minutes beyond. I know that is an im- This reconfigured safe harbor that is erage of the median investor in the position on the Presiding Officer. I in this conference report has two parts New York Stock Exchange has an in- have 15 minutes reserved, and I have to it. The first is that any forward- come of $43,000 a year; the Census Bu- been here for most of the morning, a

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17959 good part of the morning, waiting to strengthens the legislation, as I men- So, Mr. President, I urge my col- speak. tioned earlier, with the inclusion of leagues to be supportive of it. I urge The PRESIDING OFFICER. Is there language by our distinguished col- the President to sign it. I know he is objection? league from Maryland, Senator SAR- considering whether or not to lend his Mr. FEINGOLD. Reserving the right BANES. In my view, the House bill pen to this bill. I think he will sign it. to object, I ask if we could extend that would have been a tragedy. I think we can make a strong case that to 25 minutes so we could go straight For instance, we do not have loser we have put together a sound piece of to 1 o’clock? pay provisions here. My colleagues legislation that will truly make a dif- Mr. LEAHY. Reserving the right to know what that means. We took that ference, particularly for those busi- object, and to make life easier for the out of the bill. That was part of the nesses which must be the future eco- distinguished Presiding Officer, I ask House bill. The House legislation estab- nomically for our country in the 21st unanimous consent that unanimous- lished pleading standards that were so century, those high-technology firms, consent request be amended to allow high, I would say—and I know my col- those startup industries that are the me to be recognized for no more than 6 league from Pennsylvania is interested ones who are the prey of these attor- minutes at 2 o’clock, which I under- in this—that it would have been impos- neys who go out and take advantage of stand is the time we are coming back sible to bring a suit, in my view, had their being in flux, that they are not in? the House language been adopted. We, quite stable yet, that they are getting The PRESIDING OFFICER. The hour as I said earlier, adopt the Second Cir- their legs. They are the ones that are of 2:15 is the previously agreed upon cuit Court of Appeals standard. preyed upon. That is what we need to time. The House legislation contained no stop here. This bill does that, we think, Mr. LEAHY. I ask unanimous con- safety net for small investors. As I in a significant way, and I urge its sent that unanimous-consent request have just described, we do. The con- adoption. be amended so that I am recognized for ference report maintains joint and sev- I yield the floor. 6 minutes at 2:15. eral liability for small investors and The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there requires, even in proportional cases, ator from Pennsylvania. objection? Hearing no objection, the where you have a totally insolvent Mr. SPECTER. Mr. President, I had following will be the order: an addi- plaintiff, the conference report re- sought to ask my distinguished col- tional 5 minutes will be extended to quires that defendants pay a total of league from Connecticut a question re- the Senator from Connecticut, and 150 percent of their proportionate share lating to the pleading standard when then 15 minutes will be extended to the in the event of insolvent people. The he had said, in his presentation, that Senator from Pennsylvania, after House legislation had a safe harbor the standard in this statute is a tested which 10 minutes will be extended to provision that, frankly, you could have standard. Then, later in his presen- the Senator from Wisconsin, and, at parked the entire 7th Fleet in, if you tation, he made reference to this Sen- 2:15, 6 minutes will be extended to the had wanted to. That is not the case ator on the pleading issue. Senator from Vermont. here. We have strengthened safe har- The question that I have for my col- Mr. BRYAN. Mr. President, I have no bor. The conference report creates a league from Connecticut turns on what objection, just a parliamentary in- narrow safe harbor that is strongly the pleading standard of the bill is, as quiry. Those who are speaking with supported by the Securities and Ex- having come back from conference, reference to the pending matter, that change Commission. which is significantly different from will be in accordance with the practice So, this conference report is a far cry that which left the Senate. The amend- that those speaking on behalf, their from the intemperate measure passed ment which this Senator offered had time will be charged to the distin- by the House. Instead, it reflects the incorporated into the statute the sec- guished Senator from Utah, the time of moderate and balanced approach ond circuit language which would have those speaking in opposition will be adopted by the Senate when it passed clarified the language in the Senate charged to the time remaining of the this body by a margin of 69 to 30. In bill, which provided that, ‘‘In any pri- Senator from Nevada; is that correct? fact, a dramatic change from the origi- vate action arising under this title, the The PRESIDING OFFICER. That is nal House bill was recently noted in an plaintiff’s complaint shall, with re- correct. editorial by the Washington Post, spect to each act or omission alleged to The Senator from Utah. which is entitled ‘‘Antidote to the violate this title, specifically allege Mr. BENNETT. Mr. President, I ask Strike Suit.’’ facts giving rise to a strong inference unanimous consent the unanimous- ‘‘It started off,’’ the editorial said, that the defendant acted with the re- consent agreement be modified further, ‘‘last winter as a flamboyant ideolog- quired state of mind.’’ that Senator HATCH be recognized to ical statement. But the bill to curb That was the tough second circuit speak following Senator LEAHY when shareholders’ suits has now been whit- standard. This Senator offered an we come back after lunch, for 15 min- tled and sanded by many hands into a amendment, which was accepted on the utes. truly useful piece of legislation. An in- Senate floor, to incorporate what the The PRESIDING OFFICER. Without temperate initiative is turning out to second circuit said was the way of es- objection, it is so ordered. be much more promising than seemed tablishing that strong inference, to The Senator from Vermont. possible last March when the House provide it by ‘‘alleging facts to show Mr. LEAHY. Mr. President, for clari- originally passed it.’’ the defendant had both motive and op- fication, my 6 minutes will be as in So I think we put together a good portunity to commit fraud, or by alleg- morning business, so it will not be package here. I urge my colleagues to ing facts that constitute strong cir- charged to either side. support this legislation. We are not cumstantial evidence of conscious mis- The PRESIDING OFFICER. Without writing the Ten Commandments here. behavior or recklessness by the defend- objection, it is so ordered. The unani- We are trying to address a serious ant.’’ The conference report struck out mous consent is so modified. problem. Time will tell whether or not the language which my amendment Mr. DODD. Mr. President, I think I particular provisions here have done had inserted which would have given just lost my 5 minutes so I will ask you everything we would like them to do. guidance to how plaintiffs could meet to be slow with that gavel. But, clearly, the system is broken and that very stringent standard. First and foremost, Mr. President, it needs to be changed. In addition, the conference report here is what the bill does not do. It is This bill has been well thought out. added that these facts had to be ‘‘stat- nothing like the legislation that was It has been worked on in a bipartisan ed with particularity,’’ which is an adopted in the House. Let me say, had way. We have listened to the best ex- even tougher standard than the lan- the House bill come back in this area, perts in the country who helped us put guage which had gone from the Senate I would have voted against it and spo- it together. And the Securities and Ex- bill. ken vehemently against it. This bill change Commission endorses this bill So when the distinguished Senator was much closer to the bill that passed and has worked with us to make it a from Connecticut talks about, in his this body earlier this year and, in fact, good bill. words, and he referred to the House

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I say to my colleague, with what he said the Senate action circumstances’’ indicating wrongful be- what we are attempting to do here, was, ‘‘moderate,’’ that the bill that has havior, but ‘‘the strength of the cir- again, I think, is instead of trying to come back from conference is a lot dif- cumstantial allegations must be cor- take each case that came under the ferent than the bill which the Senate respondingly greater’’ from the number second circuit, we are trying to get to sent out. I think there is an enormous of cases. If I may respond, the Sen- the point where we would have well- difference. ator’s amendment seriously, in the pleaded complaints. We are using the So the question that I have for my view of the—— standards in the second circuit in that colleague from Connecticut is, where Mr. SPECTER. From where is the regard, then letting the courts—as has this language in the conference re- Senator reading? In a circuit court these matters will—test. They can then port on the pleading standard for state opinion? refer to specific cases, the second cir- of mind been tested in light of the fact Mr. DODD. The Senator’s amend- cuit, otherwise, to determine if these that the toughest standard in existence ment seriously— standards are based on facts and cir- to this moment is the second circuit Mr. SPECTER. Where is the Senator cumstances in a particular case. That standard, and this conference report reading from? Is it in a circuit court is what we are trying to do here. toughens up the second circuit stand- opinion? I say to my colleague that I sup- ard in two important respects by strik- Mr. DODD. Yes. ported my colleague’s amendment ing out the way you plead that tough Mr. SPECTER. From where? when he offered it here in on the floor state of mind standard and also by add- Mr. DODD. There are several here. of the Senate back when the bill was ing the requirement of pleading with Mr. SPECTER. Tell me where the ci- considered. Again, as I say, personally, particularity? tation is, because I have the opinions it says the statute of limitations and a Mr. DODD. Mr. President, let me re- here. I challenge that any language ap- few others. But we are dealing in con- spond to my colleague. I know he has a pears from the second circuit opinion ference here, and the bulk of what great deal of interest in this whole area which was not incorporated in my came back from the conference report of competing standards. Basically, amendment. was what was in the Senate bill. My colleague would have preferred, I what we intended to do here was to Mr. DODD. I am quoting here three know, to have his amendment kept in codify the second circuit’s pleadings different cases. its entirety here. We are trying to standards, not to indicate disapproval Mr. SPECTER. Tell me where. strike a balance. As he knows, he has of each individual case that came be- Mr. DODD. The Three Crown Limited been to conferences as often as I have fore it. What we were driving at here Partnership versus Caxton Corpora- been in the past and knows the nature was to insist that facts be pleaded, that tion. of well-pleaded complaints. That is the there be an explanation of where these Mr. SPECTER. What page? standard we are trying to hold to that facts come from in these lawsuits that Mr. DODD. Does the Senator want to go to 817 Federal Supplement 1033, came out of the second circuit, not on are being brought. a case-by-case basis where they dif- Indeed, the Banking Committee re- Beck versus Manufacturing Hanover Trust? There are two right there. fered in some degree in interpretation. ported with its bill—and included simi- The PRESIDING OFFICER. Does the Mr. SPECTER. Mr. President, the lar language in support—and said the Senator from Pennsylvania reclaim his language handed down by the second committee does not intend before we time? consider the bill to codify the second circuit was articulated by Chief Judge Mr. SPECTER. I do. circuit’s case law interpreting this Jon Newman as follows: The PRESIDING OFFICER. The Sen- pleading standard, although courts These facts or allegations must give rise to ator has 4 minutes and 50 seconds. may find this body law instructive. a strong inference that the defendants pos- Mr. SPECTER. I thank my colleague So, in response to my colleague from sess the requisite fraudulent intent. A common method for establishing a strong infer- from Connecticut for responding. When Pennsylvania, even before we brought ence of scienter is to allege facts showing a you have a dialog in debate it is invari- the matter up, we made it quite clear motive for committing fraud and a clear op- ably more instructive than the speech- that we were, as I say, taking every portunity for doing so. Where motive is not es we make, however eloquent our indi- case that had come before the second apparent, it is still possible to plead scienter vidual speeches may be. But I have circuit but rather applying the plead- by identifying circumstances indicating con- very limited time remaining. ing standard requirements there. That scious behavior by the defendant, though the The point that I wanted to make is had been tested. strength of the circumstantial allegations that regardless of what the conference Mr. SPECTER. I challenge that. must be correspondingly greater. report intends—and the Senator from Mr. DODD. Let me respond. Even my The amendment which this Senator Connecticut talks about what we are colleague’s amendment goes beyond offered and was adopted by the Senate trying to accomplish—the plain truth that in a sense. So you cannot, on the followed the pleading requirement by of the matter is that this is an impos- one hand, have us stick with it rigidly saying that the required state of mind sible pleading standard, that where you and have the Senator’s in the amend- may be established either by alleging take what was a tough standard by the ment. facts to show the defendant had both second circuit on pleading state of Mr. SPECTER. I challenge that. If I motive and opportunity to commit mind, and then you delete the ways have the floor, I challenge that. fraud or by alleging facts that con- you prove state of mind, and then add In what respect does my amendment stitute strong circumstantial evidence in addition a particularity require- go beyond this? That simply is not of conscious misbehavior or reckless- ment, you simply do not have a way true. ness by the defendant. that a plaintiff realistically can go What my amendment does is to take I submit that the amendment which I into the Federal court under the secu- the second circuit language under offered and was adopted by the Senate rities acts and have a fair chance to which a plaintiff can meet the tough tracked the second circuit’s language state a case. state of mind standard, and put that in directly, and that by striking the I say that with some substantial ex- the statute. This body agreed to that. amendment which the Senate agreed perience in the practice of law, as a And now it has come back from the to, by conceding to the House, the con- trial lawyer for some 10 years in the conference report deleted. ference report omits a very critical fac- civil field and with substantial practice In what respect did my language go tor in giving guidance as to how a in the criminal field, which has some beyond the second circuit? plaintiff meets this tough standard for bearing, and my work in the past 15 Mr. DODD. The Senator’s amend- pleading state of mind. years on the Judiciary Committee, ment adopted the guidance of the sec- I would ask my colleague from Con- that where you have a situation here ond circuit, but the amendment of the necticut whether it is not true that the where there is a mandatory stay of dis- Senator from Pennsylvania completely conference report came back with an covery when a motion to dismiss is

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17961 filed, that you simply do not give an the intent. The Senate bill said, if working Americans who depend upon opportunity to plaintiffs to go into there was a knowing misstatement, the securities laws to protect their sav- court and have a chance to articulate a that it not be covered by the safe har- ings and retirement and investments. case. bor. That has been turned around by As many of my colleagues have We are dealing here, Mr. President, the conference report. What has come noted, this bill seemingly gets worse with enormous sums of money. In 1993, before us, Mr. President, I submit, is with each subsequent version that is the most recent year available from unreasonable, unrealistic, and imposes placed before us. For example, the con- the New York Stock Exchange and restraints which do not protect inves- ference report expands the already NASDAQ, there was some $3.6 trillion tors. It does not strike an appropriate flawed safe harbor provision which traded, not even taking into account balance. passed this body in July. The language the American Stock Exchange, more I would be glad to yield to my col- of this bill protects forward-looking than half of the gross national product league from Connecticut. statements by insulating the maker of of the United States. And we have had The PRESIDING OFFICER. The Sen- those statements from liability even if an enormous number of very, very im- ator’s time has expired. they are deliberately false, provided portant fraud cases. The Keating case Mr. DODD. I thank my colleague. I the statement is accompanied by what involved some losses in excess of $4.4 was going to point out with regard to is termed ‘‘cautionary’’ language. billion. The Drexel Burnham case, the my colleague—— Therefore, in the face of a disclaimer, Quorum case, the tremendous matter The PRESIDING OFFICER. The Sen- investors will be left with no recourse now pending involving the losses in- ator from Wisconsin has 10 minutes. against a corporate insider who makes curred by Orange County. Mr. DODD. Will my colleague yield predictions which were deliberately So we are talking about gigantic infor 30 seconds? false. terests. The bill that has come back The point we made from ‘‘particu- Furthermore, the conference report from conference, Mr. President, vir- larity’’ to ‘‘specificity’’—we can lose an includes language contained in the tually forecloses a realistic oppor- audience here quickly in debate—that House bill which explicitly states that tunity to bring a suit under these was recommended by the judicial con- there is absolutely no duty for any in- pleading standards. And what we are ference. They are really responding to dividual to update a forward-looking not trying to do is what specifically what they thought was a better use of statement. What that means is even if has been done here. The standard of re- language there than what we incor- it becomes apparent that a previously view is especially problemsome in the porated in the bill. It was not a slight made forward-looking statement is context of the mandatory rule 11 re- at all intended to be aimed at our col- false, the person who made the state- view required by the conference report. league from Pennsylvania. The judicial ment has no legal obligation to inform In earlier argument on June 27 of conference recommended that word anyone of this new knowledge. It is dif- this year, at page S9165 of the RECORD, change. They felt it would be better. ficult to imagine that this provision I put in an extensive listing of letters That is why we adopted it. can provide the average American in- from judges who did not want to have Mr. SPECTER. If my colleague would vestor with any level of comfort or this mandatory rule 11 review, the Fed- yield to me. confidence. Mr. President, beyond this baseless eral judges who practice in it. When you talk about particularity, it Then the conference report has a pre- may not mean a lot on the Senate inequity, the bill also fails to remedy sumption that, after the mandatory re- floor, but it means a lot in litigation, the inadequate statute of limitations view, if there are sanctions against the and billions can be affected by that period for bringing these very complex cases of securities fraud. The failure to complaint, the costs of litigation and kind of a pleading change. extend the statute of limitations in the lawyers’ fees will be imposed upon the The PRESIDING OFFICER. The Sen- face of evidence that these cases often plaintiff. This is realistically more ator from Wisconsin. take a great deal of time to discover than a chilling effect. It will have the Mr. FEINGOLD. I rise in opposition and develop and prosecute is, in my effect really to virtually discourage to H.R. 1058, the Private Securities view, counter to the notion that securi- litigation in an important field where Litigation Reform Act, and do so because voting against the conference re- ties law exists to protect the investor. these private lawsuits have had a very The practical result of this failure port, I think, is in the best interests of important impact on policing the field. will be that legitimate plaintiffs, the average investor, not only in my The Securities and Exchange Commis- through no fault of their own, will be home State of Wisconsin but all across sion cannot possibly undertake it by turned away at the courthouse door. the country. themselves. The distinguished Senator This again, is hardly the kind of result Mr. President, I think it is important from Connecticut concedes that in his you would expect from something that to note that this bill was proposed with speech about the importance of private has the label ‘‘reform.’’ rights of action to enforce the securi- the worthy goal of trying to limit friv- There are other flaws in this legisla- ties laws. But I am concerned, as a per- olous litigation. In particular, the goal tion as well, including the failure to son who has had experience in the field was to stop the so-called strike suits hold liable those professionals, such as in representing, under the Securities that we have heard so much about. I lawyers, accountants and underwriters, Act, defendants as well, that this bill think there is no question that trying who aid and abet in the perpetration of in its present form simply is unreal- to stop that is a legitimate goal that securities fraud. istic and unreasonably restrictive—— we can all support. However, the evo- Additionally, the bill sets forth Mr. DODD. Will my colleague yield lution of this bill starting from its in- pleading thresholds that are very dif- on this point? troduction to its modification and ini- ficult to attain. The effect is to require Mr. SPECTER. Not on my time. I tial passage in this body, to the con- the establishment of certain facts at will be glad to if we can get an exten- ference report before us today has, Mr. the outset of a case, although the sion. President, been marked by a steady plaintiff, Mr. President, has had no op- Where you have especially the prob- and unwarranted erosion of the basic portunity to conduct any discovery. In lem compounded by the short statute protections the average investor in this setting this unusual standard, the con- of limitations, which is 1 year from dis- country expects and, in my opinion, de- ference elected to drop an amendment covery and 3 years from commission. serves. offered by my colleague from Pennsyl- Efforts were made to extend the time Simply calling this or any other vania, Senator SPECTER, which passed to 2 and 5 years, favored by the Securi- piece of legislation a reform act does this body with 57 votes. It would have ties and Exchange Commission, but not make it so. The term ‘‘reform’’ im- clarified that what was required to they failed. And where you have the plies that change is taking place that constitute a well-pleaded complaint safe harbor provisions which have come will serve the greater good. Sadly, this was evidence that the defendant had back here contrary to what has been measure fails to achieve this worthy motive and opportunity to defraud, not asserted here, that there is no liability goal. In fact, when one looks closely, it actual proof of intent at that point. for forward-looking statements with becomes evident to me that this bill The conference report, in making the cautionary statements no matter what will work to the detriment of hard- plaintiff prove the case even before the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17962 CONGRESSIONAL RECORD — SENATE December 5, 1995 case has begun, goes a lot further than yield back the remainder of my time refer to the debate that is going on in eliminating frivolous suits. What it and yield the floor. the telecommunications conference will do is have an adverse and poten- Mr. BENNETT addressed the Chair. over how we are to impose Government tially detrimental effect on legitimate The PRESIDING OFFICER. The Sen- regulation over constitutionally pro- cases as well. ator from Utah. tected speech on the Internet. The fee-shifting provisions of this Mr. BENNETT. Mr. President, I un- Last year, the magazine PC Com- bill will actually establish a harsher derstand that under the previous order, puting published an April Fool’s par- consequence for plaintiffs than for de- we now stand in recess for lunch? ody. Let me tell you a little bit about fendants who violate the Federal rules. The PRESIDING OFFICER. We stand it. It said that I introduced a bill, No. As Ed Huck, the director of the Alli- in recess until 2:15. 040194—for April 1, 1994—to ban drink- ance of Cities, in the Wisconsin State UNANIMOUS-CONSENT AGREEMENT ing on the information superhighway. Journal, said: Mr. BENNETT. Mr. President, prior According to the article, this bill that Imagine city or county officials being to that action, I ask unanimous con- I supposedly introduced would prohibit swindled out of millions of taxpayer dol- sent that following Senator HATCH’s anybody from using a public computer lars—and learning that they’ll have to risk presentation this afternoon, that the network while intoxicated. They also millions more if they want to pursue a law- senior Senator from South Carolina, said there was a rider on this bill to suit. That’s what the ‘‘loser-pays’’ provision Senator THURMOND, be recognized for 15 make it ‘‘a felony to discuss sexual of this legislation means—And, in a word, minutes on a nongermane matter. matters on any public access network, that’s ‘‘intimidation’’ of crime payers. This, I might note, is the senior Sen- including the Internet, America On- Mr. President, we should be wary of ator’s 93d birthday, and he has asked line, and CompuServe.’’ Senators were any legislation that has the effect of for this time. I think anyone who lives chided for thinking there is a physical intimidating victims of fraud. to that age and retains the faculties highway and that a permit was re- In short, Mr. President, this bill is that the senior Senator from South quired to ‘‘drive’’ a modem on the in- unbalanced, misguided, and will harm Carolina has ought to be given what- formation highway. The article noted thousands of Americans who bear no ever it is he asks for on his birthday. that complaints about the imaginary relation to the frivolous lawsuits that The PRESIDING OFFICER. Is there bill are ‘‘getting nowhere’’ because this bill is supposed to target. objection? ‘‘who wants to come out and support There is no doubt that frivolous liti- Mr. BRYAN. Mr. President, I have no drunkenness and computer sex?’’ gation, in any area of the law, is detri- objection, but I would further like to The parody concludes on a gloomy mental to our system of justice and to amend the unanimous-consent request note, with the following words: that following the 15 minutes of the the society at large. However, the an- There is nothing to stop this bill from be- swer to these types of suits is not to distinguished senior Senator from coming law. You can register your protests foreclose the ability of legitimate South Carolina, to put Senator BOXER with your Congressperson or Ms. Lirpa Sloof plaintiffs to protect themselves against for 30 minutes, I am told, although it is in the Senate Legislative Analyst’s Office. fraud, nor is it to deprive them of the not on our time. And I just seek to Her name spelled backwards says it all. right to seek recovery in court when clarify, Senator REID has sought time. I enjoy using a computer, as a lot of they are defrauded. Mr. BENNETT. I ask unanimous con- us do, but sometimes some who use In my opinion, the negative consent to include Senator REID for 15 them do not have a tremendous sense sequences of this unbalanced bill will minutes following Senator BOXER. of humor, just as some Members of be significant and far reaching. The PRESIDING OFFICER. The Congress do not. They did not notice Mr. President, I note that the report Chair inquires, is the time of Senator that the name spelled backward is that accompanied the original S. 240 BOXER and Senator REID to be charged ‘‘April fools.’’ The bill number was pointed out the simple, but important, against—— April 1, 1994. It should have told some- goal of American securities law, and Mr. BRYAN. Senator BOXER’s time body something. But some actually that is to promote investor confidence will be charged to the Senator from Ne- thought this was real, and I started in the securities market. Sadly, the vada; Senator REID’s time, as I under- getting calls over the phone and mes- provisions of this bill fall very short of stand, will be charged to the Senator sages over the Internet to my office attaining that fundamental goal. from Utah. saying, ‘‘What are you doing about this The PRESIDING OFFICER. Is there We must be vigilant in our efforts to drunk driving on the information su- objection? Without objection, it is so seek out and eliminate frivolous litiga- perhighway bill?’’ But that was then, ordered. tion. However, equally as important is and that was a joke. Today, unfortu- Mr. BENNETT. I ask the Chair, how our obligation not to lose sight of the nately for all Internet users, the debate much time remains on each side? average American investor, the person The PRESIDING OFFICER. There taking place in the telecommuni- investing for retirement or to put chil- are 2 hours and 24 minutes remaining cations conference about imposing far- dren through college or simply to have for the Senator from Utah; 2 hours and reaching new crimes for indecent a little better quality of life. 13 minutes remaining for the Senator speech over the Internet is not a par- In our zeal to reform, it is protection from Nevada. ody but very real. of these people which must guide and Mr. BENNETT. I thank the Chair. The conferees have been meeting and inform our efforts. going over this enormous task deter- So it is unfortunate that the provi- f mining how parts of telecommuni- sions of this bill provide little more RECESS cations would work, how you regulate than hollow comfort to the American The PRESIDING OFFICER. Under cable operators, wireless systems, and investor, but such is the case with H.R. the previous order, the Senate will now how you protect universal service. You 1058. In my opinion, the bill offers its stand in recess until the hour of 2:15 would think they would not have time alleged reform at a price that cannot p.m. to look at something like cyberporn, be justified. Protecting the American Thereupon, at 1:03 p.m., the Senate but that seems to be one major consid- investor should not be sacrificed in the recessed until 2:14 p.m.; whereupon, the eration they have. Even though there misapplied name of ‘‘reform.’’ Senate reassembled when called to are no members of the Senate Judici- The securities laws of this Nation are order by the Presiding Officer (Mr. ary Committee at that conference, essential to hard-working men and KEMPTHORNE). they are trying to figure out how to women all across America. Given that The PRESIDING OFFICER. Under make new Federal crimes as part of the this conference report fails to uphold the previous order, the Senator from telecommunications bill. the tradition of protecting these hard- Vermont [Mr. LEAHY] is recognized for The Senate, of course, passed the working men and women, I simply can- up to 6 minutes. Exon-Coats Communications Decency not support it. I intend to vote against TELECOMMUNICATIONS CONFERENCE PROPOSALS Act, which would punish with a 2-year this conference report. FOR REGULATING SPEECH ON THE INTERNET jail term any Internet user who posted I thank the Senator from Nevada for Mr. LEAHY. Mr. President, in some a message with indecent language or his strong leadership on this issue. I ways parody is becoming reality. I used a four-letter word in a message to

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17963 a minor. As originally written, it embrace our new communications po- ment to the telecommunications de- would make it illegal to receive inde- tential. regulation bill in June. The Commu- cent material whether or not the user Because indecency means very dif- nications Decency Act contained knew the material was indecent at the ferent things to different people, an un- criminal penalties for the transmission time he downloaded it. Service pro- imaginable amount of valuable polit- of constitutionally protected speech viders would also risk criminal liabil- ical, artistic, scientific and other over computer networks. The penalty speech will disappear in this new me- ity and fines for their subscribers’ use for transmitting indecent speech which dium. What about, for example, the of indecent language. might be accessed by a minor was up to Now, we have to ask ourselves if this university health service that posts in- makes such sense. We saw what hap- formation online about birth control 2 years in prison and fines of up to pened in Vermont last week. A and protections against the spread of $100,000. Indecency, unlike obscenity, is Vermonter from Underhill, VT, found AIDS? With many students in college constitutionally protected. Indecent that her personal profile on America under 18, this information would likely language has thus far, only been de- Online had been deleted. She asked disappear under threat of prosecution. fined by the FCC in regard to the time, why it was deleted and was told it was I understand that Representative place, and manner in which it may be because vulgar words were used on it. WHITE will make an alternative pro- transmitted. The definition includes So she checked to see what was the posal to the telecommunications con- the so-called seven-dirty words includ- vulgar word. The word ‘‘breast’’ was ference tomorrow. His proposal avoids ing what some might call mild pro- used. Why? Because she was a breast regulating constitutionally protected fanity. speech, and limits any regulation to cancer survivor and was using America When this legislation was offered as Online to correspond with other breast materials harmful to minors. This is a an amendment in the Senate, I ob- cancer survivors. So, this word came step in the right direction, but still jected for a number of reasons. My fun- up and because of hypersensitivity over leaves Internet users guessing at what Congress being worried about words may be considered harmful to minors damental concern was, and continues used on the Internet, she was yanked in different areas of this diverse coun- to be, that prohibitions on speech la- off. This is ridiculous in this day and try. beled indecent are unconstitutional. age. The Internet and other computer net- While courts have upheld restrictions One wonders if, in the future, recipes works hold enormous promise for en- on indecency to minors on other some for chicken cacciatore sent online will hancing our lives in ways that would forms of media, the Communications only call for dark meat to avoid using have been unthinkable only a brief dec- Decency Act would restrict commu- the ‘‘B-’’ word. ade ago. But the growth of this net- nications between adults as well. The We should understand there are plen- work will no doubt be chilled if users legislation, as passed by the Senate, ty of laws on the books that apply to fear that they risk criminal liability could subject consenting adults com- the Internet by banning obscenity, by using particular words that might, municating over a public USENET in some jurisdictions, be considered in- child pornography and threats from group to criminal penalties if their decent. Or, if service providers simply being a distributed. What we are talk- conversation took place in a forum ing about is regulating constitu- refuse to provide Internet access to that was accessed by a minor. I believe tionally protected speech. One proposal children under 18 years of age, due to under consideration by the conference the risk of criminal liability. that not only is that unacceptable, it is would impose penalties on anybody I have written, along with several also unconstitutional. Adults should who transmits protected speech if it is other Members, to the chairman and not have to self-censor their words over considered indecent. ranking member of the Senate Com- public information forums. A profane In addition to effectively banning in- merce Committee urging the conferees exchange between two adults on a decent speech, the conference is consid- to appreciate the implications that street corner which is overheard by a ering proposals to impose criminal li- these proposals will have for the Inter- child would not subject those adults to ability on both the speakers of inde- net. They should not rush consider- criminal sanctions. However, if that cent content as well as online service ation of these weighty issues. This is a exchange occurred on a public forum providers. The result would be to draft great new communications medium over the Internet and a child accessed the service providers into the role of and the conference should deliberate that forum, those same adults could Net police. Service providers like carefully before it gives its blessing to land in jail. America Online and Prodigy, telephone new crimes for saying things that some During the floor debate, I raised seri- companies providing modem connec- people, some where in this country, tions, and libraries and schools hook- may deem to be indecent for children. ous concerns that the Communications ing our Nation’s children up to this We should all be concerned lest the Decency Act would have a chilling ef- brilliant new medium would face the parody becomes reality. fect on computer networks, forcing risk of being fined and even jailed. Mr. FEINGOLD. Mr. President, I ask adults to self-censor their words to To avoid liability, service providers, unanimous consent to speak for 10 min- what is appropriate for the youngest of libraries, and schools would bear the utes as in morning business. children in the most conservative com- onus of asserting complicated defenses The PRESIDING OFFICER. Without munities in the country. I, along with to prosecution. The implications of objection, it is so ordered. my colleague from Vermont, Senator being hauled into court in the first f LEAHY, suggested that this type of cen- place—especially for schools and li- CENSORING THE INTERNET sorship would also have a chilling ef- braries—should not go unnoticed. Mr. FEINGOLD. Mr. President, I am fect on the many socially valuable fo- Many providers will seek to avoid the pleased to be able to follow the Senator rums that exist via the Internet. There risk of litigation altogether by cen- from Vermont who spent a few minutes exist currently many on-line support soring all online speech to that appro- to address a matter which was reported groups for child abuse victims, rape priate for kindergarten children, or re- by the news media throughout the victims, victims of disease, for those fusing to serve children at all. country this weekend in which the coping with AIDS, and other social These extreme proposals on the table Senator from Vermont referred to and issues. In addition, there exist chat in the telecommunications conference has a great relevance to legislation would leave online communications in groups, bulletin boards and USENET which the Senate passed this summer groups to discuss presumably adult a severely disadvantaged position in and will consider soon again. our society. While Newsweek maga- The telecommunications conferees topics which might contain the seven zine’s recent cover story trumpeted the may within the next 24 hours decide dirty words or other adult language. I vision of the computer mogul Bill whether this Congress is going to take suggested that the Communications Gates, the U.S. Congress is simulta- the unwise step of censoring the Inter- Decency Act would suppress those neously poised to shut down this new net. types of forums, limit the content of medium and vastly change the land- I am speaking of the Communica- the discussions within those forums, scape of the information age. We must tions Decency Act which passed the and ultimately result in their termi- stop being paternalistic Luddites and Senate overwhelmingly as an amend- nation.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17964 CONGRESSIONAL RECORD — SENATE December 5, 1995 The proponents of the Communica- such words if the Communications De- South Carolina is to be recognized to tions Decency Act assured the Senate cency Act becomes law. Indecency is a speak. that such was not the intent of the largely undefined term. We know how Mr. SIMON. I have the consent of my amendment. In fact, Mr. President, the FCC has defined indecency for colleague from South Carolina to some suggested that these types of con- broadcast, but it is unclear what would speak for 2 minutes, if there is no ob- cerns were raised in an effort to spin be indecent on computer networks. If jection, and I ask unanimous consent the issue. They suggested these fears such restrictions are imposed, people to speak. were not real and were not likely to be will err on the side of caution in their Mr. DOMENICI. Reserving the right realized. speech. Under the Communications De- to object, I have to be at a negotiating I suggest to Members of this body cency Act, to protect themselves from session at 3 o’clock. I introduced this that news reports over the weekend criminal liability, on-line services will bill 4 years ago, so I ask if maybe I confirm just how quickly those fears likely find themselves prohibiting the could have some time before 3 o’clock, could be realized if the Communica- word ‘‘breast’’ as well as many other 10 minutes or something? tions Decency Act became law. One of words. Adults with direct Internet ac- Mr. BENNETT. Mr. President, I sug- the companies providing on-line serv- cess will also be forced to self-censor gest that we grant the unanimous-con- ices to consumers, America Online, in their speech, guessing what might be sent request of the Senator from Illi- an effort to screen out filthy, vulgar indecent, and guessing who might ac- nois, during which time—not to be dis- and obscene language, apparently in- cess their communications. respectful to his announcement—we cluded the word ‘‘breast’’ in the list of In Saturday’s Chicago Tribune, Bar- sort out the time on this side. prohibited words on AOL’s services. bara LeStage, a member of the Amer- The PRESIDING OFFICER. The Mr. President, the word ‘‘breast’’ has ican Cancer Society, commented on Chair must clarify that under the pre- been used many times on the Senate the AOL prohibition on the use of the vious order, the Senator from Utah is floor with respect to health care legis- word ‘‘breast’’. Her comments, I think to be recognized, then the Senator lation, is not even among the so-called are fairly insightful. She stated from South Carolina. seven dirty words. It is not indecent. It I don’t have any problem with AOL trying Mr. SIMON. I ask my colleague from is not profane. Yet it was screened out to keep dirty words off their service. But I Utah if he would permit me to speak by a service which has been under tre- don’t consider breast to be a dirty word. If for 2 minutes. mendous fire for not policing its net- you have people who see it as dirty, for Mr. HATCH. I yield to the Senator. whatever reason, then this [prohibition on The PRESIDING OFFICER. Without works carefully enough. use] is going to continue to happen. Of course, the deletion of the word objection, it is so ordered. Mr. President, Ms. LeStage is exactly breast was met with an enormous out- f cry by women who participate in a right. If indecency is going to be outlawed and the term therefore defined CONGRATULATING THE NORTH- breast cancer survivors online support by community standards and the WESTERN UNIVERSITY WILD- group. According to press reports the courts, this will continue to happen. CATS deletion of the word breast from allow- People differ in their beliefs about able AOL language became known Mr. SIMON. Mr. President, I send a what is appropriate for children, about when an AOL subscriber created her resolution on behalf of Senator what is dirty, vulgar or indecent. To member profile identifying herself as a MOSELEY-BRAUN and myself congratu- some individuals even extreme pro- breast cancer survivor. She received a lating Northwestern University’s foot- fanity may not be indecent, to others, message from AOL indicating she could ball team. It has been cleared on both perhaps the word ‘‘breast’’ is indecent. not use ‘‘vulgar words.’’ AOL soon was sides. When AOL determined that ‘‘breast’’ Let me just say, after 24 losing sea- barraged by complaints by other users would be allowed under appropriate cir- of the breast cancer survivors chat sons, they are going to go to the Rose cumstances, we must wonder under Bowl. They now rank No. 3 in the Na- room. The word ‘‘breast’’ was subse- what circumstance would it be inappro- quently allowed back on the service. tion. Even more interesting, of all the priate and who decides. division 1A schools in the Nation, they However, an AOL spokesperson This is the danger of government caveated that with ‘‘as long as it is are No. 2 in scholastic aptitude tests. censorship of the Internet. Who defines I offer this resolution, and I ask used in an appropriate manner.’’ what can be said without criminal I mention this incident not to fault unanimous consent for its immediate sanctions? Who defines what is inde- consideration. It has been cleared on America Online. They are responding cent? Who defines when certain terms to a series of calls by interest groups, both sides. are used appropriately and when they The PRESIDING OFFICER. The Members of Congress, and others to po- are not? lice speech over their services and to clerk will report. Mr. President, Congress has entered a The legislative clerk read as follows: keep AOL family friendly. AOL like very dangerous area in its attempt to other on-line service providers is an- A resolution (S. Res. 197) to congratulate restrict constitutionally protected the Northwestern University Wildcats on ticipating additional Government re- speech on the Internet. In the next 24 winning the 1995 Big Ten Conference football strictions on speech over the Internet. hours, the Telecommunications con- championship and on receiving an invitation When under the threat of Government ferees will decide which road to take— to compete in the 1996 Rose Bowl, and to imposed speech restrictions and poten- that of Government excess or that of commend Northwestern University for its tial criminal sanctions, it is quite rea- caution. pursuit of athletic and academic excellence. sonable to overreact, to be overly cau- I urge the conferees to err on the side The PRESIDING OFFICER. Is there tious, and to restrict more than that of caution and to protect first amend- objection to the immediate consider- which is necessary. ment rights of Internet users. Such a ation of the resolution? Mr. President, this is exactly what I goal is not inconsistent with our over- There being no objection, the Senate fear will happen if the Communications riding objective of protecting children. proceeded to consider the resolution. Decency Act becomes public law. Technology exists now to allow parents The PRESIDING OFFICER. The Words will be banned. Speech will be to screen out materials they find objec- question is on agreeing to the resolu- restricted. This, Mr. President, is the tionable for their children. Obscenity, tion. chilling effect that Senator LEAHY and child pornography, and solicitation of Without objection, the resolution is I referred to on the Senate floor just 5 minors via the Internet is already a agreed to. months ago. Perfectly reasonable and violation of criminal law and is being So the resolution (S. Res. 197) was acceptable language will be restricted aggressively prosecuted by the Depart- agreed to. and prohibited. ment of Justice. The preamble was agreed to. Mr. President, while it may seem ri- I urge my colleagues not to take the The resolution, with its preamble, is diculous that the word ‘‘breast’’ was, at step toward censorship. I believe we as follows: least for a short period of time, consid- will immediately regret it. S. RES. 197 ered vulgar, it would not be unreason- The PRESIDING OFFICER. Under Whereas the Northwestern University able for a company like AOL to restrict the previous order, the Senator from Wildcats are the 1995 Big Ten Conference

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17965 football champions and have been invited to could be hoped for would be to sustain ment will have prepared them for the participate in the Rose Bowl on January 1, the ceasefire for the time period that sniper fire, the landmines, the terrible 1996, in Pasadena, California; NATO forces are in the region. terrain and weather in which they will Whereas the winning of the 1995 Big Ten Last week, the President traveled to have to live. I am also concerned about Conference football championship by the Wildcats completes an unprecedented 1-year Europe to visit with our allies, and possible kidnapings that could occur turnaround of the Northwestern University speak with the young men and women and how our troops will be treated. football program; and of the 1st Armored Division stationed Will they be treated as prisoners of Whereas Northwestern University is com- in Germany who are to be deployed to war, or political or legal detainees. mitted to athletic competitiveness without Bosnia very shortly. One Sunday, In 1945, United States military forces diminution of scholastic standards: Now, President Clinton was briefed on the were sent into to an area near Tuzla to therefore, be it NATO implementation plan, and gave keep Yugoslavian partisan out of Tri- Resolved, That the Senate— his conditional approval to the con- este. We were not officially at war, but (1) congratulates Northwestern University and its athletes, coaches, faculty, students, cept. Following that conditional ap- the partisans resented the presence of administration, and alumni on the winning proval, the President authorized the the U.S. forces and ambushed U.S. pa- of the 1995 Big Ten Conference football deployment of around 700 United trols and aircraft with sniper fire, land- championship by the Wildcats and on the re- States troops who will lay the mines, and booby traps. It took 9 years ceipt by the Wildcats of an invitation to goundwork for the arrival of the main for an agreement to be reached before compete in the 1996 Rose Bowl; and body of the NATO Implementation the 1 year mission was completed and (2) recognizes and commends Northwestern Forces, who will deploy to Bosnia once U.S. forces came home. University for its pursuit of athletic as well the peace agreement is formally signed Mr. President, there are already as academic excellence. in Paris next week. signs of dissensions among the parties The PRESIDING OFFICER. The Sen- President Clinton spoke to the to the agreement. The Serbs continue ator from Utah. troops, informing them of the United to press for a renegotiation because the f States national interests that warrant agreement would require Sarajevo to SENATOR THURMOND their deployment to Bosnia to enforce come under control of the Moslem- the peace agreement. The President as- Croat federation and Serbian civilians Mr. HATCH. Mr. President, I con- sured the troops that their mission is feel they will not be protected. Our gratulate my colleague from South clear, limited and achievable and that French allies have raised concerns that Carolina as well. There has never been the risks to their safety will be mini- their troops could become trapped if anybody in the history of this body mized. According to the director for there is renewed fighting. Additionally, who has meant more to me personally strategic plans and policy in the office the United States is being viewed as than the distinguished Senator from of the Joint Chiefs of Staff, Gen. Wes being partial to the Bosnians as a re- South Carolina. Clark, all U.S. forces should be in the sult of their support and there is a feel- Mr. President, I ask unanimous con- region within 30 days of the formal ing that United States military forces sent we go to the distinguished Senator signing of the agreement in Paris on will not be impartial. from South Carolina and then the dis- December 14. As I stated earlier, in statements on tinguished Senator from New Mexico According to the Department of De- the floor and in hearings, I continue to for their remarks. fense, the overall concept of the mis- have grave concerns about the vital in- The PRESIDING OFFICER. Is there sion of the implementation force will terests that have lead the President to objection? be to monitor and enforce compliance commit U.S. military forces to imple- Mr. BRYAN. Mr. President, reserving with the military aspects of the Day- ment this peace agreement. I am not the right to object, my understanding ton peace agreement. yet convinced that we have a vital na- is our distinguished colleague from The military tasks of the Dayton tional interest in Bosnia that requires New Mexico needs 10 minutes? agreement include: Supervise the the deployment of United States mili- Mr. DOMENICI. That will be ade- ceasefire lines and zones of separation; tary forces, or that our national secu- quate, I think. monitor, and if necessary enforce the rity interests are being threatened. Mr. BRYAN. I have no objection. withdrawal of forces to their respective On Wednesday, Secretary of Defense The PRESIDING OFFICER. The Sen- territories within the agreed time peri- Perry, Assistant Secretary Holbrooke ator from South Carolina. ods; establish and man the 4-kilometer and General Shalikashvili will appear f zone of separation; establish liaison before the Senate Armed Services Com- with local military and civilian au- THE DEPLOYMENT OF UNITED mittee. I intend to ask more questions thorities; and create joint military STATES MILITARY FORCES TO about the mission, objectives of the commissions to resolve disputes be- IMPLEMENT THE BOSNIA PEACE mission and the timeframe, the exit tween the parties. AGREEMENT strategy; why it is necessary to have All implementation forces, NATO over 60,000 heavily armed military Mr. THURMOND. Mr. President, last and non-NATO, will operate under forces with armored vehicles as peace- week, the Senate Armed Services Com- NATO rules of engagement. Those rules keepers; how the implementation mittee conducted a hearing with na- of engagement will permit the right to forces will separate the opposing tional security, foreign policy and in- use force up to and including deadly forces; and how the U.S. military telligence experts, who were all former force for self-defense to protect against forces will avoid taking on nonmilitary executive branch officials under Presi- hostile acts or hostile intentions, and, tasks, when it appears that the civilian dents Bush, Reagan, and Carter. All in order to accomplish the mission. humanitarian services and operations three witnesses supported deploying Despite a briefing by the President, will take at least 6 months to begin op- United States military forces to Bosnia the Secretary of Defense, and the eration. to implement the peace plan because Chairman of the Joint Chiefs of Staff, Mr. President, I do not intend to they believe it is critical to preserve as well as congressional hearings this rubberstamp a commitment by the the credibility and reliability of the past week with administration offi- President. I will reserve final judge- United States as a world leader and as cials, I continue to have grave concerns ment until after the hearings have a member of the North Atlantic Alli- and questions about the clarify of the taken place, and then make a final de- ance. While the three witnesses en- mission, and whether the goals and ob- cision. dorsed the deployment of U.S. military jectives of the mission can be achieved I yield the floor. forces to implement the agreement, within the limited deployment frame- f they also highlighted their concerns work. about the likelihood of disaster and I know that our young military men PRIVATE SECURITIES LITIGATION questioned the ability of the imple- and women are well-trained, the best REFORM ACT—CONFERENCE RE- mentation force to achieve any mean- equipped in the world and ready to go. PORT ingful mission objectives. In fact, the What I am most concerned about is The Senate continued with the con- witnesses all agreed that the best that whether all their training and equip- sideration of the conference report.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17966 CONGRESSIONAL RECORD — SENATE December 5, 1995 Mr. HATCH. Mr. President, I rise The conference report does so ment and specified information. That today to speak in favor of the con- through a number of specific measures. information would include, if the par- ference report to H.R. 1058, the Private The legislation provides that dis- ties agree on a figure, the average Securities Litigation Reform Act of covery is stayed whenever a motion to amount of damages per share that 1995. I was an original cosponsor of the dismiss is pending in a securities ac- would be recoverable or, if the parties Senate bill, S. 240, and am a strong tion. do not agree an a particular amount, a supporter of the conference report. Discovery costs have been estimated statement from each party as to why This legislation will protect inves- to account for 80 percent of the costs of there is disagreement. tors and consumers, while remedying defending a lawsuit in a securities ac- Notice must also include an expla- abuses that have plagued securities tion. The burden of this time-con- nation of the attorneys’ fees and costs issuers and companies—particularly in suming and expensive discovery proc- involved; the name, telephone number, cases in which attorneys have used ess will accordingly be significantly re- and address of the class lawyer; and a class action lawsuits to force settle- duced. That should remove some of the brief statement explaining the reasons ments on parties that have done no skewed incentives that have frequently for the proposed settlement. Those pro- wrong. forced companies to settle securities visions will improve the information It is my hope that President Clinton lawsuits even when they have done no provided to individual shareholders and will defend the interests of the Amer- wrong. increase the involvement of individual The conference report specifically ad- ican people by signing this legislation, class members in litigation decisions. rather than favor the trial lawyers who dresses abuses involving the use of so- would benefit from his veto. called professional plaintiffs as lead The conference report also limits at- In my view, this conference report plaintiffs in securities action lawsuits. torneys’ fees to a reasonable percent- represents a significant step towards Many plaintiffs have been motivated to age of the amount of recovery awarded addressing some of the egregious liti- file suit to receive a bounty payment to the class. gation abuses seen in the legal system or bonus. On a separate note, this legislation today. On a related front, the Senate’s There has also all too often been a creates a modified system of propor- product liability bill is going to con- race to the courthouse by plaintiffs’ tionate liability, under which each co- ference, and it is my hope that in the lawyers seeking to be the first to file a defendant is generally responsible for future Congress will pass more broad- complaint in a securities action. Law- only the share of damages that that de- ranging litigation reforms that will af- yers representing a class are often ap- fendant caused to the plaintiff. fect the entire civil justice system. pointed by the court on a first come, To balance plaintiffs’ needs, however, I would like to extend my gratitude first serve basis: the first lawsuit filed there is a provision to protect plain- to Senator D’AMATO, Senator DODD, determines who will serve as lead tiffs from insolvent codefendants. and Senator DOMENICI for their hard plaintiff and who will be the lead attor- Where defendants have committed a work in bringing this significant and ney. knowing securities violation, those de- well-drafted legislation to fruition. In many cases, the professional plain- fendants will be jointly and severally This bill has been perfected over sev- tiff has not even reviewed the com- liable for damages. Also, in the case of eral congresses and is the result of a plaint filed against the defendant. This an insolvent codefendant, a proportion- strong bipartisan effort. legislation will require the lead plain- ately liable codefendant would provide Abusive securities litigation lawsuits tiff to file a sworn certified statement additional damages to up to 150 percent have imposed a high and harmful tax along with the complaint, stating: of its share of the damages. First that the plaintiff has reviewed on American businesses. Because of the There is even an additional, special and authorized the filing of the com- fear of being sued—and the high costs protection for small investors: all de- plaint; second that the plaintiff did not associated with securities lawsuits— fendants will be jointly and severally purchase the security involved at the many companies have declined to go liable for uncollectible shares of insol- request of an attorney or to be a party public. Other companies have declined vent codefendants for plaintiffs whose to the securities action; and third that to make innovations or disseminate damages are more than 10 percent of the plaintiff is willing to serve as the certain information. their net worth, and whose net worth is The unfortunate irony is that, while lead plaintiff for the class. less than $200,000. securities litigation laws were designed A lead plaintiff may not serve as a to safeguard investors, in reality the lead plaintiff in a securities action This legislation is proconsumer and current system ends up hurting inves- more than five times in 3 years. The protects small investors. tors. legislation also limits the class rep- In a separate measure, the legislation The current system hurts investors resentative’s recovery to the lead adopts the second circuit pleading who could have invested successfully in plaintiff’s pro rata share of the settle- standard so that, in a securities action, those companies that decided not to go ment or final judgment. These provi- plaintiffs must state facts with par- public due to fears of litigation. sions limit some of the skewed incen- ticularity, and those facts must give It also harms investors who could tives that have led to the rise of profes- rise to a strong inference of scienter or have earned greater profits on their sional plaintiffs. intent. This should help weed out at an shares had the companies they invested Once a securities litigation class ac- early stage lawsuits filed against inno- in been more profitable—for example, tion lawsuit has been filed, the court cent defendants. if those companies had been able to in- will then determine separately which The bill also includes a cocalled safe vest more money in research and devel- plaintiff is the most adequate plaintiff. harbor provision to protect forward- opment rather than wasting it on secu- Any party who has received notice of looking, predictive statements. rities litigation costs. Not only have the suit may petition the court to It structures damages so that they investors gotten hurt, but certain law- serve as lead plaintiff within 60 days of will reflect real losses rather than for- yers have raked in exorbitant fees. when the suit was filed. In determining tuitous market fluctuations. Companies have all too often been re- which plaintiff is the most adequate luctant to disclose information for fear plaintiff, the court determines which Finally, the proposed legislation that doing so will provoke a lawsuit. party has the greatest financial inter- would establish new civil penalties That goes completely against the grain est in the lawsuit. against independent public account- of the securities laws, which are de- The most adequate plaintiff selects ants who fail to inform corporate offi- signed to encourage openness and full the lead attorney and negotiates attor- cers of any illegal acts they discover information in the securities markets. neys’ fees. That plaintiff also weighs in while performing audits. That further The conference report addresses some on settlement decisions and other sig- protects investors. of the worst abuses that have been seen nificant decisions pertaining to the In short, this legislation should pro- in securities litigation. At the same lawsuit. tect individuals and free up resources time, the Report preserves and rein- The legislation also provides im- that have imposed substantial and forces the core values of the American proved settlement notice to class mem- needless litigation costs on American stock market—integrity, openness, and bers. Class members will have to be businesses in Utah and all across this the free exchange of information. provided notice of a proposed settle- country.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17967 As I noted, I would like to see Con- From my standpoint, this bill will litigation. It was such a serious offense gress take a more comprehensive look make their jobs more secure. It will that not too many years ago it was at litigation abuses across the civil jus- make those companies that I have just against the law. tice system. This legislation is cer- described as a backbone of a new kind This bill will hopefully curb this tainly a significant step in that direc- of industrial revolution in America modern-day champerty, stop the vexa- tion. I look forward to working with more successful rather than less, and tiousness and restore integrity to our my colleagues to achieve broader reno one will be hurt in the process. security laws by filtering out abusive, forms. Let me right up front refer to four frivolous class action lawsuits that The PRESIDING OFFICER. Under letters. It does not look like several harm investors and only benefit the the previous order, as modified, the letters because it is enormously thick, class action attorneys. Senator BEN- Senator from New Mexico is recognized but there are four letters signed by NETT made a very good point earlier for up to 10 minutes, to be followed by about 1,000 chief executive officers and today: The company is the investors. the Senator from California for up to 30 presidents of electronics and high-tech- We can no longer allow entrepreneurial minutes, to then be followed by the nology firms. The letters are not di- lawyers to squeeze the research and de- Senator from Nevada for up to 15 min- rected to the Senator from New Mexico velopment budgets, to depress dividend utes. or to the Senator from Utah or to the yields to all investors for the benefit of The Senator from New Mexico is now Senator from Nevada. They are di- a few professional plaintiffs. We can no recognized. rected to the President of the United longer allow lawyers to muzzle the Mr. DOMENICI. Mr. President, I States. In short, these letters are urg- chief executive officers from making thank my friend from Utah, the floor ing the President to sign this bill be- predictions and statements about the manager, for arranging the time and cause it is good for their growth and future of their companies. for his diligent work. the jobs and the well-being of the thou- Professional advisers, like account- Let me, right up front, indicate that sands of workers they represent. ants and outside directors, should not there are many Senators and many Mr. President, Federal securities law be held 100 percent liable just because Members of the House who deserve that we are considering here today pro- they are deep pockets. This bill will credit for getting this bill before us in vides a comprehensive legal framework force lawyers to be good lawyers and this conference report. I personally designed to do three things: lawsuits to have merit. want to thank the chairman of the First, protect investors in the securi- This bill recognizes that stock vola- Banking Committee, Senator D’AMATO, ties market. Let me repeat that. First, tility is not stock fraud. Let me repeat because without his guidance and total protect investors in the securities mar- that. This bill recognizes that stock commitment we would not be here. prices go up and down—that is stock I want to thank my original cospon- ket. Second, provide ground rules for volatility—it is not stock fraud. It rec- sor, Senator CHRIS DODD. Actually, the companies seeking to raise money in two of us fought a lonesome battle ognizes that all investors benefit when our capital markets. until this year. It looked like this there is more disclosure of informa- And, third, to encourage disclosure of would never happen. But with the tion. It recognizes that predictions more accurate information about pub- change in the Congress, and the White about the future are valuable informa- licly traded companies. House making some changes in the way tion to investors. It recognizes that The trend is opposite to that third they thought about this, we are here predictions may not come true. Such point because of the lawsuits that fol- today with a bill that I understand the statements are predictions, not prom- low when information is disseminated. President may very well sign. ises. What are we doing here and why are This bill updates our securities laws In the safe harbor provision that is we here? First of all, let me talk a lit- to better achieve these objectives and currently in the bill before us, there tle bit about an industry in America. in a better, balanced way. When the are really three safe harbors. I will not In recent days there has been much U.S. Supreme Court created the im- go through all of them, but I will refer conversation about the executive offi- plied right of action—the class action— to the third one which has received cer of Microsoft Corp. That is a high- it noted that ‘‘litigation under rule most of the attention. It is a variation technology industry, an industry that 10(b)(5) presents a danger of vexatious- of the ‘‘bespeaks caution’’ doctrine. We is involved in computers and every- ness different in degree and kind from tried to make it workable and not too thing that goes with it and the entire that which accompanies litigation in cumbersome. The chief executive offi- high-technology community of inter- general,’’ citation of the case, close cer needs to identify the statement as est. quote. a forward-looking statement, needs to The high-technology, high-growth ‘‘Vexatiousness’’ is not a word that I provide meaningful cautionary state- companies are the backbone of the use very often, nor do I hear it used ments and needs to identify some im- America’s economy and are vital to our very often. It comes from the verb ‘‘to portant factors that tell the audience ability to compete in a growing global vex,’’ which means to harass, to tor- why the prediction may not come true. market. We can no longer allow abu- ment, to annoy, to irritate, and to This bill retains the two-tiered liabil- sive lawsuits to stifle these companies’ worry. As a noun, it is synonymous ity. We wanted to change the econom- abilities to pursue new technologies with troublesome. In the legal context, ics of these cases so that the merits and create new jobs. it means a case without sufficient will once again matter. People should The high-technology companies con- grounds in order to cause annoyance to not be sued because they have deep tribute about $400 billion in goods and the defendant or proceedings instituted pockets or a lot of insurance. We cre- services in the United States. They em- maliciously and without probable ated special rules so that small inves- ploy 21⁄2 million people, which is 14 per- cause. tors will be made whole in the event of cent of the total manufacturing jobs in In these frivolous securities class ac- an insolvent codefendant who cannot America. High-technology jobs are tion cases, the lawyer hires the client pay investors for their losses. some of the best jobs also. The average instead of the other way around. It We required disclosure of settlement salary is $42,000 per worker, and high sounds a lot like modern-day terms and lawyers fees in plain English technology is a larger segment of our champerty. In law school we studied so that investors will know what they economy than transportation, avia- about this thing called champerty. might recover and how much of the tion, and the auto industry combined. That is another word that is not heard settlement fund the lawyers are asking It is a rapidly growing part of our econ- very often. But it existed where a per- for. And, in a sense, this makes the omy and it is our future. son assisted another with money to system much better in 12 ways: In my small State alone, there are carry out his lawsuit. In times past, First, it puts investors with real fi- 305 electronics firms with 16,000 high someone who would pay for, in whole nancial interests, not lawyers in technology, high-paying jobs with a or in part, the cost of litigation was en- charge of the case. It puts investors total payroll of $609 million, and they gaged in champerty, including doing with real financial interests, not pro- produce approximately $2.5 billion in things that tend to obstruct the course fessional plaintiffs with one or two goods and services. of justice or to promote unnecessary shares of stock in charge of the case.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17968 CONGRESSIONAL RECORD — SENATE December 5, 1995 The provisions that accomplish this can focus on running their companies the semiconductor. Thousands of jobs include most adequate plaintiff; plain- and growing their businesses. Investors would be in Japan instead of America. tiff certification; ban on bonus pay- will get higher stock prices and bigger Entrepreneurial lawyers also like to ments to pet plaintiffs; settlement dividends. sue deep-pocketed professional advis- term disclosure; attorney compensa- America needs securities litigation ers, like accountants and lawyers, even tion reform; sanctions for lawyers fil- reform for many reasons. One reason if they are only marginally involved in ing frivolous cases; restrictions on se- we need this legislation is because the the alleged fraud. Under the current cret settlements and attorneys fees. system as it currently operates encour- law rule of joint and several liability, Second, it provides for notification to ages a race to the courthouse to file these advisers can be made to pay the investors that a lawsuit has been filed poorly researched, kitchen sink com- entire multimillion dollar judgment, so that all investors can decide if they plaints by entrepreneurial class action even if they were unaware of any really want to bring a lawsuit. lawyers unconcerned with the merits of wrongdoing. That is because the cur- It is likely that the people trusted to their cases. These lawyers know that it rent law says that if you conduct an manage pension funds and mutual is very easy to allege securities fraud, audit or sign an opinion letter for a cli- funds [the institutional investors] will and they often use the current sys- ent who violates the securities laws, get more involved. (Most adequate tem’s liberal pleading rules to extort then you should have known of the plaintiff provision). settlements from innocent companies. wrongdoing. Because they face poten- Third, it puts the lawyers and his cli- Entrepreneurial plaintiffs’ lawyers tially massive liability for their rel- ents on the same side. This is accom- favorite targets are usually high-tech- atively innocent conduct, auditors and plished by reforms that change eco- nology, start-up firms which cannot lawyers often settle rather than fight nomics of cases, in particular, propor- bear the costs of fighting even the the abusive lawsuit. Studies show that tionate liability, settlement terms dis- most frivolous lawsuit. Over the past 4 naming an accountant in a lawsuit adds 30 percent to its settlement value. closure. years a total of $2.5 billion has been Fourth, it prohibits special side-deals paid in settlements in securites class Rather than continue to face unfair joint and several liability, auditors and where pet plaintiffs get an extra $10,000 action cases. This is money that could lawyers have begun to refuse to advise or $15,000. have been better spent on enhanced re- startup firms most susceptible to abu- It protects all investors, not just the search and development, product devel- sive lawsuits. This hurts the companies lawyers’ pet plaintiffs, so that settle- opment and high paying job creation. Even when small, high-technology and ultimately their shareholders. ments will be fair for all investors. Part of the problem is the race to the Fifth, it stops brokers from selling companies are forced to surrender and courthouse by entrepreneurial class ac- settle abusive suits without much of a names of investors to lawyers. tion lawyers, who file lawsuits within Sixth, it creates environment where fight, they still must divert important hours of news that a company came up CEO’s can, and will talk about their scarce resources toward the lawsuit short on an earnings projection or will and away from job creation and prod- predictions about the future without be forced to delay the introduction of a uct development. Testimony at con- being sued. new product. Information provided to It gives investors a system with bet- gressional hearings on securities litiga- the Senate Banking Committee by the ter disclosure of important information reform indicated that the typical National Association of Securities and tion. (Safe harbor). frivolous securities lawsuit costs $8.6 Commercial Law Attorneys [NASCAT] Seventh, better disclosure of how million and 1,000 hours of management reveals that 21 percent of the cases are much a shareholder might get under a time just to settle the case. filed within 48 hours of the triggering John Adler, president and CEO of settlement and how much the lawyers event. The stock price drops after the Adaptec, Inc. told the Senate Banking will get so that shareholders can chal- company makes an announcement, and Committee that the money his com- lenge excessive lawyers fees. the lawyers quickly file lawsuits with Eighth, no more secret settlements pany spent fighting a frivolous securi- little or no due diligence done to inves- where attorneys can keep their fees a ties lawsuit would have paid for 20 ad- tigate whether the suits have any secret. (Restrictions on settlements ditional engineers. Intel spent $500,000 merit. In fact, I would guess that the under seal). in 1991 just to have two abusive cases lawyers do not really care whether the Ninth, it limits amounts that attor- withdrawn. That money would have suits possess much merit. This is be- neys can take off the top. Limits attor- paid for 10 production workers or 5 en- cause courts rarely exercise their au- neys’ fees to reasonable amount in- gineers at its facility in my home thority to impose sanctions on attor- stead of confusing calculations. (Attor- State. Legent Computer Corp. spent neys who file frivolous securities suits. ney compensation reform, limiting nearly $2 million in legal fees and sev- Abusive lawsuits not only drain lodestar method of calculating fees). eral million dollars to comply with the scarce resources away from important Tenth, it provides a uniform rule plaintiffs’ lawyers request for 290,000 company activities, but they also have about what constitutes a legitimate pages of documents, even though a a profound impact on the willingness of lawsuit so that it will no longer matter judge eventually dismissed the law- corporate executives to speak freely where a case is filed. Investors in Albu- yers’ complaint. Numbers like these about their company’s plans and ex- querque will have the same rules as in- make me realize that we need to pected future performance. Several vestors in New York. (Pleading re- change the current winner pays sys- corporate executives and general coun- form). tem, where innocent companies must sels told the Banking Committee that It stops fishing expeditions where expend vast amounts of time and re- they had adopted a policy of not mak- lawyers demand thousands of company sources just to get an abusive suit dis- ing public forward-looking statements documents before the judge can decide missed. out of fear that they would be sued for if the complaint is so sloppy that it High-technology and high growth securities fraud if their predictions did should be dismissed on its face. (Dis- companies form the backbone of our not materialize. We should encourage covery stay). economy and the foundation of our companies to make forward-looking Eleventh, it makes merits matter so ability to compete in the growing glob- statements, because they contain pre- that strong cases recover more than al marketplace. They create jobs and cisely the type of information inves- weak cases. Makes sure people commit- grow the economy. We can no longer tors most desire—information about ting fraud compensate victims. Im- allow these abusive lawsuits to stifle where the company is headed in the fu- proves upon the current system so that our companies’ ability to pursue new ture. But we must remember, pre- victims will recover more than 6 cents technologies and create new jobs. The dictions are not promises of future per- on the dollar. general counsel of Intel Corp. told us formance, and executives who make Twelfth, by weeding out frivolous during a hearing that had Intel been forward-looking statements should be cases, it gives the lawyers and judges sued when it was a startup company, protected from lawsuits unless they in- more time to do a good job in pro- the lawsuit likely would have deci- tended to deceive investors. tecting investors in meritorious cases. mated its research and development I have spoken a great deal about how High-technology companies’ executives budget and prevented it from inventing abusive lawsuits affect companies and

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17969 their professional advisers. Even more cussing the solution we have developed. These practices are unfair to the share- egregious than the way the current se- Our goal in crafting this legislation holders not afforded the luxury of act- curities class action system treats was to balance the interests of de- ing as named plaintiff and should be them is the way it treats investors. frauded investors with those of the eliminated. Their elimination will keep When attorneys file frivolous cases, in- companies and professional advisors more money in the settlement fund for vestors eventually bear the costs of the who are often the subject of abusive, all investors, not a select few. lawsuit. When lawyers pursue meri- meritless lawsuits. I believe that we The conference report also will ben- torious cases, they often seek settle- have developed a balanced bill that efit companies, as well as investors by ments that benefit them and leave in- provides relief from abusive suits while utilizing reasonable means to elimi- vestors with pennies on the dollar of giving investors greater control and a nate abusive frivolous lawsuits. De- their losses. larger recovery in cases of real fraud. spite what opponents say about this Often lost in the debate over securi- It contains provisions which place in- bill, it will not protect the Charles ties litigation reform is the fact that vestors, not lawyers, in control of the Keatings of the world or prevent vic- not just companies, but investors are lawsuit. Unlike the current lawyer- tims of egregious fraud from obtaining harmed by frivolous securities law- driven system, under this new law the relief. No Senator would vote for a bill suits. Former SEC Chairman Richard investors with the greatest stake in which allowed that to happen. Instead, Breeden testified that ‘‘the people who the outcome of the litigation will con- the conference report contains provi- are most badly hurt—by abusive secu- trol the case. Usually this will mean sions which will weed out frivolous rities lawsuits—are the company’s that pension funds and mutual funds, cases early in the litigation process shareholders, who indirectly pay all which represent thousands of small in- and impose fair liability standards on the costs’’ of the lawsuit. Current SEC vestors, will determine whether to pur- companies and their professional advi- Chairman Arthur Levitt also has cor- sue a lawsuit, who will be their law- sors to reduce the tremendous pressure rectly noted that investors are being yers, and when and for how much to on them to settle even the most abu- hurt by litigation excesses. settle the case. Because they have an sive cases. When plaintiffs’ lawyers engage in interest in protecting their small in- To weed out frivolous cases early in the predatory practice of filing an abu- vestors by discouraging frivolous suits the process, the conference report sive securities lawsuit, shareholders and pursuing cases of real fraud, insti- adopts the pleading standard utilized eventually must bear the costs of the tutional investors are in the best posi- by the second circuit court of appeals, suit. When companies are forced to dition to decide whether to go forward where a large number of securities vert resources from research and devel- with a lawsuit. fraud lawsuits are brought. This court- opment budgets to litigation budgets, Unlike the current system where the tested standard requires plaintiffs to stock prices drop and shareholders suf- first lawyer to file the lawsuit controls plead facts in their complaint which fer. When companies must make a the case, this legislation also will give rise to a strong inference of secu- charge to earnings to pay the costs of allow the investors to pick their law- rities fraud. settling an abusive lawsuit, dividends yers and negotiate up front what their The conference report also adopts the are lower and shareholders suffer. fee will be. This will result in reduced State-law trend of proportionate liabil- When corporate executives refuse to attorneys’ fees and will leave more ity—liability based upon the degree of discuss the company’s future plans out money in the settlement fund for de- responsibility of each defendant. It re- of fear that they will be sued, markets frauded shareholders. It will eliminate tains joint and several liability for the are denied access to the information situations where the attorneys request really bad actors, those who knowingly investors need most to make informed significant portions of settlement fund defraud investors. It holds all others investment decisions, and shareholders as their fee and leave investors with proportionately liable for the harm suffer. pennies on the dollar of their claimed that they have caused. This will reduce During the 12 congressional hearings losses. the pressure to settle on professional held on securities class action litiga- The conference report also requires advisors who may not even have been tion, the most shocking thing I learned that settlement notices to class mem- aware of the fraud, but who under the was the way plaintiffs’ lawyers treat bers contain clear and concise disclo- current system could be held respon- investors in cases of real fraud. Accord- sures of the terms of the class action sible for the entire amount of damages. ing to studies and testimony presented settlement. Under the current system, Proportionate liability is not a novel at the hearings, in the typical settle- investors often receive settlement no- concept—it’s one many States con- ment of a securities fraud lawsuit, in- tices shrouded in legalese, which give cerned with a fair application of liabil- vestors receive around 6 cents on the them little or no idea what the lawyers ity have used for years. dollar of their claimed losses, while have agreed to do. Only after they have There are three provisions in this bill plaintiffs’ lawyers take the lion’s share consented to be part of the class and which provide additional investor proof the settlement fund as their fee accept the settlement do they realize tection, particularly for the most vul- award. This is because the current sys- that the lawyers have taken most of it nerable small investors. First, the bill tem allows attorneys to negotiate their and left them with next to nothing. contains a provision specifically de- settlement with little or no input from Under the new law, lawyers will be resigned to improve fraud detection in their purported clients, the injured in- quired to explain to shareholders in the areas of auditing and financial re- vestors. One of the most prominent se- clear terms the total amount of the porting. Auditors will now be required curities class action lawyers claims to settlement, the amount of attorneys’ to report instances of corporate fraud have the best practice in the world be- fees and costs sought, and the amount and this reporting often will take place cause he has no clients. per share class members will receive. before the fraudulent information This same attorney once settled a With this new information, investors makes its way into financial disclosure class action for $12 million and asked will better be able to determine wheth- documents disseminated to investors. for the entire amount as his fee award. er to accept the terms of the settle- The bill also contains language which This would have left his clients with ment. will ensure that investors get com- nothing. When asked whether he had a The new system also will be good for pensated if the main perpetrator of the duty to his clients to justify his fee re- investors because it eliminates many fraud is bankrupt. The conference request, this lawyer responded that his of the unfair practices currently asso- port requires proportionately liable de- only responsibility was to justify his ciated with generating a securities fendants to pay up to an additional 50 fee request to the court. A system class action. Lawyers will no longer be percent of their liability into the set- which allows this sort of abuse needs to able to pay bonuses out of the settle- tlement fund in cases where the pri- be changed. Investors deserve better. ment fund to individuals who lend mary, knowing violator is insolvent. It THE SOLUTION their name to the lawsuit and act as also requires that small investors be While I have spent some time talking the named plaintiff. Nor will they be fully compensated in all cases by hold- about the problem, I would like to allowed to pay bonuses to brokers or ing all defendants jointly and severally spend the remainder of my time dis- dealers for referring potential clients. liable for their entire losses.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17970 CONGRESSIONAL RECORD — SENATE December 5, 1995 The bill also contains a fair safe har- one of these lawsuits. The conference lawsuits without discouraging indi- bor for predictive statements which committee wisely chose to leave this vidual plaintiffs from seeking redress will allow companies to provide the law intact. This sort of sales talk or in the courts. forward-looking information investors puffing has no effect on a company’s Mr. President, I hope my colleagues desire without the fear of a lawsuit if share price and courts should continue will vote for this conference report. the projections do not materialize. to quickly dismiss cases based on these This legislation is substantially simi- Under the current system, if one per- types of statements. As well, courts lar to the legislation we passed in July son in a company is aware of informa- also should continue to consider public by a wide margin. I believe that the tion which might contradict the com- information provided by sources other Senators who supported the bill in July pany’s projection, the company can be than the company or public informa- should have every reason to vote for held liable for fraud. This forces com- tion from the company not contained this conference report today. It is a panies to adopt a policy of not making in the forward-looking statement when well-balanced bill that protects inves- predictive statements. determining whether a predictive tors from intentional fraud, gives them The new safe harbor, endorsed by the statement meets the securities laws’ greater control of their cases and ad- Securities and Exchange Commission, test of materiality. These concepts also dresses many of the abuses inherent in protects predictive statements in two are found in the cases, and the con- our currently broken securities class ways. First, projections are protected ference committee certainly did not in- action system. from lawsuits as long as they are ac- tend to have any effect on this area of I ask unanimous consent to have companied by meaningful warnings the law. printed in the RECORD following my re- which identify important business fac- Should a predictive statement not marks a list of those from my home tors which could cause the prediction contain sufficient cautionary language State of New Mexico who support secu- to fail. This provision is based on the to fall into the first safe harbor, then a rities litigation reform. The list in- bespeaks caution doctrine, a concept in second safe harbor is available. Under cludes several State senators and rep- the securities laws which says that if a the second safe harbor, the statement resentatives, as well as Gary Johnson, predictive statement is surrounded by is protected unless it was made with the distinguished Governor of New sufficiently cautionary language dis- actual knowledge that it was false. If a Mexico. I also ask unanimous consent that a cussing some of the reasons why the business entity made the statement, copy of a series of letters from a group prediction may not come true, then the then the plaintiff must prove that the of high-technology and high-growth statement cannot form the basis of a statement was made or approved by an lawsuit. Under this new rule, compa- company CEO’s, and venture capital- executive officer with the actual ists to President Bill Clinton also be nies which desire the protection of the knowledge that it was false. This will safe harbor will be required to disclose printed in the RECORD. prevent the situation under current The PRESIDING OFFICER. Without certain information to investors about law which permits lawsuits to go for- the factors which might undermine objection, it is so ordered. ward based upon the existence of a (See exhibits 1 and 2.) their predictions. Companies need not memo or electronic mail by a low-level Mr. DOMENICI. Mr. President, I disclose every factor, nor must they employee who disagrees with manage- want to especially recognize the ex- disclose the factor which eventually ment’s projection. This provision is traordinary commitment Senator DODD causes the prediction to fail. They sim- based upon the standard Senator SAR- has made to this legislation. When he ply must discuss some of the important BANES proposed on the floor during the was chairman we started the hearings, business factors which could affect Senate debate, and I believe that this compiled a thorough report and to- their prediction. is an effective compromise. gether we developed legislation. He has There has been much discussion Investors should have increased ac- steadfastly worked to make the bill a about this first part of the safe harbor. cess to the company’s thoughts about better bill for small investors, for all Early drafts said that companies must where it is headed in the future, and investors, for our capital markets and disclose substantive factors, rather the current lawsuit-driven system dis- the companies using our capital mar- than important factors. In this Sen- courages executives from talking about kets. This knowledge of the securities ator’s opinion, these words are inter- the future. The conference report’s bal- laws helped craft the answers to the changeable and impose the same re- anced safe harbor provision encourages problem that we all saw. quirement on companies: discuss some companies to speak by recognizing that I thank my colleagues Senators DODD of the important business factors predictions are not promises, while and D’AMATO, as well as the rest of the which could affect your prediction. It prohibiting outright lies by corporate conferees for all of their hard work on imposes no hindsight state of mind re- executives. Again, this is a provision this important legislation. This is com- quirement on companies regarding supported by the Securities and Ex- prehensive reform, and companies as which factors they believed were most change Commission. Let me read into well as our legal system will work important. Nor should this provision be the record what the Commission says more efficiently because of it. Senator used by courts in a way which allows about the safe harbor in the conference GRAMM pioneered the most-adequate- the current system’s abusive discovery report: plaintiff provision and I thank him for practices to continue. Courts should While we could not support earlier at- his input. not read the word important to mean tempts at a safe harbor compromise, the cur- I must thank several members of the that plaintiffs are entitled to large- rent version represents a workable balance House who have worked so hard to help scale discovery on the issue of which that we can support since it should encour- bring about securities litigation re- factors the company believed were image companies to provide valuable forward- form. The chairman of the Commerce portant. Courts should simply look at looking information to investors while, at Committee, Mr. BLILEY and his distin- the four corners of the predictive state- the same time, it limits the opportunity for guished subcommittee chairman, Mr. ment, as well as the information about abuse. FIELDS, have worked tirelessly to en- the company already in the market, Finally, this bill addresses the fact sure that this legislation is effective and determine whether investors that attorneys and courts are unwill- and actually works in the real world. I should have relied on the predictive ing to pursue sanctions against entre- realize how difficult it can be to craft statement. preneurial lawyers who file abusive a complicated piece of legislation like Under this safe harbor, courts also suits. This legislation requires courts this, and I appreciate their help. I also may continue their practice under cur- to review the record at the end of each would like to thank Representative rent law and find forward-looking case to determine whether any of the CHRIS COX from California, who prac- statements immaterial on other attorneys violated rule 11 of the Fed- ticed in this area prior to coming to grounds. There is an abundance of case eral rules. If the court finds a viola- Congress. His practical experience and law which says that soft forward-look- tion, then it must impose sanctions. expertise has helped make this a better ing statements containing optimistic Requiring courts to impose sanctions bill. Finally, I thank Representative opinions without any factual represen- against attorneys who file frivolous BILLY TAUZIN, a new member of the Re- tations cannot serve as the basis for cases will reduce the number of abusive publican Party who fought for many

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17971 years as a Democrat to bring this legis- cluded are many of the state’s largest pri- forcement system. We also want you to un- lation to the floor of the House. Mr. vate sector employers—Intel Corporation, derstand that the current system is no TAUZIN’s hard work attracted over 200 Motorola Inc., US West Communications and longer functional, promoting inefficient cosponsors to his original bill at a time many more. Below is a detailed breakdown of markets, costing jobs, and harming inves- CEASS members in New Mexico. tors. when there was very little interest by In Silicon Valley, California, nearly 53% of the House leadership in even bringing CEASS MEMBERS AMONG LARGEST NEW MEXICO EMPLOYERS (500 OR MORE EMPLOYEES) technology companies have been sued under up the issue of securities class action Chevron Corporation. Section 10(b)(5) of the Securities Act of 1934. reform. Mr. TAUZIN has worked on this Intel Corporation. Every single one of the top ten Silicon Val- issue since the beginning, and his dedi- Johnson & Johnson. ley Corporations—world class multinational cation to this issue is to be com- MCI Communications, Inc. competitors—have been accused of violating mended. Motorola Inc. the anti-fraud provisions of the U.S. Securi- SEC Chairman Levitt and Commis- Phelps Dodge Corp. ties laws. The current state of affairs was de- US West Communications. scribed best by a prominent Silicon Valley sioner Wallman made constructive sug- CEO who stated: ‘‘There are only two kinds gestions throughout the process. I am CEASS MEMBERS HEADQUARTERED IN NEW of California technology companies—those very pleased that they support the safe MEXICO that have been sued, and those that are harbor provisions that have been Diagnostek, Inc., Albuquerque. about to be sued.’’ worked out and that we were able to Indian Motorcycle Manufacturing Inc., Al- We want to emphasize that the provision address their principle concerns about buquerque. most critical for technology companies is a the entire bill. Mesa Airlines, Inc., Farmington. strong, effective safe harbor for forward- Neff & Company, Albuquerque. looking statements—statements made by Mr. President, I urge that Senators Specialty Teleconstructors, Inc., Cedar adopt this bill today and I urge the companies and others about the future pros- Crest. pects of earnings, products, technologies or President to sign it. As we look back at Sunsoft Corporation, Albuquerque. the like. But the key to a safe harbor is that this year, this will be one of the most ALL OTHER CEASS MEMBERS WITH FACILITIES IN it must be safe. Properly constructed, a true significant pieces of legislation that NEW MEXICO safe harbor will promote maximum disclo- attempts to rid the American economy AlliedSignal Inc., Las Cruces. sure by corporate executives and provide in- and the entrepreneurial system from Arthur Andersen LLP, Albuquerque. vestor protection. Under current law, if a unneeded drag and unneeded cost so Baxter International, Albuquerque. company fails to meet management’s projec- that it retains more of its vibrancy and Borg-Warner Security Corp., Albuquerque. tions or analysts’ expectations it often finds growth potential. Chevron Corporation, Gallup. itself faced with a lawsuit. Frequently, these lawsuits are based on changes of fraud, alleg- I yield the floor. Chevron Corporation, Raton. Eagle Industries, Inc., Albuquerque. edly for false and misleading past statements EXHIBIT 1 FHP International, Inc., Albuquerque. of future expectations. And because of our NEW MEXICO SUPPORT FOR S. 240 Intel Corporation, Rio Rancho. inherent stock volatility, rapid product de- GOVERNMENT Johnson & Johnson, Albuquerque. velopment, and economic and technological uncertainties facing technology companies, New Mexico Governor Gary Johnson. KPMG Peat Marwick LLP, Albuquerque. high technology firms are easy prey for these State Senator Patrick Lyons. MCI Communications, Inc., Albuquerque. State Senator Virgil Rhodes. Motorola Inc., Albuquerque. merit less lawsuits. State Senator E.M. Jennings. The Olsten Corporation, Albuquerque. The California Public Employees Retire- State Representative Robert Wallach. Phelps Dodge Corp., Lordsburg. ment System (CalPERS), which provides re- State Representative Ted Hobbs. Phelps Dodge Corp., Tyrone. tirement benefits to nearly 1 million bene- State Representative Anna Marie Crook. Smith’s Food & Drug Centers, Inc., Albu- ficiaries fully understands the ramifications Santa Fe City Manager Isaac Pino. querque. of the current system. CalPERS argues that Lovington City Manager Bob Carter. Smith’s Food & Drug Centers, Inc., Farm- ‘‘the current safe harbor has failed to en- State Secretary of Finance and Revenue ington. courage sufficient disclosure of forward- David Harris. Sun Microsystems, Inc., Albuquerque. looking information, principally because the The May Department Stores Co., Albu- rule is unable to assure issuers that they will BUSINESS AND INDUSTRY querque. not be subject to shareholder suits upon dis- Santa Fe Chamber of Commerce. US West Communications, Albuquerque. closing projections.’’ Greater Albuquerque Chamber of Com- MEMBERS OF NEW MEXICO HOUSE DELEGATION Unfortunately, as with many issues in merce. Washington, the safe harbor has been the Roswell Chamber of Commerce. WHO VOTED FOR SECURITIES LITIGATION RE- FORM (H.R. 1058) subject of a smear campaign designed to pre- New Mexico Association of Commerce and serve the status quo for those that are prof- Industry. Steven Schiff. iting from the current system. Some have Intel Corp.,—Rio Rancho. Joe Skeen. characterized the safe harbor as providing Motorola—Albuquerque. Bill Richardson. issuers with a ‘‘license to lie.’’ This is either Specialty Constructors, Inc.—Cedar Crest. EXHIBIT 2 a misrepresentation or a misunderstanding Neff & Co.—Albuquerque. AMERICAN ELECTRONICS ASSOCIATION, of the proposals. Providing safe harbor pro- Correa Enterprises Inc.,—Albuquerque. Santa Clara, CA, October 17, 1995. tection—that is, a greater degree of protec- Larribas & Associates, P.A.—Albuquerque. Hon. WILLIAM J. CLINTON, tion than provided for in law—has been the We also have received many letters from The White House, established policy of the Securities and Ex- private citizens, including many retirees who Washington, DC. change Commission for 15 years. support securities litigation reform. DEAR MR. PRESIDENT: As California mem- Others have suggested that the safe harbor bers of the American Electronics Associa- would protect fraudulent wrongdoers. Again, THE CEASS COALITION IN NEW MEXICO tion, we are writing to strongly urge your this is simply not correct. Truly fraudulent SUMMARY support for securities litigation reform legis- activity would still be fully actionable by The Coalition to Eliminate Abusive Secu- lation which we expect to emerge from Con- private parties under any safe harbor con- rities Suits (CEASS), an alliance of over 1,450 ference Committee early this fall. struction. It is simply not possible to confine U.S. companies, professional firms and orga- For nearly four years the California High fraudulent activity to forward looking state- nizations representing high-technology, fi- Technology community has been pursuing ments without also, at some point, mis-stat- nancial services, basic manufacturing sec- meaningful reform of the securities litiga- ing present fact. Moreover, nothing in any tors and others, is seeking federal legislative tion system. We have worked closely with proposal would prevent the Securities and remedies to the rising threat of unwarranted the White House, the Securities and Ex- Exchange Commission from bringing an en- securities litigation. CEASS member compa- change Commission, and the U.S. Congress. forcement action against any person on the nies rank among the nation’s fastest-grow- As a result of these efforts, both the House of basis of a forward-looking statement. The ing and most innovative companies. CEASS Representatives and the U.S. Senate over- safe harbor would only curb abusive lawsuits supports the reform measures embodied in S. whelmingly passed securities litigation re- based on a revisionist view of future events. 240, the Private Securities Litigation Reform form, by votes of 325–99 and 70–29, respec- Mr. President, by giving companies the Act of 1995, introduced in the U.S. Senate by tively. We believe these margins clearly comfort they need to talk about plans for Senators Pete Domenici (R–NM) and Chris demonstrate the consensus for reform and the future—without risking a lawsuit when Dodd (D–CT). now we need your affirmative support to they simply miss the mark—the safe harbor In New Mexico, there are 24 CEASS mem- bring this effort to a successful close. will maximize disclosure of forward-looking bers that are either headquartered or have We want to stress our belief that U.S. cap- information, improve the efficiency of the facilities in the state. Together, these orga- ital markets function efficiently and effec- market, and permit investors to make sound nizations employ over 11,000 residents. In- tively because of a strong and balanced en- decisions based on maximum information.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17972 CONGRESSIONAL RECORD — SENATE December 5, 1995 Once again, we want to stress the need for WireLess Data Corporation, California Am- frivolous lawsuits. At the same time, we litigation reform, including for a strong safe plifier, Inc., Dynamic Instruments, Inc., Savi gather you do not fully support the legisla- harbor. Technology, Inc., Komag Incorporated, tion passed by the Senate, the legislation Sincerely, Megapower Corporation, Spatializer Avoid most likely to reach your desk. Wind River Systems, Tekelec Corporation, Laboratories, Inc., Newpoint Corporation, In Silicon Valley, more than half the tech- Venture Management Associates, Informa- Redwood MicroSystems, Inc., Harmonic nology companies have been sued under Sec- tion Storage Devices, Inc., HiTech Equip- Lightwaves, Inc., Unisen, Inc., California tion 10(b)(5) of the Securities Act of 1934. In- ment Corporation, Poly-Optical Products, Microwave, Inc., SEEQ Technology, Inc., herent stock volatility, rapid new product Inc., VALOR Electronics Inc., Fidelity Quantum Materials, Inc., Sierra Semicon- Palewater, Inc., Sage Management Group, development, and economic and techno- ductor Corporation, Alpharel, Inc., Titan logical uncertainties make high technology Radio Therapeutics Corporation, Elpac Elec- Electronics, Uniax Corporation, De La Rue tronics, Inc., Uptime Computer Solutions, firms easy prey for these meritless and cost- Giori of America, Liikkuva Systems, ly lawsuits. According to the American Elec- Inc., ShareData Inc., TEAL Electronics Cor- Brooktree Corporation, GammaLink, poration, Aurum Software Inc., Magnetic tronics Association (AEA) every one of the Calimetrics, Inc., Tyecin Systems, Inc., top ten Silicon Valley companies—world- Circuit Elements, Inc., Aurora Electronics, AccSys Technology. Inc., Weitek Corporation, BEI Electronics, class, multinational competitors—has been Inc., Shelly Associates, Inc. accused of violating the anti-fraud provi- SILICON VALLEY, CA, sions of the U.S. securities laws. Data Instruments, Inc., TAU Corporation, November 3, 1995. Nextwave Design Automation, ACCEL Tech- Hon. WILLIAM J. CLINTON, The provision most critical for technology nologies, Inc., Emuiex Corporation, Opti- The White House, Washington, DC. companies, like ours, is a strong safe harbor mum Optical Systems, Inc., VertiCom Inc., DEAR MR. PRESIDENT: We wish to state unfor forward-looking statements—projections Comdisco Electronics Group, TeleSensory equivocally that securities litigation reform made about the company’s future prospects. Corporation, Physical Optics Corporation, legislation is of critical importance and in- Failing to meet the expectations of analysts Endgate Corporation, Wells Fargo Bank, terest to our companies. We understand from who follow the technology industry is inevi- Catapult Communications Corporation, numerous sources within the White House table. However, it is hardly intentional and Orthodyne Electronics, Alzeta Corporation, that this Administration believes that Sil- it is certainly not fraudulent. Yet plaintiffs’ Printonix, Inc., Leasing Solutions RNC icon Valley companies do not consider secu- lawyers seize upon the inherent volatility in (LSSI), Embedded Performance, Inc., rities reform a pivotal issue. our industry to create a false picture of Escalade Corporation, Autek Services Cor- By delivery of this letter to you. Mr. Presi- ‘‘fraud’’ where none in fact exists. poration. dent, we wish to underscore the degree of our Presence Information Design, INTA, TTM The proliferation of class action lawsuits intensity in support of meaningful reform. has prompted companies to conclude that Inc., Graham-Patten Systems, Inc., Oxigraf, For almost four years we have devoted sub- Frequency Products, Inc., Paragon Environ- the legal risks of providing projected earn- stantial energy and efforts toward making ings, revenue and market information to mental Systems, Inc., Radian Technology, common sense changes in the nations securi- Illustra Information Technologies, Dynamic Wall Street analysts or the investing public ties laws, thereby hoping to end the relent- are too high. As such, many companies no Network Solutions, Inc., Data/Ware Develop- less onslaught of frivolous lawsuits against ment, Subscriber Computing, Inc., Para- longer release future oriented information our companies. As a result of discussions graph International, El Dorado Ventures, and refuse to comment directly on analysts’ with your staff we have acted in good faith Petillon & Hansen, NFT Ventures, Inc., Pio- projections, resulting in less public informa- and have moderated our position to meet neer Magnetics, Platinum Software, BioMag- tion, less efficient markets, fewer jobs, and your concerns. in the end less informed investors. netic Technologies, Inc., Lexical Tech- The high technology companies are united nology. on this issue. The signatories of this letter Except for those who profit from the cur- ACT Networks, Inc., 3D Systems Corpora- represent the leading companies of Silicon rent system, there is nearly universal agree- tion, WEMS Electronics, The Automatic An- Valley, and speak with confidence that we ment that the current regulatory safe harbor swer, Inc., Transport Solutions/RTC, reflect the views of thousands of technology is no longer functional. Nonetheless, the Lumonics Corporation, Silicon Valley beneficiaries of the status quo have launched Group, Inc., The Cerplex Group Inc., companies nationwide. Mr. President, believe us, this is a defini- an aggressive campaign to kill the safe har- Interlink Electronics, Baan Company, tive issue for our industry. bor. They have suggested that the proposed Nanometrics, Viasat, Inc., HSQ Technology, Sincerely, safe harbor would be a ‘‘license to lie,’’ or Qlogic Corporation, Silicon Systems, Inc., National Semiconductor Corporation, that it would ‘‘protect’’ fraudulent wrong- Giga-Tronics Incorporated, HNC Software Quantum, 3COM, DSV Partners, Institu- doers. The fact is that fraudulent activity Inc., ParcPlace Digitalk, Inc., DCP Tech- tional Venture Partners, LSI Logic Corpora- would continue to be fully actionable by pri- nology Inc., Vitesse Semiconductor Corpora- tion, Cadence Design Systems, Symantec vate parties under either bills’ safe harbor tion. Canro Scientific Instruments, Router Corporation, Oracle Corporation, Sybase, construction. Moreover, nothing in any pro- Wave, Xircom, Inc., Level One Communica- Inc., New Enterprise Associates, Silicon posal would prevent the Securities and Ex- tions, Inc., International Lottery & Graphics Inc. change Commission from bringing an en- Totalizator, Onstream Networks, Inc., Wiz Sun Microsystems, Inc., Intel Corporation, forcement action against any person on the Technology Inc., Tandem Computers, Inc., Applied Materials, Inc., Varian Associates basis of a forward-looking statement. The ProBusiness, Inc., Innocal, InCirt Tech- Inc., Kleiner Perkins Caufield & Byers, Hew- purpose and goal of the safe harbor is not to nology, Logical Services Incorporated, Com lett-Packard Company, Raychem Corpora- provide a ‘‘license to lie’’ but to provide a 21, Microsource, Inc., Scientific Tech- tion, Advanced Micro Devices Inc., Adaptec, forum in which companies can safely provide nologies, Inc., Pacific Recorders & Engineer- Inc., Centigram Communications Corpora- valuable information to the investing public. ing, Kofax Image Products, Allied Telesyn tion, Apple Computer, Inc., Tandem Com- Mr. President, it is important for us to International Corp., Molecular Dynamics, puters, Trimble Navigation Limited, Xilinx, have you understand our position. Without Motion Engineering, Inc. Inc., Adobe Systems Inc. strong, clear safe harbor protection—similar Trillium Consumer Electronics, Inc., ATG to that enacted by either the Senate or the AMERICAN ELECTRONICS ASSOCIATION, Cygnet, Inc., Semiconductor Systems, Inc., House—reform efforts will be virtually Santa Clara, CA, October 13, 1995. Reset Inc., Triconex, StrataCom, Inc., meaningless. We need your active support to The PRESIDENT, Quantic Industries Inc., Advanced Matrix ensure that the legislation enables corporate The White House, Washington, DC. Technology, Inc., Netsoft, Motion Engineer- executives to speak candidly about the fu- DEAR MR. PRESIDENT: We are writing to ing Inc., Inhale Therapeutic Systems, Con- ture and to ensure that investors receive the urge your support for securities litigation re- tinuous Software Corporation, Xilinx, Inc., information they need. In so doing, busi- form legislation which we expect to emerge RJS, Inc., Measurex Corp., Sonatech, Inc., nesses will win, investors will win, and the MasPar Computer Corporation, Paracel, Inc., from Conference Committee early this fall. For nearly four years the U.S. high tech- marketplace will win. Fisher Research Laboratory, Inc., Network Sincerely, General Corp. nology community has been pursuing mean- Gamma-Metrics, Expersoft, D.S. Tech- ingful reform of the securities litigation sys- Adaptec, Inc., National Semiconductor nologies Inc., Liconix, Creative Computer tem. As a result of these efforts, both the Corporation, Quantum, 3COM, LS Logic Cor- Solutions, Inc., 3Com Corporation, Condor House of Representatives and the Senate poration, Oracle Corporation, Raster Graph- Systems, Inc., Atmel Corp., Proxim, Inc., overwhelmingly passed securities litigation ics, Silicon Graphics Inc., Sun Microsystems, Network Equipment Technology, Inc., Amer- reform, by votes of 325–99 and 70–29, respec- Inc., Intel Corporation, Applied Materials, ican Telecorp, Inc., InfoSeek, DiviCom Inc., tively. We believe these margins clearly Inc., Varian Associates Inc., Hewlett-Pack- Remedy Corporation, Harmonic Lightwaves, demonstrate the consensus for reform. We ard Company, Cypress Semiconductor, Inc., TopoMetrix Corporation, Dionex Cor- need your affirmative support to bring this Raychem Corporation, Advanced Micro De- poration, Orbit Semiconductor, Inc., Opti, effort to a successful close. vices Inc., Centigram Communications Cor- Inc., MicroSim Corporation. We were pleased to read the report during poration, Apple Computer, Inc., Tandem Kavlico Corporation, Absolute Time Cor- your recent Silicon Valley visit that you Computers, Trimble Navigation Limited, poration, DJC Data Technology Corporation, would ‘‘gladly sign’’ legislation to eliminate Xilinx, Inc.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17973

AMERICAN BUSINESS CONFERENCE, our nation’s securities litigation system. Inc.; Mark A. Hofer, Genzyme Corp.; Washington, DC, November 1, 1995. The overwhelming margins of support at- Michael E. McKee, First Federal Sav- The PRESIDENT, tained in these votes clearly reflect a bi-par- ings & Loan Association of Montana; The White House, tisan consensus that the current securities Darrell G. Knudson, Fourth Financial Washington, DC. litigation system needs to be fixed, and fixed Corp.; James E. Herring, Friona Indus- DEAR MR. PRESIDENT: Shortly, you are quickly. tries, L.P.; Tony Tako, Gerrad & Co.; In short, the status quo is stifling our na- likely to receive from Congress legislation John T. Williams, Gray Communica- tion’s growth companies while padding the designed to reform our nation’s system of se- tions Systems, Inc.; Melvin J. Melle, pockets of plaintiffs’ attorneys. Over the curities-related litigation. We are writing to The Hallwood Group Inc.; Anthony urge you to sign that legislation when it past four years, a total of $2.5 billion has Graffia, Hartford Computer Group. reaches your desk. been paid in settlements in securities class As you know, bills designed to curtail spec- action cases analyzed by National Economic Inc.; Hans Helmerich, Helmerich & ulative securities litigation—so called strike Research Associates, Inc.—a ‘‘disproportion- Payne Inc.; Umang Gupta, Gupta Corp.; suits—passed the House and Senate by wide, ately large number’’ of which involve suits Derek C. Hathaway, Harsco Corp.; Rob- bipartisan margins earlier this year. The against high-technology companies—with ert J. Purger, Health Care REIT, Inc.; House and Senate conferees will be meeting plaintiffs’ attorney fees averaging 32% of the John Herzog, Herzog Surgical Inc. presently and a draft conference report has settlement. Tracey T. Powell, Home Access Health already been written. That draft report has As concerned leaders of the American busi- Corp., Richard L. Molen, Huffy Corp. been warmly endorsed by Senator Dodd, who ness community, we urge you to capitalize David W. Scar, Integrated Circuit Sys- called it a ‘‘balanced, moderate bill that ad- on this display of legislative solidarity and tems, Inc.; Frank Deverse, Inter- move this important legislation swiftly dresses the needs of legitimately defrauded national Microcircuits; Robert W. through conference committee and to Presi- investors, while protecting our nation’s busi- Hampton, Hornbeck Offshore Services, dent Clinton’s desk. nesses from frivolous lawsuits.’’ Inc.; Gerald S. Casilli, IKOS Systems, We, and the organization we co-chair, the Sincerely, Inc.; E. Michael Thobew III, Interlink Abbott Laboratories; Banc One Corp.; American Business Conference (ABC) agree Electronics; Peter H. Van Oppen, American Greetings Corp.; The Carlyle with Senator Dodd’s assessment. For far too Interpoint Corp.; James H. Morgan, Group; Ceridian Corp.; Chrysler Corp.; long, America’s entrepreneurial, growth Interstate/Johnson Lane; David L. Household International, Inc.; Bene- companies have been harassed by speculative Angel, ISD; Vince Martin, Jason Inc.; ficial Corp.; Carolina Power & Light lawsuits brought by a small coterie of law- Co.; Chevron Corp.; Eastman Kodak Robert Johnston, Johnston Associates yers in the name of investors who often are Co.; Nashua Corp. Inc.; W. Richard Ulmer, Invitro Inter- unaware that a suit has been filed. These Gilbert Amelio, National Semiconductor national; Ivey Jackson, Jackson Insur- suits are initiated for the purpose of securing Corp.; James A. Unruh, Unisys Corp.; ance Agency, Inc.; Gerald M. Gifford, a settlement; they amount to little more John East, Actel; Allen Weintraub, The John G. Kinnard & Co., Inc.; Lawrence than perverse transfer payments from one Advest Group, Inc.; Robert N. Pratt, J. Cawley, Kaydon Corp. group of investors to another with a large Alta Gold Co.; Eric Benhamou, 3Com Dale Gonzalez, KIT Manufacturing Co.; slice going to the plaintiffs’ lawyers. Corp.; Edward Abrams, Abrams Indus- Michael J. Koss, Koss Corp.; Carl R. Those companies that manage to escape Wiley, Lane Plywood, Inc.; Frank H. being sued suffer as well. They know that tries, Inc.; John G. Adler, ADAPTEC, Menaker, Jr., Lockheed Martin Corp.; the promulgation of so-called forward-look- Inc.; Randall Wagner, Agatheas & Wag- Richard M. Ferry, Korn/Ferry Inter- ing information is an open invitation to a ner, P.A.; Kurt Wiedenhaupt, American national; C. Scott Kulicke, Kulicke and lawsuit because statements about future Precision Industries, Inc.; Wayne G. Soffa Industries, Inc.; Ronald B. prospects are uncertain and therefore vulner- Vosik, American Travellers Corp.; Cushey, Live Entertainment, Inc.; able to legal assault after the fact. James C. Beardall, Anderson Lumber This means less communication of for- Co.; Pier C. Borra, Arbor Health Care Thomas E. Sharon, LXE, Inc.; Robert ward-looking information to investors, a less Co.; Safi Qureshey, AST Research, Inc.; Watson, The Managers Funds L.P.; Mi- efficient securities market, and, ultimately, Lawrence Lefkowitz, Ampal-American chael Ricci, Marco Mfg., Inc.; Debra a higher cost of capital for entrepreneurial Israel Corp.; Lawrence J. Young, An- Coleman, Merix Corp.; Thomas Hiatt, firms unable to explain fully why investors gelica Corp.; Frank Christianson, Arc- Middlewest Ventures; Diane R. Torney, should seek them out. Our economy cannot tic Circle Restaurants; George F. Pick- Marcam Corp.; William N. Alexander, afford this absurd situation to continue; it is ett, Jr., Atlantic Southeast Airlines, McGladrey & Pullen; Greg C. Zakarian, costing jobs, it is hampering new business Inc. MicroCarb Inc.; Clair G. Budke, Min- development, and, ultimately, it is a tax on David K. Chan, Auravision Corp.; Robert nesota Society of CPAs. our future standard of living. Spies, Berol Corp.; Michael P. Bick, Kerry Budry, Qual-Effic Services Inc.; Having spoken at length with our col- Biopool International; James A. Bixby, Allen Becker, Reflection Technology, leagues in ABC and with other business lead- Brooktree Corp.; Larry J. Weber, Bauer Inc.; Robert L. Montgomery, Reliv ers from California to Massachusetts, we can Built, Inc.; Kenneth A. Olson, Berry International, Inc.; Ronald H. Kullick, assure you that no business-related issue is Petroleum Co.; William W. Neal, Ribi Immuno Chem Research, Inc.; being more closely watched by America’s en- Broadway & Seymour Inc.; Michael B. Gary Conradi, Raven Industries; Robert trepreneurs than is the fate of this reform Crutcher, Brown-Forman Corp.; David M. Steinberg, Reliance Group Holdings legislation. It deserves your wholehearted H. Gunning, Capitol American Finan- Inc.; Gary L. Crocker, Research Indus- support. cial Corp.; John E. Jones, CBI Indus- tries; Shan Padda, Sabratek Corp.; Sincerely yours, tries Inc.; David Thiels, Century Tele- Jack Masters, Modagrafics, Inc.; John GEORGE N. HATSOPOULOS, phone Enterprises, Inc.; John West, M. Nash, National Association of Cor- Chairman and Presi- CIMLINC Inc.; Robert Bogin, Capitol porate Directors; William F. Coyro, Jr., Multimedia, Inc.; D. Tad Lowrey, dent, Thermo Elec- National TechTeam Inc.; Brian D. CenFed Bank, A Federal Savings Bank; tron Corp. Waltham, McAuley, Nextel Communications, John Stevens, CIMCO Inc.; Thomas H. MA. Inc.; S. Jay Stewart, Morton Inter- Lowder, Colonial Properties Trust. Co-Chairman, Amer- national, Inc.; E. Michael Ingram, Na- Van B. Honeycutt, Computer Sciences ican Business Con- tional Data Corp.; George A. Needham, Corp.; Robert J. Paluek, Convex Com- ference. Needham & Company, Inc.; J. Clarke CLARK A. JOHNSON, puter Corp.; J.J. Finkelstein, Price, Ohio Society of CPAs. Chairman and C.E.O., Crymedical Sciences, Inc.; J. Bruce John Schlosser, St. Francis Bank; Robert Pier 1 Imports, Inc., Baily, Cyclopss Medical; S. Duane W. Philip, Schnitzer Steel Industries, Fort Worth, TX. Southerland, Conso Products Co.; Inc.; William G. Malloy, Scientific Co-Chairman, Amer- Denny Callahan, Crowley’s; Roy A. Games, Inc.; Charles F. Valentine, Se- ican Business Con- Myers, Curtice Burns Food, Inc.; Ger- ference. ald D. Rogers, Cyrix Corp.; Michael W. curity Federal Savings & Loan Assoc.; Pope, Dionex Corp.; David H. Wiggs, Peter Nisselson, SBM Industries Inc.; COALITION TO ELIMINATE ABUSIVE Jr., El Paso Electric Co.; Michael C. Lyndon A. Keele, Science Dynamics SECURITIES SUITS, Ruettgers, EMC Corp.; Donald M. Corp.; Don R. Scifres, SDL, Inc.; An- Washington, DC, November 1, 1995. Vuchetich, Detroit & Canada Tunnel thony M. Marlon, Sierra Health Serv- Hon. CHRISTOPHER DODD, Corp.; Robert J. Dickson, Dynamet ices, Inc.; Maxell Fox, Silent Radio U.S. Senate, Inc.; Thomas E. Sharon, Electro- Inc.; John J. Gillway, Jr., Sizeler Prop- Washington, DC. magnetic Sciences, Inc.; Steve Sarich, erty Investors, Inc.; James C. Bly, Jr., DEAR SENATOR DODD: Earlier this year, Jr., 321 Investment Co. Quentin J. Ken- Source Capital, Ltd.; Paul Richman, overwhelming majorities in both Houses of nedy, Sr., Federal Paper Board Co., Inc; Standard Microsystems Corp.; Terry L. Congress (325–99 in the House and 69–30 in the Dan Queremoen, Fluoroware, Inc.; Jo- Kirch, Resource Information Manage- Senate) passed legislation that would reform seph Franklin, Frequency Electronics, ment Systems, Inc. (RIMS); Grady R.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17974 CONGRESSIONAL RECORD — SENATE December 5, 1995 Hazel, Society of Louisiana CPAs; Mi- up plaintiffs and litigation for plain- The conference report is named, or I chael Budagher, Specialty Construc- tiffs’ attorneys. Securities lawsuits should say misnamed, ‘‘securities re- tors, Inc.; Douglas R. Starrett, L.S. should redress real wrongs and not pro- form.’’ But the conference report does Starrett Co.; Thomas Goldrick, Jr., mote strike suits to shake down inno- not reform the Federal securities laws, State Bank of Long Island; Thomas L. cent defendants. Elliott, The Sunbelt Companies, Inc.; nor does it reform litigation under Lawrence J. Fox, Symix Systems, Inc.; This conference report prohibits those laws. It does exactly the oppo- David F. Simon, U.S. Healthcare, Inc.; those three practices I just described. I site, in my view. It encourages securi- Ryal R. Poppa, Storage Technology support those provisions. But the legis- ties fraud, fraud on the most innocent Corp.; Patrick L. Swisher, Swicher lation goes much, much further. It and vulnerable investors. International, Inc.; M.A. Self, Tioga uses, in my view, legitimate problems I remember being visited by the vic- International, Inc.; Daniel Ogita, as an excuse to gut securities protec- tims of fraud, the victims of Charles Unibright Foods, Inc.; Gene Koonee, tions for the average American. I can- Keating, and they said, ‘‘Senator, you United Cities Gas Co.; Thomas P. not be a party to that. I feel it is very have to stand on that floor, and you Stagnaro, Univax Biologics, Inc.; Ste- important that this debate be as inclu- have to tell your colleagues to prevent ven J. Appel, Value Merchants, Inc.; sive as it can be of all aspects of this Bruce S. Chelberg, Whitman Corp.; C. that from happening to anybody else.’’ Edward Mordy, United Wisconsin Serv- because I believe someday, as Senator Those victims of Keating were able to ices, Inc.; MacRay A. Curtis, Utah As- BRYAN has said, this vote is going to recover $200 million plus because of the sociation of CPAs; Frank Fischer, come back to haunt people. And I want laws we have in place today. Not after Ventritex, Inc.; James E. Wilf, Wilf & the RECORD to be clear as to where this this bill. Not after this bill. Henderson, P.C., CPAS. Senator from California stood. This legislation would even hurt Edward W. O’Connell, Wiss & Co.; J. Oli- The real effect of this legislation, ab- business. Why do I say that? If you ver McGonigle, The YES Group Inc.; sent those three good parts that deal make the securities laws less protec- Addison Piper, Piper Jaffray Compa- with frivolous lawsuits, the real effect nies, Inc.; William A. Valerian, Home tive of the vast majority of investors, of this legislation is to unleash con art- what will happen is people will have Bank, F.S.B.; C. William Thaxton, YES ists and swindlers to prey on the in- Financial Inc.; Frederick A. Stampone, doubts about the safety of securities. Pep Boys; DeLight E. Breidegam, Jr, vesting public and bilk them out of So they are going to wind up not in- East Penn Manufacturings Co.; Ray- hundreds of millions, perhaps even bil- vesting in securities, not lending their mond V. Glynn, TELCORP; Jean C. lions of dollars. Because of this, I call money to start up, holding their cap- Tempel, TL Ventures; J.W. Bernard, on my colleagues to vote no. And I call ital back, maybe just buying Govern- Univar Corp. on the President, if this legislation ment bonds, a safe investment, and, The PRESIDING OFFICER. Under passes, to veto it. If you are fighting therefore, these honest companies, be- the previous order, the Senator from for the average American, you have to cause of the fraudulent ones, will have veto this bill because it is going to California is now recognized for up to to pay a premium when they sell their hurt the average American. 30 minutes. securities. It will wind up being kind of Mr. BRYAN. Mr. President, my dis- Mr. President, we are in a time when like a fraud tax because people will tinguished colleague needs another the middle class, especially the elderly say, ‘‘I’m very worried, I’m not going minute or two. I thought perhaps, with middle class, is being asked by the ma- to give you my money. There has just the acquiescence of the distinguished jority in this Congress to give up, in been a scandal.’’ And they say, ‘‘OK, floor manager, we might get some ad- my opinion, basic old-age protections. we’ll pay more interest.’’ So in the end, ditional unanimous consent—I know he This Republican Congress wants to the honest companies will get hurt. has several colleagues who asked to deeply cut Medicare, to give a tax I am a former stockbroker, and I speak, or at least I saw his list. I am break to the rich, and they even repeal have had the experience and honor of perfectly agreeable that we might do Federal nursing home standards. helping people with their investments. that now. If he is not prepared to do so, So the middle class, the elderly mid- For the most part, they happened to be we would—— dle class are getting hit. We must re- Mr. BENNETT. I do not wish to in- member that securities fraud is aimed elderly people who entrusted me at terrupt the Senator from California. I at the elderly—there are many studies that time many, many years ago. I do not have the list in front of me, so that show this—aimed at the elderly. know how they hung on every price why does she not go ahead. So this is a double whammy. In other change, because they relied on their Mr. President, I suggest the absence words, what we are doing here today dividends and they knew some day if of a quorum. cannot be divorced from the budget they had a family emergency, they The PRESIDING OFFICER. The battle we are waging. On the Demo- would have to sell those securities. clerk will call the roll. cratic side of the aisle, we are fighting They also relied on the honesty of the The bill clerk proceeded to call the to protect the middle-class elderly. But companies. If we ever ran into a situa- roll. we do not control the votes. They are tion where there was a company that Mrs. BOXER. Mr. President, I ask going to get hurt somewhat. Why offer was not being honest when they made unanimous consent that the order for them this double whammy? projections or they talked about their the quorum call be rescinded. I tried to get special safe harbor pro- company, we saw those stock prices go The PRESIDING OFFICER. Without tections for the elderly in this bill, but down. objection, it is so ordered. I could not. I could not win that fight. It seems to me we owe it to the in- Mrs. BOXER. Mr. President, I rise to So the elderly are at risk here. As a vestors and to the good companies and speak against the conference report. matter of fact, all of us who invest, all to the good stockbrokers to keep a This legislation claims to reform pri- of us are at risk here. But who will get very strong and very powerful securi- vate litigation under the Federal secu- hurt the most? Not the wealthiest of ties law, because I really believe after rities laws. I believe there is a clear the investors, because if you are worth the first scandal—and there will be need for reforms in the securities laws. millions and millions of dollars you such a scandal, in my view, if this goes For example, we need to ban the pay- can take a hit and wind up on your through—people will just be afraid, ment of bonuses by a small minority of feet. Not the poorest of the poor, be- afraid to invest their money. unscrupulous lawyers to professional cause if you are the poorest of the Mr. President, this conference report plaintiffs. We need to prevent lawyers poor, you do not invest. So the wealthi- would make losers of millions of peo- from dipping into Securities and Ex- est and the poorest are probably going ple, particularly small investors with change Commission disgorgement to be all right. IRA’s—that is individual retirement funds. These are funds created by Gov- But it is the middle class that is accounts—pension plans, mutual funds. ernment agency litigation, not by the going to get hit. This bill is antimiddle It is these average Americans who will private lawyers’ litigation, and private class and it is antisenior citizen. It be the first victims of the fraud which lawyers should not be paid from those would jeopardize the retirement funds will be unleashed by this legislation. funds. and old age security of millions of our The legislation effectively repeals We should also ban the payment of citizens, and for that reason, I hope much of the Nation’s antifraud laws referral fees to stockbrokers who drum colleagues will vote no. passed in the thirties in response to the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17975 rampant fraud that contributed to the vestors at risk, I say to my colleagues, in the bay area has to say about this. stock market collapse of 1929. My good- but you are putting taxpayers at risk It is called Opening the Door to Fraud. ness, can we not learn from history who pay local taxes because local gov- ‘‘Securities fraud lawsuits are the around this place? Do we have to see it ernments buy securities, too. primary means for individuals, local happen again? (Mr. SANTORUM assumed the chair.) governments and other investors to re- This legislation really could be called Mrs. BOXER. Mr. President, I talked cover losses from investment fraud— a roadmap to swindlers and con artists about the fact that one of my major whether that fraud is related to money who will use it to defraud the public concerns is the impact of this legisla- invested in stocks, bonds,’’ et cetera. and undermine the public’s faith in the tion on senior citizens who are the And they say, under the conference re- markets. That is why organizations clear targets of fraud. Why is that? port, investors would be the losers. representing millions of average inves- They count on their pension plans. Dozens of other newspapers and mag- tors oppose the legislation. They have little ability to replace azines have editorialized against this Let me name a few. In my own home their lost investments other than to legislation, calling for it to be defeated State of California, the California Con- sue for fraud, and they need protec- or vetoed. gress of Seniors is opposed. ‘‘We feel,’’ tions that this bill would take away. Let us look at the largest paper in they say, ‘‘this legislation puts all el- Senior citizens save for a lifetime. my State, the Los Angeles Times. The derly Americans who save their money They often invest, as I say, a signifi- Los Angeles Times had this to say in jeopardy because it would make it cant part of those savings in securities. about the legislation: ‘‘This isn’t re- practically impossible to sue a swin- Their pension plans are usually full of form—it’s a steamroller.’’ It is a steamroller. They are very, dler for securities fraud.’’ securities. These invested savings must State and local governments would very critical. carry them through old age and retire- The Oakland Tribune summarized lose under the legislation. ment, and this bill makes it easier to The California Association of County the conference report this way. They get away with securities fraud. So it is Treasurers and Tax Collectors is op- say: going to be, among others, senior citi- posed. This is a conservative group of President Clinton should veto the measure zens and their pension plans that will Americans entrusted with making sure because it leaves individual investors and an that county funds are invested wisely. be the major victims. array of institutional investors like pension What did they say about this? ‘‘We Many of our seniors are old, they are funds, municipalities, and other government units without enough protection from ma- strongly urge you to oppose the Securi- frail. They cannot return to work like some of us who can come back if some- nipulators like Charles Keating, Ivan ties Litigation Reform Act. In recent Boesky, and Michael Milken. . . . years, local California governments body perpetrates a fraud on us. We have years ahead that we can work, al- Where are the people here in this in- have lost more than $2 billion in the se- stitution? Do they not remember these curities markets, partly due to deriva- though I am getting older every day and have fewer years myself. names from the 1980’s? Do they not re- tive investments. Some of these gov- member reading about the Great De- ernments have pending securities fraud The fact is, the seniors cannot go back to the workplace, so if they are pression? Do they not remember the cases. Others are still deciding whether S&L scandal, which was caused by the to use the courts to pursue the recov- bilked of their money, they have to take it on the chin, they have to lose deregulation that was so wild that ery. Now is not the time to weaken de- there was rampant fraud? frauded investors’ rights,’’ they say, their dignity as they go to their children or really live in abject poverty. Let me say this. According to the and this comes from the local people. Oakland Tribune: I thought this crowd in Congress re- That is why the American Associa- tion of Retired Persons is against this If this law had been if in effect when thou- spects the local people. I thought they sands of investors, many of them Califor- respect the people at the county level, bill—AARP. They sent a letter to the nians, had sued Charles Keating over the the State treasurers, the States attor- Banking Committee and said: Lincoln Savings and Loan scandal, the plain- neys general. I guess they only respect For many older people, the money at stake tiffs would have recovered only $16 million. them when they finally agree with represents a lifetime of savings, a lump sum Under current securities-fraud laws, they them, but if they do not agree with pension payout, or proceeds from the sale of were able to recover $262 million. them, they do not respect them. a home. Private lawsuits brought by victims I ask, do you think the people who This is dangerous legislation, and of fraud often represent the only legal re- were bilked by Charles Keating had a that is what it is called by the Cali- course available to redress the wrongs com- right to recover their losses? If you say mitted by unscrupulous financial practi- fornia State organization. tioners. yes—and I would be surprised if you did As the city and county treasurers not—how on Earth can you vote for The AARP is not alone. The National and tax collectors point out, State and this bill which would have made it im- Association of Public Employee Retire- local governments, as investors of pub- possible for them to recover any more ment Systems is also opposed. If you lic funds, bring many securities fraud than $16 million when the losses were start listening to the people who op- suits. We know about Orange County in the $200 million range? where they are trying to recover from pose this bill, what you will realize is The Muskegon, MI, Chronicle had unscrupulous brokers. The city of San that it is most people. It is the special this to say: Jose in 1984 nearly went bankrupt be- interests who favor the thing. Those How come GOP’s contract allows ripoffs of cause it unknowingly purchased risky are the people who are being protected. investors? securities. Now they were able to sue. The aiders and abettors of fraud are . . .Let the bill’s backers explain to the Their city attorney who pursued that being protected and the perpetrators of rest of us why stock swindlers need to be case came before the Banking Com- fraud are being protected, but the peo- ‘‘protected’’ from lawsuits. mittee on which I serve, and I am ple who are responsible for protecting In the Republican GOP Contract proud to serve on it, and she said, other people’s money, such as county With America, there is a very specific ‘‘Don’t change the laws. We had a very treasurers and attorneys general of reference to changing the securities hard time under current law recovering various States, these people—the laws. As a matter of fact, I had a huge our money, but we were able to do it. AARP, who protect seniors—are op- debate with the author of the original Don’t weaken those laws.’’ posed. The AARP says that the Presi- bill, who then backed off some of the That fell on deaf ears. dent should veto this bill. provisions, like making it retroactive, Government agencies that have been Newspaper editorials. I think it is when he realized it might hurt his own defrauded and forced to use the Federal important to take a look at these district. But I am glad that the Mus- antifraud laws are not confined to Cali- newspaper editorials, Mr. President, kegon Chronicle in Michigan—and I fornia. There are many examples: Ohio because they do not have an ax to have never been there and I do not and Florida where local government grind. They are looking at the legisla- know anyone who writes this—caught agencies lost millions through securi- tion. As a matter of fact, newspapers on. This is directly coming from the ties frauds. are considered, in many cases, to be Republican contract. ‘‘Let the bill’s Taxpayers are the ultimate losers, so more conservative than the average backers explain to the rest of us why not only are you putting individual in- person. Let us hear what the Chronicle stock

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17976 CONGRESSIONAL RECORD — SENATE December 5, 1995 swindlers need to be ‘protected’ from Litigation Reform Act’’.... The single on. It is another thing to say in each lawsuits.’’ most significant result of this legislation and every case the wealthiest investor I do not think anybody has answered would be to create a privileged class of is the one who will be involved and be that. They talk about frivolous law- criminals.... Our 270,000 members stand responsible, and choose the attorneys with you in your commitment to a war on suits, but they neglect to talk about crime.... I urge you to reject a bill which and all the rest. Talk about wealth these basic problems with the bill, would make it less risky for white collar being power—maybe that wealthy indi- which is that it strips away important criminals to steal with police pension funds vidual could care less about the cir- protections that investors rely on. while the police are risking their lives cumstance. And other smaller inves- Money magazine has run four edi- against violent criminals. tors care more because proportionately torials calling for the defeat of this There are a lot of different kinds of they are more hurt. The wealthy one legislation. Money magazine. Here it crime. White collar crime. You look at gets the opportunity to control the is. Could you ever write a more apt the guy and he looks terrific, but he is lawsuit. title? It is, ‘‘Congress Aims at Lawyers stealing your money because he does I ask, what are we doing here? I and Ends up Shooting Small Investors not tell you the truth about invest- think this bill is much worse than in the Back.’’ That is exactly what ment, and this bill would take away when it left here. It went to conference happened with this bill. A laudable pur- your protection. I think it is very in- and it got much worse. I hope some pose, where you get a 100-to-0 vote on teresting that the Fraternal Order of people who voted for it, sent it off to the three provisions that deal with cut- Police felt it important to talk about conference, will reconsider. ting back on frivolous lawsuits. But this kind of crime—white-collar crime. This conference report stacks the they use that as an excuse to open up The National Council of Individual deck against the investor—anyone and all the securities laws, undo the protec- Investors is also opposed. They wrote everyone who has respect and objections and ‘‘end up shooting investors in the President: tivity in this Nation has come out the back.’’ We are writing to express our strong oppo- against this bill. They say: sition to the recent draft conference report Even an excellent amendment by At a time when massive securities fraud on securities litigation reform. The con- Senator SPECTER was dropped, a very has become one of this country’s growth inference report fails to treat the American in- important amendment. It applies to dustries, this law would cheat victims out of vestor fairly. For example, as currently complaints filed at the initiation of a whatever chance they may have of getting drafted, the bill would have cost the victims securities lawsuit. It had to do with of the Keating savings and loan fraud over their money back. . . . In the final analysis, the burden of proof necessary to file a this legislation . . . would actually be a $200 million more than they otherwise lost. grand slam for the sleaziest elements of the In the interests of protecting individual in- case dealing with motive and oppor- financial industry at the expense of ordinary vestors from fraud, we strongly urge you to tunity to defraud. It was dropped in the investors. oppose, and if necessary, veto this legisla- conference. Close the door, you drop My colleagues, if you are watching tion. the progressive provision that would this in the comfort of your offices, if Now, I have to say if BARBARA BOXER have protected investors. That was a you are not tied up in a meeting or a stands on the floor of the Senate and very bad change in this bill. This bill is committee, just look at this. Money gives her views, because I usually line worse, much worse now, than when it magazine. What is their purpose? To up with consumer groups you might left here. help investors. They say, ‘‘Congress say BARBARA BOXER always lines up Mr. President, in conclusion, this leg- Aims at Lawyers and Ends up Shooting with the consumers. But my goodness, islation will hurt the public. Everyone Small Investors in the Back.’’ The next you have got every respected investor says in America that we have the scandal that we have, you will all be on advocacy organization, senior citizen safest securities markets in the world. the floor saying, ‘‘My God, I did not organization, consumer organization, Everyone is so proud, so proud. Yet think that, and I did not know that, local elected people, States attorney they are cutting the heart out of these and I did not read the fine print, and so generals, it goes on and on and on. protections. on and so forth.’’ You have a chance They are all telling us ‘‘Don’t fall for It will do the public great harm. It is today to stick with the Senator from this bill.’’ not reform. It is repeal. It is repeal—re- Nevada and stick with the Senator There is a lot of discussion about a peal of protections that have made our from Maryland and stick with this Sen- safe harbor. The SEC was right in the securities markets the safest in the ator from California and vote with us middle of developing a new safe harbor world. This bill will hurt investors and against this conference report. It is provision. But, no, we could not wait. ultimately honest companies that sell hurtful to the average investor. It reminds me of when Congress got in securities. USA Today editorialized: the middle of deregulating the S&L’s The only winners, in my view, will be those crooks who get away with it. Be- The bill’s sponsors claim this step is need- and said, ‘‘We know better.’’ Look ed to rein in an explosion of frivolous litiga- what happened. fore we come back here and say, ‘‘My tion. But the facts don’t back them up. . . . We are doing the same thing here. God, what have we wrought,’’ we These bills are a blatant payoff to the cor- Why not let the professionals deal with should go back. In the end, this legisla- porations, brokers, accountants, and others this. They say, well, the SEC now likes tion will erode the confidence and effi- who give millions to congressional cam- this safe harbor. I read the letter. I ciency of the Nation’s securities mar- paigns. think, frankly, there was a lot of pres- kets. Our Nation will be the loser. That is a pretty tough indictment of sure put on people over there. That What the conference committee did what they view—USA Today—as spe- story will come out another day. is they took legitimate problems and cial interest legislation. When you read the fine print of this they used them as an excuse to destroy The Miami Herald goes so far as to legislation, any swindler can cover the very protections that small inves- call this bill ‘‘a license to steal.’’ They himself, make some cautionary state- tors need. say: ‘‘. . . Senate bill bars lawsuits ment about a forward-looking pre- I hope that people will vote ‘‘no’’ on against many who bilk investors. How diction, and find cover in this new safe this. Barring that, I hope that the does this help the economy?’’, the harbor. President will veto it. I yield the floor. Miami Herald asks. ‘‘This is licensed Mr. President, the Senate should not The PRESIDING OFFICER. Under larceny, and it’s unconscionable.’’ be a party to this kind of lawmaking. the previous order, the Senator from Then we have an interesting letter I It should not be a party to this kind of Nevada is recognized for 15 minutes. want to share. The Fraternal Order of lawmaking. Mr. REID. Mr. President, I received a Police have written a very good letter This bill even says that the lawyer in call from a reporter from Nevada, and to President Clinton. They call on him a securities fraud case has to be picked the big news in Nevada is the two Sen- to veto this bill. They drew an inter- by the wealthiest investor—the ators in Nevada disagree on something. esting parallel to the war on crime. wealthiest. We normally agree on almost every- They say: Now, it is one thing to go after pro- thing. This is one of the rare issues On behalf of the National Fraternal Order fessional plaintiffs, and I am ready to where the two Senators from Nevada of Police, I urge you to veto the ‘‘Securities do that any day of the week. Sign me disagree.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17977 Mr. President, I was 1 of the 69 Sen- azine has previously editorialized on legal fees, if the judge later rules the suit ators that voted for this bill when it the bill without considering the legis- was not justified.’’ came the first time. I am going to be lation as a whole. Indeed, there seemed The facts: The compromise agreement drops the fee-shifting provision of the House one of those Senators that will vote to to be an almost exclusive focus on the bill. The compromise makes evenhanded pro- confirm the conference report that we House bill. They were writing about cedural revisions to the Federal Rule of Civil just received. I think this is an impor- something that was fictionalized as Procedure 11. Rule 11 requires that attorneys tant piece of legislation. being here. and unrepresented parties have some factual Mr. President, in my legal career, I It is the House bill that was part of and legal basis for filing any claim or de- have had about 100 jury trials. I under- the Contract With America. Today, we fense. It already authorizes (but does not re- stand the trial practice. I think this is have a bill almost identical to that quire) sanctions against those who violate which this body passed earlier this its mandates. The compromise requires an area of the law that has been abused courts to make a finding after a case is adju- by trial lawyers. I think the small year. dicated as to whether either side—either the group of lawyers has abused the license Some of their editorials claimed that plaintiff or defendant—violated the Rule. they received to protect the consumers the legislation would potentially force The same substantive rule applies to every of this country. They have become investors and the lawyers who lose a other action brought in federal court. If the more concerned about protecting them- case to pay the winner’s entire legal court finds a violation, and it is not de mini- selves and not the consumers to which fees. Of course, the facts are totally mis, then the court must impose sanctions. they allege they protect. different from that. The compromise The court has the discretion not to award at- This legislation, Mr. President, agreement drops the fee-shifting agree- torneys fees and costs if it determines that such a sanction would impose an undue bur- should pass. It is important, I believe, ment of the bill. den on the party that violated Rule 11. The to the integrity of this aspect of the Money magazine’s claim is that the compromise does not sanction a party mere- law. legislation would ‘‘allow executives to ly because they lost their case. Every case It is often said that the truth is the deliberately lie about their firm’s pros- that is not settled has a loser, but courts first casualty in a war. I believe this pects.’’ Facts: Executives who delib- rarely find Rule 11 violations. Opponents of adage to be particularly appropriate to erately lie about their company’s pros- this provision apparently do not support the debate over the bill now before this pects would be liable under the com- Rule 11 or do not trust federal judges to ap- body. I realize that there is a great promise. propriately exercise discretion in awarding sanctions. deal of money at stake with this legis- Another claim they made is that the Money’s claim: The legislation would lation. I am aware that a small but legislation will ‘‘prohibit the investors ‘‘allow executives to deliberately lie about shrewd group of plaintiffs’ lawyers from suing the hired guns who assist a their firm’s prospects.’’ stands to lose a lot of money because of fraudulent company, the so-called The facts: Executives who deliberately lie the reforms brought through this legis- aiders and abettors, including account- about their company’s prospects would be lation. ants, brokers, lawyers and bankers.’’ liable under the compromise. The new safe That does not, however, excuse the That is not true. harbor in the compromise has been carefully They go on to say the legislation drafted to ensure that there is no ‘‘license to frightening fictions that I believe are lie.’’ Thus, projections made without ade- being paraded in some aspects by this ‘‘would ratify a court ruling that quate risk disclosure are not protected by bill—by the people trying to kill this throws out any suit that isn’t filed the safe harbor if they are made with ‘‘ac- conference report. within 3 years after the fraud took tual knowledge’’ that the statements are I first became suspicious about the place, even if no one discovers the false or misleading—a standard proposed by opposition to this legislation when I crime until after the deadline.’’ The Senator Sarbanes during floor debate over met with a group of people who were compromise, as I understand it, does the Senate bill to ensure that corporate ex- attempting to defeat it. In my con- not address the statute of limitations. ecutives who lie to investors would be cov- It merely leaves current law generally ered by the save harbor. Forward-looking ference room, in my office here in statements made with sufficient, specific Washington, I met with a group of peo- as it now is. non-boilerplate risk disclosure are protected ple, most of whom were from Nevada Money magazine’s claim is that in by the safe harbor. This is a codification of but some from other parts of the coun- order to bring a lawsuit, plaintiffs may the ‘‘bespeaks caution’’ doctrine already try, and they were in here to tell me be ‘‘forced to post a prohibitive, multi- being applied by the courts. In addition, the how bad this legislation was. I pro- million-dollar bond to cover the de- compromise retains the limitations on the ceeded to listen to them. Everything fendant’s legal fees just in case the suit scope of the safe harbor contained in the they talked about was not in the Sen- is later thrown out of court.’’ The pro- Senate bill, such as the exclusion of any issuer who has been convicted of a securities ate bill but was in the House bill. vision in the House bill requiring the posting of a security bond prior to law violation in the past three years. In ad- I listened to them and, trying to dition, there is no safe harbor protection for shake the fact that sometimes I like to bringing the suit has been dropped. projections made in connection with blank cross-examine people that come to Mr. President, I ask unanimous con- check companies, penny stock offerings, ini- visit me, I could not overcome the sent that the entire text of the refuta- tial public offerings, partnership offerings, temptation on this occasion. I said to tion of one of Money magazine’s edi- roll-ups, tender offers, and going private the group, ‘‘Who paid your way here?’’ torials be printed in the RECORD. transactions. A number of faces turned very red There being no objection, the mate- This compromise safe harbor language bal- rial was ordered to be printed in the ances two important public policy objec- and they said the name of one of the tives: encouraging increased voluntary cor- RECORD, as follows: lawyers, plaintiffs’ lawyer, who has porate disclosure to investors, and ensuring made a fortune in this litigation. RESPONSE TO MONEY MAGAZINE EDITORIALS the liars are not protected. Money magazine I asked the next question, ‘‘Where Recent Money magazine editorials object and others that take an extreme position are you staying?’’ to securities litigation reform legislation on simply ignore half of the objectives of the And they said, ‘‘The Willard Hotel.’’ the bases of provisions that have been safe harbor. And I said, ‘‘Who pays for that?’’ amended in the compromise agreement, or Money’s claim: The legislation would ‘‘pro- The same red faces, the same affirm- because of grossly distorted characteriza- hibit investors from suing the fired guns who tions of the effect of the provisions. Stripped assist a fraudulent company, the so-called ative answer, ‘‘The plaintiffs’ lawyers of their rhetorical excesses, the complaints aiders and abettors, including the account- were paying for this.’’ in the editorials have little substance and ants, brokers, lawyers and bankers.’’ They have every right, but I think even less relevance to the current com- The facts: Aiders and abettors are not im- the record should be very clear. There promise agreement. In fact, the compromise mune from liability. The compromise agree- is a small group of plaintiffs’ lawyers is good for America’s investors—which is ment authorizes the SEC to bring enforce- attempting to maintain a lock they why both individual investors and institu- ment actions against those who aid and abet have on part of the litigation world tional investor organizations are strongly a securities fraud, thus reversing the Su- that I think has gone too far. backing the bill. Below are responses to preme Court’s Central Bank decision as it every one of Money’s claims in both the Sep- applies to the SEC. For private actions, Mr. President, I am sorry my friend tember and November editorials. where there has been significant abuse of from California has left the floor, but Money’s claim: The legislation would ‘‘po- aiding and abetting liability by ‘‘strike suit’’ the same is true about the Money mag- tentially force investors and their lawyers lawyers seeking to increase the settlement azine that was referred to. Money mag- who lose a case to pay the winner’s entire value of a case, the bill leaves current law as

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17978 CONGRESSIONAL RECORD — SENATE December 5, 1995 it is. However, nothing prohibits investors The much-debated safe harbor provi- Mr. REID. Mr. President, this provi- from suing so-called ‘‘aiders and abettors’’ as sion of the conference report provides sion will help prevent fraud before in- primary violators, and in fact, many cases investors with protection. It increases vestors’ assets are lost, thereby elimi- were simply refiled after Central Bank alleg- corporate disclosure on forward-look- nating the need for litigation. ing a primary violation of the securities laws. This balanced provision ensures that ing information and ensures that inves- Another myth commonly put forth no wrongdoer will escape liability, but pre- tors are protected against fraud. by the opponents is that it includes a vents aiding and abetting liability to be used I ask the bill’s opponents how the loser-pays provision. We have talked as a dragnet to sweep in ‘‘deep pocket’’ de- compromise can be so pernicious if it about that before regarding the Money fendants to 10b–5 claims, regardless of their received support from Arthur Levitt, magazine assertion. That was simply culpability, merely to coerce settlements. Chairman of the Securities and Ex- without foundation. The truth is that Money’s claim: The legislation ‘‘would rat- change Commission. In a recent letter, no one will be required to pay the other ify a court ruling that throws out any suit Mr. Levitt said, ‘‘The current version side’s fees because they simply lose a that isn’t filed within three years after the fraud took place, even if no one discovers the represents a workable balance that we case. What it does, is tighten rule 11 crime until after that deadline.’’ can support since it should encourage sanctions against attorneys who file The facts: The compromise agreement does companies to provide valuable forward- frivolous lawsuits. Rule 11 merely re- not address the statute of limitations in cur- looking information to investors while, quires that attorneys have some fac- rent law. It merely leaves current law as it at the same time, it limits the oppor- tual and legal basis for filing any is. Despite dire predictions that the Supreme tunity for abuse.’’ claim. This does not seem unreason- Court’s one and three year statute of limita- It seems pretty clear. These words able. It already authorizes rule 11 sanctions would end all private 10b–5 actions, these actions have flourished since the 1991 are from a man charged with pro- tions against those who violate its decision. tecting the rights of all investors—big mandates. The current statute of limitations has gov- investors, small investors, medium-size This conference report is a balanced erned express causes of action under the se- investors. and a fair representation of what this curities laws for more than 60 years, and 10b– Another red herring commonly re- Senate said that it wanted. I, like my 5 actions for more than four years. There is ferred to and flouted by some oppo- friend from Connecticut and others, absolutely no evidence that legitimate 10b–5 nents of this legislation is it will allow said we are not going to support legis- cases have been frustrated. for another Charles Keating. They add As one court has observed, ‘‘[p]rudent in- lation that is more in keeping with the vestors almost always can smoke out fraud this to their Parade of Horribles, but it House than the Senate. We will vote (or enough smoke to justify litigation) with- is without foundation. Most of the against it. But I think the 69 Members in three years. [The three-year statute of losses from the Keating case did not in- of the Senate who voted for this legis- repose] cuts off only the claims of the most volve securities fraud and would not be lation the first go-around should vote trusting or somnolent—or the most wily, affected by this legislation. But even for it again. those who wanted to wait as long as pos- for those losses caused by securities This is good legislation. It is fair. It sible.’’ Short v. Belleville Shoe Mfg., 908 F.2d fraud, a number of the fully solvent de- is balanced. It may hurt the small mi- 1385, 1392 (7th Cir. 1990). A longer period fendants would be jointly and severally would allow speculators too much time to nority of attorneys reaping a wind- wait and see how their decisions to buy or liable under the compromise because fall—and that is an understatement, sell securities turned out, permitting them they committed a knowing fraud. under the current laws—but it provides to use lawsuits to cover their losses in the There are also provisions that every- much-needed protection to investors market. The current law curtails their abil- one on this floor understands that pro- and restores some sanity to our ality to institute fraud claims ‘‘based on wis- tect small investors. If you have ready overburdened courts. dom granted by hindsight.’’ Short, 908 F.2d at $200,000 or less, you lose 10 percent of Mr. President, I ask unanimous con- 1392. it. The same rules apply. Small inves- sent any time I have remaining be dele- Money’s claim: In order to bring a lawsuit, tors are protected in the legislation in plaintiffs may be ‘‘forced to post a prohibi- gated to the Senator from Connecticut. tive multimillion dollar bond to cover the this compromise, in this conference re- The PRESIDING OFFICER. Without defendants’ legal fees just in case the suit is port. objection, it is so ordered. later thrown out of court.’’ So the Charles Keating talk that we The Senator from Utah. The facts: The provision in the House bill hear so much about is a red herring. Mr. BENNETT. Mr. President, I yield requiring the posting of a security bond prior Importantly, this bill includes a pro- the Senator from North Carolina 1 to bringing suit has been dropped. The new vision that requires auditors to take minute. provision gives the court discretion to require additional steps to detect fraud and re- The PRESIDING OFFICER. Without an undertaking from the plaintiffs or defend- port illegal acts directly to the Securi- objection, it is so ordered. The Senator ants in a class action, and/or their attorneys. The court may decide that no undertaking is ties and Exchange Commission. is recognized for 1 minute. warranted. This is not a novel or unprece- Mr. SPECTER. Will the distinguished Mr. FAIRCLOTH. Mr. President, I dented provision. Other sections of the secu- Senator yield for a moment for a unan- rise in strong support of the conference rities laws already have similar undertaking imous-consent request? report on H.R. 1058. I was pleased to be provisions. Plaintiffs have not been deterred Mr. REID. I am happy to. an original cosponsor of this bill in the from bringing lawsuits under those sections. UNANIMOUS-CONSENT AGREEMENT Senate. Mr. REID. Mr. President, we are here Mr. SPECTER. Mr. President, I make Mr. President, securities litigation today considering the compromise leg- this request on behalf of Senator DOLE, reform is a rather ominous title for a islation agreed to by the conferees yet so all Senators may be advised as to bill. It certainly is not an issue well the bill’s opponents are still running what the schedule will be. known to many Americans. But the ads in opposition to the House bill. The I ask unanimous consent that the fact is, this legislation is very impor- House bill is gone, history. We have vote on the conference report occur at tant for our economy, and very impor- never given it any credence here. But 4:45 p.m., with the time between now tant for job creation in our country. they are doing this in an effort to slant and then divided as follows: Senator This legislation is really part of a and improperly cite what this bill real- HEFLIN, 7 minutes; Senator GRAHAM, 7 larger issue—legal reform. Too many ly stands for. These ads are replete minutes, Senator GRAHAM of Florida; lawsuits are crowding our court system with half truths, hyperbole, and out- Senator SHELBY, 7 minutes; Senator and they are sapping the productivity right distortions. Indeed, it is as if the BIDEN, 7 minutes; Senator WELLSTONE, of many companies. Last year, over opponents have failed to read the com- 7 minutes; Senator COHEN, 5 minutes; 220,000 civil lawsuits were filed in Fed- promise agreement and have chosen in- Senator SARBANES, 5 minutes; Senator eral court. stead to repeat the earlier criticisms of BRYAN, 10 minutes; Senator DODD or Since 1980, there has been a 73-per- a different bill, the House bill. his designee, the remainder of the time cent increase in the number of civil Interestingly, this is not unlike their which, who knows, may be zero, like suits filed in Federal court. actions in the class action suits they this morning. It is estimated that securities class file alledging meritless claims. I be- The PRESIDING OFFICER. Is there action suits have increased threefold in lieve the status quo makes a mockery objection? Without objection, it is so just the last 5 years. Yet, a small num- of the judicial system. ordered. ber of lawyers are pushing these suits.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17979 In fact, every 4 working days, one par- We cannot let this happen. America’s after study shows that lawyers get the ticular law firm files a securities class leadership role in technology is too im- lions share of the settlements. action lawsuit. portant to have it fall prey to disrepu- We had testimony that the average The cost of these suits is no small table attorneys. investor receives 6 or 7 cents for every matter. At the end of 1993, over 700 Mr. President, let me give a few ex- dollar lost in the market because of class action suits were seeking $28 bil- amples of just how bad the situation these suits—and this is before the law- lion in damages. has gotten with these suits. yers are paid. Very simply, this bill will attempt to One individual has filed lawsuits Mr. President, in my opinion, con- put an end to frivolous class action against 80 companies in which he held sumers and investors will be helped by lawsuits that are filed against Amer- stock. One Federal judge suggested this bill. Any consumer that has a ica’s publicly traded companies. that maybe his investment results job—or wants a job—or wants to keep a These strike suites often have little were a matter of design to pursue a job will be helped by this bill. merit, but they are filed for the sole lawsuit. The investor wanted us to be- With this conference report, more of purpose of blackmailing companies lieve that he was just the world’s most America’s capital will be put to job into settling rather than going to unlucky investor. I have my doubts. creation and not wasted on one sector court. Another individual has filed 38 law- of the legal profession. That is really Everyone of us knows that it is less suits, 14 of them with the same law the principle issue here. expensive to settle a lawsuit up front firm. Mr. President, the conference report than it is to go all the way to trial. Of Another man—a retiree—since 1990 will do a number of things to curtail course, once the suits are settled, the has filed 92 lawsuits—one for every one the abuses in our legal system. First, the bill allows the courts to de- attorneys that brought them, keep of his 92 years of age. termine who the lead plaintiff will be. most of the money. Further, these lawsuits have so little The conference report will also put The impact of these suits is having a merit, they are often filed within hours some teeth behind the rule that attor- detrimental effect on our economy. after a stock price drops. Many times neys cannot file frivolous lawsuits. Many companies are afraid to go public the drop is due to simple movement in Mr. President, the conference report and sell stock. the markets, yet, the lawyers only will also help investors by allowing By remaining private, they can avoid have to file a preprinted complaint al- companies to dispense more informa- these kinds of suits, but they also sac- leging fraud and race to the court- tion to the public without the fear of rifice an increase in growth and jobs house. being sued. This is the ‘‘safe harbor’’ that can come from going public. This The trick is that this allows them to provision. is costing America jobs. become the lead attorney on the class This is critically important to the Some have even suggested that com- action case. And by this—they make flow of information for investors. panies from overseas are afraid to es- the most money. It is a shame that due to the actions tablish businesses in America out of The National Law Journal reported of a small cadre of lawyers—that the fear that they too will fall victim to that of 46 cases studied, 12 were filed free flow of information has been cut these suits. within 1 day, and another 30 within a off. Now investors can only get care- Money that would otherwise be spent week of publication of unfavorable fully written legal gibberish that is on new job growth, or on research and news about a company. meaningless. This is wrong, and this development is being paid to lawyers to A good example is the Philip Morris bill changes that. settle these suits or—worse yet, money case. This case has been discussed Mr. President, let me conclude by is wasted fighting them. often, but it bears repeating. saying that I would strongly urge my The cost to U.S. companies is not After Philip Morris announced that colleagues to support the conference caught in a vacuum. As is always the it would reduce the price of its Marl- report. This is the beginning of mean- case, excessive litigation costs are boro cigarette by 40 cents a pack—a ingful legal reform. I think this bill is passed along to consumers in the form lawsuit was filed within 5 hours—by a a good, fair, and balanced bill, proof higher prices. All of this has a ripple plaintiff who held just 60 shares. tecting the rights of investors as well affect on our economy. Mr. President, Four more suits were filed the same as companies. it is making America less competitive. day, and five the next day. Two of the Mr. HEFLIN. Mr. President, I rise In my home State of North Caro- lawsuits contained identical com- today to discuss the conference report lina—116 companies have contacted me plaints. on H.R. 1058, the Securities Litigation and asked for my help in passing this In fact, one suit came so fast from a Reform Act. After months of secret ne- bill. They are united in their effort to computer generated legal form—that gotiations from which supporters of end these abusive lawsuits. the attorney forgot to change the form small investors, consumers, senior citi- Together these companies employ in parts—so he misidentified Philip zens, and public officials who invest 118,000 in North Carolina. This is why Morris as a toy company. taxpayer money were excluded, the this bill is so important for jobs in my This is kind of frivolity that Amer- proponents of the bill have agreed upon State and in this country. ica’s companies are fighting—and, re- the conference report. These suits are often targeted at grettably, having to pay for. Now that the light of day has been emerging high-technology companies. Mr. President, the conference report shed on the results of the negotiations This is a particularly disturbing devel- is an attempt to put an end to these it is clear that the conference report is opment. outrageous legal practices. far more devastating for investors than America is the undisputed world Mr. President, let me assure you that the bill which the Senate passed earlier leader in technology. Germany, Japan, nothing in this bill will prevent anyone this year. The conference report fails France, England, none of these coun- from filing a legitimate fraud case to fix the glaring inequities between tries or other countries even comes against any company. investors and unscrupulous corporate close to what this country is doing in If it did, I do not think 50 Members of insiders. It has taken some of the worst terms of technology and innovation. the Senate would have cosponsored the provisions from both the House and the Eighteen of the thirty largest high- bill. I don’t think 69 Senators would Senate bill and combined them to form technology firms in Silicon Valley have voted for it when it passed the this unacceptable report. have been sued since 1988. It has cost Senate. Unlike the Senate bill, the con- them $500 million to settle these suits. For those that oppose this bill in the ference report now broadly immunizes Yet, this small pool of lawyers, like name of the consumer, I think are not oral or written forward-looking state- sharks in the ocean are just circling— fairly representing the consumers of ments by corporate insiders with only waiting for the stock prices to fall— this country. a requirement that there be ‘‘cau- then they move in with the strike Mr. President, a point that is not tionary’’ language to accompany the suite. They are waiting to attack these often made is that consumers, and the statement. The determination of what companies and transfer the wealth to plaintiffs in the class action suits rare- is ‘‘cautionary’’ invites litigation, but themselves. ly benefit from these lawsuits. Study for

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17980 CONGRESSIONAL RECORD — SENATE December 5, 1995 those who have already lost their life many of those involved with the mar- tribution of settlements. Quite simply, savings based on this safe harbor this kets from civil liability in cases of se- it puts some common sense back into litigation is too late. curities fraud. The UAW describes the our legal system. Pursuant to the conference report legislation as one-sided and contends Madam President, I’ve seen the ads the individual investors who have been that it will allow for limited remedies denouncing this legislation, and I’ve victimized by an unscrupulous broker, to be available for the investor and heard the arguments opposing this leg- or fraudulent statement will probably pension funds which lose money due to islation. This bill has inspired some never have their day in court. This is fraudulent investment schemes. I be- very intense, focused, and well-funded due to the inclusion of a House provi- lieve that if a more balanced approach opposition. sion which allows the court to impose to securities law reform could be The bill’s opponents claim this legis- a bond requirement to cover the pay- reached, the proponents could gain the lation will harm small and elderly in- ment of fees and expenses, with no lim- support of these groups and hundreds of vestors. Well, I believe that assertion is itation on the amount of the bond. If others. completely false. In no way does this an individual investor attempts to seek The stock market recently broke 5000 bill take away one’s ability to file suit. justice from a large corporate defend- and is as robust and active as at any Nor does it undermine the Securities ant, such a bond would probably be un- time in our Nation’s history. Small in- and Exchange Commission’s ability to attainable. vestors driven away from the markets sue for damages in securities fraud. In Another change from the bill passed due to the crash in the early eighties fact, the legislation enhances the by the Senate is the financial risk im- are starting to return to the markets. SEC’s ability to do so. posed on investors of having to pay the This is not the time to pass legislation Madam President, Americans have a full legal fees of big corporate defend- which will erode public confidence in right to know their investments are se- ants if they lose. The new penalty for a the integrity of the markets. I strongly cure—that our money has been in- plaintiff for a violation of the Federal urge my colleagues to vote against this vested in good faith. Today, investors rules requires that he or she pay all of report and send it back to the con- are denied valuable information be- the corporate defendant’s legal fees and ferees, demanding a more balanced ap- cause companies are reluctant to dis- expenses for the entire case. This full proach to securities law reform. close forecasts in fear of litigation. fee-shifting sanction would be cal- Mrs. MURRAY. Madam President, I This serves nobody well; and it espe- culated after the case has been com- am pleased to come to the Senate floor cially hurts investors that are trying pleted, when the court must make find- today to express my support for a bill to make sound, well-educated invest- ings. By the way, if the defendant is I cosponsored, the Private Securities ments. found at fault, he is fined only the fees Litigation Reform Act of 1995. I com- I am pleased to note that the SEC and expenses that are a direct result of mend Chairman D’AMATO and Senators has endorsed the safe harbor provision a frivolous filing. This English rule, fee DODD and DOMENICI for their work on in this bill. SEC Chairman Arthur shifting, could virtually eliminate all this bill. They have done a fine job of Levitt has written, ‘‘the current securities claims, the meritless along crafting a strong bipartisan measure version represents a workable balance with the meritorious. and then guiding it successfully that we can support since it should en- In another move away from the Sen- through conference—and I have been courage companies to provide valuable ate bill the conferees dropped pleased to work with them on this forward-looking information to inves- proinvestor language which clarified issue over the past 3 years. tors while, at the same time, it limits the burdensome pleading requirements Madam President, this is an impor- the opportunity for abuse.’’ I agree of the bill. In a blow to investors, the tant day for many of the small inves- with Chairman Levitt and I value his proponents have retained an extremely tors in Washington State and through- opinion. This safe harbor provision will difficult pleading requirement. The re- out the country. This bill takes the be good for both investors and corpora- port will require plaintiffs to allege power out of the hands of a few lawyers tions. facts giving rise to a strong inference and puts the power back in the hands Ultimately, if an investor has been that the defendant acted with the re- of the investors. We all know that in the victim of fraud—no matter how big quired state of mind. This state of many of these class action lawsuits, or how little—they have a right to mind or intent requirement must be the investor often recovers as little as equal treatment under the law. This obtained before any discovery or testi- 10 percent of the damages caused by legislation ensures that will happen, mony has even taken place. Most fraudulent activity while their lawyer better than under today’s laws. courts have rejected this high standard takes millions. And, Madam President, Congress has as being in conflict with the purposes Madam President, I recently heard a unique role in promoting investor and express language of the Federal from a constituent who received a set- confidence. We must encourage invest- rules. The report not only adopts this tlement in a suit against a high tech- ments; investments that are needed for language but raises the requirement nology firm in Washington State. This capital formation, economic growth, even more. particular investor received a prorata and job creation. Furthermore, the conference report share of the damages amounting to 3 This is especially true in Washington fails to correct some of the major prob- cents per share, or just $30, while the State—which is home to many high lems in the Senate bill. These problems lawyer in that suit walked away with technology and biotech companies. And include the extremely short statute of the rest. The individual in this suit investors in Washington State like to limitations and the abrogation of joint told me, ‘‘my investment was hurt invest in these companies. and several liability in all but a very much more by my lawyer’s actions, Unfortunately, Washington State’s limited number of circumstances. The and his extortion of $1 million from the investors are well aware of the damage report retains the immunity for aiders firm, than by any alleged actions on that is caused by unwarranted court and abettors which would have been a the part of the company’s manage- cases. They know these cases inhibit boon to the defendants in the Lincoln ment.’’ job creation and slow economic growth. Savings failure case. The report also Madam President, this is neither They know how companies are forced retains the requirement that the court what our investors want nor expect. It to waste resources and settle suits with appoint a most adequate plaintiff, thus is outrageous and needs to be cor- capital that could have been used for eliminating the issues of concern to rected. the research and development of a new smaller investors and inserting the The legislation before us will reform product. concerns of the wealthiest investor. our securities law so that investors I have heard from many of these I have recently received letters from will have more of a say in the outcome companies in my home State. Compa- organizations expressing their concern of their suit. It will restore the plain- nies such as these—new, growing, for- with this report and legislation. The tiff’s role and enable them to exercise ward-looking—are a point of pride in Fraternal Order of Police state that traditional plaintiff functions—includ- the Pacific Northwest. They reflect the this legislation would create a privi- ing the selection of lead counsel, nego- high technology, high wage economy of leged class of criminals, by immunizing tiating fees, and determining the dis- the future.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17981 Nobody likes to see these companies that defrauded securities investors re- the top of the settlement fund, the Lin- attacked by a few overzealous lawyers. ceive a greater share of the settlements coln S&L investors would have re- These companies lose millions of dol- or awards in their cases. ceived full compensation for their lars each year fighting the allegations H.R. 1058 contains several important losses. of fraud—while the actual investor re- reform provisions. It eliminates refer- H.R. 1058 provides investors who have ceives just pennies on the dollar when ral fees currently paid by some attor- been injured as a result of the neg- a settlement is finally reached. neys to plaintiffs who successfully rec- ligence of another the opportunity to Madam President, this system needs ommend them to represent all the file suit. At the same time, it reduces reform, and Congress is obligated to plaintiffs in a class action. It requires abusive litigation, which clogs our ju- correct the situation. And, I want to the courts to appoint, as lead plaintiff, dicial system and hurts those plaintiffs make it very clear—this bill retains an the party willing to serve who has the with meritorious claims. It is impor- investor’s right to bring suit if they greatest financial interest, thus doing tant that recoveries go to the plaintiffs are victims of securities fraud. away with the so-called professional and not to cover court costs, attorneys’ At the same time, it will clamp down plaintiff who shops for cases to file— fees, and other transaction expenses. on the abusive suits they prey on in- frequently as the agent for a lawyer— Mr. President, the Securities Litiga- vestors and small business owners. It is with little financially at stake. The tion Reform Act will eliminate frivo- honest effort to reduce the excessive bill would allow the small investor to lous securities class actions. I urge my costs that burden our investors and our recover completely through joint and colleagues to support this bill. economy. several liability. And it imposes an af- Mr. FRIST. Mr. President, I speak Madam President, let me conclude by firmative duty on auditors to disclose today in support of the conference re- recalling the first Senate vote on this financial fraud to the Securities and port to H.R. 1058, the Private Securi- bill. When I voted for this bill in June, Exchange Commission [SEC], unless ties Litigation Reform Act of 1995. The I said I would not support a conference the fraud is properly addressed by man- conference report is a moderate and report if it contained some of the more agement. carefully balanced compromise bill onerous provisions in the House bill. In many cases it is the attorneys, not that permits investors in securities to Well, not only is this conference report the investors, who are the primary continue to file and win legitimate almost identical to the Senate bill, it beneficiaries of these securities suits. lawsuits. However, the bill does some- is even stronger in some respects. It is For example, National Economic Re- thing that is much needed at this time: a good compromise and it restores search Associates, Inc. reported that, It gives issuers of securities the ability some common sense to our legal sys- in a 12-month period ending July 1993, to quickly dismiss meritless and abu- tem. I urge my colleagues to support the average settlement in securities sive lawsuits. this legislation. class actions amounted to $7.36 million. The current system of securities liti- SAFE HARBOR Attorneys earned an average of $2.12 gation is clearly broken. Why? Because Mr. FRIST. Mr. President, I would million per settlement, roughly 30 per- it makes millionaires out of attorneys like to briefly discuss with Senator cent of the total. Investors recovered who repeatedly file frivolous lawsuits. DOMENICI one important issue con- only about 7 cents on the dollar when As a matter of fact, securities litiga- cerning the section 102 ‘‘Safe harbor for compared with the amount of losses al- tion costs American industry $2.4 bil- forward looking statements.’’ It is the leged. lion a year, with one-third of this clear intention of the conference com- Some argue that the small investor amount being paid to plaintiffs’ attor- mittee that reckless conduct cannot will not be able to find relief under this neys. This results in companies being constitute actual knowledge for pur- legislation; that, for example, the vic- forced to lay off worker and consumers poses of the safe harbor, isn’t it? tims of the Lincoln Savings & Loan Mr. DOMENICI. Yes. It is the clear bond fraud would not have recovered paying higher prices for goods and intention of the conference committee their losses. This is incorrect. First, services. that reckless conduct will not con- the final bill includes a provision that The bottom line is that the current stitute either actual knowledge or be requires the SEC to determine whether system of securities litigation does not construed to constitute a knowing investors who are senior citizens, or benefit investors or consumers: it bene- commission of a violation of the secu- those groups with qualified retirement fits a handful of attorneys. rities laws for purposes of section 102 plans, require greater protection Here is how the perverse system of safe harbor provisions of the Private against securities fraud. If so, the SEC securities litigation currently works: Securities Litigation Reform Act of must submit a report to Congress con- There are a handful of plaintiffs law 1995. taining recommendations on protec- firms in this country that specialize in Mr. KYL. Mr. President, I rise to sup- tions that the Commission determines filing securities class action lawsuits. port the Securities Litigation Reform to be appropriate to thoroughly protect This is shown by the fact that seven Act of 1995. I thank Senators DOMENICI, such investors. plaintiff law firms in this country re- DODD, and D’AMATO for their sponsor- Second, H.R. 1058 retains joint and ceive 63 percent of the legal fees gen- ship of this bill, and their leadership in several liability recovery for small in- erated by securities class action cases. reforming securities class actions. I am vestors with securities claims. Even if These law firms monitor the stock pleased to support this bill, which will the Lincoln S&L investors had sued prices of businesses with computers. reform the legal process by which in- only for those claims covered under When a corporation’s stock price suf- jured parties can recover damages for H.R. 1058, many of them would have fers a major drop, the plaintiff’s law securities fraud and negligence. It re- been fully compensated. H.R. 1058 spe- firm immediately files a lawsuit. Some duces abusive litigation that clogs our cifically provides that, if one defendant 20 percent of securities lawsuits are judicial system and results in reduced is insolvent, the remaining codefend- filed within 48 hours of a major drop in recoveries to the plaintiffs. Too often ants will remain both jointly and sev- the stock price. the attorneys, not the investors, are erally liable to investors whose net The reason that these law firms are the primary beneficiaries of these secu- worth is under $200,000, and who lost able to file their lawsuits so quickly is rities suits. more than 10 percent of their net that they are suing on behalf of profes- The Senate Banking Committee worth. All of the Lincoln investors who sional plaintiffs, who receive a fee for passed a version of H.R. 1058 by a vote met this standard would have been permitting themselves to be named in of 11 to 4 this spring. The full Senate fully protected had H.R. 1058 been law. the lawsuits. The Securities Sub- passed this version on June 28 by a vote In fact, those investors may have been committee of the Senate Banking Com- of 70 to 29. Clearly there is a bipartisan able to recover more under H.R. 1058. mittee found that there were plaintiffs consensus for change. I supported this This bill imposes statutory restrictions who had as much as 14 securities action bill because I believe it modernizes our on the size of lawyers’ fees in securities lawsuits filed on their behalf. securities class action litigation sys- actions. Perhaps, had the plaintiffs’ These law firms justify the filing of tem by reducing the potential for frivo- lawyers been prevented from taking these lawsuits by generally alleging lous securities lawsuits, while assuring more than the $65 million in fees off that the drop in the stock price was

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17982 CONGRESSIONAL RECORD — SENATE December 5, 1995 caused by the corporation or its man- continues to own a share of stock in a the present system reduces the amount agement acting fraudulently or reck- sued corporation does not gain much of information required and companies lessly. The lawsuits seek for the cor- from settlement of the lawsuit. limit their public statements to avoid poration to pay to its shareholders The third and final problem is that allegations of fraud. In fact, an Amer- damages in the amount of the dif- investors can no longer get useful for- ican Stock Exchange survey found that ference between the stock price before ward-looking information about cor- 75 percent of corporate CEO’s limit the and after the stock’s drop in value. porations. As former SEC Commis- information disclosed to investors out Even if the lawsuit is meritless, the sioner Carter Beese testified before the of fear that greater disclosure would corporation is forced to settle. Why? Securities Subcommittee of the Senate lead to an abusive lawsuit. To encour- First, litigating a lawsuit is costly, Banking Committee, ‘‘companies go age disclosure of information by com- even if your only goal is to get the law- out of their way to disclose every con- panies, the conference report will cre- suit dismissed for failing to state a ceivable bit of innocuous information, ate a safe harbor. It will provide a pro- cause of action. This is because it is but very little useful forward-looking cedural mechanism for companies who very difficult to dismiss such lawsuits, information. At the same time, legion make predictive statements to be pro- and defense expenses for complex secu- of lawyers scrub required filings to en- tected from frivolous litigation if their rities class action lawsuits can total sure that disclosures are as milque- prediction does not materialize. between $20,000 and $100,000 a month. toast as possible, so as to provide no Mr. President, we have heard a lot of Second, the depositions and extensive grist for the litigation mill.’’ speculation that this legislation would document review associated with these With all of the problems that we have adversely impact small investors. lawsuits are so time consuming that with our current system of securities Nothing could be further from the they disrupt the management of the litigation, the moderate relief offered truth because this comprehensive business. On average, companies that by the conference report is necessary measure will protect the rights of in- are sued devote 1,000 management and to protect investors, in necessary to vestors who have been legitimately de- employee hours per case. protect consumers, and is necessary to frauded, while providing new protec- The end result is that it is worth- protect jobs. I urge all of my colleagues tions for the millions of Americans in- while for a business to settle a frivo- to support it. vestors who have been harmed by the lous securities lawsuit, because there is I thank the Chair, and yield the recent explosion of abusive and frivo- rarely ever any cheap way of dis- floor. lous litigation. While there are many missing it. Mr. BURNS. Mr. President, I rise provisions in the measure to deter Now, opponents to securities litiga- today in support of the Private Securi- meritless suits, the bill also requires tion reform are going to tell you that, ties Litigation Reform Act of 1995. The that the auditors inform the SEC of notwithstanding all of the foregoing, conference report is a big win for all any suspicions of fraudulent activity investors still benefit from the current America’s investors, our Nation’s busi- and restores the authority of the SEC system of securities litigation. But I’d nesses, and our overall economy. to bring aiding and abetting cases for submit that this system actually The conference report offers a bal- knowing violations of securities laws. harms investors. anced bipartisan bill that restores fair- The measure includes a system of pro- The first problem, as stated by ness and integrity to our securities portionate liability to reduce the pres- former SEC Commissioner Carter litigation system by protecting inno- sure to settle frivolous claims and so Beese, is that the current system en- cent companies as well as the rights of that companies pay only their fair courages ‘‘counsel to settle for the legitimately defrauded investors. share of a settlement, while retaining amounts that are too low or fees that The filtering out of the abusive, frivo- full joint and several liability for small are too high.’’ The plaintiffs in a secu- lous class action lawsuits that harm investors and for all defendants who rities class action have a conflict of in- investors and only benefit class action knowingly participate in securities terest with their lawyers. The lawyers’ attorneys will restore integrity to se- fraud. incentive is for an uncomplicated set- curities lawsuits. We will protect in- In conclusion, Mr. President, this se- tlement and an avoidance of trial. This vestors and at the same time emerging curities legislation reform is fair, bal- is because the difficult and time-con- companies will be able to grow and cre- anced and passed with strong bipar- suming work for the plaintiffs’ lawyers ate jobs without the financial burden tisan support. I encourage my col- comes at the trial phase; if it can be of abusive litigation. leagues to support the conference re- avoided by a settlement, the lawyers The legislation we have before us port and I once again want to commend still get their percentage for relatively today will go a long way toward curb- Senator DOMENICI and Senator DODD little effort. Thus, the lawyers-driven ing abuses in securities litigation. It for their work on this bill. nature of these lawsuits tends to short- will provide a filter at the earliest Mr. BOND. Mr. President, the con- change investors who have truly been stage of a lawsuit to screen out those ference report to H.R. 1058 addresses an defrauded and would benefit from liti- that have no factual basis. A complaint issue of great concern to many Ameri- gating the lawsuit to conclusion. needs to outline the facts supporting cans—securities litigation reform. The second problem is that in securi- the lawsuit and not just the simple While this is a subject that I believe ties class action lawsuits, when a cor- conclusion that the defendant acted needs to be addressed and one I have poration makes a settlement payment with the intent to defraud. If the com- some personal views and experiences to a class of shareholders, the share- plaint does not outline and present all in, I will not be participating in the de- holders who still own the corporation’s the facts supporting each of the alleged bate or votes on the floor. stock are not really getting any tan- misstatements or omissions, the law- I have previously informed the Sen- gible benefit in return. If the settle- suit will be terminated. ate that I am engaged in securities liti- ment amount is coming from the cor- Many times, securities class action gation of the kind this legislation poration’s money, then it is no more suits are characterized by the ‘‘sue seeks to reform. Given the status of than a quasi-dividend, with a law firm them all and let the judge sort it out’’ this suit and the pending legislation, I taking an average of 33-percent cut for mentality. In order for a judge to sort will again recuse myself from the pro- giving the shareholder the privilege of it out, the defendants are required to ceedings on the matter. having the quasi-dividend occur. This spend numerous hours and expense to I thank the President and fellow Sen- will generally cause the corporation’s defend against a securities class action ators for their understanding of my stock price to drip, which nullifies the lawsuit. This bill corrects that problem personal situation. benefit of the settlement. If the settle- by requiring plaintiffs to specify the Mr. DOLE. Mr. President, I am ment amount comes from the corpora- statements alleged to have been mis- pleased that we are able to consider the tion’s directors’ and officers’ liability leading. conference report to the Private Secu- insurance, the corporation will be faced Securities laws are intended to help rities Litigation Reform Act today. I with partly paying it back through a investors by ensuring a flow of accu- want to commend my colleagues, the staggeringly high premium the very rate and pertinent information regard- chairman of the Banking Committee, next year. Either way, an investor who ing public traded companies. However, Senator D’AMATO, and the chairman of

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17983 the Budget Committee, Senator false, however, are not protected by the conference report. The SEC, DOMENICI, for their leadership in work- this safe harbor. throughout the legislative process, had ing out the necessary compromise al- Mr. President, with this bill the Re- withheld its endorsement of the legis- lowing us to bring this bill to the floor. publican-led Congress sends a clear lation. I am pleased that the SEC stat- I also want to commend my colleague message. We have fulfilled our respon- ed in a letter of November 15, 1995, from Connecticut, Senator DODD, sibility to provide companies and in- that: ‘‘We believe the draft conference whose involvement in this issue is vestors protection from frivolous law- report responds to our principal con- proof that there is nothing partisan suits, ensuring that America will be cerns.’’ about securities litigation reform. able to compete in the global market- Of particular importance to me is the Our securities markets provide the place. safe harbor language that is the prod- fuel that drives our economy. When President Clinton has not indicated uct of months of consultation with the these markets run efficiently, allo- whether or not he will support this bill. Securities and Exchange Commission. cating capital to established companies But the choice is clear. In my view, if In my view this provision is the crux of and to newer, emerging businesses, we he supports this bill, he supports cre- the entire matter. The safe harbor af- all win with more economic growth, ating jobs for Americans. If he opposes fects a potential investor’s decision of more jobs, and a stronger economy. it, he only supports enriching the pock- whether to purchase securities and it Unfortunately, a handful of lawyers ets of wealthy trial lawyers at the ex- affects a company’s ability to paint a today devote their professional lives to pense of consumers and investors. rosy scenario to attract investors. It gaming the system by filing strike In closing, I again commend Chair- also directly affects the value of the suits alleging violations of the Federal men D’AMATO and DOMENICI, and Sen- benefits packages of the company’s of- securities laws—all in the hope that ator DODD for their work on this crit- ficers and employees. The conference the defendant will quickly settle in ical legislation and I urge my col- report codifies the judicial ‘‘bespeaks order to avoid the expense of prolonged leagues to support it. caution’’ doctrine and will not allow a litigation. The lawyers who file these Mr. KERRY. Mr. President, one of company simply to use boilerplate cau- suits often rely on professional plain- my priorities is to foster a competitive tionary language. tiffs, shareholders with only a small business environment in Massachusetts I am also pleased that the conference stake in the company, but who are and throughout the Nation that will report adopts as title III legislation I nonetheless willing to stand on the lead to the creation of skilled, family- sponsored originally with Representa- sidelines ready to lend their names to wage jobs. A significant factor in cre- tive WYDEN to require audits of public the litigation. ating a favorable business environment companies designed to detect illegal Needless to say, these strike suits are is the ability to generate capital. The acts. It places on accountants and com- often baseless. If a stock price falls, conference report before us today ad- pany auditors a clear responsibility for these lawyers will file a class action dresses the question of the so-called se- early detection and disclosure of illegal suit claiming that the company was curities strike suits that have had a actions by management. This title re- too optimistic in their projections. If chilling effect on both the business cli- quires auditors to inform immediately the stock price soars, these same law- mate and the generation of capital for the management and/or the SEC of ille- yers will file suit saying that the com- Massachusetts’ vanguard technology gal acts having a material impact on pany withheld information that caused industries. the issuer’s financial statements. I be- shareholders to sell too early. In effect, This legislation has been the subject lieve these procedures for early detec- the lawsuits act as a litigation tax that of intense debate. Some argue that in tion and disclosure of fraud by the ac- raises the cost of capital and chills dis- its attempt to end frivolous strike countants and auditors will serve the closure of important corporate infor- suits, it will deny investors the oppor- interests of both investors and busi- mation to shareholders. High-tech, tunity to recover losses from compa- nesses. high-growth companies are particu- nies that engaged in fraudulent securi- The conference report should lead to larly vulnerable to these baseless ties actions. This is a legitimate con- the creation of a more favorable cli- strike suits because of the volatility of cern in view of some of the cases in mate for investors and businesses. In- their stock prices. Massachusetts in which companies re- vestors should gain better information This bill will reduce the number of peatedly misrepresented sales, senior about the marketplace, more control meritless securities fraud cases, while officers had to resign and some compa- over securities strike suits and more protecting investors, by proposing sev- nies had to declare bankruptcy. leverage in recovering a larger share of eral commonsense reforms: Others have countered that the legis- their losses in strike suits. Businesses First, it diminishes the likelihood lation does not go far enough to pre- should gain the freedom to provide that these cases will be driven by law- vent frivolous strike suits based solely statements about the business outlook yers, instead of real plaintiffs by allow- on stock fluctuations or missed earn- that investors and the SEC have ening the most adequate plaintiff to be ings projections and that the attorneys couraged and a more favorable climate the party with the greatest financial who bring such suits should face the for raising capital. interest. threat of a loser pays provision. I especially want to commend Sen- Second, it clamps down on sky- As the Senate has considered various ator DODD, who has worked tirelessly rocketing attorney’s fees by requiring proposals to reform our Nation’s secu- on this tough issue, and Senator that fees be awarded as a percentage of rities laws in this area, I have been DOMENICI for their effort in achieving a the actual recovery based on the ef- mindful of the fact that, indeed, there reasonable and balanced bill. forts of the attorney. are investors on both sides of this Ms. MOSELEY-BRAUN. Mr. Presi- Third, it retains joint and several li- issue. My principal goal—and the dent, I support the conference report ability for those who knowingly com- yardstick I have used to measure this on H.R. 1058, the Securities Litigation mit fraud, but establishes a system of legislation—is whether it achieves a Reform Act. It is a reasonable bill, one proportionate liability for other, less balance between discouraging truly that deserves prompt enactment into culpable defendants. frivolous strike suits while ensuring law, and it provides the right kind of Fourth, it adopts the second circuit’s companies and individuals are liable reform to help create jobs and the eco- pleading standard. This requires plain- for actual fraud. Though not prefect, I nomic growth our country needs. tiffs to point out specific statements do believe this legislation has struck a The need for reform is clear. The that are supposed to be misleading, and reasonable balance between protecting Russian roulette of securities strike removes the ‘‘sue them all and let the investors’ rights and reducing the pos- suits adds a cost to job creation and a judge sort it out’’ mentality. sibility that companies will be subject chilling effect on investment. Every Fifth, it encourages companies to to frivolous strike suits. single one of the top 10 Silicon Valley disclose information to their share- One factor that was extremely impor- high-technology firms has been sued holders by granting limited protection tant in helping me reach a decision on for securities fraud—every single one. to predictive statements made in good this legislation was the Securities and And 27 of the top 40 high-technology faith. Statements that are knowingly Exchange Commission’s evaluation of firms have been sued. These firms, and

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17984 CONGRESSIONAL RECORD — SENATE December 5, 1995 many others like them, have to spend also very much at issue. The interests I am pleased that the conference re- hundreds of thousands of dollars—and of every person who works, or is look- port now before the Senate very even more—to defend frivolous suits, ing for a job, is at stake. strongly resembles the bill the Senate an additional cost no startup company The world economy is more and more sent to conference, rather than the should have to bear. And, while it can- competitive. Our future prosperity de- original unbalanced House bill that I not be quantified, there is no doubt pends on our ability to meet and beat do not and could not support. In one that a number of companies never get that international competition. That key issue area after another, the con- born in the first place because of the means we need a continuing supply of ference bill follows the Senate bill, incalculable litigation threat. new ideas, new products, and new com- rather than the House bill. For exam- There are 2,536 electronics companies panies that can produce the jobs of to- ple, in the area of liability standards, in my own State of Illinois, companies morrow. And that also means that our the original House bill abolished liabil- that employ 112,000 people, and have an capital markets must work efficiently ity for reckless conduct; the Senate annual payroll of $4.9 billion, that are to provide capital in the amounts need- bill did not, and the Senate position also among the beneficiaries. These ed to the companies that will provide prevailed in conference. companies provide 12 percent of the the jobs and the economic growth that The House bill abolished liability for total manufacturing jobs in Illinois, will make the future brighter and more fraud on the market. The Senate bill and the value of their annual produc- prosperous for all of us. left that doctrine unchanged, and the tion is over $17 billion. These global concerns may seem a conference bill adopts the Senate ap- Of course, it is not just high-tech- long way from the securities law issues proach. nology firms in Illinois and elsewhere that are the subject of the bill now be- In the area of pleading, the House bill that need this bill. I have concentrated fore the Senate, but the connection is adopted a standard that was signifi- on high-technology firms because they both strong and direct. cantly higher than the second circuit are so important to the future of our American corporations are all too standard, which was the standard economy and because their stocks tend often intensely focused on the short- adopted in the Senate bill. The Senate to be volatile, which makes them term price of their stock, instead of the position prevailed at conference. prime targets for these kinds of securi- long-term growth and prosperity of the In the area of fee shifting, the origi- ties lawsuits. The fact that so many business. This short-term focus, which nal House bill included a pure English leading high-technology firms have the current state of our securities laws rule approach; the Senate bill adopted been sued in an indication of the scope helps foster, distracts senior manage- a rule 11-based approach, and the con- and extent of the frivolous litigation ment, makes too many of our busi- ference bill adopts the Senate position. problem, a problem this bill will cor- nesses less creative, and undermines The House bill included a $10,000 rect. the ability of American businesses to named plaintiff provision; the Senate- The fact is that investors need re- make the investments that have the passed bill did not, and the conference form, too. The current system does not long-term payoff. By addressing the adopted the Senate position. benefit them. The damages investors frivolous lawsuit problem, this con- In the area of aiding and abetting, receive in a successful case amount to ference report will free managers to the original House bill did not reverse as little as 10 to 14 cents on the dollar focus on managing their businesses for the Central Bank case; the Senate bill of alleged losses. Clearly, the litigation the long term, rather than managing restored the ability of the Securities explosion has not helped investors a to minimize their short term legal ex- and Exchange Commission to institute whole lot. posure. It will give entrepreneurs more enforcement actions against a person Much more important than damages, time to innovate, and to focus on the or persons who ‘‘knowingly provides however, is information. Most inves- future, rather than concentrating on substantial assistance to another per- tors have not been part of any securi- their legal defense. Companies will be son in violation of this title.’’ The con- ties litigation class action lawsuit, at able to concentrate on creating new ference bill includes the Senate provi- least not directly, but every investor products and new jobs, because they sion. that is active in our capital markets won’t have to devote so much time and I do not contend, Mr. President, that depends on information—and the more attention to lawsuits, and the threat of the bill before us is perfect. It is a com- information an investor has, the better lawsuits. promise. If I had controlled the con- the information an investor has, the Moreover, because frivolous lawsuits, ference, there would be some issues better off that investor is. and even the threat of frivolous law- that would have been resolved some- Enactment of this conference report suits, are an impediment to the smooth what differently. It is clear, however, will reverse the current trend of com- functioning of our capital markets, re- that the bill is a good faith attempt to panies providing less and less informa- moving that impediment will make our protect the public interest, investors’ tion to investors. Instead, because of capital markets more efficient. And interests, and companies’ interests, greater confidence that they will not that will also help produce more eco- and looking at the overall bill, I think be subject to frivolous suits, companies nomic growth and more new jobs. it does a reasonable job of meeting the will be providing more information to I cosponsored S. 240, the original bill interests of all three. the market. That, in part, is why small that passed the Senate in modified It is worth keeping in mind what the investors like the Beardstown Ladies, form last June, because that bill was bill does—and does not—do, and what and the National Association of Inves- based on a recognition of all of these this area of law is all about. What we tors Corp. an organization representing facts. S. 240 was designed to maintain are here talking about is ‘‘private over 340,000 investors and investment strong investor protection, while mak- rights of action’’ for fraud under Sec- clubs, supports this legislation. ing it more difficult to file frivolous or tion 10(b) of the Securities Exchange Many investors also support this bill abusive lawsuits. It was designed to Act and rule 10b–5 of the Securities and because it gives them, rather than the help ensure that new businesses that Exchange Commission. That statute lawyers who are supposed to be work- create new jobs and new products have did not expressly provide private par- ing for them, control of any class ac- a better chance to get the capital they ties with a right to sue corporations or tion suits filed. It is the client, rather need, while ensuring that defrauded in- other parties involved in the issuance than the attorney, that is supposed to vestors have the right to recover their and sale of securities; this right control a lawsuit, and part of the rea- damages. The bill attempted to reduce evolved out of a long series of judicial son this bill is so necessary is that this transaction costs, so that investors decisions, not Congressional actions. simple principle has somehow gotten who are harmed see a smaller portion Some argue that the conference re- lost in recent years. of their recoveries consumed by attor- port is somehow unbalanced because it However, more is at stake than just ney’s fees and other costs. And it was does not fully overturn the Central the interests of companies and inves- designed to help our capital markets Bank case involving aiding and abettors, as important as those interests create more jobs and greater long-term ting, or the Lampf case relating to the are. The interests of our overall econ- economic growth—something that is statute of limitations in private 10(b) omy, and of our country at large, are good for every American. cases. However, it is worth keeping in

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17985 mind that defeating the bill would do sanctions. That simply puts some teeth concern. It found that 75 percent of absolutely nothing to overturn either into the application of rule 11, and it is corporate CEO’s limit the information of these cases, that it would in fact teeth that are needed, because frivo- disclosed to investors out of fear that leave the SEC with less, rather than lous suits filed with little thought as greater disclosure would make them more, authority than the bill provides, to their merit can cost the defending more vulnerable to abusive securities and that it would leave investors and companies hundreds of thousands of lawsuits. the public in a situation where the dollars in legal fees, and in the time of Mr. President, there is a lot more in courts, rather than the Congress and the companies’ executives. And even this bill, and there is a lot more I could the President, are making the law in those fees are not a good investment say about it. I will conclude, however, this area. for the company, even when they win, by simply repeating what I said at the The bill has also been controversial because they divert money that should outset of my remarks. This is a good because, in some situations, some de- be going into creating more jobs and bill. It does not fully satisfy me, and it fendants are only proportionately lia- growth. probably does not fully satisfy any ble, rather than jointly and severally Finally, the most controversial part other Senator. But it does provide the liable. The conference report however, of the bill involves the so-called safe kind of reforms that are badly needed holds everyone who commits knowing harbor. This provision in the con- and that are long overdue. And the bill securities fraud jointly and severally ference report has the support of the accomplishes its reform objectives in a liable. Other defendants who are less SEC and, in some ways, offers more way that protects investor interests, culpable are proportionately liable, protection for investors—and less for including the interests of small inves- that is, they are responsible for the issuers of securities—than do some tors like the Beardstown Ladies. share of harm they cause. That ensures leading court decisions in this area. I want to congratulate the distin- that parties who may be only 1 percent The heart of what is at issue here is guished chairman of the Banking Com- or 2 percent responsible for the fraud what are known as forward looking mittee, Senator D’AMATO; my good are added as defendants to cases simply statements: statements that describe friend from Connecticut, Senator DODD; and the distinguished Senator because they have deep pockets. future events or that estimate the like- from New Mexico, Senator DOMENICI— Proportionate liability is far from a lihood of selected future events occur- who has now rejoined the Banking new concept. We have had it in the tort ring. Rule 175 of the SEC, which cur- Committee—for their leadership and area in my own State of Illinois for a rently partially governs this area, for all of their hard work. This bill number of years. It is an important and states that forward looking statements would not be possible without the con- necessary change. Without it, many made with a reasonable basis and in tributions that each of them have people will not deal with the small, en- good faith cannot be used for as a basis made. I also want to commend the dis- trepreneurial, startup companies that for a fraud action. However, as a prac- tinguished Senator from Maryland, are most likely to be sued, because the tical matter, the safe harbor it pro- potential liability is so much greater Senator SARBANES, the ranking Demo- vides turns out not to be very safe. cratic member of the Banking Com- than the profit they can earn from What added real protection was a mittee, for improving the bill, even doing business with these companies. third circuit case that recognized the Many companies are increasingly un- though he opposes it. ‘‘bespeaks caution’’ doctrine, a doc- In my view, this legislation addresses able to find accounting firms and law trine that is now law in at least five a set of issues that need to be ad- firms willing to do business with them, circuits. Under this doctrine, forward dressed. It is good for investors, compa- and are having increasing difficulty in looking statements accompanied by nies, our capital markets, our econ- attracting the best people to sit on meaningful cautionary statements— omy, and for the American people gen- their boards of directors. And the re- that is, statements that indicate the erally. It will help generate additional sult of that is less information and less specific risks that the forward looking economic growth and new jobs. I there- protection for investors, and greater statements will not come true—are, as fore urge my colleagues to join me in hurdles for the new companies on a matter of law, immaterial and there- voting for the conference report on H.R which our economic future depends. fore cannot be used as a basis for a 1058, the Securities Litigation Reform And the result of that is less of the fraud action. Act. new, good, well-paying manufacturing The conference report essentially Mr. LAUTENBERG. Mr. President, I jobs our economy and our country codifies the bespeaks caution doctrine. am going to vote against this con- needs. Moreover, in response to concerns ference report. Of course, in some cases, the parties raised by the distinguished ranking Mr. President, the legislation before most responsible for the fraud are judg- Democratic member of the Banking us is described as a bill to protect in- ment proof; they have no assets that Committee, Senator SARBANES, the vestors and to maintain confidence in can be found. In that situation, the conference report does not provide pro- our capital markets. In my view, how- conference report provides additional tection for statements not covered ever, it does neither. Instead, the legis- protections for small investors. First, under the bespeaks caution provisions lation would shield too many wrong- it says that defendants that are propor- made with the actual knowledge that doers from being held accountable for tionately liable have their share of re- they are false. their misdeeds, and it could ultimately sponsibility increased by up to 50 per- I am pleased to be able to say that reduce investor confidence in our mar- cent of their proportionate share, so the SEC supports the safe harbor lan- kets. that all investors are better com- guage in the conference report. Chair- When this bill was before the Senate, pensated for the losses they suffered. man Levitt, in a November 15 letter, Mr. President, I expressed special con- Second, for small investors, those with said that the provision ‘‘represents a cern about the so-called safe harbor a net worth of under $200,000 who suffer workable balance that we can support provision of the bill. This provision has a loss of at least 10 percent of their net since it should encourage companies to been improved in the conference re- worth, every defendant is jointly and provide valuable forward-looking infor- port, but it is still problematic. For ex- severally responsible for paying those mation to investors while, at the same ample, it eliminates any duty to up- damages. time, it limits the opportunity for date forward-looking statements. This Some object to the rule 11 provisions abuse.’’ means that if a business projects earn- of the conference report. However, the The SEC, in endorsing this part of ings of a certain amount and 1 month conference report simply requires the the conference report, demonstrated an after making this statement, it be- judge to look at rule 11 of the Federal understanding that action is necessary comes apparent that the projected Rules of Civil Procedure—which calls in the safe harbor area, and that the earnings will be significantly less, or for sanctions for frivolous lawsuits, to current state of the law results in com- perhaps the company will even lose determine whether any party violated panies providing less information to in- money, the company is not obligated Rule 11 in the complaint, responsive vestors than they would like to. A re- to correct those statements. I do not pleadings, or dispositive motions relat- cent report by the American Stock Ex- understand why we would want to ening to the case, and if so, to impose change documented the Commission’s courage this behavior.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17986 CONGRESSIONAL RECORD — SENATE December 5, 1995 As some of my colleagues know, prior duct, prevent investors injured by ance and moderation that this reform to coming to the U.S. Senate, I worked fraud from fully recovering damages, does. in the private sector. I co-founded a and chill meritorious litigation. Mr. ABRAHAM. Mr. President, in company with two others that today Ms. MIKULSKI. Mr. President, I rise June 1995, I addressed the Senate to employs over 20,000 people. After the today in support of the securities liti- offer my support for securities-litiga- company went public in 1961, I filed gation reform legislation that has now tion reform as embodied in H.R. 1058. countless statements with the SEC as returned from conference. Today, I am pleased to support the bill its CEO. As the CEO, I believe it was Legal reform is complex. We have to that the House-Senate conference com- important for investors to have as protect the interests and rights of con- mittee has produced. Today’s bill much information as possible. sumers while ensuring the law does not draws on the key provisions of S. 240 to Each year, I made it a practice to allow frivolous lawsuits. I believe this make many important reforms to pre- project earnings for the following year. conference report achieves that bal- vent abusive litigation connected with And if those projections needed modi- ance. I originally cosponsored the bill the issuance of securities. These fication due to a changed cir- because I concluded there has been a changes will be made without in any cumstances, I quickly went to the pub- problem in the area of securities law. way undermining protection for inves- lic to alert them to any revision. This In Maryland, my constituents have tors against genuine fraud or other process had significant rewards because told me there is a race to the court- misconduct by issuers. To the con- investor confidence in my former com- house door to file a lawsuit. The vic- trary, they will improve the invest- pany caused our stock, which is traded tims of these practices include high- ment climate in this country, which on the New York Stock Exchange, to technology companies, their account- will make it easier to start businesses sell at among the highest price-earn- ants and others. which create jobs. ings ratios of all listed securities on We cannot afford this race to the Today I would like to focus on one any exchange. courthouse because it ultimately set of reforms the bill will make. The Mr. President, I recognize that there means a loss of jobs, a loss of oppor- bill will require courts to sanction at- are abuses in securities litigation, and tunity. Money spent on liability insur- torneys who file frivolous pleadings. I believe those abuses should be ad- ance premiums and expensive litiga- This reform will apply both to lawyers dressed. That is why I supported tion is money that cannot be spent on who file frivolous pleadings on behalf amendments to improve the legislation investments and jobs. of plaintiffs and those who file frivo- when it was before the Senate. Among While I want to end abuses in the lous pleadings on behalf of defendants. other things, these amendments would system, I also want to keep the court- This is a sound proposal which should have provided aiding and abetting li- house door open for the little guy, for command strong support from both ability in private implied actions; in- the consumer. I am not interested in sides of the aisle. serted a safety net to ensure that small protecting crooks or swindlers. That is Under current law, Federal Rule of investors are able to fully recover their why I support this legislation. It pro- Civil Procedure 11 requires all attor- losses; and extended the status of limi- tects both consumers and honest com- neys to have some factual and legal tations period on these claims, thus panies while allowing the law to go basis for filing any claim or defense. If making it more difficult for bad actors after fraud and abuse. attorneys violate this requirement, to hide their fraud. I am pleased that, with the enact- courts may impose sanctions against In opposing these amendments, the ment of this legislation, we will have the violator. Right now, however, the sponsors of the bill cited some of the safe harbor rules endorsed by the Secu- courts do not have to consider sanc- more egregious practices of profes- rities and Exchange Commission. I tions. sional plaintiffs and certain lawyers. commend the conference committee for Today’s bill makes three changes. What they do not mention is that this working with the SEC on this matter. First, it requires courts to find at the behavior would have been curbed by These rules will allow companies to end of all securities actions whether less controversial provisions contained provide valuable information about any attorney violated rule 11 in filing in this bill, such as prohibitions their future plans. I am pleased inves- any complaint, responsive pleading, or against referral fees and attorney con- tors will have the information they dispositive motion. flicts of interest; requirements that the need to make important financial deci- Second, the court would have to im- share of the settlement awarded to the sions. At the same time, this provision pose sanctions if it found such a viola- name plaintiffs be calculated in the does not cover company projections tion. same manner as the shares awarded to that defraud investors. Judges will be Third, the presumption is that the all other members of the class and that able to make sure that a company district court will sanction attorneys the name plaintiff certify that he did qualifies for safe harbor protection. violating rule 11 by requiring them to not purchase the security at the direc- This debate is about the U.S. econ- pay the other side’s attorneys’ fees. tion of his attorney; a prohibition omy in the 21st century. Much of our Under the bill, it will be a little harder against excessive attorney’s fees; and economic future is in new and devel- for a district court to impose this sanc- an assurance that all members of the oping industries such as high tech- tion on those who file complaints than class have access to information held nology and bio-technology. These on those who file responsive pleadings by counsel of the name plaintiff. emerging jobs are created only when or dispositive motions. Those who file The sponsors of this legislation cite companies generate capital to allow responsive pleadings or dispositive mo- compelling anecdotal evidence of abuse them to move into new fields. Without tions will be subject to this sanction if by the so-called professional plaintiffs a balanced legal system these compa- the responsive pleading or dispositive and their unscrupulous attorneys. I nies will spend too much on litigation motion fails to comply with rule 11(b). agree there are abusive securities class costs, and not enough on investments By contrast, those who file complaints actions suits filed every year. I also to generate jobs. will be subject to this sanction only for agree that we need to protect compa- I am pleased that this legislation has substantial failure to comply with rule nies, and even other shareholders, from moved forward with bipartisan support. 11(b). these people. But in our zeal to tackle The bill that passed the Senate re- Regardless of the party affected, the this problem, we should take care not ceived overwhelming votes from both court may select another sanction if to stifle legitimate claims and to harm parties. In conference it would have First, the presumptive sanction im- our markets, which are the strongest been easy to steer this bill toward ex- poses an unreasonable burden on the they have ever been in our history. tremism, but the conferees worked to- sanctioned party, second, that sanction Mr. President, I would like to sup- ward a bill that we can all continue to is unjust; and third, declining to import legislation to curb frivolous secu- support. I especially commend the ef- pose such a sanction would not impose rities lawsuits because I believe there forts of long time supporters Senator a greater burden on the party in whose are problems. However, I cannot in DODD and Senator DOMENICI. favor sanctions would be imposed. In good conscience vote for a bill that I Mr. President, I hope any future legal the alternative, the party against believe will insulate fraudulent con- reforms will meet the same test of bal- whom sanctions would be imposed may

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17987 rebut the presumption of sanctions by Mr. BENNETT. Mr. President, I un- my view—and I think the view of those demonstrating that the rule 11 viola- derstand the opponents of the bill are who have analyzed the bill—that of the tion was de minimis. gathering their forces, and as we are $262 million that was recovered in the We should particularly note two im- waiting for that to happen, rather than Keating case, $121 million was recov- portant features of this reform. First, spend the time in a quorum call, I ered against aiders and abettors; that the district court will have to impose a would simply make an observation is, accounting firms, law firms, and sanction only on someone who filed a that I have made previously in re- other professionals. frivolous pleading—that is, a pleading sponse to the Senator from California The conference report fails to restore wholly lacking a legal or factual basis. which is, first, that none of the losses that liability. So that at least for pri- Thus, this reform will not deter legiti- that occurred as a result of the Keating vate causes of action—that is the mate litigation. Second, the sanction is S&L circumstance to which she re- thrust of the curtailments that this paid by the person signing the frivolous ferred so often would be affected by legislation imposes—there would be an pleading—that is to say, as a general this legislation. All of the remedies inability for the 23,000 plaintiffs in the matter, by the attorney responsible for that were available to those people in Keating case that recovered $121 mil- it—not by the party the attorney is the Keating circumstance would still lion. That would not be possible under representing. stay in the law. The newspaper edi- the status of the law today because It was suggested, Mr. President, that torials which she quoted that implied this legislation does not restore the S. 240’s changes to rule 11 were really a to the contrary are incorrect. This has aider and abettor. It may very well be back-door means of shifting fees. That nothing to do with the Keating S&L true that the SEC can move against was incorrect. It is equally incorrect as circumstance. aiders and abettors. But even that has to the rule 11 provisions in the con- The other point that I would make been somewhat obfuscated. I believe ference report. These are not loser-pays again is that when we are talking that those who are far more expert provisions. They will not sanction all about protecting investors, we are than I would tell you that it is not those who come up short in court. They talking about the owners of the com- clear even if the SEC would be able to will sanction only those who violate pany—that is what investors are—and seek recovery against the Keating situ- the minimal requirement of having anything that damages the company, ation of which there are aiders and some factual and legal basis for argu- or damages the investors. So it is un- abettors. But clearly those who bring ments in complaints, responsive plead- fair to try to pit companies against in- private causes of action would not. ings, and dispositive motions. Such vestors as has been implied in some of Again, we have this informal col- frivolous behavior clogs our courts, the articles which she quoted. loquy with my friend from Utah. He is, drains economic resources from par- I say to my friend from Nevada that I think, suffering from the same dis- ties, kills current jobs, and hinders the I am prepared to yield at any point ability as I. We have tried to protect creation of new ones. that an opponent to the bill might ar- time for those who wanted to speak. Moreover, the substantive rule of at- rive. But they are not on the floor. I would torney conduct in this provision is the Mr. BRYAN. Mr. President, I appre- certainly be delighted to engage him in one which exists under rule 11 now. The ciate, as always, the accommodation of a colloquy or discussion or let him con- change from the current rule 11 is pro- my friend, the distinguished Senator tinue to speak until someone returns cedural, not substantive. Today’s bill from Utah. We have worked to accom- to the floor. simply requires the district court to modate leadership I think on both sides Mr. BENNETT. Mr. President, as I determine whether that rule, which al- of the aisle by these time agreements look at the time allocated under the ready applies, has been violated, and to that we previously entered into. I do unanimous-consent agreement, the impose sanctions if it has. not see anybody from our side. Senator from Nevada [Mr. BRYAN] has The Supreme Court itself has ob- If I might respond very briefly to the 10 minutes. If he wishes to take that 10 served that securities litigation has distinguished Senator’s comment, minutes now, that could get us at least been especially prone to misuse as a there is in my view a fundamental dis- that much farther down the road. Mr. BRYAN. The suggestion of my tool to extort settlements. It is agreement here. The Keating case is friend from Utah is always compelling Congress’s responsibility to do some- highly relevant, relevant in the sense and intriguing and tempting. May I thing to put an end to this abuse. The that its $262 million recovery was based graciously decline his kind offer, which rule 11 provisions are one mechanism upon a violation of the very act that I know is offered in the spirit of trying this legislation puts in place to do just we seek to amend here, which is the to accommodate and move this process that. Securities Exchange Act of 1934. Some on the floor have expressed I ask unanimous consent that a cap- forward as is his want and intent in every case. But I think I will respect- concern that the Federal judiciary may tion of the lawsuit filed in the U.S. Dis- fully decline that. We are not going to abuse its power to impose sanctions trict Court, District of Arizona, which be able to protect all of the 7 minutes pursant to this provision. I simply do is the Keating lawsuit, be printed in we have for each of the speakers. We not believe that is going to happen. the RECORD. So that the recovery of will have to make those adjustments From my position on the Judiciary some $262 million in the Keating case because the time continues to run. I Committee, I have the occasion to talk was based upon a securities violation. understand that we have more time on to many judges and judicial nominees. There being no objection, the mate- this side, those of us in opposition, I have questioned judicial nominees on rial was ordered to be printed in the than he does in support. That time is many topics, including their ability to RECORD, as follows: [United States District Court, District of Ar- going to continue to run. exercise their powers impartially to- Mr. BENNETT. Under those cir- ward both plaintiffs and defendants. I izona, In re American Continental Corpora- tion/Lincoln Savings & Loan Securities cumstances, Mr. President, I would firmly believe that the individuals this Litigation, MDL Docket No. 834, This Doc- suggest the absence of a quorum, and Senate is confirming, and those that ument Relates To: Civ–90–0566 PHX RMB, ask unanimous consent that it be have been confirmed in the past, will Civ–90–0567 PHX RMB, Civ–90–0568 PHX charged to the opponents—I withhold. exercise this power wisely and pru- RMB, Civ–90–0569 PHX RMB, Civ–90–0570 Mr. DODD. Mr. President, I realize dently for the betterment of our legal PHX RMB, Civ–90–0574 PHX RMB] the time is running with a vote at 4:45. system. Mr. President, the bill we are SARAH B. SHIELDS, ET AL., PLAINTIFFS, vs. I have time reserved. I know our col- voting on today is an outstanding piece CHARLES H. KEATING, JR., LINCOLN SAVINGS league from Nevada, our other col- AND LOAN ASSOCIATION, FIRST ... of legislation. Its sponsors, proponents, league, Senator HARRY REID, yielded [Caption continued on following page.] and the conferees deserve all of our whatever time he had remaining to me. thanks for producing something that Sixth consolidated amended class action complaint for violations of the Securities Let me underscore a point here, Mr. will strengthen our economy and it Exchange Act of 1934, the Securities Act of President, while we are waiting. I will will benefit all Americans. I offer my 1933, and the Racketeer Influenced and Cor- yield the floor the minute I see a col- wholehearted support to the bill before rupt Organizations Act. league arrive. this Senate and urge my colleagues to Mr. BRYAN. Mr. President, very Let me get back to the bottom line, vote for it. briefly by way of comment I say it is if I can. We are talking about a group

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17988 CONGRESSIONAL RECORD — SENATE December 5, 1995 of attorneys on one side who are vehe- At least the opponents are admitting tunity to comment further, I would mently opposed to this bill. They are there is a need. They just do not like yield from our side of the aisle 2 min- doing everything to stop it. I point out all the provisions of the bill. So I am utes of the time heretofore allocated to categorically what we are looking at hopeful that our colleagues, the 69 who the distinguished senior Senator from here for every dollar is 14 cents that supported this legislation back several Florida, Senator GRAHAM, to my friend, goes to the investors and about 33 cents months ago—we have improved this the senior Senator from Connecticut. going to the attorneys in these mat- bill. We improved the safe harbor pro- Mr. DODD. Well, I am always appre- ters. You do not need to know much visions to such an extent that the SEC, ciative of my colleague. more than that. It is a system that is which was reluctant to support the bill The PRESIDING OFFICER. The Sen- out of control and out of whack. It when it first came out of the Senate, ator from Connecticut is recognized for needs to be brought back into line of today says those safe harbor provisions 2 minutes. the original intent. are provisions which do provide the Mr. DODD. Mr. President, no. I will That is really what this is all about. kind of balance we are talking about. reserve the 2 minutes. In the mean- We have included provisions that re- That is their analysis and not mine. time, our colleague from Florida has quire auditors to check for fraud and to There are enough editorial comments arrived. I know the opponents want to report fraud; set up a system that pro- here that indicate that this bill makes be heard on this. I appreciate the gra- tects small investors for proportionate sense. cious allocation, at the appropriate liability matters. So, again, given the strong vote in time, of 2 minutes. And I will make The suggestion has been made—I say the House, which was a totally dif- particular reference then of the fine this with all due respect—that this is ferent bill, by the way—and Senator job that the Senator from Nevada has somehow a Keating matter. Nothing REID of Nevada is absolutely correct. done on this legislation. could be further from the truth; or try- The ads are running, paid for by these Mr. BRYAN. In the interest of fair ing to suggest that somehow Dillinger affluent lawyers frightened to death and full disclosure, the Senator has not may have been involved. This is ridicu- they may lose a little business. You are 2 minutes to reserve. He has exhausted lous. The Keating matter had little or talking about a House bill. That bill is his. If he needs it, I will tender it to nothing to do with securities. It was gone. This is now the Senate version him. mostly to do with S&L’s. And this bill that was basically adopted by the con- I yield the full 7 minutes to the dis- will not change the outcome one iota ference. tinguished Senator from Florida. He because it was out-and-out fraud and So I am hopeful at 4:45, less than an can yield any part of that he feels he lies. It was not about some future hour from now, the Senate will give us does not need. statements but about present facts. a good, strong, bipartisan vote reflect- Mr. GRAHAM. Mr. President, it is Mr. Keating was suggesting that the ing the work that has been done—hun- ironic that we are having this debate Federal Government was going to back dreds and hundreds of hours, 5,000 pages today. This debate coincides with the all of the investments that were made of testimony, almost 100 witnesses, 12 last month of the existence of the Res- by people. That, of course, was a com- olution Trust Corporation. The Resolu- plete falsehood. There is no comparison sets of hearings through three Con- gresses. That is the way a bill ought to tion Trust Corporation was a congres- here. sionally created corporation to deal That is really I would say sort of an be adopted here, where you bring peo- with the second largest financial crisis effort to try to desperately convince ple together, Democrats and Repub- in the history of the United States of people that somehow this legislation is licans, fashioning a good piece of legis- America, second only to the Great De- harmful to the interests of investors. lation and endorsed by the major regu- pression. What it does is strengthen the hand of latory agency of the country that be- That crisis, of course, was the sav- investors tremendously by giving them lieves we have done a good job here. ings and loan debacle. That debacle the right to choose the attorneys, giv- I think on balance this is a piece of was not an accident. It had very spe- ing them the right to decide what the legislation which is going to improve cific origins. It had identifiable causes. settlement will be, if there is going to the quality of life in this country, and And, sad to say, Mr. President, many of be any settlement, and giving them the particularly for those industries and right to determine what the attorney’s businesses that have been the primary those origins, many of those causes fees would be. That is what we are try- targets. One-half of all the firms in Sil- emanated from this Chamber. It was this Chamber which in early ing to do here. icone Valley have been subjected to se- These investors have been taken to curities fraud suits in the last 4 or 5 1980 passed ill-considered legislation the cleaners by hired professionals. years. That just gives you an indica- that, among other things, dramatically Plaintiffs who own one or two shares of tion of what is going on here. These increased the level of Federal guar- stock in many cases are brought in and new startup, high-tech firms, they are antee of savings and loans accounts, given big bonuses for the outcome and the ones who are victimized by this. without making appropriate adjust- set up as the plaintiffs in these cases. Those are the firms of the future. ments to the premiums we paid to sup- This is really a scam. One lawyer said, Mr. President, I see our distinguished port those guarantees, and made other ‘‘I have the best practice in the world colleague from Florida has arrived changes which facilitated the ability of when it comes to securities litigation. here. We were trying to fill in a little those who wished to gain by plundering I have no clients.’’ In fact, he was the time until someone arrived. these institutions of trust the oppor- attorney and the plaintiff in these mat- The PRESIDING OFFICER. The Sen- tunity to do so. ters. ator’s time has expired. As a consequence of those actions, That is what we trying to go correct Mr. DODD. I will yield the floor. which started here, we had one of the here. We spent 4 years at it with a If my friend from Florida is prepared great financial crises and one of the strong bipartisan approach that has to go—— most expensive financial crises in our drawn us to the point where we are Mr. GRAHAM. Would you like—— Nation’s history. As I say, Mr. Presi- about to adopt a conference report and Mr. DODD. I am going to reserve a dent, it is ironic that we recognize this send it to the President. I am hopeful couple minutes at the end. I was just month, December 1995, as the last he will sign it. I think it is right, it is trying to fill in a little gap here while month of the Resolution Trust Cor- balanced fairly, and it is moderate. It we waited for the opponents of the bill poration’s efforts to try to extricate attempts to deal with a situation that to come on over and express their ourselves from that crisis, and in this most people today agree needs to be views. month we now take up legislation corrected, including even the oppo- Mr. BRYAN. Mr. President, if I may, which I believe has the potential of nents of the legislation. in the spirit of comity, accommoda- laying the groundwork for another As someone who has been involved in tion, fairness, and respect, even though great financial crisis in America. this for almost 5 years, when we first the distinguished Senator from Con- Another irony, Mr. President, is that brought up the legislation we were told necticut has exhausted his time, and if there has been no time in our Nation’s that there was no need for my bill at we were trying to adhere to the rules history when our stockmarkets were all. rigidly, he would not have an oppor- more in public favor. Recently, for the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17989 first time in their history, the Dow So, Mr. President, in the spirit of at- FLORIDA ASSOCIATION OF COUNTIES, Jones passed the 5000 mark and con- tempting to achieve one very focused Tallahassee, FL, October 24, 1995. tinues to grow beyond that. The reason objective, we have engaged in broad- Re H.R. 1058/S. 240, Securities Litigation Re- for the strength of our stock market is scale amputation of the ability of pri- form Act. fundamentally the confidence that the vate litigants to maintain the integ- Hon. BOB GRAHAM. investing American has in our rity of our securities law. And we do U.S. Senate, Washington, DC. DEAR SENATOR GRAHAM: On Behalf of Flor- stockmarkets. That is an asset of our this, Mr. President, at the same time ida’s 67 counties, I would like to thank you free enterprise system, Mr. President, we are about to take up a conference for voting against final passage of H.R. 1058/ that we need to guard zealously. report which will freeze the budget of S. 240, the Securities Litigation Reform Act. Mr. President, I am afraid that the the Securities and Exchange Commis- While the Florida Association of Counties action that we are being asked to take sion. So both of the arms which are favor efforts to deter frivolous securities today moves away from that close used in order to contain fraudulent ac- lawsuits, I strongly believe that legislation guarding of the confidence of the tivities in the securities sector, private to accomplish this worthy goal must also ensure rights of investors to seek recovery American investor in the American litigation and the Securities Exchange Commission, are about to be severely against those who engage in securities mar- stock market. ket fraud. H.R. 1058/S. 240 not only fails to Let me just mention a few areas of restrained. protect investors’ rights, but seriously limits particular concern to me. I am con- So, Mr. President, for those reasons, investors’ ability to seek recovery from cerned about the provision that will I urge my colleagues to defeat this con- those who help to commit fraud. make it easier, will almost provide im- ference report in hopes that we will Since the provisions of the House bill, H.R. munization for oral and written state- then focus on legislation that will ac- 1058, go even further than the Senate bill in undermining the ability of investors to seek ments of expectation as to corporate complish this narrow objective. The PRESIDING OFFICER. The time recovery in securities fraud cases, it appears activity. The whole purpose of this leg- that there is virtually no chance for a final islation—and I think a legitimate pur- of the Senator has expired. Mr. GRAHAM. Mr. President, I ask bill that protects the rights of investors and pose, Mr. President—was to eliminate that it is likely the House & Senate con- unanimous consent to have printed in frivolous lawsuits, to eliminate a prac- ference report will be worse than the original the RECORD statements made by one of tice in which firms were subjected to Senate bill. I urge you, therefore, to vote my constituents, Mr. F.K. Glasbrenner against the conference report on H.R. 1058 litigation, not with the expectation of of Longwood, FL, a resolution by the a jury or other judicial verdict indi- when it comes before the Senate for a vote. Florida Association of Counties, and an Respectfully, cating that the company had behaved editorial from the Miami Herald, all of JOHN WAYNE SMITH, in an inappropriate way, but in order which bemoan the inadequacies of this Governmental Liaison. to be able to negotiate a settlement legislation to achieve the purpose stat- based on that settlement being less ex- ed. [From the Miami Herald, Nov. 14, 1995] pensive than the cost of defense and There being no objection, the mate- LIARS’ BILL OF RIGHTS? the adverse effect which the litigation rial was ordered to be printed in the While most of the country is paying attention to the feud over the federal budget, a would have on the image of the cor- RECORD, as follows: sinister piece of legislation is making its poration. LONGWOOD, FL, But this legislation goes far beyond way through Congress unnoticed. This bill October 23, 1995. lets companies report false information to what is required in order to sort out Senator BOB GRAHAM, investors. That’s right, it essentially li- the frivolous from the serious. And one Hart Senate Office Bldg, censes fraud. It has passed both houses in of the best examples of that is what Washington, DC. slightly different forms. A compromise bill has happened in this so-called safe har- Senator CONNIE MACK, will be written soon. If it passes, President bor provision. When this left the Sen- Hart Senate Office Bldg, Clinton ought to slay it in its tracks. ate it contained some protections. It Washington, DC. This bill is a story of good intentions. Some companies have been plagued by frivo- contained a protection that stated that Representative JOHN MICA, lous lawsuits from investors who aren’t statements which were knowingly Cannon Bldg, Washington, DC. happy with the company’s performance. The made with the expectation, purpose, investors allege, in essence, that the com- and actual intent of misleading inves- Representative BILL MCCOLLUM, pany had forecast good results and then tors would not secure the benefits of Rayburn Bldg, didn’t deliver. That, say the plaintiffs, con- the safe harbor. As hard as it is to be- Washington, DC. stitutes fraud. GENTLEMEN: The managing editor, Frank Well, often it doesn’t. Investing has risks, lieve, Mr. President, that provision has Lalli, of MONEY magazine has informed his including market downturns. When investors been eliminated from the legislation as readers, and I am one, that the securities sue over mere bad luck, they cost companies litigation reform bills, H.R. 1058 and S. 240, it now comes back from the conference money, clog courts, and drain profits from are certainly not in the bests interests of the committee. other investors. investor in the United States. Mr. President, there are other exam- Trouble is, by trying to stop this abuse, ples of where the conference committee The original intention of the bills were to discourage frivolous securities suits but in Congress mistook a simple answer for the has taken action that has made this the end they really did something different. right answer. Its solution, in plain terms, bill less protective of investors without In their present form they legalize securities was to declare virtually all promises by all adding to the benefit of sorting out the fraud. The bills protect company executives companies to be safe from legal challenge. frivolous from the serious litigation. I who deliberately misrepresent their firm’s Under this ‘‘remedy,’’ company executives prospects. If an invester sues to right a now can promise investors anything they am concerned, Mr. President, about the like, with not so much as a nod to reality. fact that we have continued to have wrong and he loses, the judge can force him to pay the winners legal fees. In addition They can’t legally lie, about the past, but the unreasonably short statute of limi- both bills failed to reinstate fundamental in- if their claims are ‘‘forward-looking,’’ they tations of 3 years, a period of time in vestor protections stripped away by recent can promise you the moon to get you to in- which for many of these real cases of Supreme Court decisions which were: vest, and no one can sue them later for being fraud and abuse they would not even be Defrauded investors can be longer sue misleading. known, much less be known in time to hired guns who assist a dishonest company Well, almost no one. The bill would allow legal action in the case of egregious, delib- do the necessary investigation prior to officer. This would include accountants, brokers, lawyers and bankers. erate fraud, but you’d have to prove that it the bringing of litigation. Investors cannot sue at all if they fail to was intentional. And you’d have just three Mr. President, we have made it ex- file within three years after the fraud occurs, years to discover the fraud and furnish your tremely difficult, after an award is even when the crime is not discovered until proof. granted, after it has been determined after the deadline. It’s rare enough to prove outright intent that, in fact, there was fraudulent ac- I implore all of you to have the House-Sen- under the best circumstances, but under this tivity and a judgment is entered on be- ate conference committee correct the final bill, if executives can stiffarm you for just 36 half of the plaintiff, we made it very bill to vastly improve the United States in- months (not a big challenge), they’d be home vestor’s rights. Don’t allow white collar free. And then—in another hair-raising pro- difficult for the plaintiff to be able to crime to the legalized, there is too much of vision of the bill—you’d be stuck for the recover, particularly, as is frequently it already. company’s entire legal bill. Facing such a the case, when one or more of the Sincerely, risk, no small investor, no matter how badly major parties turns out to be insolvent. F.K. GLASBRENNER. cheated, would ever dare sue.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17990 CONGRESSIONAL RECORD — SENATE December 5, 1995 This bill evidently struck many members whether they be plaintiffs’ lawyers or It has been suggested that Money of Congress as a simple answer to a nagging defense lawyers, the full sanction of magazine editorials were issued prior problem. It’s nothing of the kind. The prob- rule 11. As this bill left the Senate, the to the conference report. It is true for lem is real enough, but its solution isn’t sim- sanctions applied equally to plaintiffs’ the first time in their history, in Sep- ple. And it certainly doesn’t reside in a law authorizing phony statements to investors. lawyers and to defense lawyers. tember, October, and November of this President Clinton should veto this blunder. Let the planets, let the stars, let ev- year, they editorialized strongly Then, when the fight over the budget is over, erything in God’s universe fall upon against it. Mr. President, they re- Congress can take time to think up a more those who continue to pursue frivolous affirmed their opposition in December rational solution to the problem. lawsuits. I am with my colleague from of this year after the conference report, Mr. GRAHAM. Thank you. Utah on that. But in terms of revealing indicating that this legislation, in Mr. BRYAN addressed the Chair. the bias that is reflected throughout their view, would do great harm to pri- The PRESIDING OFFICER (Mr. this legislative process, those sanctions vate investors. THOMPSON). The Senator from Nevada only apply now to the plaintiffs’ law- Let me also point out that among the is recognized. yers, and the defendants’ lawyers who groups that oppose this are the Asso- Mr. BRYAN. I thank the Chair. are guilty of frivolous actions have a ciations of Municipal Financial Offi- Mr. President, I suspect not many much lesser sanction. cers, State Financial Officers, County opinions are going to be changed at The issue is frequently framed, are Financial Officers, and others. this late hour in the debate, but let me you with Silicon Valley or are you I want to read the excerpt of a letter make an observation about what this with the trial lawyers? That is a false that was sent to the Las Vegas Sun by debate is not about. premise. Let me just read some of the the treasurer of Clark County, NV, It is not about frivolous lawsuits. If opinions that have been expressed on which includes Las Vegas. this legislation dealt only with frivo- this. As Clark County’s treasurer, I am respon- lous lawsuits, we would be acting by The Akron Beacon Journal, Decem- sible for taxpayer funds collected and in- voice vote, and this Senator’s voice ber 1, 1995: vested on behalf of three-quarters of Ne- vada’s population. would be among the loudest of the cho- The legislation would close virtually all rus of votes in support. Indeed, the pro- I am writing because legislation passed by avenues available to investors who reason- Congress could effectively eliminate Clark visions in this legislation that deal ably seek to recover money lost in securities County’s ability to file private securities with the frivolous lawsuit issue are es- fraud cases. President Clinton can begin the fraud lawsuits—the primary method for gov- sentially provisions that this Senator effort to improve this bill by using his veto. ernments and individuals to recover losses has previously offered in a piece of leg- The San Francisco Chronicle, Novem- from investment fraud. islation, so I am fully supportive of ber 27 of this year: He speaks for hundreds of county of- that. Despite the worthwhile aim, the provisions ficials throughout America, irrespec- What this legislation does, in my of a draft conference report— tive of political party. That is why the opinion, is systematically and perva- The one that we are dealing with. National Association of Securities Ad- sively dismantles the system of inves- go far beyond curbing trivial court action ministrators, and others, have strongly tor protection against securities fraud and instead would wipe out important pro- condemned this legislation as going and undermines the confidence in the tections against hustlers of fraudulent secu- far, far too far. world’s safest securities market: the rities. Mr. President, let me say that in United States of America. It does so for Mr. President, can I ask you to give 1982, the Congress ill-advisedly, in my several reasons. Everyone who is in- me an indication when I have 4 min- judgment, passed Garn-St. Germain volved in the regulatory process, utes left of the time allocated to me? that opened up a wave of fraud that whether the SEC, the States securities I thank the Chair. cost the American taxpayers, in terms administrators and others, all ac- The Miami Herald, November 14 of of the savings and loan industry, $450 knowledge that the statute of limita- this year: billion when those costs are amortized. tions is too short—too short. They A sinister piece of legislation. It essen- What Garn-St. Germain did for the have urged this Congress to change the tially licenses fraud. President Clinton savings and loan industry in 1982, it is current law from 1 year from point of should veto this blunder. my view this legislation will do for the discovery to a 3-year date of occur- The Wisconsin State Journal: securities industry. Those who support rence cutoff to 2 years and 5 years. The The bill allows deceitful corporate execu- this legislation, if enacted and signed reason for that is, the SEC says, be- tives, securities brokers, accountants and by the President, will rue the day. We cause of the complexity of securities lawyers out there to thumb their nose at the have not seen the last of fraud. Indeed, investigations. It requires more than 2 justice system. the evidence is to the contrary that years when they do it with all of the The Chattanooga Times, October 30, fraud is growing. resources of the Federal Government the home State of the distinguished oc- This legislation goes far beyond what available. cupant of the chair: is needed to address the legitimate Aiders and abettors: Aiders and abet- The bill would immunize most stock and issue of frivolous lawsuits, which I tors are not, under the current inter- bond fraud from civil liability. This fraudu- fully associate myself with those ef- pretation of the Supreme Court’s rul- lent reform could not have come at a worse forts. This legislation effectively emas- ing in private causes of action, are not time. Securities fraud enforcement actions culates the right of private investors to subject to liability for reckless mis- have increased 118 percent and criminal con- bring causes of action against those conduct—not subject to liability. We victions for such fraud leaped 176 percent. who perpetrate fraud that results in have urged our colleagues to make The Daily Times Call: losses throughout the country. them subject to liability, and they Charles Keating could wish this were the In the Keating Five, and I know that have declined to do so. In point of fact, law when he squandered millions of dollars people do not like the reference to the there is substantial question as to from the savings and loan industry. Keating case, but it was a securities whether the SEC itself as the enforcer The St. Louis Post Dispatch: action filed under the 1934 law. This is has the power to recover against aiders Those protected by this legislation would a classic case in which $171 million and abettors. not only be companies free to make reckless were recovered against aiders and abet- So by failing to take that action, we predictions about their future, the account- tors, those attorneys and brokers and immunize an entire class of wrong- ants who detect fraud and keep quiet about advisers who were responsible. doers. The accountants, the lawyers, it also would be helped. Because of our failure to correct the the people who aided and abetted some I could read on and on and on. current interpretation of the Court’s of the great securities frauds in Amer- I do want to say something about the opinion, we immunize and give those ica would not be liable under the cur- editorial that appeared in Money mag- folks a clean bill of health, a pass to rent state of the law. azine. continue. For those who voted for the Unlike the earlier Senate version of The PRESIDING OFFICER. The Sen- Senate version earlier, let me indicate this bill, we do great damage to the ator has 4 minutes left. that this piece of legislation emerging fairness of imposing upon attorneys, Mr. BRYAN. I thank the Chair. from the conference is far worse. It

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17991 eliminates the provisions Senator team, in their perseverance, hard work, Middle-class Americans believe they SPECTER offered with respect to RICO. and dedication, have proved once again must invest because there may not be It heavily imbalances the sanctions in this Christmas season that miracles a decent pension when they retire—ei- that are imposed against lawyers who do happen. ther they will be let go too soon be- file frivolous lawsuits by making the I thank my colleagues for their time. cause of corporate down-sizing or their burden whole and entire on plaintiffs Mr. BRYAN. Mr. President, I join in company, to which they have been but not so with defendants. It enhances congratulating Northwestern. I was 11 loyal, will not be there 20 or 30, or even the pleading requirements, which the last time they went to Pasadena. 10 years from now. makes it much more difficult to bring. So it is time for the Purple not only to go to Pasadena but to win in Pasadena. Middle-class Americans also want to It fails to address the statute of limita- invest for the future because they tions issue. It fails to correct the defi- f aren’t sure that Social Security or ciency in the law which allows aiders PRIVATE SECURITIES LITIGATION Medicare will be there for them in and abettors to go home free. It re- REFORM ACT OF 1995—CON- their later years when they are most verses hundreds of years of judicial FERENCE REPORT vulnerable. precedent in common law in limiting The Senate continued with the con- the right of recovery balance between Last, middle-class Americans believe sideration of the conference report. an innocent investor and those whose they must invest to ensure that their The PRESIDING OFFICER. The Sen- children are able to receive an edu- conduct was reckless. It says under the ator from Delaware. proportionate liability that only the cation that provides them with the es- Mr. BIDEN. Mr. President, I rise sential skills to enable them to become proportionate responsibility shall be today to oppose, in the strongest terms made payable to that innocent inves- productive and integral participants in possible, H.R. 1058—inappropriately ti- what will be an extremely competitive tor, when the actual perpetrator is tled the ‘‘Private Securities Litigation judgment proof or without money to and global work force in the 21st cen- Reform Act of 1995.’’ This bill has noth- tury. respond. ing to do with reform in the normal Finally, let me say that the con- sense of the term. Rather, the bill is Because middle-class Americans rec- ference report even diminishes that about protection from liability for ognize the need to secure and protect ability to recover even further. I thank fraud—pure and simple. The bill is the their financial futures, they have en- the Chair. worst kind of special interest legisla- tered to stock market directly—or Mr. President, I am just informed tion that the American public is sick through mutual funds—to such a de- that the distinguished Senator from Il- and tired of. gree that the most significant asset linois wants to speak as in morning It will give corporations a license to held by American families today is not business for 2 minutes. I do not have lie to investors and will severely re- their home, but their 401(k) plan. any objection. strict the ability of defrauded investors Today, assets in 401(k) plans total more I ask unanimous consent that she to recover their hard-earned dollars than $500 billion. Assets in investment may speak for 2 minutes as in morning from the unscrupulous and reckless in- retirement accounts total more than $1 business. dividuals and corporations who swin- trillion. The majority of these funds The PRESIDING OFFICER. Without dled them. are in stocks. objection, it is so ordered. Six months ago, I stood on the Sen- Under these circumstances, this Na- f ate floor and urged my colleagues to tion’s two primary securities laws—the CONGRATULATIONS TO THE oppose this bill in its earlier incarna- Securities Act of 1933 and the Securi- NORTHWESTERN UNIVERSITY tion because—put simply—it was a bad ties and Exchange Act of 1934—have be- bill. Because it was a bad bill, every FOOTBALL TEAM come even more, not less, important. major consumer group, State attorneys Ms. MOSELEY-BRAUN. Mr. Presi- general, State and county treasurers, The principal philosophy governing dent, I wanted to take a moment to mayors, finance officers, labor unions, these two laws—enacted more than 60 congratulate Northwestern Univer- the American Association of Retired years ago after the stock market crash sity’s football team, the Wildcats, who, Persons, the National League of Cities, of 1929, caused largely by a crisis of in Senate resolution 197, offered by educators, and hundreds of other na- confidence due to unregulated fraudu- Senator SIMON and me, are being hon- tions, State, and local organizations, lent stock promotion—is that investors ored and congratulated for one of the opposed the bill. and prospective investors should have greatest underdog-to-champion stories It is easy to understand why when access to all material information in the history of sports. The North- you consider that a city like San Fran- about corporations that offer securities western team is now being called ‘‘the cisco has over $8 billion in pension so that the public can make informed miracle on Central Street.’’ What they funds and other investments and when investment decisions and that honest have done here is to celebrate their more than 60 State and local govern- markets should be maintained by first conference championship in some ments nationwide have lost more than strong antifraud enforcement. 60 years. $3.6 billion in securities markets, part- At a time when middle-class Ameri- Coach Barnett has taken this team ly due to derivative investments. cans are investing in record numbers from really a very low profile in the Despite the tremendous opposition to because they believe they must, the conference to being a top contender, H.R. 1058, which was a bad bill in June, U.S. Congress should be strengthening now in the Rose Bowl. They are going it is a worse bill now. Therefore, I the most fundamental protections for to go to Pasadena. He fulfilled his strongly urge my colleagues to oppose investors in our securities laws, not pledge to take the Purple to Pasadena. it. gutting them. Yet, gutting these laws That rallying cry has taken this team What is most disturbing about this is exactly what this bill does. to a 10–1 season, a No. 3 national rank- bill is the impact that it will have on ing, and with defeats over Notre Dame, what are often the forgotten Ameri- This bill strikes a severe blow to the Penn State and Michigan, a feat which cans—that is, average middle-class heart of the middle class. Let me tell has, frankly, not been accomplished by Americans. you about just a few of the devastating any one team in over 30 years. At a time when job and wage insecu- provisions in this bill. Northwestern really proved that it is rity are at all-time highs, and family One of the most outrageous provi- possible to produce a football cham- budgets are straining at the seams, sions in this bill is the safe harbor pro- pion as well as Nobel Prize winners and middle-class Americans have begun in- vision. This provision, by providing Pulitzer Prize winners and academi- vesting their hard-earned dollars in broad immunity from liability for cians throughout the world. They have stocks in record numbers. In fact, as fraudulent corporate predictions and captured, by their actions, the hearts the Washington Post reported just a projections, essentially gives corpora- of fans all over the country. They have few days ago, securities have sup- tions a license to lie. This provision is made all of us from Illinois very proud planted real estate as the No. 1 source much worse than the safe harbor provi- of them. If nothing else, the football of family nest eggs. sion in the Senate bill.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17992 CONGRESSIONAL RECORD — SENATE December 5, 1995 The Senate bill language that made standard in the Senate bill could be bring an end to all frivolous lawsuits, knowingly fraudulent defendants ineli- satisfied by evidence of a defendant’s not just shareholder lawsuits. Yet, the gible for the safe harbor was elimi- motive and opportunity to commit se- legislation before us today is not the nated. Now, under this bill, delib- curities fraud. The current version of answer—it is far from it. erately fraudulent statements, written this bill, however, eliminates the lan- Indeed, the managing editor of or oral, as long as they are accom- guage in the Specter amendment. Money magazine, the largest financial panied by cautionary language, will be This bill is also worse than the Sen- publication in the United States, with immunized from private liability. Let ate bill because it imposes a manda- over 10 million, largely middle-class me repeat—this bill protects delib- tory loser-pays fee shifting penalty readers, said it well when he stated, erately fraudulent statements. under rule 11 of the Federal Rules of and I quote: Let me give you a frightening but Civil Procedure that is harsher on At a time when massive securities fraud likely scenario that could occur under plaintiffs than on defendants. has become one of this country’s growth in- the safe harbor provision in this bill: In Under current law, rule 11 gives dustries, this law would cheat victims out of an effort to entice unsuspecting con- courts the discretion to impose sanc- whatever chance they may have of getting their money back . . . in the final analysis, sumers to purchase stock, company X tions for pleadings and motions that are unwarranted, without evidentiary this legislation . . . would actually be a makes a bunch of optimistic and fraud- grand slam for the sleaziest element of the ulent predictions about how great a support, or otherwise abusive. financial industry, at the expense of ordi- new product will perform and how the The Senate bill required courts to de- nary citizens. company’s profits will increase because termine whether any party violated The president of the Fraternal Order of the manufacture of this new prod- rule 11 and to presume that the appro- of Police said it best, however, when, in uct. The company gets its lawyers and priate penalty for violating rule 11 is his letter to the President urging him accountants to vouch for the represen- fee shifting. Under the Senate bill, the to veto the bill, he stated: party who violated rule 11 would have tations. Mr. President, our 270,000 members stand Based on these rosy predictions, your to pay the opposing party’s legal fees with you in your commitment to a war on uncle, your grandmother, your sister’s incurred as a direct result of the viola- crime; the men and women of the Fraternal teacher’s union, your church, and the tion. Order of Police are the foot soldiers in the The bill on the floor today is worse State of California decide to purchase war. On their behalf, I urge you to reject a than the Senate bill because it unfairly bill which would make it less risky for white the stock. All of them wind up losing increased the penalty imposed against collar criminals to steal from police pension their money when the fraud is exposed. plaintiffs who are found to have vio- funds while the police are risking their lives Your grandmother believes the com- lated rule 11 while not doing so for de- against violent criminals! pany should not be able to get away fendants who are found to have vio- I urge my colleagues to heed these with lying to her. The company’s law- lated rule 11. The presumptive penalty words. yers argue, however, that even though for plaintiffs is have to pay all of the Mr. BRYAN. Mr. President, I thank there were fraudulent statements, defendant’s legal fees and costs in- the distinguished senior Senator for his there was a paragraph of cautionary curred in the entire action. statement and for his insight. language in some filing at the Securi- Proponents of this bill claim that the Mr. COHEN. Mr. President, I am well ties and Exchange Commission. Under bill is balanced and fair. Is this provi- aware of the hazards of abusive class this bill, grandma loses, all the swin- sion balanced or fair? Not by any action lawsuits and unethical attorney dled investors lose, and the fraudulent stretch of the imagination. conduct. company and its lawyers and account- This bill, unlike the Senate bill, also Just before Thanksgiving there was ants win. adopts a provision, modeled on the an article on the front page of the New This is absolutely outrageous. And House bill, that may require plaintiffs York Times about a constituent of it’s just one example of the many anti- to post a bond to cover a possible fee- mine who received a benefit of $2.91 investor provisions in this bill. shifting penalty. Moreover, there is no from a class action suit concerning To add insult to injury, this bill also limitation on the amount of the bond. overcharges in mortgage escrow ac- fails to restore traditional aiding and This could be a major obstacle for indi- counts, but had $91.00 removed from his abetting liability for securities fraud vidual victims or their attorneys in account to pay the attorney’s fees of in private actions. Thus, lawyers, ac- bringing a meritorious action against a class counsel. I will soon be intro- countants, and others who turn a blind large corporation defendant. The bill ducing legislation to protect con- eye to the fraudulent activity of their also fails to restore an adequate stat- sumers from these types of abuses. clients, or who recklessly aid and abet ute of limitations for private securities There are undoubtedly abusive secu- their clients, will be let off scott free. fraud actions, and gives the greatest rities class actions as well. But the key The bill also dramatically erodes the control in cases to the wealthiest to reforming this area of the law, like doctrine of joint and several liability plaintiffs. all litigation reform, is to devise rem- and moves to a system of proportionate Lastly, as someone who has long edies that will weed out the frivolous liability. The bottom line for an inves- sought to do what he could to combat lawsuits while allowing the meri- tor is that under this bill, if a cor- crimes of all kind, I also find it incred- torious ones to go forward. porate defendant is found guilty of ible that language in the Senate bill The conference report under consid- fraud and goes bankrupt, the victim concerning the application of our RICO eration contains a number of necessary will not be able to recover all of his laws in securities fraud cases has been and well-crafted reforms. It requires losses. In essence, what this bill does is almost eliminated entirely. that class members receive intelligible determine, as policy matter, that it is Under an amendment I offered, the notices explaining the terms of class more important to protect adjudged Senate bill allowed the RICO statute to action settlements, prohibits secret wrongdoers from having to pay more be used in a securities fraud civil case settlement agreements, and promotes than their strict proportion of the if at least one person in the civil case enforcement of rules sanctioning attor- harm than it is to protect the innocent has been criminally convicted. Under neys for unethical behavior. victims of fraud. this bill, RICO could only be used in Unfortunately, the conference report Another of the troubling provisions the civil case against the person who also contains provisions that will pre- in this bill, is the one which adopts a was actually criminally convicted. vent potentially meritorious cases higher pleading standard than was in The safe harbor, proportionate liabil- from being pursued. In some instances, the Senate bill—higher in fact than the ity, pleading, aiding and abetting, fee- those who knowingly and intentionally standard adopted by the second cir- shifting, and RICO provisions, are bad mislead investors will be fully immu- cuit—which is currently the highest enough alone, but together, they will nized from liability. Consequently, I standard in the land. actually encourage the kind of conduct will vote against this conference bill as As my colleague Senator SPECTER our securities laws were designed to I did when it was first considered by discussed earlier, it was Senator SPEC- eliminate. the Senate. TER who offered an amendment that I am sure that there is not one Mem- I am especially concerned about the clarified that the heightened pleading ber in this body who does not want to consequences that the bill will have on

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17993 the elderly. The Special Committee on Mr. GRAMS. Mr. President, I rise in This should not be surprising, given Aging, which I chair, has held a series support of the conference report. the fact that many of these claims can of hearings on fraud against small, un- I am proud to say that I served on now be filed within days, even hours, sophisticated investors. the conference committee which pro- after a movement in the market. The committee’s investigation reduced this report. As a freshman Sen- There are a number of other reasons vealed that in an era of low interest ator, I was particularly honored to why the current statute of limitations rates, when retirees are seeking out play a role in crafting legislation should be preserved. higher yield investments, the elderly which will benefit so many Americans A longer period would simply allow are particularly vulnerable to securi- who find themselves victimized by the speculators too much time to wait and ties scams. Fraud against the elderly is social costs of frivolous litigation. see how their decisions to buy or sell particularly odious because their sav- The legislation before us today, H.R. securities turned out, permitting them ings cannot be replaced by new earn- 1058, is entitled the ‘‘Private Securities to abuse our legal system to cover ings—losses resulting from fraud can Litigation Reform Act of 1995.’’ In my their losses in the market. affect middle-income seniors’ standard opinion, a better title would have been In addition, a longer period of limita- of living for the rest of their lives. the ‘‘Investors, Workers and Con- tions would make it more difficult for The safe-harbor contained in the consumers Legal Protection Act.’’ After innocent defendants to protect them- ference report shields issuers of securi- all, this legislation is designed to pro- selves in court. Forcing companies to ties, or those working on their behalf, tect those very people—investors, keep track of every rise and fall of from lawsuits based on predictive workers and consumers—from the high their stock value for 5 years and allow- statements they make about the future cost of meritless and abusive litiga- ing strike suit attorneys to attack job performance of a stock. The immunity tion. creators well after the memory of a is absolute, so long as the predictions Today, we have an opportunity to reasonable person would have faded are accompanied with cautionary make some modest and reasonable would only lead to more frivolous liti- statements indicating that actual re- changes which will help weed out the gation, more exorbitant settlements, sults may differ from those predicted. most abusive lawsuits in the field of se- and more pain for investors, workers The effect of this safe harbor is that curities litigation while at the same and consumers. Under current law, plaintiffs with corporate officials are immune from time, preserving the right of action for meritorious claims have more than suit even if they make factual state- shareholders who are truly victimized enough time to file their suits; unfor- ments that they know to be false and by securities fraud. tunately, so too do strike suit attor- that are intended to mislead investors. I am particularly pleased with a neys. Even with the enactment of this At least under the Senate bill, knowing number of the provisions in this bill, bill, some meritless claims will sur- and intentionally misleading state- including: vive. If our intent is to reverse the cur- ments would have been actionable. I Mandatory sanctions against attor- rent litigation explosion, why would we am disappointed that the conference neys who file abusive lawsuits; want to invite more frivolous lawsuits committee chose to broaden, rather Codification of the pleading standard by extending the statute of limita- than narrow, this provision. adopted by the second circuit court of tions? I am also concerned about the cumu- appeals; In June, when this legislation was de- lative effect of some of the procedural Elimination of bounty payments to bated on the Senate floor, 52 of our col- changes made to the bill. named plaintiff, plaintiff referral fees, leagues wisely decided to retain the The bill requires that before initi- and undeserved windfall damages; current statute of limitations. That ating a suit a plaintiff must be able to A safe harbor for forward-looking was the right decision in June and it is allege specific facts giving rise to a statements to encourage companies to the right decision today, and I am strong inference of the defendants’ voluntarily disclose information to pleased that this conference report pre- state of mind. A Senate amendment help investors make better decisions; serves current law. clarifying how plaintiffs could meet and Finally, I’d like to say something this burden was dropped by the con- A reduction in the level of liability about how this legislation will benefit ference. In addition, the bill prohibits for secondary defendants who do not everyday Americans. Securities litiga- plaintiffs from taking any discovery knowingly engage in securities fraud. tion reform is not a subject discussed before it must defend a motion to dis- In addition, I am pleased that this every morning around the kitchen miss the lawsuit. legislation does not extend the current table, but its results will have a major Together, the pleading standard and statute of limitations established by and beneficial impact on most Ameri- the bar on discovery will make it ex- the U.S. Supreme Court in the 1991 cans. traordinarily difficult to maintain a Lampf decision. That’s one year from It will protect the worker who wor- lawsuit because it is virtually impos- the date the plaintiff knew of the al- ries about being laid off because his sible to prove the state of mind of a leged violation and 3 years from the employer had to pay attorneys’ fees in- party until you have an opportunity to date the alleged violation occurred. stead of his salary. conduct interviews and examine docu- While some critics of this legislation It will help the consumer who has to ments. have seized upon the statute of limita- pay higher prices for products today These and other provisions will not tions as a wedge to defeat this impor- because of the hidden cost of frivolous only deter frivolous lawsuits, but will tant bill, they have failed to present a litigation. create roadblocks and obstacles to convincing case for why this period It will pay off for the legitimate in- suits that seek recoveries for genuine should be extended. vestors and pensioners whose life sav- victims of fraud. For decades these pri- They have tried to suggest that the ings are being jeopardized by strike vate class action lawsuits have pro- current statute of limitations has suit attorneys. vided a necessary supplement to the curbed the number of meritorious cases And finally, it will benefit the thou- enforcement efforts of the Securities filed in the courts, but the evidence sands of honest, hard-working attor- and Exchange Commission. proves otherwise. neys who have watched the public Enforcement of the securities laws According to the administrative of- image of their profession being tar- and the confidence in our markets that fice of the U.S. courts, during the 4 nished by a few greedy quick change these laws have engendered have con- years prior to the Lampf decision, the artists. tributed to making our stock markets average number of cases filed was 162 It is for the sake of these Americans the most robust in the world. The bene- per year. In the 4-year period since that we have put in long hours of hard fits this legislation is intended to Lampf, the average number of cases work to craft this balanced and reason- achieve—the deterrence of abusive liti- filed has risen to 278 per year, an in- able bill. gation—does not justify the potential crease of nearly 72 percent. None of us are totally satisfied with costs of weakening an enforcement Contrary to the claims of the bill’s this legislation. There are some sup- scheme that has effectively protected opponents, securities litigation has in- porters who feel that certain provisions our markets for many years. creased under Lampf, not decreased. in the conference report go too far.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17994 CONGRESSIONAL RECORD — SENATE December 5, 1995 There are others like me who would The article is wrong in reporting that my ment Finance Officers Association, the like to see this legislation go further. position was influenced by political pressure. U.S. Conference of Mayors, the Munic- But I think we can all agree that this In the sub-heading and again in the lead ipal Treasurers Association. I do not sentence of the article, I am represented to know what the political affiliation is of conference report does what it’s sup- ‘‘back’’ and ‘‘support’’ the proposed legisla- posed to do: protect legitimate inves- tion. This is simply not the case. This point all of these people, but I daresay if you tors, save jobs, and preserve the right was repeatedly stressed to the reporter. examine it you would find Republicans of actions for true victims of securities Secondly, the position outlined in the and Democrats alike that hold these fraud. SEC’s letter in no way can be construed as a offices, all essentially reaching the When I think of this bill, I am re- reversal of the SEC’s position. The article same conclusion, that they and their minded of a quote by one of the strike fails to describe the significant changes that constituent interests, namely, the peo- suit attorneys who testified on this were made in the most recent draft of the ple who live in these various commu- legislation that precipitated our letter. To subject before the Senate Banking nities, are at risk in terms of being do so would have made it clear that our let- protected in the event that investor Committee. In a moment of honesty, ter did not represent any ‘‘reversal.’’ this prominent and wealthy securities Finally, my staff repeatedly and unequivo- fraud causes them to lose money in any action lawsuit attorney said: ‘‘I have cally expressed to Mr. Paltrow that it was of the portfolios they hold in behalf of the best practice of law in the world. I simply not true to say that the SEC re- the public, as members of counties or have no clients.’’ sponded to political pressure in issuing our cities, municipal officers, and others. In my opinion, these words best illus- letter. The letter represents the Commis- I suspect that this group is about as trate the problem that this legislation sion’s position arrived at thoughtfully, inde- neutral and objective as any that you pendently and deliberately. To suggest any- might find. I think it is instructive is designed to address. thing less is an insult. To build an entire I commend the managers of the con- that virtually all have expressed their story about political influence around one strong opposition. They are extremely ference, Senator D’AMATO and Con- quote from one Senate staff member opining gressman BLILEY, for crafting this re- about the motivations of the SEC is, at best, concerned that they might be the next port, as well as our colleagues, Sen- unfair; especially when you consider that the Orange County. It could happen in ators DOMENICI and DODD for pushing two SEC Commissioners who signed the let- their State, in their county, in their this issue for so many years. ter—the only people in any position to accu- city to their university investment As a conferee, I am proud to have rately describe the circumstances sur- portfolio, and they know that they played a role in this legislation and rounding it—unambiguously denied that would be irreparably damaged if we do urge my colleagues to adopt the con- they did so in response to political pressures. not take corrective action to balance I hope you will correct these this piece of legislation. ference report. misstatements. Mr. BRYAN. Mr. President, I ask In recent weeks, well over 1,000 State Sincerely, and local officials and opinion leaders unanimous consent I be allowed to use ARTHUR LEVITT, Chairman. a portion of the time of the senior Sen- have written the Congress and the Mr. BRYAN. Mr. President, I realize President to express their strong oppo- ator from Minnesota as he will not be it is very easy to demonize lawyers. on the floor. sition. Among those letters, Mr. Presi- Some of my colleague who have taken dent, is a letter signed by 99 California The PRESIDING OFFICER. Without the opportunity this afternoon and this objection, it is so ordered. government officials, including the morning to do so would not be the first Mayors of San Francisco and San Jose Mr. BRYAN. Mr. President, if I may, to do that. Dating back to the time of there has been some discussion as to and officials in 43 of the State’s 58 Shakespeare, ‘‘The first thing we ought counties; a letter signed by 34 county the position of the Securities and Ex- to do,’’ Shakespeare said, ‘‘is kill all change Commission on this piece of treasurers in Arkansas; a letter signed the lawyers.’’ by 24 opinion leaders in Iowa, including legislation. I have in my possession a I believe this is not a warm, cuddly letter dated November 22, signed by Ar- the State’s Attorney General Tom Mil- group that is easy to love. Having once ler; a letter signed by 51 public officials thur Levitt, the Chairman of the Secu- practiced law, I share some of that an- rities and Exchange Commission, who in Georgia; a letter signed by 51 Maine tipathy to lawyers, when lawyers get opinion leaders, including State Treas- has written to the Los Angeles Times, out of line, as they from time to time the editor, Mr. Coffey. I am just going urer Sam Shapiro and 9 State legisla- do. tors; a letter signed by 60 public offi- to read a portion of his statement: ‘‘I As I indicated, I fully support the am concerned and disappointed with cials in Massachusetts, including the provisions that deal with the frivolous Massachusetts Association of County several major points in today’s Los An- lawsuits, and my colleague from Min- geles Times article entitled ‘SEC Chief Commissioners; a letter signed by 33 nesota itemized a number of those. opinion leaders in Montana, including Shift on Investor Bill is Linked to Sen- Let me try to turn this to a broader ate Pressure.’’’ The Chairman goes on Attorney General Joseph Mazurek and perspective: Over 150 editorials and col- State Auditor Mark O’Keefe; a letter to say, ‘‘The article is wrong in report- umns that have appeared in newspapers ing that I now support the litigation signed by 39 officials in New Jersey, in- across the United States, in every re- cluding the New Jersey Conference of reform bill.’’ gion, newspapers whose philosophies I think that needs to be said. The Mayors and the New Jersey League of are conservative, liberal, middle of the Municipalities; a letter signed by 27 Chairman of the SEC has not and does road. Overwhelmingly, the informed not support the legislation in the cur- Ohio public officials, including the judgment and opinion by these edi- mayor of Cincinnati and the Ohio rent form. torial writers is in strong opposition to I ask unanimous consent that the County Treasurers Association; a let- the bill—not because they do not rec- ter signed by 27 Vermont opinion lead- letter be printed in the RECORD. ognize, as I, and I think all of my col- There being no objection, the mate- ers. leagues do, that we need to make some rial was ordered to be printed in the My point is that this spans the con- changes with respect to the frivolous RECORD, as follows: tinent, from east to west, from north lawsuits, but because this bill goes far to south. Whether one is liberal, con- U.S. SECURITIES AND beyond that. servative, or middle of the road, vir- EXCHANGE COMMISSION, It is really a Trojan horse in which Washington, DC, November 22, 1995. tually all have concluded that this leg- those who seek to minimize or immu- SHELBY COFFEY III, islation overreaches and clearly places Editor, Los Angeles Times, Times Mirror Square, nize themselves from liability have en- those persons in their communities and Los Angeles, CA. tered into the courtyard under this their States at risk as a consequence of DEAR MR. COFFEY: I am concerned and dis- frivolous lawsuit flag, when in point of this legislation. appointed with several major points in to- fact they are trying to protect them- Mr. President, I reserve whatever day’s Los Angeles Times article entitled selves from liability after their mis- time I have remaining and note the ‘‘SEC Chief Shift on Investor Bill Is Linked conduct has been adjudicated. presence on the floor of my distin- to Senate Pressure.’’ The article is wrong in reporting that I Among those organizations that have guished friend and colleague, the Sen- now support the litigation reform bill. expressed their opposition are the Na- ator from Alabama, Senator SHELBY. The article is wrong in reporting that I’ve tional League of Cities, the National The PRESIDING OFFICER. The Sen- reversed my position. Association of Counties, the Govern- ator from Alabama has 7 minutes.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17995 Mr. SHELBY. Mr. President, I am fraud over the perpetrator of the be as sophisticated about the market- disappointed to say that the conference fraud—a balance which is still missing place as people who come to the mar- report before us today is not a balanced from the conference report before us ketplace, but will invest their life sav- bill. It was not a balanced bill when it today. ings and will invest everything they left the Senate several months ago, and Mr. President, these provisions are have. And what remedy will they have it has not improved by any measure in crucial, in my view, to ensuring that in the future as victims? I think this is conference. rights of defrauded investors are not what some of this is about. Plain and simple, Mr. President, it unfairly impaired in an effort to reduce Mr. BRYAN. Mr. President, I note remains unbalanced against the de- litigation—meritorious or meritless. the distinguished Senator from New frauded investor. Mr. President, the conference report Mexico is on the floor, and he pre- I am disappointed, as I was when the fails to do what S. 240 failed to do—and viously had some time. I would be will- Senate passed S. 240, because I believe I, therefore, cannot support it. ing to offer him some time and ask that there are some worthy provisions The conference report, put simply, unanimous consent that we split the in this bill that would go far in reduc- fails to ensure adequate protection of remainder of the time. ing frivolous suits without compro- the rights of the innocent victim of se- Mr. DOMENICI. How much time does mising the rights of victims of fraud. curities fraud, and, in fact, makes it the Senator have? These few, worthy provisions, how- harder for the small investor to gain Mr. BRYAN. I think we have about 5 ever, are insufficient to overcome the access to the courts and obtain a full minutes. unbalanced nature of this bill. recovery for securities fraud. Mr. DOMENICI. I do not need that While I support efforts to reduce friv- The PRESIDING OFFICER. Who time. I will take 2 of the 5. It is very olous litigation, I simply cannot sup- yields time? generous of the Senator to split it with port the approach taken here today. Mr. BRYAN. Mr. President, let me me. This past year I have actively sought express my appreciation to the Senator Mr. BRYAN. Three. alternatives that would seek a middle from Alabama for his comments and Mr. DOMENICI. I do not really need ground between weeding out meritless for his balance. I believe he would that much, but I will accept it. litigation and preserving legitimate agree with me that there are abuses Mr. President, I would have stopped claims. that need to be corrected. None of us the distinguished Senator from Nevada I have actively sought alternatives who oppose this legislation are arguing had I had a chance and asked a ques- that would seek a middle ground be- the status quo is what we favor. Indeed, tion. I did not do that because I just tween eliminating economic incentives he is a cosponsor with me of the legis- did not get in the right position with to pursue frivolous litigation and pro- lation that would have dealt with a reference to his speech. tecting the rights of the defrauded in- number of those things. The Senator He mentioned a lot of organizations, vestor. institutions, and editorial writers who And, I have actively sought alter- will recall that incorporated in that we are opposed to this bill. I guess if I had natives that would seek a middle had provisions to eliminate bonus pay- a chance to ask those associations, in- ground between opportunistic strike ments being paid to brokers. That is stitutions, and editorial writers a ques- suits and preserving the powerful dead wrong. He and I agree on that. tion, I would just ask one. Let us as- check of private litigation on profes- The Senator would agree with me, I sume in addressing them that I am say- sional misconduct. am sure, that payments that would be Earlier this year, I joined Senator made as bonus payments to certain ing, ‘‘Mr. Jones,’’—that addresses all of them—‘‘did you know that the inves- BRYAN in introducing a securities liti- plaintiffs are wrong as well. The refer- gation reform bill that, I believe, ral fees—we clearly agree that before a tors’ share of what is collected in a struck the proper balance between pro- settlement should be effected, the law- lawsuit of the type we are concerned tecting investors and reducing yers on behalf of the plaintiffs need to about, out of every dollar collected, meritless litigation. make a full disclosure as to what the that 14 cents goes to the investor?’’ Our bill contained some of the same terms of the settlement are to be. And That is that poor stockholder that ev- worthy provisions also incorporated in we fully agreed that, if there are frivo- erybody is talking about being sorry this conference report, like the ban on lous lawsuits, the courts need to be for. Fourteen cents goes to that person, referral fees and the payment of attor- very aggressive in imposing sanctions. and the balance, if my arithmetic is ney fees from the SEC disgorgement I note my friend wants to respond. I correct, 86 cents goes to the lawyers, fund, increasing fraud detection and will not purport to speak for him. court costs, deposition costs, and the enforcement and ensuring adequate Mr. SHELBY. If the Senator from Ne- other things. disclosure of settlement terms. vada will yield just for a few brief com- That is why the program needs to be In addition, however, our bill sought ments? fixed. There is no doubt about it. This balance by including several provisions Mr. BRYAN. I will be happy to. part of the American judicial system to protect the rights of the defrauded Mr. SHELBY. I believe in any piece and litigation system is not working. investor. of legislation we need balance. We need It is not worth the consequences to the It restored aiding and abetting liabil- balance for the people who are the enterprises being affected that normal ity; extended the statute of limitations issuers of stock in the public domain. litigation brings to the marketplace of for private fraud actions to the earlier But, on the other hand, we need some American capitalism. It is sort of part of 5 years after the violation or 2 years safeguards for the investor. If you do of the system that has gone eccentric, after discovery, and ensured that the not have balance in a situation, you that lawyers have found a bird’s nest victim of fraud was made whole in the are going to have trouble later. on the ground, and this is the result— case of an insolvent joint and several I believe this bill is not a panacea. settlements all over the place, deep defendant. This bill is fraught with danger. I pocket lawsuits, and even with all of When S. 240 came before the Senate I, think it is a bad bill the way it is con- that available to the lawyers of this again, sought to improve the balance of structed today, but it could have been country, 14 cents goes to that little in- the bill by offering an amendment on a good bill if we had stayed with the vestor whom everybody is trying to proportionate liability. basics and if we were able to work out protect. My amendment would have ensured a bipartisan approach to a very serious I would like to close by saying I am that the insolvency of the defendant thing, and that is excessive litigation. very pleased that the oldest and largest does not prevent the innocent victim No one, I believe, in his right mind investment group around that takes from obtaining a full recovery by mak- could do anything but agree that a lot care of small stockholders, the Na- ing proportionate defendants liable for of litigation is out of control in Amer- tional Association of Investors Corp., the remaining uncollectible amount of ica. But how do you balance that? I be- which has a letter to the President say- an insolvent joint and several defend- lieve we have that responsibility and ing protect their stockholders, en- ant. obligation, to make sure it is balanced, dorses this. Again, this provision would have especially when you are dealing with There is a long list here of investors weighted in favor of the victim of the people who probably are not going to who say to the President, ‘‘We want

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17996 CONGRESSIONAL RECORD — SENATE December 5, 1995 your support.’’ There is a huge list ment System, State Universities Retirement enforcement programs in more than 60 coun- from the American Business Con- System of Illinois, Teachers Retirement Sys- tries, including the U.S., throughout North ference to the public trading compa- tem of Texas, State of Wisconsin Investment America, Asia, Europe and Latin America. nies, maybe 30 of them. Board, Washington State Investment Board, BSA represents leading publishers of soft- Eastman Kodak Retirement Plan. ware for personal computers. I ask unanimous consent that all of State treasurers and state officials respon- Information Technology Association of these be printed in the RECORD in sup- sible for state securities laws and pension America.—The Information Technology As- port of the cause that this bill con- funds, including: Treasurer, Commonwealth sociation is a major trade association rep- tains. of Massachusetts, Treasurer, State of Ohio, resenting over 5,700 direct and affiliated There being no objection, the mate- Treasurer, State of Illinois, Commissioner of member companies which provide worldwide rial was ordered to be printed in the Corporations, California, Treasurer, State of computer software, consulting and information processing services. RECORD, as follows: North Carolina, Treasurer, State of South Carolina, Treasurer, State of Delaware, National Association of Investors Corpora- NATIONAL ASSOCIATION OF Treasurer, State of Colorado. tion.—The National Association of Investors INVESTORS CORPORATION, Senior citizen investors spoke out in a re- Corporation is the largest individual Royal Oak, MI, October 25, 1995. cent poll in favor of legal reforms to curb shareowners organizations in the United The PRESIDENT, lawsuit abuse. States. NAIC has a dues-paid membership of The White House, investment clubs and other groups totalling Washington, DC. SUPPORTERS OF SECURITIES LITIGATION more than 273,000 individual investors. MR. PRESIDENT: I am writing as chairman National Association of Manufacturers.— REFORM of America’s oldest and largest organization The National Association of Manufacturers of small investors—the lifeblood of our na- American Business Conference.—Members is the nation’s oldest voluntary business as- tion’s capital markets. NAIC is a prime of the American Business Conference include sociation, comprised of more than 13,000 mover behind the popular trend of invest- 100 chief executive officers of high-growth member companies and subsidiaries, large ment clubs, where investors share informa- companies with revenues over $25 million. and small, located in every state. Its mem- tion and expertise while reducing risks. The ABC serves as the voice of the midsize, high- bers range in size from the very large to the number of investment clubs affiliated with growth job creating sector of the economy. more than 9,000 small members that have NAIC has grown to 17,000, representing more American Electronics Association.—The fewer than 500 employees each. NAM member than 325,000 individual investors. American Electronics Association represents companies employ 85% of all workers in Mr. President, America’s small investors some 3,000 companies in 44 states that span manufacturing and produce more than 80% urgently want reform of our broken system the breadth of the electronics industry, from of the nation’s manufactured goods. of securities litigation. silicon to software, to all levels of computers National Investor Relations Institute.— We pride ourselves in making our own in- and communication networks, and systems The National Investor Relations Institute, vestment decisions, based on information in integration. now in its 25th year, is a professional asso- the marketplace. But because of the current American Financial Services Associa- ciation of 2,300 corporate officers and inves- legal system, we have been getting less and tion.—The American Financial Services As- tor relations consultants responsible for less access to voluntary information from sociation is a national trade association for communication between corporate manage- publicly traded companies. Companies balk financial service firms and small business. ment, shareholders, security analysts and at disclosing useful information for fear of Its 360 members include consumer and auto other financial publics. frivolous class-action securities lawsuits. To finance companies, credit card issuers, and National Venture Capital Association.— make matters worse, meritless securities diversified financial services firms. The National Venture Capital Association is lawsuits unjustly take money from the pock- American Institute of Certified Public Ac- made up of 200 professional venture capital ets of small investors by driving down the countants.—The American Institute of Cer- organizations NVCA’s affiliate, the Amer- value of growth companies in which we in- tified Public Accountants is the national ican Entrepreneurs for Economic Growth, vest. In the past four years alone, class-ac- professional organization of over 310,000 represents 6,600 CEOs who run emerging tion securities suits have milked more than CPAs in public practice, industry, govern- growth companies that employ over 760,000 $2.5 billion from American companies. Plain- ment, and academia. people. tiff’s lawyers have pocketed approximately Association for Investment Management Public Securities Association.—The Public one-third—$825 million—of these funds that and Research.—The Association for Manage- Securities Association is the international otherwise could have gone to more produc- ment and Research is an international non- trade association of banks and brokerage tive use. profit membership organization of invest- firms which deal in municipal securities, We want to be able to recover our investment practitioners and educators with more mortgages and other asset-based securities, ments in cases where we have been de- than 40,000 members and candidates. U.S. government and federal agency securi- frauded. Just as important, we want protec- Association of Private Pension and Welfare ties, and money market instruments. tion from unscrupulous ‘‘strike suit’’ attor- Plans.—The Association of Private Pension Securities Industry Association.—The Se- neys who file baseless suits that coerce com- and Welfare Plans membership represents curities Industry Association is the securi- panies into spending our investment capital the entire spectrum of the private pension ties industry’s trade association rep- on settlement and defense costs. and employee benefits community: Fortune resenting the business interests of more than That is why NAIC members support securi- 500 companies, banks, insurance companies, 700 securities firms in North America which ties litigation reform legislation that cracks law, accounting, consulting, investment and collectively account for about 90% of securi- down on frivolous securities lawsuits while actuarial firms. APPWP members either ties firm revenue in the U.S. strengthening effective protection against sponsor directly or administer employee ben- Semiconductor Industry Association.—The real fraud. The bill’s strong new fraud pre- efit plans covering more than 100 million Semiconductor Industry Association rep- vention provision would require public audi- Americans. resents the $43 billion U.S. semiconductor in- tors to identify and report illegal activities Association of Publicly Traded Compa- dustry on public policy and industry affairs. as soon as discovered. This reform bill stops nies.—The Association of Publicly Traded The industry invests 11% of sales on R&D the abusive practice of using ‘‘professional Companies has an active membership of over and 15% of sales on new plant and equip- plaintiffs’’ who buy small amounts of stock 500 corporations consisting of a broad cross ment—more than a quarter of its revenue rein many companies simply to gain the right section of publicly traded companies, espe- invested in the future—and thus seeks to im- to sue. It gives real investors more power to cially those traded on the NASDAQ national prove America’s equity capital markets. direct securities lawsuits. market. Software Publishers Association.—The Mr. President, on behalf of small investors BIOCOM/San Diego (Formerly the Bio- Software Publishers Association is the prin- across the nation, I urge you to work with medical Industry Council).—BIOCOM/San cipal trade association of the personal com- Congress to enact securities litigation re- Diego is a business association representing puter software industry, with a membership form into law this year. over 60 biotechnology and medical device of over 1,000 companies, representing 90% of Sincerely yours, companies in San Diego, CA. U.S. software publishers. SPA members THOMAS E. O’HARA. Biotechnology Industry Organization.— range from all of the well-known industry The Biotechnology Industry Organization leaders to hundreds of smaller companies; all INVESTORS AND THOSE WHO PROTECT INVES- represents more than 525 companies, aca- of which develop and market business, con- TORS HAVE SPOKEN OUT IN FAVOR OF SECU- demic institutions, state biotechnology cen- sumer, and education software. SPA mem- RITIES LITIGATION REFORM ters and other organizations involved in the bers sold more than $30 billion of software in National Association of Investors Corpora- research and development of health care, ag- 1992, accounting for more than half of total tion, the largest individual shareowners or- riculture and environmental biotechnology worldwide software sales. ganization in the United States. products. MANAGERS OF PRIVATE OR PUBLIC PENSION Managers of public and private pension Business Software Alliance.—The Business FUNDS funds, including: New York City Pension Software Alliance promotes the contained Champion International Pension Plan.— Funds, Connecticut Retirement and Trust growth of the software industry through its Champion International Pension Plan con- Funds, Oregon Public Employees’ Retire- international public policy, education and trols over $1.8 billion in total assets.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17997 Connecticut Retirement and Trust Fund.— The yeas and nays were ordered. Mrs. BOXER. Reserving the right to The Connecticut Retirement and Trust Fund The PRESIDING OFFICER. The object. I want to know what the inten- invests over $11 billion on behalf of over question is on agreeing to the con- tion is as far as going to the late-term 140,000 employees and beneficiaries. ference report to accompany H.R. 1058, abortion ban. Eastman Kodak Retirement Plan.—East- Mr. SMITH. The intention is to go to man Kodak Retirement Plan manages over the Private Securities Litigation Re- $10.9 billion in total assets and is ranked as form Act of 1995. it at about 5:30. one of the largest 60 pension plans in the The clerk will call the roll. Mrs. BOXER. How long does my col- U.S. The legislative clerk called the roll. league wish to continue the debate? Massachusetts Bay Transportation Asso- Mr. BOND (when his name was Mr. SMITH. I do not have any infor- ciation.—With over 12,000 participants, the called). Present. mation on that at this time. I have no Massachusetts Bay Transportation Associa- Mr. LOTT. I announce that the Sen- intention to delay the debate, I say to tion controls over $772 million in total as- ator from Texas [Mr. GRAMM] and the the Senator from California. sets. Senator from Delaware [Mr. ROTH] are Mrs. BOXER. I know there are some New York City Pension Funds.—Over $49 necessarily absent. people here who wish to speak, and billion have been invested in the fund to in- Mr. FORD. I announce that the Sen- they are here because it is their under- sure the retirement security of 227,000 retir- standing that we were moving to it im- ees and 138,000 vested employees. ator from New Jersey [Mr. BRADLEY] is Oregon Public Employees’ Retirement Sys- necessarily absent. mediately. Is there any reason in de- tem.—Assets controlled by the fund total The PRESIDING OFFICER (Mr. laying going to this bill? over $17.2 billion. The Oregon Public Em- ABRAHAM). Are there any other Sen- Mr. SMITH. Only that Senator THOM- ployees’ Retirement System is ranked ators in the Chamber who desire to AS asked me for time to give a tribute among the largest 30 pension plans in the vote? to Senator SIMPSON. That is the only U.S. The result was announced—yeas 65, reason. State of Wisconsin Investment Board.— nays 30, as follows: Mrs. BOXER. Thank you. I do not ob- One of the 10 largest pension funds in the ject. United States, the State of Wisconsin Invest- [Rollcall Vote No. 589 Leg.] The PRESIDING OFFICER. Without ment Board manages over $33 billion contrib- YEAS—65 objection, it is so ordered. uted by the State’s public employees. Abraham Frist Mack The Senator is recognized to speak as State Universities Retirement System of Ashcroft Gorton McConnell in morning business. Illinois.—The State Universities Retirement Baucus Grams Mikulski System is ranked as one of the country’s 100 Bennett Grassley Moseley-Braun f Bingaman Gregg largest pension funds with total assets of $5.3 Murkowski TRIBUTE TO ALAN SIMPSON billion. Brown Harkin Murray Burns Hatch Teachers Retirement System of Texas.— Nickles Mr. THOMAS. Mr. President, I appre- Campbell Hatfield Pell The Teachers Retirement System of Texas Chafee Helms ciate the opportunity to come to the Pressler controls over $36.5 billion in total assets on Coats Hutchison floor to talk about a friend, to talk Reid behalf of its 700,000 members. Cochran Inhofe Robb about a man whom I respect as a Washington State Investment Board.— Coverdell Jeffords Craig Johnston Rockefeller friend, whom I respect as a public serv- With assets totaling over $19.7 billion, the Santorum ant, a man—to quote a phrase he uses— Washington State Investment Board is D’Amato Kassebaum DeWine Kempthorne Simpson ‘‘who is a friend to his friends,’’ ALAN ranked in the largest 25 pension funds. Smith Dodd Kennedy SIMPSON. Mr. DOMENICI. I yield the floor. Dole Kerry Snowe Stevens As you all know, AL SIMPSON indi- I thank my friend for the time. Domenici Kohl Exon Kyl Thomas cated in Cody, WY, last Saturday that Mr. BRYAN. Mr. President, let me Faircloth Lieberman Thompson he would not seek another term in the compliment my friend from New Mex- Feinstein Lott Thurmond U.S. Senate and would end his career Ford Lugar Warner ico. I know he is sincere. He has been at 18 years. ALAN SIMPSON is a special laboring in the vineyards for a good NAYS—30 guy, a unique U.S. Senator. There are many years on this legislation. Let me Akaka Dorgan Levin none other like him. He can be out- say by way of rebuttal that, if this leg- Biden Feingold McCain spoken, very candid, very frank, and islation was about how we could in- Boxer Glenn Moynihan Breaux Graham Nunn very kind. crease that 14 cents that the investors Bryan Heflin Pryor This Cody boy is an outstanding Sen- currently receive according to the in- Bumpers Hollings Sarbanes ator and my lifelong friend, a good and formation provided, I would like to Byrd Inouye Shelby gracious man. I know that so many of Cohen Kerrey Simon work with him. In point of fact, the Conrad Lautenberg Specter you have known him well and also call concern is that this legislation will, in Daschle Leahy Wellstone him a friend. We are lucky in that way. many cases, reduce the recovery to ‘‘ANSWERED PRESENT’’—1 Both he and Ann have given grace and zero and in no instance is there a provi- Bond style in their personal relationships as sion in this bill that would enhance the well as in their political life. All of us recovery beyond the 14 cents even if re- NOT VOTING—3 in Wyoming have been very proud of covery is possible. Bradley Gramm Roth his representation in the Senate and Finally, let me say by way of winding So, the conference report was agreed his and Ann’s representation as Wyo- it up, our friend, the distinguished to. mingites in the Nation’s Capital. chairman of the Select Committee on f I have had the privilege to serve as a Aging, has certainly provided a number part of a team with AL on the Wyo- of insights in terms of who really gets PARTIAL-BIRTH ABORTION BAN ming delegation for 5 years, when I was hurt in this legislation. He points out ACT in the House and he and Malcolm Wal- cogently and definitively that the sen- The PRESIDING OFFICER. The lop were here. This one very special iors in America are going to be among clerk will report the pending business. year, ALAN SIMPSON and I have had the its principal victims. The legislative clerk read as follows: opportunity to serve together. There Mr. President, I note that our time is A bill (H.R. 1833) to amend Title 18 U.S. will be more accolades, tributes, and up. If there is any remainder of time, I Code to ban partial-birth abortions. reactions, of course, to their decision. yield it. The Senate resumed consideration of Many are surprised, certainly, and Have the yeas and nays been asked the bill. many are saddened by AL SIMPSON’s de- for? f cision not to run. I defend it because I The PRESIDING OFFICER (Mr. know it was truly their decision and SANTORUM). They have not. MORNING BUSINESS they are at peace with it and look for- Mr. BRYAN. I ask for the yeas and Mr. SMITH. Mr. President, I ask ward to life beyond these Chambers, as nays. unanimous consent that there be a pe- we all know there is. I am sure that life The PRESIDING OFFICER. Is there a riod for morning business until 5:30. will be centered in Cody, WY. sufficient second? The PRESIDING OFFICER. Is there I know that AL could have done any- There is a sufficient second. objection? thing he chose to. People in Wyoming

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S17998 CONGRESSIONAL RECORD — SENATE December 5, 1995 adore him, respect him, and he could So I say to my friend, hats off to a The reason is, Mr. President, we had have won the race easily. I have a self- true trail boss, good luck, and I hope no opportunity to be involved in this, ish reaction to this. I wanted him to you do as well as you have done in the no input into the provisions of it, no run again. We in Wyoming have a past, my friend, AL SIMPSON. ability to evaluate it, no ability to dis- unique relationship in this delegation— f cuss it. It was in conference committee all Republicans, and we are all friends. and the reconciliation bill. The chair- I think it is especially unique that AL TRIBUTE TO ALAN SIMPSON AND man of the House Agriculture Com- and I grew up in the same little town, MARK HATFIELD mittee met with the Speaker of the Cody, WY—which was about 6,000— Mr. JOHNSTON. Mr. President, I House and, boom, ipso facto, it was cre- across the alley from one another. We would like to remark at what a dimin- ated out of the ashes in whole part played sports together, grew up to- ished place this will be because of the without any input from anybody. gether. I can tell a few scandalous sto- loss of Senator SIMPSON and Senator Mr. President, now we have evalu- ries, but AL has told most of them al- HATFIELD, both of whom announced ated this bill. I can tell my colleagues ready. over the weekend that they would be Few men in Washington have the gift that the agricultural provisions of the leaving. There are no Senators in this reconciliation bill will simply destroy of skill and the gift of humor that AL body, any that I know of, who have SIMPSON has. He has always been that the cotton industry and the rice indus- served here who have been more distin- try in the State of Louisiana. way. I can recall when I was just a kid, guished than the Senator from Wyo- Milward Simpson was probably the ming and the Senator from Oregon. I Let me repeat that: The agricultural most famous man in our little town. I might say that there are none for provisions of the reconciliation bill can remember being so astonished that whom I have higher personal esteem will destroy the rice industry and the he could stand up and extempo- and affection than both of these Sen- cotton industry in the State of Lou- raneously speak, and it would just ators. isiana. flow. So now we are here serving the Wyo- It was truly a historic weekend for Mr. President, these are two of our ming people in the Senate, and here both of them to announce that they largest crops. They contribute over $2 were leaving the Senate. I must say, ALAN SIMPSON is my political mentor, billion to the State of Louisiana, 7,000 our senior Senator and, very selfishly, had I not myself announced that I was direct jobs and 27,000 indirect agri- I wanted him to run again, to continue leaving, I would be much sadder than I culture jobs, according to Louisiana his excellent representation and clear am. Since I will be leaving, I will not State University and the Louisiana Co- leadership. Many of you will have your miss them here. I despair, though, be- operative Extension Service. own testimony to AL SIMPSON during cause of the vacuum that will be left in Mr. President, they have done an the coming year. But I can tell you this Nation when these two very great analysis of what the bill does for rice from one who has known the SIMPSON public servants will be leaving the Sen- and cotton. They have taken a typical family, I know Milward and Lorna ate. Louisiana rice tenant farm, which is Simpson would have been very proud of I did not come for that specific pur- 287 planted acres—and this takes up AL, both in the way he has served and pose, Mr. President. I will later talk about 90 percent of our tenant farms in will serve throughout 1996, but also as about my two friends. But I could not the State of Louisiana—and they have proud as only a father and a mother miss the opportunity when the junior a whole series of calculations as to can be in the way he has come to and Senator from Wyoming brought up the what the economic effect on that rice announced his decision. He announced subject to say how much I share his farmer will be. it with courage, with class, and with a sentiments and how great I think the Mr. President, I ask unanimous con- positive view for the future—the quali- loss is for the country. sent that the calculations which they ties that define AL and Ann Simpson. f He has 1 more year to go. No one have done in great detail both as to the should make a mistake or forget about THE FARM PROVISIONS OF THE comparison of net returns for cotton, that. He will do many things in that RECONCILIATION BILL net returns for rice under the con- year. He will achieve much. So I will, Mr. JOHNSTON. Mr. President, we ference committee, and rice gross re- at the end of that year, miss my good knew that when the farm provisions of turns under alternative farm program, friend and mentor. All of us, I think, the reconciliation bill were agreed to, that these figures be printed in the will miss his good western advice, lit- they were bad for the State of Lou- RECORD at this time. tle bits of western wisdom, such as isiana, but we had no idea how bad There being no objection, the mate- ‘‘don’t squat with your spurs on’’ and these provisions were for the State of rial was ordered to be printed in the other little bits like that. Louisiana when they were passed. RECORD, as follows: COMPARISON OF NET RETURNS FOR COTTON UNDER CONFERENCE COMMITTEE FARM PROPOSAL AND EXTENSION OF CURRENT FARM BILL, LOUISIANA, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Analysis Parameters Cotton farm acreage: (acres) Base acres ...... 353 353 353 353 353 353 353 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85 percent of base) 1 ...... 300 300 300 300 300 300 300 Cotton yields: (lbs/acre) Louisiana actual yield ...... 740 740 740 740 740 740 740 Louisiana program yield ...... 722 722 722 722 722 722 722 Current program parameters: (cents/lb) Target price ...... 72.90 72.90 72.90 72.90 72.90 72.90 72.90 Loan rate ...... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Estimated deficiency payment ...... 13.22 13.22 13.22 13.22 13.22 13.22 13.22 Conference program parameters: (acres) Estimated transition payment 2 ...... 7.93 7.53 8.06 7.74 7.09 5.71 5.50 Loan rate ...... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Market price level analyzed: (cents/lb) 1990–94 Louisiana average price ...... 59.68 59.68 59.68 59.68 59.68 59.68 59.68 Estimated Net Returns (tenant operator) Current program (Total cotton returns ($) per farm) Total farm market returns 3 ...... 149,720 149,720 149,720 149,720 149,720 149,720 149,720 Total farm deficiency payments ...... 28,639 28,639 28,639 28,639 28,639 28,639 28,639

Total farm gross returns 4 ...... 178,359 178,359 178,359 178,359 178,359 178,359 178,359

Land rent (25 percent) ...... 44,590 44,590 44,590 44,590 44,590 44,590 44,590 Net returns above land rent ...... 133,769 133,769 133,769 133,769 133,769 133,769 133,769 Variable costs ($332.73/acre) ...... 99,836 102,831 105,916 109,093 112,366 115,737 119,209 Net returns above variable costs ...... 33,933 30,938 27,854 24,676 21,403 18,032 14,560 Fixed costs ($72.09/acre) ...... 21,631 21,847 22,065 22,286 22,509 22,734 22,961

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S17999 COMPARISON OF NET RETURNS FOR COTTON UNDER CONFERENCE COMMITTEE FARM PROPOSAL AND EXTENSION OF CURRENT FARM BILL, LOUISIANA, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Net returns above total costs ...... 12,303 9,092 5,788 2,390 (1,106 ) (4,702 ) (8,401 ) Conference program: Total farm market returns 3 ...... 149,720 149,720 149,720 149,720 149,720 149,720 149,720 Total farm transition payments ...... 17,179 16,313 17,461 16,768 15,359 12,370 11,915 Total farm gross returns 4 ...... 166,899 166,032 167,180 166,487 165,079 162,089 161,635

Land rent (25 percent) ...... 41,725 41,508 41,795 41,622 41,270 40,522 40,409 Net returns above land rent ...... 125,174 124,524 125,385 124,865 123,809 121,567 121,226 Variable costs ($332.73/acre) ...... 99,836 102,831 105,916 109,093 112,366 115,737 119,209 Net returns above variable costs ...... 25,338 21,693 19,470 15,772 11,443 5,830 2.017 Fixed costs ($72.09/acre) ...... 21,631 21,847 22,065 22,286 22,509 22,734 22,961 Net returns above total costs ...... 3,708 (153 ) (2,596 ) (6,514 ) (11,065 ) (16,904 ) (20,944 ) 1 Estimated planted acreage level at maximum deficiency payment rate under $50,000 payment limitation. 2 Preliminary payment rates under Agricultural Market Transition Program, November 1995. 3 Includes sales of cottonseed valued at $0.05 per lb. 4 Marketing loan payments are excluded from the analysis since the provisions for a marketing loan are the same under both programs.

COMPARISON OF NET RETURNS FOR RICE UNDER CONFERENCE COMMITTEE FARM PROPOSAL AND EXTENSION OF CURRENT FARM BILL, LOUISIANA, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Analysis Parameters Rice farm acreage: (acres) Base acres ...... 338 338 338 338 338 338 338 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85 percent of base) 1 ...... 287 287 287 287 287 287 287 Rice yields: (cwt/acre) Louisiana actual yield ...... 48.00 48.00 48.00 48.00 48.00 48.00 48.00 Louisiana program yield ...... 41.31 41.31 41.31 41.31 41.31 41.31 41.31 Current program parameters: ($/cwt) Target price ...... 10.71 10.71 10.71 10.71 10.71 10.71 10.71 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Estimated deficiency payment ...... 3.82 3.82 3.82 3.82 3.82 3.82 3.82 Conference program parameters: ($/cwt) Estimated transition payment 2 ...... 1.52 2.66 2.86 2.77 2.53 2.04 1.98 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Market price level analyzed: ($/cwt) 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Estimated Net Returns (tenant operator) Current program: (Total rice returns ($) per farm) Total farm market returns ...... 95,016 95,016 95,016 95,016 95,016 95,016 95,016 Total farm deficiency payments ...... 45,337 45,337 45,337 45,337 45,337 45,337 45,337 Total farm gross returns 3 ...... 140,353 140,353 140,353 140,353 140,353 140,353 140,353

Land and water rent (20 percent for each) ...... 56,141 56,141 56,141 56,141 56,141 56,141 56,141 Net returns above land/water rent ...... 84,212 84,212 84,212 84,212 84,212 84,212 84,212 Variable costs ...... 67,605 69,633 71,722 73,873 76,090 78,372 80, 723 Net returns above variable costs ...... 16,607 14,579 12,490 10,338 8,122 5,840 3,488 Fixed costs ...... 13,543 13,679 13,816 13,954 14,093 14,234 14,377 Net returns above total costs ...... 3,064 900 (1,325) (3,615) (5,971) (8,395) (10,888) Conference program: Total farm market returns ...... 95,016 95,016 95,016 95,016 95,016 95,016 95,016 Total farm transition payments ...... 18,040 31,570 33,944 32,875 30,027 24,211 23,499 Total farm gross payments 3 ...... 113,056 126,586 128,959 127,891 125,043 119,227 118,515

Land and water rent (20 percent for each) ...... 45,222 50,634 51,584 51,156 50,017 47,691 47,406 Net returns above land/water rent ...... 67,833 75,951 77,376 76,735 75,026 71,536 71,109 Variable costs ...... 67,605 69,633 71,722 73,873 76,090 78,372 80,723 Net returns above variable costs ...... 229 6,319 5,654 2,861 (1,064) (6,836) (9,614) Fixed costs ...... 13,543 13,679 13,816 13,954 14,093 14,234 14,377 Net returns above total costs ...... (13,314) (7,360) (8,162) (11,092) (15,157) (21,070) (23,991) 1 Estimated planted acreage level at maximum deficiency payment rate under $50,000 payment limitation. 2 Preliminary payment rates under Agricultural Market Transition Program, November 1995. 3 Marketing loan payments are excluded from the analysis since the provisions for a marketing loan are the same under both programs.

LOUISIANA RICE GROSS RETURNS UNDER ALTERNATIVE FARM BILL PROPOSALS, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Rice yields: (cwt/acre) Louisiana actual yield ...... 48.00 48.00 48.00 48.00 48.00 48.00 48.00 Louisiana program yield ...... 41.31 41.31 41.31 41.31 41.31 41.31 41.31 Current program: (acres) Base acres ...... 100 100 100 100 100 100 100 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85 percent of base) ...... 85 85 85 85 85 85 85 Price/payment rates: ($/cwt) Target price ...... 10.71 10.71 10.71 10.71 10.71 10.71 10.71 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Deficiency payment ...... 3.82 3.82 3.82 3.82 3.82 3.82 3.82 Estimated gross returns: (Total rice returns ($)) Total farm market returns ...... 28,111 28,111 28,111 28,111 28,111 28,111 28,111 Total farm deficiency payments 1 ...... 13,413 13,413 13,413 13,413 13,413 13,413 13,413 Total farm gross returns ...... 41,252 41,252 41,252 41,252 41,252 41,252 41,252

Conference bill: (acres) Base acres ...... 100 100 100 100 100 100 100 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85 percent of base) ...... 85 85 85 85 85 85 85 Price/payment rates: ($/cwt) Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Transition payment ...... 1.52 2.66 2.86 2.77 2.53 2.04 1.98 Estimated gross returns: (Total rice returns ($)) Total farm market returns ...... 28,111 28,111 28,111 28,111 28,111 28,111 28,111 Total farm transition payments 1 ...... 5,337 9,340 10,042 9,726 8,884 7,163 6,952 Percent change from current program 3 ...... ¥60 ¥30 ¥25 ¥27 ¥34 ¥47 ¥48 Total farm gross returns ...... 33,448 37,451 38,154 37,838 36,995 35,274 35,064

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18000 CONGRESSIONAL RECORD — SENATE December 5, 1995 LOUISIANA RICE GROSS RETURNS UNDER ALTERNATIVE FARM BILL PROPOSALS, 1996–2002—Continued

1996 1997 1998 1999 2000 2001 2002

House bill: (acres) Base acres ...... 100 100 100 100 100 100 100 Percent of base paid ...... 100 100 100 100 100 100 100 Acres planted (85 percent of base) ...... 85 85 85 85 85 85 85 Price/payment rates: ($/cwt) Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Transition payment ...... 4.10 3.98 4.26 4.13 3.80 3.12 3.04 Estimated gross returns: (Total rice returns ($)) Total farm market returns ...... 28,111 28,111 28,111 28,111 28,111 28,111 28,111 Total farm deficiency payments 2 ...... 16,937 16,441 17,598 17,061 15,698 12,889 12,558 Percent change from current program 3 ...... 26 23 31 27 17 ¥4 ¥6

Total farm gross returns ...... 45,048 44,553, 45,709 45,172 43,809 41,000 40,669

Senate bill: (acres) Base acres ...... 100 100 100 100 100 100 100 Percent of base paid ...... 70 70 70 70 70 70 70 Acres planted (85 percent of base) ...... 85 85 85 85 85 85 85 Price/payment rates: ($/cwt) Target price ...... 10.71 10.71 10.71 10.71 10.71 10.71 10.71 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Deficiency payment ...... 3.82 3.82 3.82 3.48 3.23 2.89 2.66 Estimated gross returns: (Total rice returns ($)) Total farm market returns ...... 28,111 28,111 28,111 28,111 28,111 28,111 28,111 Total farm deficiency payments 1 ...... 11,046 11,046 11,046 10,063 9,340 8,357 7,692 change from current program 3 ...... ¥18 ¥18 ¥18 ¥25 ¥30 ¥38 ¥43

Total farm gross returns ...... 39,157 39,157 39,157 38,174 37,451 36,468 35,803 1 Marketing loan payments not included. 2 No marketing loan program in House bill. 3 Percent change in program payments from continuation of current program (excluding marketing loan).

COMPARISON OF GROSS RETURNS FOR COTTON UNDER CONFERENCE COMMITTEE FARM PROPOSAL AND EXTENSION OF CURRENT FARM BILL, LOUISIANA, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Analysis Parameters Cotton farm acreage: (acres) Base acres ...... 353 353 353 353 353 353 353 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85 percent of base)1 ...... 300 300 300 300 300 300 300 Cotton yields: (lbs/acre) Louisiana actual yield ...... 740 740 740 740 740 740 740 Louisiana program yield ...... 722 722 722 722 722 722 722 Current program parameters: (cents/lb) Target price ...... 72.90 72.90 72.90 72.90 72.90 72.90 72.90 Loan rate ...... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Conference program parameters: (cents/lb) Estimated transition payment 2 ...... 7.93 7.53 8.06 7.74 7.09 5.71 5.50 Loan rate ...... 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Market price levels analyzed: (cents/lb) 10 percent above CBO baseline ...... 70.40 67.10 66.00 64.90 66.00 66.00 66.00 CBO baseline ...... 64.00 61.00 60.00 59.00 60.00 60.00 60.00 10 percent below CBO baseline ...... 57.60 54.90 54.00 53.10 54.00 54.00 54.00 Estimated Gross Returns ‘‘Current program’’: (Total cotton returns ($) per farm) 10 percent above CBO baseline prices: Total farm market returns ...... 156,314 148,987 146,544 144,102 146,544 146,544 146,544 Total farm deficiency payments ...... 5,416 12,565 14,948 17,331 14,948 14,948 14,948

Total farm gross returns 3 ...... 161,730 161,552 161,492 161,433 161,492 161,492 161,492

CBO baseline prices: Total farm market returns ...... 142,104 135,443 133,222 131,002 133,222 133,222 133,222 Total farm deficiency payments ...... 19,281 25,780 27,946 30,112 27,946 27,946 27,946

Total farm gross returns 3 ...... 161,384 161,222 161,168 161,114 161,168 161,168 161,168

10 percent below CBO baseline prices: Total farm market returns ...... 127,893 121,898 119,900 117,902 119,900 119,900 119,900 Total farm deficiency payments ...... 33,145 38,994 40,944 42,894 40,944 40,944 40,944

Total farm gross returns 3 ...... 161,039 160,893 160,844 160,796 160,844 160,844 160,844

‘‘Conference program’’: 10 percent above CBO baseline prices: Total farm market returns ...... 156,314 148,987 146,544 144,102 146,544 146,544 146,544 Total farm transition payments ...... 17,179 16,313 17,461 16,768 15,359 12,370 11,915

Total farm gross returns 3 ...... 173,493 165,300 164,005 160,870 161,904 158,914 158,459

Percent change from current program ...... 7.3 2.3 1.6 ¥0.3 0.3 ¥1.6 ¥1.9 CBO baseline prices: Total farm market returns ...... 142,104 135,443 133,222 131,002 133,222 133,222 133,222 Total farm transition payments ...... 17,179 16,313 17,461 16,768 15,359 12,370 11,915

Total farm gross returns 3 ...... 159,283 151,755 150,683 147,769 148,582 145,592 145,137

Percent change from current program ...... ¥1.3 ¥5.9 ¥6.5 ¥8.3 ¥7.8 ¥9.7 ¥9.9 10 percent below CBO baseline prices: Total farm market returns ...... 127,893 121,898 119,900 117,902 119,900 119,900 119,900 Total farm transition payments ...... 17,179 16,313 17,461 16,768 15,359 12,370 11,915

Total farm gross returns 3 ...... 145,073 138,211 137,361 134,669 135,259 132,270 131,815

Percent change from current program ...... ¥9.9 ¥14.1 ¥14.6 ¥16.2 ¥15.9 ¥17.8 ¥18.0 1 Estimated planted acreage level at maximum deficiency payment rate under $50,000 payment limitation. 2 Preliminary payment rates under Agricultural Market Transition Program, November 1995. 3 Marketing loan payments are excluded from the analysis since the provisions for a marketing loan are the same under both programs.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18001 COMPARISON OF GROSS RETURNS FOR RICE UNDER CONFERENCE COMMITTEE FARM PROPOSAL AND EXTENSION OF CURRENT FARM BILL, LOUISIANA, 1996–2002

1996 1997 1998 1999 2000 2001 2002

Analysis Parameters Rice farm acreage: (acres) Base acres ...... 338 338 338 338 338 338 338 Percent of base paid ...... 85 85 85 85 85 85 85 Acres planted (85% of base)1 ...... 287 287 287 287 287 287 287 Rice yields: (cwt/acre) Louisiana actual yield ...... 48.00 48.00 48.00 48.00 48.00 48.00 48.00 Louisiana program yield ...... 41.31 41.31 41.31 41.31 41.31 41.31 41.31 Current program parameters: ($/cwt) Target price ...... 10.71 10.71 10.71 10.71 10.71 10.71 10.71 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Estimated deficiency payment ...... 3.82 3.82 3.82 3.82 3.82 3.82 3.82 Conference program parameters: ($/cwt) Estimated transition payment 2 ...... 1.52 2.66 2.86 2.77 2.53 2.04 1.98 Loan rate ...... 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Market price level analyzed: ($/cwt) 1990–94 Louisiana average price ...... 6.89 6.89 6.89 6.89 6.89 6.89 6.89 Estimated Gross Returns Current program: (Total rice returns ($) per farm) Total farm market returns ...... 95,016 95,016 95,016 95,016 95,016 95,016 95,016 Total farm deficiency payments ...... 45,337 45,337 45,337 45,337 45,337 45,337 45,337

Total farm gross returns 3 ...... 140,353 140,353 140,353 140,353 140,353 140,353 140,353

Conference program: Total farm market returns ...... 95,016 95,016 95,016 95,016 95,016 95,016 95,016 Total farm transition payments ...... 18,040 31,570 33,944 32,875 30,027 24,211 23,499

Total farm gross returns 3 ...... 113,056 126,586 128,959 127,891 125,043 119,227 118,515

Percent change from current program: Percent change in market returns ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Percent change in program payments ...... ¥60.2 ¥30.4 ¥25.1 ¥27.5 ¥33.8 ¥46.6 ¥48.2 Percent change in gross returns 3 ...... ¥19.4 ¥9.8 ¥8.1 ¥8.9 ¥10.9 ¥15.1 ¥15.6 1 Estimated planted acreage level at maximum deficiency payment rate under $50,000 payment limitation. 2 Preliminary payment rates under Agricultural Market Transition Program, November 1995. 3 Marketing loan payments are excluded from the analysis since the provisions for a marketing loan are the same under both programs.

Mr. JOHNSTON. Mr. President, when begins to lose the next year, and by the their suppliers need to know suffi- you boil the figures down, what it year 2002 he is losing a net of $20,944. ciently in advance how much they will shows is that the average rice farmer This, again, Mr. President, is the av- need to order, how much seed to have in 1996 has a net income of minus erage cotton farmer in the State of on hand, how much insecticide. $13,314. The average rice farmer in Lou- Louisiana. Mr. President, you cannot pass a rule isiana for 1996 loses $13,314. In 1997, it is You say, how in the world could they one week and expect the crop to be $7,360. have done such folly in this bill? Mr. planted the next week. You say, why would he lose twice as President, they did it without hear- Mr. President, you might ask, with- much in 1996 as he would lose in 1997? ings, they did it without consultation, out support, if the Louisiana rice in- The reason is, under this bill, incred- they did it without input. The Speaker dustry cannot survive, why is it that ibly, they have to pay back the pay- got together with the head of the Agri- we plant rice in the United States? ment they received for the last quarter culture Committee in the House and, Why not just let the whole thing move of calendar 1996. They have to pay that bam, here it came. Here is the result. overseas? back, so that you actually lose $13,314. Mr. President, this is an emergency. The reason is, Mr. President, that the I think sooner or later this is going to subsidy, the support which we have for It gets worse from there. In 1998, be straightened out, because, as George agriculture in the United States for $8,162; in 1999, $11,092; in the year 2000, Bush said about the invasion of Ku- rice, is a fraction of what it is in the $15,157; in 2001, $21,070; and 2002, $23,991. wait, this cannot stand. It just cannot European market, Japan, and our other Mr. President, these are not rich be, Mr. President. foreign competitors. The fact of the farmers but the average rice farmer in This Congress has done some dumb matter is the EU, the European Union, Louisiana who has planted 287 acres. things, Mr. President, but we have subsidizes their farmers three to five Mr. President, this is not some Demo- never that I know of intentionally times more than they do in the United cratic Policy Committee who has come wiped out an industry—the cotton in- States. They place high tariffs on some out with these figures; it is the Lou- dustry, the rice industry—in a State. If U.S. agricultural products which create isiana State University Agriculture this is happening in the State of Lou- artificially high prices. Department. isiana, it is going to happen elsewhere I am informed, Mr. President—and I Mr. President, this is actually not across the country. We cannot inten- will get the exact figure and supply going to happen. The reason is that tionally do this. them for the RECORD later—I am in- they are not going to plant the rice. Mr. President, it is an emergency formed that rice can fetch as high a With these kind of economic figures that needs to be corrected now because price as $27 per 100-weight in Europe, shown to the bankers, no banker is if we wait, we are going to miss this compared to $6 in the United States. going to lend any money to plant this crop year. Typically, Mr. President, Mr. President, if we intentionally crop. So you will not have these losses. the preparations for the crop year wipe out the rice industry and the cot- You will not have a rice industry in the begin in December. The farmers decide ton industry in the State of Louisiana State of Louisiana because it shows a what kind of money they are going to and elsewhere in our country, then we negative cash flow for each of these need to borrow, what kind of crops will be subject to the manipulation of years through the year 2002. they want to plant, how much it is foreign suppliers who will dominate Again, Mr. President, this is the Lou- going to cost, et cetera, and they begin and monopolize the whole market. isiana State University who has come those negotiations with the bank, typi- Mr. President, I do not believe there up with these figures. cally, in December. Certainly by the is time to legislate this year. Regula- Mr. President, it is only slightly less middle of January, they must have tions must be put out under any new bad for cotton. Under cotton—and all their bank arrangements pretty well in legislation that comes out, and regula- of the figures under which we cal- line because they have to plant that tions are going to take many weeks in culated each one of these figures has crop in the spring. order to determine how to interpret now been put into the RECORD—for the They have to not only order the seed, whatever law finally comes out. I be- average cotton farmer, that is 300 insecticide, pesticide, and the other lieve it will be too late for the planting planted acres, he makes $3,708 in 1996, things they will need for that crop, but season even assuming that there is a

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18002 CONGRESSIONAL RECORD — SENATE December 5, 1995 veto of the reconciliation bill, which my reasons for opposing this bill. Let medical term. It is not found in any medical surely there should be if these are rep- me summarize those reasons up front, dictionary or gynecology text. It was coined resentative of the kind of provisions and then go into each one specifically. to inflame, rather than to illuminate. It lacks a definition. that are in that bill. If the Congress First, I believe that this bill at- As I understand the term, opponents of passes a new bill, I do not believe there tempts to ban a specific medical proce- abortion are using this phrase to describe is going to be time to get the regs out dure which is called, in this bill, a one variant of the dilation and evacuation to borrow the money, to make the ‘‘partial-birth abortion,’’ but there is procedure, known as a D&E, which is the preparations in order to get the crop no medical definition for what a ‘‘par- dominant method of second trimester abor- out this year. tial-birth abortion’’ is. tion in the United States. Second trimester abortion. So, Mr. President, what I am saying Second, the language in the bill is so If one does not use the D&E, the alter- is the Congress needs to act as in an vague that I believe it will affect more native methods of abortion after 12 weeks emergency and to extend the present than any one single medical procedure. gestation are total birth abortion—labor in- law. We need to extend that present Third, the bill presumes guilt on the duction is more costly and painful—or law so we can get the crop in the part of the doctor, so that every physi- hysterotomy, which is the more costly, pain- ground this year. If we do not do that, cian may have to prove that in fact he ful, and hazardous. did not perform this procedure, or jus- Given the enviable record of safety of all and if we have the reconciliation bill as D&E methods as documented by the Centers passed, then we are going to wipe out tify his reasons for so doing if he did. for Disease Control and Prevention, there is the cotton and rice industry in the This bill could be an unnecessary, I no public health justification for any regula- State of Louisiana and elsewhere in think an unconscionable complication tion or intervention in a physician’s deci- this country. to families who face many tragic cir- sionmaking with the patient. f cumstances involving severely de- Then I asked one of the professors formed fetuses. I also believe it is an who testified at the hearing about this. CHANGE OF VOTE unnecessary Federal regulation, since I will get to what he said in a moment. The PRESIDING OFFICER. The Sen- 41 States have already outlawed post- But for just 1 minute let me read the ator from Arizona. viability abortions, except to save a exact language of the bill. We have Mr. McCAIN. Mr. President, on the woman’s life or health. heard testimony from the authors that rollcall vote on the conference report Finally, I hope to make a case that this refers to a breech extraction by accompanying H.R. 1058, I was recorded this bill is very carefully crafted to stopping the head from leaving the as voting in the affirmative. I ask provide a direct challenge to Roe birth canal and injecting scissors into unanimous consent to change my vote, versus Wade. the base of the skull and draining fluid. which was recorded as ‘‘yes’’, to ‘‘no.’’ First and foremost, this legislation But the definition of the bill is entirely It will not change the outcome of the claims to outlaw a medical procedure different. The bill says, ‘‘The term vote. called a partial-birth abortion. As I ‘partial-birth abortion’ means an abor- I ask unanimous consent I be re- said, this medical term does not, in tion in which the person performing corded as a ‘‘no’’ vote. fact, exist. It does not appear in med- the abortion partially delivers a living The PRESIDING OFFICER. Without ical textbooks. It does not appear in fetus before killing the fetus and com- objection, it is so ordered. medical records. The medical doctors pleting the delivery.’’ There is no ref- [The foregoing tally has been who testified before the Senate Judici- erence to scissors in the bill. There is changed to reflect the above order.] ary Committee 2 weeks ago could not no reference to drawing fluid from the f identify, with any degree of certainty brain in this bill. In fact, many people or consistency, what medical procedure believe that the purpose of this bill is PARTIAL-BIRTH ABORTION BAN this legislation refers to. really to get at second trimester abor- ACT I would like to read some of the re- tions. The PRESIDING OFFICER. Under sponses to my question in the com- I believe that the language in this the previous order, the Senate will now mittee, when I asked these doctors bill, Mr. President, is vague for very resume consideration of H.R. 1833 what a partial birth abortion is. deliberate reasons, because by making The Senate continued with the con- Dr. Pamela Smith, director of ob/gyn it vague every doctor that performs sideration of the bill. medical education at Mt. Sinai Hos- even a second trimester abortion could The PRESIDING OFFICER. The Sen- pital in Chicago, said it was ‘‘*** a face the possibility of prosecution in ator from New Hampshire. perversion of a breech extraction.’’ that he or she could be hauled before a Mr. SMITH. Mr. President, I suggest Dr. Nancy Romer, a practicing ob/ court and have to defend their abor- the absence of a quorum. gyn and assistant professor at Wright tion. So this bill in effect could affect The PRESIDING OFFICER. The State University School of Medicine, all abortions. clerk will call the roll. said it is ‘‘a dilation and extraction, I asked the legal and medical experts The assistant legislative clerk pro- distinguished from dismemberment- who testified at the Judiciary Com- ceeded to call the roll. type D&Es.’’ mittee hearing last week if this legisla- Mrs. BOXER. Mr. President, I ask Dr. Norig Ellison, President of the tion could affect abortion—not just unanimous consent that the order for American Society of Anesthesiologists, late-term abortions but earlier abor- the quorum call be rescinded. who was at the hearing to represent tions of nonviable fetuses as well. Dr. The PRESIDING OFFICER. Without anesthesiologists who supposedly par- Louis Seidman, professor of law from objection, it is so ordered. ticipate in these procedures, said, ‘‘I Georgetown, gave the following an- Mrs. BOXER. Mr. President, I ask pass on that one. I am as confused as swer, and I quote: unanimous consent the Senator from you are.’’ . . . as I read the language, in a second tri- California, Senator FEINSTEIN, be al- And, Dr. Mary Campbell, medical di- mester pre-viability abortion where the fetus lowed to speak until such time as the rector of planned parenthood of Wash- will in any event die, if any portion of the majority leader comes to the floor and ington, defined it as ‘‘* * * a procedure fetus enters the birth canal prior to the tech- has a chance to discuss with the man- in which any part of the fetus emerges nical death of the fetus, then the physician ager of the bill how we are going to from the cervix before the fetus has is guilty of a crime and goes to prison for 2 years. proceed. been documented to be dead.’’ The PRESIDING OFFICER. Without Others have said it is an ‘‘intact dila- That is a law professor’s reading of objection, it is so ordered. tion and evacuation,’’ or a ‘‘total the bill. He then continued his testi- The Senator from California. breech extraction.’’ mony, and I quote: Mrs. FEINSTEIN. Mr. President, as I asked Dr. David Grimes of the Uni- If I were a lawyer advising a physician who everyone knows, about a week ago the versity of California at San Francisco performed abortions, I would tell him to stop because there is just no way to tell whether Judiciary Committee held hearings on this same question, and he put it in the procedure will eventuate in some portion this so-called partial-birth abortion writing. of the fetus entering the birth canal before legislation. I wanted to speak today on First, the term being used by abortion op- the fetus is technically dead, much less being what I learned from the hearings and ponents, ‘‘partial-birth abortion,’’ is not a able to demonstrate that after the fact.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18003 Dr. Richardson, associate professor of or do not form at all; or fetuses with no The point is, that this legislation, I gynecology and obstetrics at Johns eyes, ears, mouths, legs, or kidneys— believe, has little or nothing to do with Hopkins, in testimony before a House sometimes tragically unrecognizable as stopping the use of some horrific and Committee said, ‘‘[the language] . . . is human at all. unnecessary medical procedure per- vague, not medically oriented, and just But even with advanced technology, formed by evil or inhumane doctors. If not correct. In any normal second tri- many serious birth defects can only be that were simply the case, we would all mester abortion procedure by any identified later, often in the third tribe opposed. I believe this legislation’s method, you may have a point at which mester when the fetus reaches a cer- major purpose is the camel’s nose a part, a one-inch piece of [umbilical] tain size. Among those is under the tent to get at second-tri- cord, for example, of the fetus passes hydrocephaly. Another abnormality is mester abortions and to put a fear over out of the cervical [opening] before polyhydramnios—too much amniotic all legitimate physicians, obstetricians fetal demise has occurred. fluid. who do perform an abortion when an So contrary to proponents’ claims, So families that face these unex- abortion is necessary—a fear that they this bill could affect far more than just pected tragedies are often only diag- could be hauled into court and have to the few abortions performed in the nosed late in their pregnancy. In fact, defend themselves and prove that they third trimester and far more than just both Senator SMITH, I believe, and Sen- did not perform whatever a partial- one procedure being described. ator HATCH said none of the women birth abortion is eventually adju- Another part of this bill which is who came before the committee and dicated to be. very troubling to me is that an affirm- talked about their third trimester So the legislation is vague, it is ative defense automatically presumes abortion—all of which were the product flawed, and it presumes guilt on the guilt. The legislation provides what is of major fetal deformities—would be part of the doctor. It ignores the vital known as the ‘‘affirmative defense,’’ affected by that legislation, but every health interest of women. I believe whereby an accused physician could es- one of them testified after reading the these are strong reasons to vote cape liability only by proving that he bill and believing that they would have against this bill. or she ‘‘reasonably believed’’ that the been affected by this legislation. I thank the Chair. I yield the floor. so-called banned procedure—whatever I think that only points out the Mr. SMITH addressed the Chair. that procedure is proved to be—was vagueness and the flaws in the drafting The PRESIDING OFFICER. The Sen- necessary to save the woman’s life and of this legislation. In fact, no one ator from New Hampshire. that no other procedure would have knows who would really be affected by Mr. SMITH. Mr. President, what is sufficed. I think it also opens the door this legislation. the pending business? to the prosecution of any doctor who The next point I would like to make The PRESIDING OFFICER. The performs a second or third trimester is that Roe already allows States to pending business is H.R. 1833. abortion for any purpose whatsoever. ban late-term abortions. It clearly al- AMENDMENT NO. 3080 As has been said, there is no health lows States to ban all post-viability (Purpose: To provide a life-of-the-mother exception in this bill at this point. abortions unless necessary to protect a exception) With that, it offers a direct challenge woman’s life or health. And 41 States Mr. SMITH. Mr. President, I send an to both Roe versus Wade and Planned have already done that. So all I can be- amendment to the desk and ask for its Parenthood versus Casey, both of lieve is that the purpose of this bill is immediate consideration. which provide a health exception. to invade a guarantee provided by Roe The PRESIDING OFFICER. The So, if this legislation were law, a versus Wade, and that is to protect the clerk will report the amendment. pregnant woman seriously ill with dia- health of the mother or the life of the The assistant legislative clerk read betes, cardiovascular problems, cancer, mother. as follows: stroke, or any other health-threat- As a matter of fact, my colleagues The Senator from New Hampshire [Mr. ening illness would be forced to carry have made much of a statement made SMITH] proposes an amendment numbered the pregnancy to term or run the risk by an obstetrician/gynecologist, Dr. 3080. that her physician could be challenged Martin Haskell, of Dayton, OH, who in- Mr. DOLE. I ask unanimous consent and have to prove in court, A, what dicated that 80 percent of the late-term that further reading of the amendment procedure he actually used, and B, abortions he performed were so-called be dispensed with. whether or not the abortion partially, elective. I would like to point out that The PRESIDING OFFICER. Without vaginally delivered a living fetus be- just this year Ohio became the 41st objection, it is so ordered. fore the death of that fetus. State to ban all post-viability abor- The amendment is as follows: One of the things that also came for- tions. So, clearly that State has taken ward very clearly in this and is impor- care of whatever it was that Dr. Has- On page 2, at the end of line 9, insert the tant to point out is that any third tri- following: kell was doing by banning all third-tri- ‘‘This paragraph does not apply to a par- mester abortion is virtually always mester abortions. As I said, 40 other tial-birth abortion that is necessary to save used in the case of severe fetal abnor- States have done this. So this legisla- the life of a mother whose life is endangered mality, and the fact is that not always tion is effectively unnecessary. by a physical disorder, illness, or injury, pro- is this fetal abnormality able to be de- The whole focus of this Congress has vided that no other medical procedure would tected early in the pregnancy. Many been to remove the Federal Govern- suffice for that purpose.’’ women undergo sonograms and other ment where it is within the rights of AMENDMENT NO. 3081 TO AMENDMENT NO. 3080 routine medical procedures in the early the State to legislate. Yet this is the Mr. DOLE. I send a second-degree weeks of pregnancy to monitor fetal first time I can remember in this Con- amendment to the Smith amendment development. If a woman is over 35 gress, when the State has a clear right to the desk. years of age, she may also undergo and ability to legislate and, in fact, has The PRESIDING OFFICER. The amniocentesis. These tests are not rou- done so in 41 States, that the Federal clerk will report. tine in women under 35. Ultrasound Government is now saying, no, that is The assistant legislative clerk read could also provide early detection of not enough. We want to legislate feder- as follows: fetal anomalies. But these tests also ally. The Senator from Kansas [Mr. DOLE] pro- add considerable expense and are not Let me touch for a moment on the poses an amendment numbered 3081 to routinely used until late in pregnancy. commerce clause. I believe, and others amendment No. 3080. As a result, some women carry do as well, that this legislation is Mr. DOLE. Mr. President, I ask unan- fetuses with severe birth defects late meaningless under the commerce imous consent that further reading of into pregnancy without knowing it. clause because it would only apply to the amendment be dispensed with. For example, fetal deformities that are patients or doctors who cross State The PRESIDING OFFICER. Without not easy to spot early on in the preg- lines in order to perform an abortion objection, it is so ordered. nancy include: cases where the brain under these specific circumstances, The amendment is as follows: forms outside the skull, or the stomach whatever they may eventually be adju- In the pending amendment, strike all after and intestines form outside the body, dicated to be. So what is the point? the word ‘‘This’’ and insert in lieu thereof

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the following: ‘‘paragraph shall not apply to AMENDMENT NO. 3082 not received final approval as of the date of a partial-birth abortion that is necessary to (Purpose: To clarify certain provisions of law enactment of this Act. save the life of a mother whose life is endan- with respect to the approval and mar- AMENDMENT NO. 3083 TO AMENDMENT NO. 3082 gered by a physical disorder, illness, or in- keting of certain prescription drugs) (Purpose: To clarify the application of cer- jury, provided that no other medical proce- Mr. PRYOR. Mr. President, I have an dure would suffice for that purpose. tain provisions with respect to abortions amendment that I send to the desk at This paragraph shall become effective one where necessary to preserve the life or day after enactment.’’ this time and ask for its immediate health of the woman) consideration. Mrs. BOXER. Mr. President, I send a Mr. DOLE. Mr. President, we now re- The PRESIDING OFFICER. The second-degree amendment to the desk. turn to important legislation to ban a clerk will report the amendment. reprehensible procedure that has no The PRESIDING OFFICER. The The assistant legislative clerk read clerk will report. place in a civilized society. The ban on as follows: the so-called partial-birth abortions The assistant legislative clerk read The Senator from Arkansas [Mr. PRYOR], as follows: passed the House by a vote of 288 to 139 for himself, Mr. CHAFEE, and Mr. BROWN, pro- on November 1. The Senate called for a poses an amendment numbered 3082. The Senator from California [Mrs. BOXER] hearing on the legislation before the proposes an amendment numbered 3083 to Mr. PRYOR. Mr. President, I ask amendment No. 3082. Committee on the Judiciary which was unanimous consent that further read- held on November 17. At the end of the amendment, add the fol- ing of the amendment be dispensed lowing new sentence: ‘‘The prohibition in The testimony before the Judiciary with. section 1531 (a) of Title 18, United States Committee reinforced what we already The PRESIDING OFFICER. Without Code, shall not apply to any abortion per- knew—this is a straightforward and objection, it is so ordered. formed prior to the viability of the fetus, or narrowly crafted bill that bears no sim- The amendment is as follows: after viability where, in the medical judg- ilarity to the caricature offered by At the appropriate place, insert the fol- ment of the attending physician, the abor- those who oppose the bill. lowing new section: tion is necessary to preserve the life of the SEC. . APPROVAL AND MARKETING OF PRE- woman or avert serious adverse health con- Thus, for example, the hearing high- sequences to the woman.’’. lighted what medical authorities have SCRIPTION DRUGS. (a) APPROVAL OF APPLICATIONS OF GENERIC Mr. PRYOR addressed the Chair. already made clear—there is no situa- DRUGS.—For purposes of acceptance and con- The PRESIDING OFFICER. The Sen- tion where the life of a mother is at sideration by the Secretary of an application ator from Arkansas. risk that calls for a partial-birth abor- under subsections (b), (c), and (j) of section Mr. PRYOR. First, I would like to tion. After all, this is a procedure that 505, and subsections (b), (c), and (n) of sec- takes place over several days. In short, tion 512, of the Federal Food, Drug, and Cos- just take a very, very few moments of arguments about protecting the life of metic Act (21 U.S.C. 355 (b), (c), and (j), and the Senate’s time this evening to ex- the mother are merely an attempt to 360b (b), (c), and (n)), the expiration date of plain basically what my amendment scare people and avoid defending the a patent that is the subject of a certification does. I know there will be no vote on under section 505(b)(2)(A) (ii), (iii), or (iv), indefensible. this amendment this evening, Mr. section 505(j)(2)(A)(vii) (II), (III), or (IV), or President. I realize that. I know that Nonetheless, since there is no situa- section 512(n)(1)(H) (ii), (iii), or (iv) of such to accommodate some schedules to- tion where the life of the mother calls Act, respectively, made in an application morrow, it is likely that we will come for a partial-birth abortion, there is no submitted prior to June 8, 1995, or in an ap- back to this legislation late in the reason not to make clear with explicit plication submitted on or after that date in afternoon. language that this legislation would which the applicant certifies that substan- not apply in any situation where the tial investment was made prior to June 8, But having said that, Mr. President, I life of the mother is endangered. I 1995, shall be deemed to be the date on which would like to state that this amend- such patent would have expired under the therefore support the Senator from ment relates to the issue of GATT and law in effect on the day preceding December prescription drugs. I have spoken on New Hampshire, Senator SMITH, in tak- 8, 1994. this issue on several occasions on the ing this issue off the table. (b) MARKETING GENERIC DRUGS.—The rem- floor of the Senate. And I would like, if Mr. President, this is a bill that de- edies of section 271(e)(4) of title 35, United I might, to just take a very few mo- serves overwhelming bipartisan sup- States Code, shall not apply to acts— ments to explain basically what we port. This is our opportunity to show (1) that were commenced, or for which a substantial investment was made, prior to have done and what I plan to speak the American people that we can rise June 8, 1995; and about tomorrow. above the argument that says that (2) that became infringing by reason of sec- When Congress voted on the GATT compassion must give way to a rigid tion 154(c)(1) of such title, as amended by treaty, Mr. President, we did two ideology that refuses to recognize any section 532 of the Uruguay Round Agree- things. First, we extended all patents constraints of decency. ments Act (Public Law 103–465; 108 Stat. from 17 to 20 years in duration. Second, I therefore urge my colleagues to 4983). (c) EQUITABLE REMUNERATION.—For acts we said in the GATT treaty that a ge- support Senator SMITH’s amendment described in subsection (b), equitable remu- neric drug company could market their and to support the bill on final passage. neration of the type described in section product on a 17-year expiration date if I now understand the Senator from 154(c)(3) of title 35, United States Code, as they had already made a substantial Arkansas is going to set these amend- amended by section 532 of the Uruguay investment and were willing to pay a ments aside and offer a different Round Agreements Act (Public Law 103–465; royalty to the particular drug company 108 Stat. 4983) shall be awarded to a patentee amendment. that they were going in competition Mr. PRYOR. Mr. President, with that only if there has been— (1) the commercial manufacture, use, offer with. understanding, I ask unanimous con- to sell, or sale, within the United States of We all considered and all agreed that sent that the amendment offered by an approved drug that is the subject of an ap- this was a fair balance of interests. The the distinguished Senator from New plication described in subsection (a); or treaty, Mr. President, applies in our Hampshire, second-degreed by the ma- (2) the importation by the applicant into country to every person, to every prod- jority leader from Kansas, be set aside. the United States of an approved drug or of uct, to every company and every indus- active ingredient used in an approved drug The PRESIDING OFFICER. Is there try in our country. We thought it was objection? that is the subject of an application described in subsection (a). fair. We thought it was universal. But Mr. SMITH. Reserving the right to (c) APPLICABILITY.—The provisions of this we were wrong. We simply made a mis- object. Just to clarify, that is amend- section shall govern— take. ment No. 3080 and amendment No. 3081 (1) the approval or the effective date of ap- We accidentally left the prescription to amendment No. 3080, is that correct? proval of applications under section 505(b)(2), drug industry out of the picture. Today The PRESIDING OFFICER. That is 505(j), 507, or 512(n), or the Federal Food, there are certain prescription drug the Chair’s understanding. Drug, and Cosmetic Act (21 U.S.C. 355 (b)(2) and (j), 357, and 360b(n)) submitted on or companies that get the patent exten- Mr. SMITH. No objection. after the date of enactment of this Act; and sion, but the GATT loophole shields Mr. PRYOR. Mr. President, I thank (2) the approval or effective date of ap- them from any generic competition. the Senator from New Hampshire. proval of all pending applications that have Why is this, Mr. President?

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18005 First, because we by our own mis- this debate—I will not go on at length we should not interfere with States. take—and we should admit that mis- tonight—is to try and put the woman’s States already control these abortions take; and, by the way, we have the op- face on this issue. We see many times in the late term. portunity to correct that mistake—we my colleague from New Hampshire I have to say, the amendment that failed to have the food, drug and cos- bring out the diagram, and it shows the my friend has offered, I think, is quite metic law of our country comply to the lower part of a woman’s body. It is al- interesting, because all through this GATT treaty language. most as if a woman’s body is a vessel. debate the Senator from California was Second, the Food and Drug Adminis- It does not show the woman’s face. It saying there is no exception, there is tration tried in vain to correct this does not show her anguish when she no exception if there is really a prob- mistake. The U.S. Patent Office tried learns that her baby is in serious trou- lem. And now here we have it. Here we in vain to correct this mistake, but to ble and could even die if she went for- have it, an exception now for life of the no avail because the law was written ward with birth. So it is my intention mother. and we failed to conform the food, to put that face on. I think that is progress. I think that drug, and cosmetic law to the specific The women who came forward at is progress, because when we started, GATT treaty language. that hearing were magnificent in their there was no exception. It was an af- The drug industry is the only indus- courage. I received many other letters firmative defense. My friend kept say- try which enjoys this special protec- from other women who said, ‘‘Please, ing, ‘‘Oh, no, you don’t need an exception under GATT. The American con- Senator BOXER, don’t let them talk tion, you don’t need an exception.’’ We sumers are going to be paying, there- about this as if it doesn’t affect real, went on television and debated this, fore, much more for their drugs as a re- living moms and dads and families who and I said, ‘‘You do not even have an sult, as much, as a matter of fact, $2 to desperately want these children but exception here.’’ $6 billion a year more. who come upon these horrible out- He said, ‘‘It is already in the bill.’’ It was not in the bill. We knew it; If we take Zantac, for example, Mr. comes of pregnancies.’’ President, the world’s best selling drug We deal here with situations in life that is why we slowed this train down, for uclers, we will have to pay a price that we hope never happen to any of us that is why we had hearings. I have offered a second-degree twice as much as we would be paying or our loved ones or anyone at all. We amendment to the amendment of my for a generic competitor. As a matter do not wish these things on anyone: friend, Senator PRYOR. He is trying to of fact, Mr. President, tomorrow, on When a woman, who is so excited about protect the consumers of this country, Wednesday, we will see the drug com- this pending birth of a child, goes to pany that manufactures Zantac—we and I offered an amendment that essen- the physician in the late stages of her tially says that, yes, if we are going to will see that particular company tak- pregnancy and suddenly is told the ing in profits that they did not expect outlaw this procedure—and by the way, most horrible news that the baby’s I do not think we should get into that of $2 to $6 billion a year, unless we cor- brain is growing outside the skull, that rect this outrageous loophole. slippery slope—but if we are going to there are no eyes. My colleague, Sen- There is no conceivable reason why do that, it should apply only to the ator FEINSTEIN, talked about that. we should allow this loophole to relate-term abortion, which is what it is main uncorrected. Mickey Kantor, our These anomalies go along with a great supposed to do, and it clears it up and own U.S. Trade Representative, the threat to the woman’s life if the fetus says, in the medical judgment of the Patent Office, and the FDA all agree is carried to term. attending physician, the abortion is My colleagues say nobody ever talks that it should be fixed. Even the drug necessary for the life of the woman or about baby. Yes, I want to talk about companies admit that it was all a mis- to prevent serious adverse health con- baby. This is a baby. This is a late- take. sequences to the woman. Mr. President, we think that our term abortion. This is an emergency I feel these amendments are moving cause is correct, and on behalf of Sen- medical procedure, and I hope that the in the right direction, but the whole ator CHAFEE of Rhode Island and Sen- Senate will not go down the slippery issue of telling doctors what to do, of ator BROWN of Colorado, I submit this slope of outlawing a procedure. interfering in an emergency medical amendment this evening. We will be Where do we stop? Senator SIMON procedure has no place in the U.S. Sen- talking about this amendment and said yesterday he has heard about some ate. To quote a woman whose testi- what it does tomorrow. But I urge my procedures that are used for brain tu- mony I read yesterday, Coreen colleagues to remember: Congress mors and he has questions about them. Costello, she said so beautifully the made a mistake. It led to consumers We are not a medical school here. As last thing she wants to see happen being forced to subsidize an unjustified Senator KENNEDY said, we should not when a family is in crisis like this is multibillion-dollar windfall to a few be Senators practicing medicine with- for the Government to be involved. undeserving companies. And tomorrow, out a license. We should leave that to It is such a tragedy, and these women we will have our sole opportunity to do physicians. And physicians are split. who have gone through this were so el- the right thing and correct this mis- The physicians that came before the oquent. No matter what your view on a take. Judiciary Committee, some said this is woman’s right to choose, if you will I yield the floor. a necessary procedure, we need it to simply read the testimony—and I hand- Mrs. BOXER addressed the Chair. save the life of a mother, protect her ed it out today to my colleagues for The PRESIDING OFFICER (Mr. health and her fertility. Others said it them to read her words—it seems to me GRAMS). The Senator from California. is not. outrageous that politicians would in- Mrs. BOXER. Mr. President, yester- I say, let us be conservative. Even if sert themselves into matters that im- day I spoke, I thought, at great length several physicians—and their qualifica- pact a family, matters like this. about this bill. For the first time, it tions were never questioned by the As we get back to this bill, and I un- would criminalize a medical procedure committee—say it could mean a wom- derstand we will be back to it tomor- that saves lives. The important part, I an’s life, let us not take away her op- row evening about 5, I am going to thought, of the Judiciary hearing was tion to have a safe conclusion to a very bring out those photos of those women that we had testimony from physicians tragic event because of some political who have shared their stories with the who said clearly it is sometimes ex- agenda. We have a lot of work to do Senate and want to share it with the tremely risky to use other procedures. around here. We have a lot of debate to American people and let us get this Cesarean sections or induced labor do around here with the budget, where issue out there. could cause the woman to bleed to we are seeing looming ahead on Decem- Let us not outlaw a medical proce- death, to have serious health con- ber 15 another shutdown, another cri- dure that doctors have testified is nec- sequences even if she pulled through, sis, while we are taking up a bill to tell essary to save the life of a mother and, and sometimes those consequences im- physicians what they cannot do. in fact, if it is outlawed, could lead to pact on her ability to have children at It seems to me a very dangerous her family losing her. A lot of these a later date. course for Government, particularly a women have other healthy children. What I did last night, and what I in- Republican Congress that says we Let us think about those babies as tend to do throughout the course of should not interfere in local decisions, well.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18006 CONGRESSIONAL RECORD — SENATE December 5, 1995 So, Mr. President, I shall not go on that ‘‘There are absolutely no obstet- should be banned. For the health of the much longer at all tonight because, rical situations encountered in this mothers and the health or our Nation, again, it looks like we are delaying country which require a partially de- we should pass the partial-birth abor- this debate, and that is fine with me, livered human fetus to be destroyed to tion ban bill. because, as far as I am concerned, we preserve the life of the mother.’’ And Mr. SMITH. Mr. President, some of do not need this law. This is an intru- that is what I would think. If you are the debate and comments made on the sion into the hospital room. This is a going to put the mother through deliv- floor on this issue never cease to amaze criminalization of a procedure, and, as ery of a 24- or 26-week-old or even a me. The distinguished Senator from far as I am concerned, it has no place full-term fetus, and the fetus is almost California, Senator FEINSTEIN, a few here at all. We are not doctors, and we completely delivered, except for the moments ago on the floor of the Sen- are not God. We are U.S. Senators. We head, why not just finish the birth? ate, made the statement that the doc- should leave medical decisions up to I will tell you why. Because once the tors, in the medical testimony that she medical doctors, and we should leave head is out, it is a child, a human being had seen or heard, said that partial- these tragic matters to the families by legal standards, with all the con- birth abortion procedures do not exist. and let them face it with their God and stitutional rights that come with being If they do not exist, then why is there with each other. alive and then it cannot be killed. But a problem in banning it? Maybe the I yield the floor. by common sense, not just conserv- Senator from California, Senator FEIN- PRIVILEGE OF THE FLOOR ative sense, that fetus is not any less STEIN, could come back and explain Mr. SMITH. Mr. President, I ask human just because the head is still in that to me. If the procedure does not unanimous consent that four members the birth canal. And I found it ironic exist, as she says, then there ought not of my staff, Steven R. Valentine, Tom that, if the head does slip out and a to be any problem banning something Hodson, Ed Corrigan, and Noah Silver- live baby is born, the physician calls that does not exist. Again, these things never cease to man, be granted the privilege of the this a complication. floor simultaneously during the consid- I realize that, for parents who have amaze me. Also, Senator BOXER of Cali- eration of H.R. 1333, the Partial-Birth been told their long-anticipated child fornia, a few moments ago again re- Abortion Ban Act. will be deformed or has little chance of ferred to the case of Coreen Costello, The PRESIDING OFFICER. Without living, this is a horrendous decision. who spoke very passionately—and it objection, it is so ordered. And some may decide to abort. This was a very compelling story—before the committee of her terrible tragedy Mr. BURNS. Mr. President, I rise bill does not restrict late-term abor- of losing a child. And, again, Mr. Presi- today to urge my colleagues to pass tions—only this method of doing it. the partial-birth abortion ban. I have I have read some of the personal ex- dent, let me repeat that Miss Costello’s looked at the testimony presented be- periences of families who have chosen abortion was not a partial-birth abor- fore the Judiciary Committee, I have this option, and in the cases where the tion. So that is not what we are talk- gotten letters and phone calls, and I fetus developed organs outside the ing about here today. We are talking about partial-birth have come to the conclusion that this body, the recurring sentiment is that abortions, when a child is allowed to is not about being pro-life or pro-abor- that baby would never have survived come through the birth canal, with the tion. It is not even about a woman’s outside the mother’s womb. If that is choice. Laws have already established exception of the head, and then is the case, why then should the fetus be that they have that choice. killed with the use of scissors and a killed while the head is still in the This is about a procedure—a proce- catheter. That is what we are talking dure that I do not know how anyone uterus? about—no other type of abortion. Some say this is the safest procedure can perform or even condone, once you I have made it very clear, and I think for the mother. But even the doctor know what it is. We are talking about most of my colleagues know, that I op- who wrote ‘‘Abortion Practices,’’ the the practice of late-term abortion, but pose abortion. I believe abortion takes Nation’s most widely used textbook on a specific procedure in which the fetus an innocent human life, no matter abortion standards and procedures, dis- is turned around so that it is delivered what stage of life it is in, whether the putes this. Dr. Hern states that he feet first. And before the head is deliv- day after conception or the day of ered, while it is still in the birth canal, could not imagine a circumstance in birth. But that is not the issue today. the physician makes a hole with scis- which the partial-birth abortion proce- The issue here is partial-birth abor- sors in the base of the skull and suc- dure would be the safest. And after all, tion. tions out the brains. And the majority I think that is what we should be aim- Yesterday, we learned on the floor of of the time, the baby is alive when this ing for. the Senate, even though information I am not doubting for an instant that procedure is performed. The heart is was presented to the contrary, that beating, the limbs are functioning, carrying to term or delivering a baby when the witnesses came to testify be- they feel, they react, they may even that has little to no chance of survival fore Senator HATCH’s Judiciary Com- have a good chance of living if they had would be difficult. And that’s an under- mittee on this matter, there were no been allowed to be fully born. statement. You would need the mental doctors called to testify, or no doctors To me this just sounds repulsive, ab- fortitude of Jeannie French, whose tes- who testified that had ever performed a solutely inhumane. And it makes me timony before the Senate Judiciary partial-birth abortion, and there were wonder, if they were doing this to dogs Committee was inspiring. She deliv- no women who ever had one who testi- or horses, whether we would have more ered by C-section twins, one of which fied. And we asked Dr. Haskell, who support to ban this procedure. My she knew would not live. Against her performed a thousand of them, partial- daughter, who is a third year medical doctor’s recommendation to abort, she birth abortions, to come, and he re- student, assures me that I would prob- opted to go ahead with delivery and fused. No women who had partial-birth ably find most surgeries pretty hard to here little Mary’s vital organs were abortions came. So it is interesting stomach. But even she agrees that this used to save the lives of two children. that Senator FEINSTEIN says that par- procedure is intolerable. Some may not think that is heroic, but tial-birth abortion procedures do not And I find it interesting that the I would bet you those two children are exist when Dr. Haskell has performed American Medical Association’s Coun- glad that Jeannie chose to deliver 1,000 of them. Maybe somebody can ex- cil on Legislation has unanimously Mary. plain that to me with some logic. But supported this bill. The argument is Mr. President, our debate here today it beats me, Mr. President. You have a made that these procedures are done to is not a debate on choice. It is not even doctor who is an abortion doctor, who save the life of the mother. Yet, even a debate on abortion. Let no one con- has performed 1,000 partial-birth abor- some physicians who specialize in this vince you of that. The debate is wheth- tions, and then the Senator from Cali- procedure claim otherwise. Dr. Martin er or not this procedure, a procedure fornia comes to the floor and says it Haskell conceded that 80 percent of his that most physicians do not approve of, does not exist. I will leave that to my late-term abortions were elective. and that most agree is not safe for the colleagues to decide what the facts are. Dr. Pamela Smith, up at Mt. Sinai mother—certainly not safe for the Mr. President, the amendment that I Hospital in Chicago, recently wrote fetus—should be legal. I believe it submitted a short time ago, which was

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18007 second-degreed by the majority leader, testimony of a doctor who has per- other than that particular woman de- Senator DOLE, would make a very ex- formed 1,000 of them. cides to have that abortion because— plicit exception to the ban on partial- So the first part of the amendment is for whatever. ‘‘I do not want a child, I birth abortions for cases in which the designed to make it very clear and cer- do not want a child with Down’s syn- life of the mother is in danger. It is tain that the exception only applies to drome,’’ or whatever. Mr. President, 80 very specific. The language could not cases where the mother’s life is genu- percent of the cases are elective, not be clearer. inely physically threatened by some some horrible threat to the life or the To be perfectly candid about it, Mr. physical disorder, illness, or injury. health of the mother at all. President, I do not believe that this Let me also state that, yesterday, The second part of this amendment is amendment is really necessary. In the when we discussed this process, this intended to ensure that in such dire first place, there was no medical evi- brutal procedure, we discussed the fact emergencies, a partial-birth abortion dence—no medical evidence—presented that this baby—this is a late-term could only be performed if it were the at the November 17 Judiciary Com- baby, Mr. President, as you know, any- medical procedure, the only medical mittee hearing that the partial-birth where from the fifth month of gesta- procedure available to save the life of abortion procedure, that brutal proce- tion to the ninth—is prevented, phys- the mother. I support that. I have no dure that has been described a number ically restrained, from completely problem supporting it because I have of times here on the floor, which is exiting the birth canal. The baby is no problem in understanding the fact banned by this bill, is ever necessary to turned in the uterus with forceps so that there is not any need, absolutely save the life of the mother. There was that it comes out feet first, and the no medical need that anyone has ever no testimony to that effect. baby is then restrained and not allowed testified to, that says that this is nec- In the second place, Mr. President, to be completely born, if you will, essary to protect the life of the moth- the bill already includes an affirmative where it is then killed by using an inci- er. defense for cases in which the doctor sion with scissors and a catheter which Let me say why. How would restrain- reasonably believes the mother’s life is sucks the brains from the child. ing a child from coming through the in danger. For all intents and purposes, We heard very compelling testimony birth canal, that could come through this affirmative defense provision, at the hearing. We recited it here on the birth canal, enhance the life or the found in subsection (e) of the bill, is a the floor. There was testimony of a health of the mother? I do not under- life-of-the-mother exception. nurse who had witnessed this and had stand that. I do not think any reason- But that did not satisfy a number of become so upset by it that she left the able person could understand it. We my colleagues because they expressed clinic because, as she stated it, after have had testimony that in the case of to me their discomfort with the affirm- looking into the ‘‘angelic face’’ of this the hydrocephalic children, where the ative defense approach and asked me to child that was aborted in this fashion, head is enlarged with fluids, that that consider placing a more explicit, more it was more than she could bear. She can be drained so that the head can be clear, if you will, life-of-the-mother ex- was horrified. We have heard a lot a normal size and can be allowed to ception in the bill, because I support a about the life of the mother and the come through the birth canal. life-of-the-mother exception. Even eyes of the mother. We looked into this So we are talking about a brutal though we cannot find any testimony young woman’s eyes, too, this mother practice here, in 80 percent of the cases anywhere in the record that I know of two daughters, and she was horrified elective, and nothing to do with the life of the mother. of—no one has produced it yet—that it by what she saw, that this child, con- Be that as it may, I agree with my is necessary to do it to save the life of trary to what has been stated again on colleagues. I agree with the Senator the mother, I am still willing to put the floor of the Senate over and over from California that a life-of-the-moth- that exception there. That is what I again, this child’s life was terminated er exception should be there, even have done with the amendment that I for one reason—one reason, Mr. Presi- though I disagree with her that there is have offered. dent. This child had Down’s syndrome, a threat to the life of the mother. At I do not believe it is necessary be- so somebody made a decision to take least I have not seen any evidence to cause the affirmative defense provision the life of this child who had Down’s that in terms of testimony, but even provides for that exception, and the syndrome. that does not mean it cannot happen in amendment now before the Senate I remind my colleagues, not that the future. I am willing, certainly will- would place an explicit life-of-the- they need reminding, there are a lot of ing to protect the life of the mother. mother exception into subsection (a) of very productive people in our society Mrs. BOXER. Would my friend yield the bill. I am more than happy to do today who happen to have Down’s syn- about timeframe? I would be appre- that. I am more than happy to clarify drome. There is a television show in- ciative, if my friend would yield 5 min- for my colleagues. The issue is the life- volving people with Down’s syndrome. utes, I will finish my remarks for the of-the-mother exception here, even The point I made yesterday, I guess evening and leave him the rest of the though there was no evidence pre- we really did not need the Americans evening if we could agree not to take sented at the hearing that a mother’s with Disabilities Act if we are going to any other action or lay down any other life was threatened. No one testified to terminate all the people who are going amendments. that effect. But I am willing to do that to be born disabled. I guess we could Mr. SMITH. I know of no other because I think it is fair, and col- have it for those people who might be amendments on my side. I certainly leagues of mine have expressed the injured during the course of their life- will not be offering any, and I do not concern that we clarify the language, time. If anybody is going to be born intend to go very long. and that is what I have done. disabled or in any way not normal, if I am happy to yield to the Senator. So the language of this life-of-the- you will, we would not need to have Mrs. BOXER. I know my friend and I mother exception amendment is clear, any coverage for them because we have different things pulling on us. Mr. President. It states, ‘‘The ban on could just elect to terminate the preg- Mr. SMITH. I am happy to yield to partial-birth abortions shall not apply nancy. the Senator. to a partial-birth abortion that is nec- I was accused—because I was horri- Mrs. BOXER. I just want to say that essary to save the life of a mother fied by that—I was accused of playing we are going to have a very interesting whose life is in danger by a physical God. I do not know where that comes debate about the competing amend- disorder, illness, or injury, provided from. It would seem to me someone ments that will come before the Senate that no other procedure would suffice who chooses to terminate a pregnancy on this issue. One is Senator SMITH’s for that purpose.’’ simply because a child has Down’s syn- and Senator DOLE’s amendment, which That is very clear and explicit. Even drome, perhaps they may be playing they call a life-of-the-mother excep- though Senator FEINSTEIN says there God. tion. The other is the Boxer amend- are no such procedures as partial-birth Again, the issue here is 80 percent of ment, which makes a life-of-the-moth- abortions, it is interesting that they the cases—not 20, not 10, not 5, not 1, in er exception and a serious adverse also want an exception to a procedure 80 percent of the cases—this is an elec- health consequences exception to the that does not exist, and they ignore the tive procedure for no other reason woman.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18008 CONGRESSIONAL RECORD — SENATE December 5, 1995 I have to just say to my colleagues if whose life is endangered by a physical any exceptions. They want abortion on they may be watching, and I will dis- disorder, illness, or injury, provided demand for whatever reason, mon- cuss this with them at great length, that no other medical procedure would goloid child, Down’s syndrome child, a that the Smith-Dole amendment which suffice.’’ child with a cleft palate, a female is stated as if it is, in fact, an excep- The focus of the remarks of Senator child, a child with blue eyes, whatever. tion, I have now had an opportunity to BOXER is physical disorder, a complica- I call on any one of my colleagues read it. I want everyone to know that tion resulting from a pregnancy; if it is who is opposed to me on this issue to it is really not an exception for the life not a physical disorder, what is it? come down to the floor and say to me, of the mother because what it says is, What is it? Of course it covers that. ‘‘I will not support an abortion, par- essentially, that this procedure will be The Senator knows it. You cannot tial-birth or otherwise, because it was banned, except it will not apply to par- make it any clearer. We could play a female child.’’ Come down to the tial-birth abortion that is necessary to word games, but it is very, very clear. floor and state that right now. I think save the life of a mother whose life is Again, the argument is so unbeliev- you will find the silence is quite deaf- endangered by a physical disorder, ill- able here because, A, they use the line ening, because it is abortion on de- ness, or injury. that the partial-birth abortion proce- mand. But, and this is the key, it is I say to my friend, that is not a life- dure does not exist, yet they still say abortion on demand in the most hor- of-the-mother exception. That is a pre- we should not have to ban it. rible way that any abortion could ever existing situation. So, yes, if a woman If it does not exist, what are they be performed. had diabetes or some other disease, worried about the life-of-the-mother In spite of the fact that all of us have different opinions about when life be- there would be an exception, but if, in exception for? The truth of the matter gins—and everyone knows my position fact, the birth endangered her life is, of course, it exists. There are 1,000 on that—that is not the issue here, my there would be no exception. that have been performed by Dr. Has- So this so-called exception, life-of- kell alone. There are at least one or position on when life begins. That is not relevant today. What is relevant the-mother exception that has been of- two that we know of, roughly, per day, today in this discussion is whether or fered by my friend from New Hamp- that are still being performed in this not we have the right, morally or oth- shire with Senator DOLE, is not—let me country. Some people say that is not erwise, to kill an unborn child who is repeat, is not—in any way a life-of-the- very many. Well, that is somewhere be- held in the hands of this doctor with mother exception. tween 365 and 700 or 750. How many the exception of the head. Three or We have life-of-the-mother excep- physicians who might cure cancer are four more inches and that doctor could tions in many other bills that deal in that group? How many future Presi- place that tiny little head into his with Medicaid funding, and they never dents are in that group? Future Sen- hand and cradle it. But, instead, he use this language. It just simply says ators—perhaps from California or New turns that baby over and executes him, ‘‘except if the life of the mother is Hampshire? Who knows, maybe even with no novocaine, no anesthetic, noth- threatened.’’ No such thing as ‘‘if she is from Minnesota? Who knows who is in ing— with a pair of scissors and a cath- endangered by a physical disorder, ill- that group? It is interesting. We have heard on eter, a child. ness, or injury.’’ That is what this is about. That is the floor here that President Clinton Let me repeat, most of the women why, when this bill came to the floor will veto this horrible bill as soon as he would not fall in this category. for a vote, even without the language gets to it, this bill to ban partial-birth The first fight we had, or argument that I have now crafted for the life-of- abortions that execute innocent chil- or debate, was over the issue of the the-mother exception—but with lan- dren, three-quarters of the way out of life-of-the-mother exception in the bill guage that perhaps was not as clear but the womb, but we heard it proudly as it was referred here to the Senate. did have the life-of-the-mother excep- My colleague from New Hampshire said stated on the floor that the President tion—even with the old language, it there is a life-of-the-mother exception, is going to veto this bill. passed overwhelmingly in the House. I might say to the President of the and he insisted on it. We debated it Why? Why did a pro-choice Republican United States—I know he is not listen- over and over again. I said there was woman like SUSAN MOLINARI vote for ing tonight, probably—but, if he is, I not; he said there was. it? Why did a liberal Democrat like Now, today, he and the majority would like to have the opportunity to PATRICK KENNEDY, son of Senator TED leader say, oh, you were right, there have 15 minutes in the Oval Office to KENNEDY, vote for it? Because it is rea- was not a life-of-the-mother exception. discuss this bill with him, because I do sonable. Because it is sickening to Here it is. And this one is not a life-of- not believe, if he looked at the facts, think of the fact that we would do this the-mother exception; it is only an ex- that he would veto it because this proc- to our children here in America. That ception for a woman who comes to the ess is so horrible that I think we have is the reason. This is not a radical, ex- birth with a preexisting condition or more important things to do in Amer- tremist position. The radicals and the injury. ica than do that. extremists are the people who do this. So we will make that debate clear, I Let me just conclude on this point So, I urge my colleagues to oppose hope tomorrow, or we can get more this evening, again, on the amendment. Senator BOXER’s amendment whenever into this issue. This amendment is designed to assure we vote on it, tomorrow or whenever. My goodness, let us not endanger a that no baby will be subjected to this Because basically it provides the op- woman who has no preexisting condi- brutal procedure unless this partial- portunity to drive a truck through this tion such as diabetes. Let us not take birth abortion procedure is the only whole process. It is a killer amend- away an option for her to have a safe way to save the mother, in other ment. It might as well be called the outcome of a tragic situation. words, in a true case of self-defense. partial-birth abortion-on-demand I hope that Members will, in fact, Everyone has the right to self-defense. amendment, because it is designed to vote for the Boxer amendment and not In sum, I believe this is very care- gut the bill. for the Smith-Dole. I yield the floor. fully crafted language. It is fully ade- When you say ‘‘health,’’ you say any- Mr. SMITH. Mr. President, I might quate to provide the explicit life-of- thing. What is health? A sore toenail? just respond briefly. It is amazing what the-mother exception to the bill’s ban A sore knee? I mean, it is a totally gut- you can do with semantics. This lan- on partial-birth abortions. And those ting amendment. If you want to gut guage is as clear as it can possibly be. people who are now taking the words the bill, then you would vote for Boxer. This paragraph is exactly the line—re- and fiddling with the words a little bit, If you want abortion on demand, if you ferring back to the paragraph in terms trying to make things out of the words want to abort a perfectly normal, of the issue of whether or not you can that are not there—do you know what healthy child at 9 months because that have a partial-birth abortion—this the real issue is here, Mr. President? It child has blue eyes, or is a female, or a paragraph does not apply to a partial- is not that they object to this life-of- male, or whatever, then vote for Boxer. birth abortion. the-mother exception. No, it is not That decision is quite easy. Here is the language: ‘‘That is nec- that. Their real problem is they do not But, again, the health-of-the-mother essary to save the life of a mother want any exceptions. They do not want issue is a phony issue. It is not the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18009 issue at all. Everyone knows it. We The bill is aimed at the basic method prac- ‘‘And I’ll be quite frank: most of my abor- have had this debate here before. We ticed by Dr. Martin Haskell of Dayton, Ohio, tions are elective in that 20–24 week have had the votes before. It has al- and by the late Dr. James McMahon of Los range....In my particular case, probably Angeles, among others. The Los Angeles 20% [of this procedure] are for genetic rea- ways been voted down. So the issue is, Times accurately described this abortion sons. And the other 80% are purely elective.’’ if you want to truly protect the life of method in a June 16 news story: Recently, during testimony in a lawsuit in the mother, then you would vote for ‘‘The procedure requires a physician to ex- Ohio, Dr. Haskell was asked to list some of the Smith-Dole amendment because tract a fetus, feet first, from the womb and the medical problems of women on which that is exactly what it does, it protects through the birth canal until all but its head he’d performed second-trimester abortions. the life of the mother. is exposed. Then the tips of surgical scissors Among the conditions he listed was ‘‘agora- are thrust into the base of the fetus’ skull, phobia’’ (fear of open places). Mr. President, Douglas Johnson, leg- Moreover, in testimony presented to the islative director of the National Right and a suction catheter is inserted through the openings and the brain is removed.’’ Senate Judiciary Committee on November to Life Committee, has prepared an In 1992, Dr. Haskell wrote a paper on this 17, ob/gyn Dr. Nancy Romer of Dayton (the outstanding, comprehensive analysis of abortion method. The paper (‘‘Dilation and city in which Dr. Haskell operates one of his H.R. 1833. It is entitled ‘‘The Facts On Extraction for Late Second Trimester Abor- abortion clinics) testified that three of her Partial-Birth Abortions.’’ For the ben- tion’’) describes in detail, step-by-step, how own patients had gone to Haskell’s clinics 1 efit of my colleagues, I ask unanimous to perform the procedure. for abortions ‘‘well beyond’’ 4 ⁄2 months into pregnancy, and that ‘‘none of these women consent that this document be printed Dr. Haskell wrote that he ‘‘routinely performs this procedure on all patients 20 had any medical illness, and all three had in the RECORD. through 24 weeks LMP [i.e., from last men- normal fetuses.’’ There being no objection, the mate- strual period] with certain exceptions’’ [41⁄2 Dr. James McMahon voluntarily submitted rial was ordered to be printed in the to 51⁄2 months]. He also wrote that he used to the House Judiciary Constitution Sub- RECORD, as follows: the procedure through 26 weeks [six months] committee a breakdown of a self-selected sample of 175 partial-birth abortions that he THE FACTS ON PARTIAL-BIRTH ABORTIONS ‘‘on selected patients.’’ Dr. McMahon used performed for what he called ‘‘maternal indi- (By Douglas Johnson) essentially the same procedure to a much later point—even into the ninth month. (Dr. cations.’’ Of these, the largest single cat- The Partial-Birth Abortion Ban Act (HR McMahon died of cancer on Oct. 28). egory of ‘‘maternal indications’’—39 cases, or 1833) was introduced in Congress on June 15, How many partial-birth abortions are per- 22% of the total sample—were for ‘‘depres- 1995. From that day on, many opponents of formed? sion.’’ the bill—including the National Abortion Nobody knows. Pro-abortion groups claim Dr. McMahon’s self-selected sample of and Reproductive Rights Action League that ‘‘only’’ 450 such procedures are per- ‘‘fetal indications’’ cases showed he had per- (NARAL), Planned Parenthood, and the Na- formed every year. But the practices of Dr. formed nine of these procedures for ‘‘cleft tional Abortion Federation—have manufac- Martin Haskell and the late Dr. James palate.’’ tured and disseminated blatant misinforma- McMahon alone would approximate that fig- Even though this data is cited in the offi- tion regarding partial-birth abortions and ure, and press reports indicate that other cial report of the committee, when NARAL about the bill. Some of this misinformation abortionists also utilize the procedure. President Kate Michelman was asked at a has been adopted and widely disseminated by Both Haskell and McMahon have spent November 7 press conference about some journalists, columnists, editorialists, years trying to convince other abortionists ‘‘arguments...that these and lawmakers. This feature summarizes key of the merits of the procedure. That is why procedures...are given for depression or facts on partial-birth abortions and on HR Haskell wrote his 1992 instructional paper. cleft palate,’’ Ms. Michelman responded, 1833. For additional documentation, contact For years, McMahon was director of abortion ‘‘That is...not only a myth, it’s a lie.’’ Reporter Karen Tumulty wrote an article the NRLC Federal Legislative Office at (202) instruction at the Cedar Sinai Medical Cen- about late-term abortions, based in large 626–8820. ter in Los Angeles. It is impossible to know part on extensive interviews with Dr. What is the Partial-Birth Abortion Ban how many other abortionists have adopted McMahon and on direct observation of his Act (HR 1833)? the procedure, without choosing to write ar- practice, which appeared in the Los Angeles The Partial-Birth Abortion Ban Act (HR ticles or grant interviews on the subject. The Times Magazine (January 7, 1990). She con- 1833) is a proposal currently under consider- New York Times reported in a Nov. 6, 1995 ation in Congress, which would place a na- cluded: news story about the bill: ‘‘If there is any other single factor that in- tional ban on use of the partial-birth abor- ‘‘‘Of course I use it, and I’ve taught it for flates the number of late abortions, it is tion procedure (except when a doctor could the last 10 years,’ said a gynecologist at a youth. Often, teen-agers do not recognize the show that he ‘‘reasonably believed’’ that the New York teaching hospital, who spoke on first signs of pregnancy. Just as frequently, procedure would prevent the death of a preg- the condition of anonymity. ‘So do doctors they put off telling anyone as long as they nant woman, and that no other medical pro- in other cities.’’’ can.’’ cedure would suffice). There are 164,000 abortions a year per- (Dr. McMahon used the term ‘‘pediatric in- The bill would ban abortions that are performed after the first three months of preg- dications’’ to refer to abortions performed on 1 formed by an abortionist (1) delivering a liv- nancy, and 13,000 abortions annually after 4 ⁄2 these young mothers.) ing fetus/baby into the vagina, and then (2) months, according to the Alan Guttmacher In 1993, the then-executive director of the killing him or her. The bill specifically de- Institute (New York Times, July 5 and No- National Abortion Federation (NAF) distrib- fines a ‘‘partial-birth abortion’’ as ‘‘an abor- vember 6, 1995), which should be regarded as uted an internal memorandum to the mem- tion in which the person performing the conservative estimates. bers of that organization which acknowl- abortion partially vaginally delivers a living For what reasons are partial-birth abor- edged that such abortions are performed for fetus before killing the fetus and completing tions performed? ‘‘many reasons’’; the delivery.’’ Abortionists who violate the The Planned Parenthood Federation of ‘‘There are many reasons why women have law would be subject to both criminal and America recently issued a press release that late abortions: life endangerment, fetal indi- civil penalties, but no penalty could be ap- asserted that the procedure is ‘‘done only in cations, lack of money or health insurance, plied to the woman who obtained such abor- cases when the woman’s life is in danger or social-psychological crisis, lack of knowl- tion. in cases of extreme fetal abnormality.’’ edge about human reproduction, etc.’’ [em- What is the Status of the Bill? Many reporters, commentators, and mem- phasis added] The Partial-Birth Abortion Ban Act (HR bers of Congress have accepted such asser- Likewise, a June 12, 1995, letter from NAF 1833) was passed by the House of Representa- tions uncritically and publicly disseminated to members of the House of Representatives tives on November 1 by a vote of 288 to 139. them as ‘‘facts.’’ noted that late abortions are sought by, As of November 28, the bill is awaiting ac- Yet, the claim that partial-birth abortion among other, ‘‘very young teenagers . . . tion by the full U.S. Senate, which could procedures are done only (or mostly) in life- who have not recognized the signs of their occur as early as December 4. endangerment or grave-fetal-disorder cases pregnancies until too late,’’ and by ‘‘women The bill strongly opposed by pro-abortion cannot be reconciled with many documents in poverty, who have tried desperately to act advocacy groups and by their Senate allies, and reliable reports that are readily avail- responsibly and to end an unplanned preg- who will attempt to amend it to death—for able. nancy in the early stages, only to face insur- example, by a proposed amendment to allow In Dr. Haskell’s 1992 instructional paper, mountable financial barriers.’’ partial-birth abortions to be performed for he wrote that he ‘‘routinely performs this True, some partial-birth abortions involve ‘‘health’’ reasons. Legally, with reference to procedure on all patients 20 through 24 babies who have grave disorders that will re- abortion, ‘‘health’’ is a term that covers weeks’’ (41⁄2 to 51⁄2 months). In 1993, after sult in death soon after birth. But these un- emotional ‘‘well-being.’’ Thus, addition of a NRLC’s publicizing of Dr. Haskell’s paper en- fortunate members of the human family de- ‘‘health exception’’ would in practice allow gendered considerable controversy, the serve compassion and the best comfort-care unrestricted use of the partial-birth abortion American Medical News—the official news- that medical science can offer—not a scissors procedure. paper of the AMA—conducted a tape-rein the back of the head. In some such situa- President Clinton opposes the bill. corded interview with Dr. Haskell con- tions there are good medical reasons to de- How is a Partial-Birth Abortion Per- cerning this specific abortion method, in liver such a child early, after which natural formed? which he said: death will follow quickly.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18010 CONGRESSIONAL RECORD — SENATE December 5, 1995 Is the baby already dead before she is tions in 1993. In testimony before the Senate he first learned of the method when a col- pulled feet-first into the vagina? Judiciary Committee (Nov. 17), Mrs. Shafer league In his 1992 paper explaining step-by-step described in detail the first of the three pro- . . . described very briefly over the phone how to perform this type of abortion, Dr. cedures—which involved, she said, a baby to me a technique that I later learned came Martin Haskell wrote that he performs the boy at 261⁄2 weeks (over 6 months). According from Dr. McMahon where they internally procedure ‘‘under local anesthesia’’ [empha- to Mrs. Shafer, the abortionist. grab the fetus and rotate if and accomplish— sis added], which would have no effect on the ‘‘...delivered the baby’s body and the be somewhat equivalent to a breach type of baby/fetus. Nevertheless, since HR 1833 was arms—everything but the head. The doctor delivery.’’ introduced in June, many critics of the bill kept the baby’s head just inside the uterus. Are the drawings of the procedure cir- have insisted that the unborn babies are The baby’s little fingers were clasping and culated by NRLC accurate, or are they mis- killed by anesthesia given to the mother, unclasping, and his feet were kicking. Then leading? prior to being ‘‘extracted’’ from the womb. the doctor stuck the scissors through the At a June 15, 1995, public hearing before For example, syndicated columnist Ellen back of his head, and the baby’s arms jerked the House Judiciary Subcommittee on the Goodman wrote in November that, based on out in a flinch, a startle reaction, like a baby Constitution, Dr. J. Courtland Robinson, a her review of statements by supporters of does when he thinks that he might fall. The self-described ‘‘abortionist’’ who testified on the bill, ‘‘You wouldn’t even know that anes- doctor opened up the scissors, stuck a high- behalf of the National Abortion Federation, thesia ends the life of such a fetus before it powered suction tube into the opening and was questioned about the drawings by Con- comes down the birth canal.’’ sucked the baby’s brains out. Now the baby gressman Charles Canady (R–Fl.). Mr. Can- Likewise, Kate Michelman, president of was completely limp.’’ ady directed Dr. Robinson’s attention to the the National Abortion and Reproductive Since the baby is usually not dead before drawings, which were displayed in poster size Rights Action League (NARAL), said at a being removed from the womb, does the baby next to the witness table. Dr. Robinson Nov. 7 press conference, ‘‘These experts have experience pain? Yes, according to experts agreed with Mr. Canady’s statement that made it very clear that the fetus undergoes such as Professor Robert White, Director of they were ‘‘technically accurate,’’ and added: demise before the procedure begins. And be- the Division of Neurosurgery and Brain Re- ‘‘That is exactly probably what is occur- cause of the anesthesia, which is, you know, search Laboratory at Case Western Reserve ring at the hands of the two physicians in- something like 50 to 100 times what a fetus School of Medicine, who testified before the volved.’’ [Transcript, page 80.] can withstand, because it’s given according House Judiciary Constitution Sub- Moreover, American Medical News (July 5, to the weight of the woman.’’ committee: ‘‘The fetus within this time 1993) reported: ‘‘Dr. [Martin] Haskell said the However, according to testimony presented frame of gestation, 20 weeks and beyond, is drawings were accurate ‘from a technical to the Senate Judiciary Committee (Nov. 17) fully capable of experiencing pain.’’ After point of view.’ But he took issue with the by the American Society of Anesthesiol- analyzing the partial-birth procedure step- implication that the fetuses were ‘aware and ogists, such claims have ‘‘absolutely no basis by-step for the subcommittee, Prof. White resisting.’ ’’ in scientific fact.’’ The ASA says that re- concluded: ‘‘Without question, all of this is a Professor Watson Bowes of the University gional anesthesia (used in many partial-birth dreadfully painful experience for any infant of North Carolina at Chapel Hill, co-editor of abortions and most normal deliveries) has no subjected to such a surgical procedure.’’ the Obstetrical and Gynecological Survey, effect on the fetus. General anesthesia has Dr. Harlan R. Giles, a professor of ‘‘high- wrote in a letter to Congressman Canady: some sedating effect on the fetus, but much risk’’ obstetrics and perinatology at the ‘‘Having read Dr. Haskell’s paper, I can as- less than on the mother; even pain relief for Medical College of Pennsylvania, performs sure you that these drawings accurately rep- the fetus is doubtful, and certainly anes- abortions by a variety of procedures up until resent the procedure described therein. . . . thesia would not kill the baby, the ASA tes- ‘‘viability,’’ but he does not perform partial- Firsthand renditions by a professional med- tified. birth abortions. In sworn testimony in the ical illustrator, or photographs or a video re- Dissemination of the false claim that anes- U.S. Federal District Court for the Southern cording of the procedure would no doubt be thesia kills the baby is endangering the District of Ohio (Nov. 13, 1995), Prof. Giles more vivid, but not necessarily more instruc- health and lives of pregnant women and said: tive for a non-medical person who is trying their unborn children, because such erro- ‘‘In my own personal opinion, particularly to understand how the procedure is per- neous information may frighten pregnant when there are other techniques available, formed.’’ women away from obtaining medically nec- that the introduction of a sharp instrument On Nov. 1, 1995, Congresswoman Patricia essary surgical procedures while they are into the brain and sucking out the brain con- Schroeder and her allies actually tried to pregnant, for fear of harming their unborn stitutes cruel and unusual fetal punish- prevent Congressman Canady from dis- children, the ASA said. ment.’’ playing the line drawings during the debate Moreover, American Medical News re- on HR 1833 on the floor of the House of Rep- ported in 1993, after conducting interviews IS THE TERM ‘‘PARTIAL-BIRTH ABORTION’’ MISLEADING, OR IS IT ACCURATE? resentatives. But the House voted by nearly with Drs. Haskell and McMahon, that the a 4-to-1 margin (332 to 86) to permit the In his 1992 paper, Dr. Haskell referred to doctors ‘‘told AM News that the majority of drawings to be used. fetuses aborted this way are alive until the the method as ‘‘dilation and extraction’’ or DOES THE BILL PERMIT THE PARTIAL-BIRTH end of the procedure.’’ On July 11, 1995, ‘‘D&X’’—noting that he ‘‘coined the term.’’ ABORTION PROCEDURE TO BE UTILIZED TO American Medical News submitted the tran- However, that nomenclature was rejected by SAVE THE LIFE OF THE MOTHER? ARE PAR- script of the tape-recorded interview with Dr. McMahon, who refers to the method as TIAL-BIRTH ABORTIONS RELATIVELY SAFE FOR Haskell to the House Judiciary Committee. ‘‘intact dilation and evacuation’’ and (in an THE PREGNANT WOMAN? The transcript contains the following ex- interview in the Los Angeles Times Maga- change: zine in 1990) as ‘‘intrauterine cranial decom- Under the bill, a doctor is not subject to ‘‘American Medical News. Let’s talk first pression.’’ There are also some variations in penalty if he shows that he ‘‘reasonably be- about whether or not the fetus is dead be- the procedure as performed by the two doc- lieved’’ that the mother’s life was in jeop- forehand. tors. ardy and that no other medical procedure ‘‘Dr. Haskell. No, it’s not. No, it’s really None of the terms that the abortion practi- will save her life. However, many medical not. A percentage are for various numbers of tioners prefer would be workable as a legal authorities, both pro-life and pro-abortion, reasons. Some just because of the stress— definition. The bill creates a legal definition say that this procedure would never be nec- intrauterine stress during, you know, the of ‘‘partial-birth abortion,’’ and would ban essary to save a woman’s life. two days that the cervix is being dilated [to any variation of that method—no matter Moreover, some medical experts—on both permit extraction of the fetus]. Sometimes what new idiosyncratic name any abor- sides of the abortion issue—say that the pro- the membranes rupture and it takes a very tionist may invent to refer to it—so long as cedure itself carries special risks for the small superficial infection to kill a fetus in it is ‘‘an abortion in which the person per- pregnant woman. American Medical News, utero when the membranes are broken. And forming the abortion partially vaginally de- the official newspaper of the American Med- so in my case, I would think probably about livers a living fetus before killing the fetus ical Association, reported in its November a third of those are definitely are [sic] dead and completing the delivery.’’ 20, 1996 edition: ‘‘ ‘I have very serious res- before I actually start to remove the fetus. Beyond the legal point, the term ‘‘partial- ervations about this procedure’’ said Colo- And probably the other two-thirds are not.’’ birth abortion’’ is accurate and in no way rado physician Warren Hern, MD. The author In another interview, quoted in the Dec. 10, misleading. In explaining how to perform the of Abortion Practice, the nation’s most widely 1989 Dayton News, Dr. Haskell again con- procedure in his 1992 instruction paper, Dr. used textbook on abortion standards and veyed that the scissors thrust is usually the Martin Haskell wrote: procedures, Dr. Hern specializes in late-term lethal act: ‘‘When I do the instrumentation ‘‘With a lower [fetal] extremity in the va- procedures. . . . [O]f the procedure in ques- on the skull...it destroys the brain tissue suf- gina, the surgeon uses his fingers to deliver tion he says, ‘‘You really can’t defend it. I’m ficiently so that even if it (the fetus) falls the opposite lower extremity, then the torso, not going to tell somebody else that they out at that point, it’s definitely not alive,’’ the shoulders and the upper extremities.’’ should not do this procedure. But I’m not Dr. Haskell said. [Haskell paper, page 30, emphasis added] going to do it.’’’ Brenda Pratt Shafer, a registered nurse In sworn testimony in a lawsuit pending in ‘‘Dr. Hern’s concerns center on claims that from Dayton, Ohio, stood at Haskell’s side U.S. District Court for the Southern District the procedure in late-term pregnancy can be while he performed three partial-birth abor- of Ohio (Nov. 8, 1995), Dr. Haskell said that safest for the pregnant woman, and that

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18011 without this procedure women would have nal indications’’ by Dr. McMahon really indi- is the prime sponsor of HR 941, the ‘‘Federal died. ‘I would dispute any statement that cated that the procedure itself would be seri- Prohibition of Female Genital Mutilation this is the safest procedure to use,’ he said. ously dangerous to the mother. Act.’’ (The Senate companion bill is S. 1030.) Turning the fetus to a breech position is ‘po- What would be the effect of adding to the This bill generally would ban anyone (in- tentially dangerous,’ he added. ‘You have to bill an exception to allow partial-birth abor- cluding a licensed physician from performing be concerned about causing amniotic fluid tions for ‘‘health’’ reasons, as proposed by the procedure known medically as embolism or placental abruption if you do pro-abortion Senator Barbara Boxer (D-Ca.) ‘‘infibulation,’’ or ‘‘female circumcision,’’ that.’ and others? which is practiced by some immigrants from ‘‘Dr. Hern said he could not imagine a cir- In the context of abortion-related law, certain countries. The bill provides a penalty cumstance in which this procedure would be ‘‘health’’ is a legal term of art. In Doe v. of up to five years in federal prison. Sup- safest. He did acknowledge that some doc- Bolton (the companion case to Roe v. Wade), porters of this bill argue, persuasively, that tors use skull-decompression techniques, but the Supreme Court defined ‘‘health’’ to in- subjecting a little girl to infibulation is a he added that is those cases fetal death has clude ‘‘all factors—physical, emotional, psy- form of child abuse. But then, so too is sub- been induced and the fetus would not pur- chological, familial, and the woman’s age— jecting a baby to the partial-birth abortion posely be rotated into a breech position.’’ relevant to the well-being of the patient.’’ procedure. Dr. Harlan R. Giles, a professor of ‘‘high- Thus, the bill with a ‘‘health’’ exception WHY DID THE BILL PASS THE HOUSE OF REP- risk’’ obstetrics and perinatology at the would permit abortionists to perform par- RESENTATIVES BY A MORE THAN 2-TO-1 MAR- Medical College of Pennsylvania, performs tial-birth abortions at will—even for ‘‘de- GIN? abortions by a variety of procedures up until pression,’’ as Dr. James McMahon did (see In the House, the bill won support from ‘‘viability.’’ In sworn testimony in the U.S. page 4). Adding the word ‘‘serious’’ before more than a few lawmakers who generally Federal District Court for the Southern Dis- ‘‘health’’ changes nothing, because it is the favor legal abortion. Once they had the facts, trict of Ohio (Nov. 13, 1995), Prof. Giles said: abortionist who would determine whether a significant number of those self-described ‘‘[After 23 weeks] I do not think there are the ‘‘depression’’ or other distress was ‘‘seri- ‘‘pro-choice’’ lawmakers experienced an au- any maternal conditions that I’m aware of ous.’’ thentic moral revulsion regarding the proce- that mandate ending the pregnancy that also Does the bill contradict U.S. Supreme dure. In certain other cases, the revulsion require that the fetus be dead or that the Court decisions? was probably more political than moral. For fetal life be terminated. In my experience for In its official report on HR 1833, the House whatever combination of these reasons, HR 20 years, one can deliver these fetuses either Judiciary Committee makes the very plau- 1833 won support from a broad spectrum of vaginally, or by Cesarean section for that sible argument that HR 1833 is not an ‘‘as- House members, including: 73 Democrats and matter, depending on the choice of the par- sault’’ on Roe v. Wade, but rather, could be 215 Republicans (37% of voting Democrats, ents with informed consent.*** But upheld by the Supreme Court without dis- 93% of Republicans); nearly one-third of the there’s no reason these fetuses cannot be de- turbing Roe. In Roe, the Supreme Court said women in the House (15 of 47), Democratic livered intact vaginally after a miniature that ‘‘the unborn fetus is not a person’’ Leader Richard Gephardt (Mo.); Democratic labor, if you will, and be at least assessed at under the Constitution (even during the final Whip David Bonior (Mi.); Rep. John Dingell birth and given the benefit of the doubt. months of pregnancy). So, in the Supreme (Mi.), ranking Democrat on the Commerce [transcript, page 240] Court’s doctrine, a human being becomes a Committee; Rep. Lee Hamilton (D-In.), rank- ‘‘I cannot think of a fetal condition or mal- legal ‘‘person’’ upon emerging from the uter- ing on the International Relations Com- formation, no matter how severe, that actu- us. But a partial-birth abortion kills a mittee; Rep. Dave Obey (D-Wi.), and Con- ally causes harm or risk to the mother of human being who is four-fifths across the gressman Patrick Kennedy (D-RI), the son of continuing the pregnancy. I guess one ex- ‘line-of-personhood’ established by the Su- Sen. Edward Kennedy (D-Mass.) tremely rare example might be a partial preme Court. Thus, the Supreme Court could f hydatidiform mole. But that’s a one-in-a- very well decide that the killing of a mostly million situation. In most cases, mothers born baby, even if done by a physician, is not THE ARCTIC WILDLIFE REFUGE carrying an abnormal fetus, such as with protected by Roe v. Wade. Mr. STEVENS. Mr. President, I come Down’s syndrome, anencephaly, the absence What position has the American Medical of a brain itself, dwarfism, other severe, even Association taken on H.R. 1833? to the floor once again to talk about lethal chromosome abnormalities—those On September 23, the national Council on the appearance that I had on mothers, if you follow their pregnancy, have Legislation of the American Medical Asso- ‘‘Nightline’’ with the Secretary of the no higher risk of pregnancy complications ciation (AMA) voted unanimously to rec- Interior, Mr. Babbitt. In that program, than for any other mother who’s progressing ommend AMA endorsement of H.R. 1833. which I call a debate, on ‘‘Nightline,’’ to term for a delivery. [court transcript, pp. (Congress Daily, Oct. 10.) The Council on Leg- the Secretary claimed that the devel- 241–42] islation is made up of about 12 physicians of opment of the coastal plain of our arc- ‘‘There is no need to perform a D and X different specialities, who are charged with tic for its oil potential would mean the [‘dilation and extraction,’ i.e., partial-birth] studying proposed federal legislation with procedure. That is not part of the required respect to its impact on the practice of medi- end of that wildlife refuge. teaching of the D and E [‘dilation and evacu- cine. A member of the Council told Congress He referred to the Arctic National ation,’ the technique of dismembering the Daily that ‘‘this was not a recognized med- Wildlife Refuge, which is some 19 mil- baby inside the uterus]. [court transcript, p. ical technique’’ and that ‘‘this procedure is lion acres of our northern part of Alas- 260.]’’ basically repulsive.’’ ka. It is above the Arctic Circle, as in- Dr. Pamela Smith, Director of Medical However, meeting in October, the AMA dicated. As a matter of fact, there are Education in the Department of Obstetrics Board of Trustees was divided on this rec- 21.2 million acres of wilderness in this and Gynecology, Mt. Sinai Hospital, Chi- ommendation, and therefore took no posi- whole area, and that area is larger cago, told the Senate Judiciary Committee tion either for or against the bill. According than Vermont, New Hampshire, Con- that the partial-birth abortion procedure is to an October 23 letter from AMA head- an adaptation of the ‘‘internal podalic quarters in Chicago, ‘‘The AMA Board of necticut, and Rhode Island put to- version’’ procedure that obstetricians occa- Trustees has determined that it will not gether. sionally use to purposely deliver a baby take a position on H.R. 1833 at this time.’’ Of this area, in 1980, 1.5 million acres breech (feet first)—but that this procedure is From the perspective of those who believe of the arctic plain was set aside for de- risky to the mother, and its use is rec- that unborn children should be protected velopment for oil and gas exploration, ommended only to deliver a second twin. from all methods of abortion, what is the subject only to an environmental re- ‘‘Why, if it’s dangerous to the mother’s point of supporting a bill that would ban view to determine whether that type of health to do this when your intent is to de- only one method? development would result in irrep- liver the baby alive, that this should sud- Each human being is a unique individual arable harm to our arctic plain. That is denly become . . . the safe method when with immeasurable worth. Pro-abortion ad- your intention is to kill the baby?’’ Dr. vocates often try to dismiss the significance what we call section 1002 of ANILCA, Smith said. of partial-birth abortions by observing that the Alaska National Interest Lands Dr. Smith also gave the Judiciary Com- they appear to account for ‘‘only’’ less than Conservation Act. That 1.5 million mittee her analysis of a sample of 175 cases, one percent of all abortions. But for each and acres was the only area in the 1980 bill, selected by Dr. McMahon himself, in which every human individual who ends up at the that dealt with over 100 million acres, he claimed that he had used the procedure pointed end of the surgical scissors, the pro- that provided for any development in because of maternal health indications. Of cedure is a 100 percent proposition. our State. The Secretary says that pro- this sample, the largest group, 39 cases (22%) Should Congress be in the business of ban- ceeding as was intended in 1980 would were for maternal ‘‘depression,’’ while an- ning specific surgical procedures? other 16% were ‘‘for conditions consistent Some prominent congressional opponents be the end of that wildlife refuge. That with the birth of a normal child (e.g., sickle of the bill to ban partial-birth abortions, in- is what I am here to talk about today. cell trait, prolapsed uterus, small pelvis),’’ cluding Rep. Schroeder (D-Co.), argue that If we proceed with oil and gas explo- Dr. Smith noted. She added that in one-third Congress should not attempt to ban a spe- ration, as is intended by the Balanced of the cases, the conditions listed as ‘‘mater- cific surgical procedure. But Rep. Schroeder Budget Act of 1995, this area will be

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18012 CONGRESSIONAL RECORD — SENATE December 5, 1995 leased. There will be bonus bids that caribou herd at the time the prediction tion that the animals that are there, will bring in some $2.8 billion, we esti- was made that they would all die if the particularly the caribou, are driven mate. It will be at least that because oil pipeline was put in place. nuts by the mosquitoes. They are very one small area offshore here, the Muk- The health of the caribou has very vicious. As I said, the mosquitoes drive luk, brought in over $1 billion—$1 bil- little to do with man’s presence. As a these caribou so that they go under and lion—in a very small area. It was a dry matter of fact, that caribou herd is a on top of the pipeline. They try to get hole. very healthy herd. I have been up away from them by getting into the But this leasing will take place. As there. I would be glad to one of these breeze that may be caused by wind the exploration takes place, the total days bring some photographs showing blowing under the pipeline or over the area that will be used out of that 1.5 the caribou standing next to oil rigs, pipeline. million acres is about 12,000 acres. That caribou rubbing up against the pipeline The wilderness area that we have is is about the size of Dulles Airport. to scratch their backs, caribou coming here. It is south of the 1002 area. When And, after that exploration takes up on top of the crosswalks to go over you listen to the Secretary of the Inte- place, the actual area of development, the pipeline because they are trying to rior, it sounds like we are trying to for the roads, the buildings, the rigs get away from the mosquitoes. They lease a wilderness area. That again is that will be in place for the period of are trying to get in a breeze, get high not true. It has never been true. development, will be about 2,000 acres; enough to get rid of the mosquitoes. This area once was the Arctic Wild- 2,000 acres of the 1.5 million which is That is a very flat area—the arctic life Range. It was created by a secre- part of 19 million acres total in that plain. It is an area that has so many tarial order, and that order specifically refuge. mosquitoes that very few animals or stated that oil and gas leasing could I come to speak about this rhetoric people spend much time there. If they take place on the range subject to stip- because the administration is trying to do, they are very heavily loaded down ulations to protect the fish and wild- leave the impression with the Amer- with mosquito dope. I mean real, real life. ican public that, if this leasing takes mosquito dope. At the time we considered this enor- place, it is the end of this whole refuge. But technology is different now than mous act that withdrew all of these As a matter of fact, Mr. President, the 20 years ago when that pipeline was de- areas that are outlined in either blue wilderness area selected by the Interior veloped. There is no question, as I said, or green or red, the Congress looked at Department is in the area south of the that the size of the actual development all of them. And this is the only area, arctic coastal plain and just at the in the arctic plain will be quite small. as I said, where the natural resources slope of the Brooks Range. We call it We are looking now at the problem of were so significant that the area was the North Slope of the Brooks Range. what will human activity in this area set aside, specifically stating that it It is not in the arctic plain. do that might affect the caribou that would be subject to oil and gas leasing. You know, Mr. President, it is a very might be different from this area The only thing that had to happen was difficult thing for people to understand around Prudhoe Bay. The answer is that there had to be an environmental study made. that this is an arctic desert. The oil ex- nothing. It came to Congress not for the pur- ploration will take place in an area This will not be the end of the wild- pose of trying to open it. It has always which is an arctic desert. The problem life refuge. That assertion cannot be been open. The question is, Should comes that the porcupine caribou herd, supported by any facts. It really is not Congress approve the finding of the which lives approximately 9 months of only misleading; it is wrong. It is not Secretary of the Interior that there the year in Canada on the Porcupine truthful. would not be irreparable harm to this River area, migrates into Alaska and This herd, as I said, does not stay area if oil and gas development took goes 150 miles up onto the North Slope. there permanently. The central arctic place? It is present on the plain maybe 6 to 8 herd stays there—in Prudhoe Bay—per- It is 11⁄2 million acres. Out of all of weeks when it decides to go up there. manently. The central arctic herd is a this area, as I said, of the whole area Some years it does not go at all, as I very migrating herd. Sometimes it that belongs to the Federal Govern- will mention. But when we were debat- does not go up there. Our records show ment up here, some 21.2 million acres ing the oil pipeline—this is the area of that in 1973, 1974, 1982, and 1988 the car- of the arctic is set aside as wilderness. the oil pipeline up to the Prudhoe Bay. ibou did not come into this area at all. As a matter of fact, Mr. President, 65 This is the Prudhoe Bay development The caribou wander around in terms of percent of all wilderness in the United right there. It is on State land. The this whole area. States is in our State. Sixty-five per- land belongs to the State of Alaska. It is the fact that the caribou some- cent of all the wilderness in the United The claim was made 20 years ago that times actually come over and go back States is in our State. Fifty-six million approval of that pipeline would lead to into Canada into the area where there acres total have already been set aside the destruction of the caribou herd. We is substantial presence of the oil and as wilderness. call it the central arctic caribou herd. gas industry over by the Beaufort Sea. In addition to that, we have 70 per- One person actually stood on the floor Our arctic plain is, as I said, a desert. cent of the national parklands. We here and said that, if we got the ap- It is almost perfectly flat. It is tree- have 85 percent of all the national wild- proval to build the Alaska oil pipeline, less. That might surprise people be- life refuges in Alaska. all of the caribou would die, that it cause they see the photographs that That is the only area that Congress would be the end of the central arctic are in the brochures of all of these ex- has ever designated as being set aside herd that lives near Prudhoe Bay. treme environmental organizations for oil and gas development. The Sec- Did the caribou disappear? Did the saying ‘‘save this place from develop- retary tries to let the American public pipeline, this tremendous pipeline that ment.’’ They show you beautiful lakes believe that this Senator is trying to has brought us 11 billion barrels of oil and hills, trees, bear, and caribou, and authorize drilling in a wilderness area. so far—cause the caribou to disappear? even, one time, an elk. There has never It is not a wilderness area. It never was Have they been injured? As a matter of been any elk up there. It is a frozen a wilderness area. It has never been fact, at the time we debated that pipe- desert. withdrawn from oil and gas leasing. Oil line, the caribou herd was about 6,000 It has about 5 to 7 inches total of pre- and gas leasing was subject to this en- animals. It went up to 23,400 animals cipitation, snow and rain, in a 12- vironmental impact statement that by 1992. As we came to 1992, the devel- month period. Think of that—5 to 7 was made and has been presented to opment was over, and really man’s inches. This ground is permanently fro- Congress. Two Secretaries of the Inte- presence started to be reduced in this zen. Water will not even penetrate it. rior have recognized that and rec- area. The caribou have actually re- Whatever melts from the snow gathers ommended to Congress that the oil and duced in number as the number of peo- in small pools. They become shallow gas leasing proceed as was intended by ple involved in the Prudhoe Bay area and stagnant. That is where we get the my good friend, the late Scoop Jack- has been reduced. They are down to mosquitoes. It is probably the best son, in 1980. about 18,100 this year. But that is still breeding ground for mosquitoes in the Mr. President, I am going to come more than three times the size of the whole United States. There is no ques- back again and again and talk about

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18013 all the statements the Secretary made I wanted to take a moment to pay trib- leave behind an enduring legacy of that night on ‘‘Nightline’’ that were ute to my friend and colleague. statesmanship, leadership, dignity, and not true. I think the American public JAN MEYERS’ dedication to public integrity. should know. And I intend to find some service extends nearly 30 years. Before No matter if any Senator agreed or way to be sure that cabinet officers her election to Congress, she served 5 disagreed with MARK HATFIELD, no one that discuss pending legislation speak years as an Overland Park City coun- could ever doubt that he was standing the truth. cilwoman, and 12 years as a Kansas up for what the he believed was right Thank you very much, Mr. President. State senator. for Oregon and for America. I suggest the absence of a quorum. Throughout her years in the political And just as Oregonians have grown to The PRESIDING OFFICER. The arena, JAN MEYERS has earned a rep- count on Senator HATFIELD’s leader- clerk will call the roll. utation as a public servant of great ship, many Senators have also grown The bill clerk proceeded to call the competence, compassion, and common to count on his friendship. roll. sense. Many of us will never forget the day Mr. DOLE. Mr. President, I ask unan- During her years here in Washington, when our late colleague Senator Sten- nis was shot in a burglary attempt, and imous consent that the order for the she has devoted a great deal of time to how Senator HATFIELD raced to the quorum call be rescinded. fighting the scourge of illegal drugs. hospital to be with Senator Stennis, The PRESIDING OFFICER. Without She successfully fought to ensure that and how he personally manned the objection, it is so ordered. operators of common carriers involved telephone lines, responding to inquiries Mr. DOLE. Mr. President, was lead- in accidents that cause death and in- about the condition of Senator Stennis. jury while under the influence of drugs er’s time reserved? Senator HATFIELD also served his The PRESIDING OFFICER. The Sen- and alcohol would face tough criminal country during World War II, where he ator is correct. penalties. saw battle at Iwo Jima and Okinawa, f Congresswoman MEYERS also spoke and was among the first U.S. service- out on the need to reform welfare and TRIBUTE TO TROOP 7 OF TOPEKA, men to enter Hiroshima following the to return power to the States well be- KS, ON THEIR 75TH ANNIVERSARY atomic explosion. fore those causes gained favor here in With Senator HATFIELD’s retirement, Mr. DOLE. Mr. President, today I Washington. the Senate will also be losing one of take great pride in recognizing Boy But perhaps Congresswoman MEYERS’ the Nation’s leading scholars of the life Scout Troop 7 from Topeka, KS, for 75 greatest sphere of influence involved of Abraham Lincoln. And those col- years of honorable Scouting service. issues affecting small business. Kansas leagues who have not seen Senator If ever a troop has exemplified the is a small business State, and as rank- HATFIELD’s Lincoln collection are now high ideals of Scouting, Troop 7 has. ing member, and now chairman of the on notice that they have about a year These young men have not only been of House Small Business Committee, JAN to do so. great service to their community since MEYERS never stopped fighting to re- In one of the last letters that Lincoln 1920, but 147 of them have risen to a duce the regulatory and tax burdens on wrote, he said that his goal was not rank few achieve, that of Eagle Scout. America’s small businessmen and just that America be a Union of States, The young men of Troop 7 have dedi- women. but also a ‘‘Union of hearts and hands.’’ cated themselves to becoming con- I look forward to working with Con- That goal has also been the life’s scientious and responsible citizens with gresswoman MEYERS in the year ahead, work of MARK HATFIELD, and the Sen- the help of their adult volunteers. The and wish her, her husband Dutch, and ate, Oregon, and America, are all bet- Scout oath and law instill moral up- their family many years of health and ter because of him. rightness and the precious selflessness happiness. f of duty to others, while the motto, ‘‘Be f TRIBUTE TO SENATOR AL Prepared,’’ entreats them to never rest SIMPSON on their laurels. This untiring endeav- TRIBUTE TO SENATOR MARK or to personal fulfillment and service HATFIELD Mr. DOLE. Mr. President, finally to others is a standard of excellence Mr. DOLE. Mr. President, 45 years Saturday night another of our col- that will challenge them throughout ago a young political science professor leagues announced his retirement. Mr. President, 40 years ago, then- their lives. went to Silverton, OR, to announce his Senator John Kennedy wrote a best- Mr. President, it is only fitting that candidacy for the Oregon State House selling book called ‘‘Profiles in Cour- we honor the young men and the adult of Representatives. age.’’ It consisted of biographies of a leaders of Troop 7 on the occasion of In the years that followed, MARK number of U.S. Senators who took cou- their diamond anniversary. After all, HATFIELD would return to Silverton to rageous positions in their time. announce his candidacy for the Oregon Scouting has only been in the United If a similar book was written today, State Senate, for secretary of state, for States for 85 years, which makes Troop I have no doubt that it would include a 7 one of the oldest in the country. Governor, and for U.S. Senator. And biography of our colleague, Senator With their record of excellence, I am each and every time MARK HATFIELD ALAN SIMPSON. confident that Troop 7 will continue to put his name on the ballot, Oregonians As my colleagues know, Senator embody the spirit of Scouting for many responded by voting for him in over- SIMPSON returned to his home town of years to come. whelming numbers. Cody, WY, this weekend to announce f Not only did MARK HATFIELD never that he would not be a candidate for a lose an election, he never lost the total fourth term in the U.S. Senate. TRIBUTE TO CONGRESSWOMAN trust and respect or Oregonians. JAN MEYERS Again, I had the pleasure of watching Last Friday, Senator HATFIELD re- about 45 minutes of his retirement Mr. DOLE. Mr. President, anyone turned again to Silverton. speech to the Cody Chamber of Com- who has been to the Kansas City and Only this time, he did not announce merce on C–SPAN. Johnson County area during any of the his candidacy for a sixth term in this In his announcement, however, Sen- last 6 election years could not go far Chamber—even though he would easily ator SIMPSON left no doubt that his without seeing campaign signs that have been reelected. final year in the Senate would be no said ‘‘Jan Can.’’ Instead, Senator HATFIELD an- different from the first 17—from immi- The signs were referring to JAN MEY- nounced that he will retire from the gration to entitlement reform, he will ERS, who, since 1985, has represented Senate at the end of the 104th Congress continue to courageously tackle the the Third District of Kansas in the U.S. so that he can return to Oregon. And I toughest and most controversial of House of Representatives with great might say, I had the pleasure of watch- issues, calling them as he sees them, ability. ing much of his retirement speech on and letting the cards fall where they Congresswoman MEYERS announced C–SPAN. may. this week in Overland Park that this And when Senator HATFIELD leaves AL SIMPSON is a man of strong opin- will be her final term in Congress, and this Chamber for the final time, he will ions, but he also is someone who knows

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18014 CONGRESSIONAL RECORD — SENATE December 5, 1995 how to count votes and how to get thinking about it, bear in mind that it watching with pride as they succeeded things done. As Republican whip for 10 was the U.S. Congress that ran up the in life. years, AL was a trusted member of our enormous Federal debt that is now In 1961, she married Sir Frederick leadership team. about $12 billion shy of $5 trillion. Crawford, who was then British Gov- He made being Republican leader a To be exact, as of the close of busi- ernor and Commander-in-Chief in much easier job—and all Senators will ness yesterday, December 4, the total Uganda. After he handed Uganda over attest to the fact that with his unique Federal debt—down to the penny— to majority rule in 1961, he moved to sense of humor, AL has made serving in stood at $4,988,891,675,281.12. Another Rhodesia (now Zimbabwe), where he be- the Senate much more enjoyable. depressing figure means that on a per came the head of the British South Af- Senator SIMPSON has served in Wash- capita basis, every man, woman and rica Co. and was on the boards of many ington for 17 years, and although he child in America owes $18,937.92. Anglo-American companies in southern and his wife, Ann, have devoted them- Mr. President, back to our quiz—how Africa. Sir Frederick Crawford sadly selves to many cultural and charitable many millions in a trillion?: There are died in 1978. causes here in the Nation’s capital. AL a million million in a trillion, which Lady Clio Crawford resided in Geneva SIMPSON never forgot that Wyoming means that the Federal Government since that time. She travelled exten- was home. will shortly owe five million million. sively throughout her life. She was one The great Alf Landon once said that Now who is not in favor of balancing of the most energetic, charming, im- ‘‘there are some intelligent people in the Federal budget? posing and kind-hearted persons I have Washington. But there are more of f ever met. From her early days and throughout her life, she was also very them in Kansas.’’ AL SIMPSON never TRIBUTE TO LADY CLIO actively involved in all sorts of char- forgot that there are also more of them CRAWFORD in Wyoming, and he has never tired of ities. She became the honorary consul fighting for returning power to where Mr. PRESSLER. Mr. President, Lady for Greece in Uganda, which was the it belongs—to the people of Wyoming Clio Crawford was a personal friend of first time a woman held this post. She and our other 49 States. mine. I recall many great conversa- was head of the Red Cross, and was in- I have long thought that AL em- tions with her when I was a student at strumental in establishing the Greek bodies the ‘‘American spirit’’ that Oxford. I remember in particular a Orthodox Church in Uganda. In Swit- many Americans associate with Wyo- wonderful dinner at Elizabeth’s Res- zerland, she and her sister were very ming and with the American cowboy. taurant, at which we discussed all of much the pillars of the Greek commu- He is honest, independent, and judges Africa and the problems of the emerg- nity. Lady Crawford had a close con- people not by money or position—but ing states of the continent. Having nection with Oxford University in that by character. spent much of her life there, she was an her husband, Sir Fredrick, was a grad- AL’s father also represented Wyo- expert on Africa. Later, when I was a uate of Balliol College. Her sons and ming here in this Chamber. And when lieutenant in the U.S. Army in Viet- stepsons all attended St. Edmund Hall Milward Simpson passed away in 1993, nam, serving in the Mekong Delta, she (one of Oxford’s oldest colleges), with AL delivered a very moving eulogy on sent me some audio tapes on which she which she maintained a close associa- the Senate floor. spoke to me, expressed concern about tion over the years. She and her family I re-read that eulogy the other day, my safety, and wished me well. Her were generous sponsors of many college and it struck me that the words spoken son, Tony, was a good friend of mine at developments and an area of St. Ed- about a father, could also be applied to Oxford University. mund Hall bears her name. She left be- the son. Lady Clio Crawford passed away in hind two sons, Alec and Tony AL SIMPSON said: Geneva, Switzerland, on October 25, Georgiadis, who have charming wives— 1995, after a short illness. My father was a man who did not just take Ann and Elita—and six grandchildren, little philosophies and paste them on the Lady Clio Crawford was born Clio three from Tony and Elita (Clio, wall and then ignore them and yet say, ‘‘I Colocotronis on February 2, 1925. Her Vassos John and Ileana), and three live by that.’’ No, he did live by those things mother came from the island of Crete from Alec (Vassos, Nicholas and Phil- that he told us....and one of those things and her father from the Peloponnese. ip). he told us was ‘‘I cannot tell you how to suc- Her family were direct descendants of In tribute to this grand lady, I quote ceed, but I can sure tell you how to fail—and Gen. Theodore Colocotronis, who was the comments sent to her family by a that is to try and please everybody.’’ instrumental in liberating Greece from former vice chancellor of Oxford Uni- Mr. President, AL SIMPSON is retiring Turkish occupation 150 years ago, and versity: from the Senate, but he is not retiring whose statue and name adorn present- ‘‘I remember her as one of the most cheer- from life. He will continue to make a day Athens. At the age of 17, Clio ful, energetic, independent and altogether difference. He will continue to live by Colocotronis, whose family were living delightful women I have every met. I always his philosophies. And he will continue in Alexandria, Egypt at the time (her found her confident good humour and mar- to succeed, because no matter what, AL father was a banker), was courted by vellous ‘joie de vivre’ infectious.... She SIMPSON won’t try to please every- and married Vassos Georgiadis, who never seemed to lack the vigour and vitality body—and Wyoming and America was a highly successful Greek industri- and warm understanding which were her would want it no other way. alist in East Africa and some 20 years hallmark. She was a wonderful, gracious lady who enriched the life of a friend like f her senior. Clio Georgiadis bore two myself. The thought that I shall not see her sons in Kampala, Alexander and MORNING BUSINESS again is a sad wrench. May she rest in Antony, but she became a widow at the peace—no one better deserves to do so. Mr. DOLE. Mr. President, I ask unan- tender age of 27 in 1952. f imous consent that there be a period With all the energy, courage and de- for the transaction of morning business termination which were hallmarks of TRIBUTE TO THE REVEREND DR. until the hour of 7:15 p.m. this remarkable lady, she took over re- RICHARD C. HALVERSON The PRESIDING OFFICER. Without sponsibility of her late husband’s Mr. LIEBERMAN. Mr. President, I objection, it is so ordered. multi-faceted business empire: This in- rise today to pay my respects to the f cluded the East Africa Tobacco Co. Rev. Richard Halverson, whose recent which was one of Africa’s dominant passing saddened all of us in this THE BAD DEBT BOXSCORE corporations. She learned the complex- Chamber. He was, for us, a spiritual Mr. HELMS. Mr. President, before ities of the businesses, expanded them, Rock of Gibraltar, always present as a discussing today’s bad news about the and even diversified in Europe to be- reminder of eternal values, in the Federal debt, how about another go, as come a major shipowner. But what she midst of even the most temporal of de- the British put it, with our pop quiz. considered her major achievement was bates. Remember—one question, one answer. bringing up her two sons on her own, One of the remarkable things about The question: How many millions of ensuring they had the best education the life of this faith-filled man is the dollars in a trillion? While you are at Oxford and U.S. business schools, fact that he became the Chaplain of the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18015 U.S. Senate at a time when most peo- importantly he loved us as individual EC–1665. A communication from the Presi- ple his age retire and go fishing or play Members of the Senate. His deep caring dent and Chairman of the Export-Import golf. At 65, Reverend Halverson under- spirit was evident in his availability at Bank, transmitting, pursuant to law, a state- took the most significant, perhaps the all times to attend to the needs of Sen- ment regarding a transaction involving ex- ports to the People’s Republic of China; to most difficult, task of his life—minis- ators and our families. He knew us all the Committee on Banking, Housing, and tering to the spiritual needs of 100 U.S. and, even so, managed to love us what- Urban Affairs. Senators, their staffs, employees of the ever our backgrounds may have been. EC–1666. A communication from the Execu- Senate and countless others who came And, not only the Senators, Dick loved tive Director of the Thrift Depositor Protec- to him for counsel and prayer. He ful- the staffers, the elevator operators, the tion Oversight Board, transmitting, pursu- filled that mission with great honor. police officers, and everyone he met in ant to law, the final report during calendar I will always remember Reverend the course of a day on the Hill. No one year 1995; to the Committee on Banking, Halverson as a gracious man, a man of knew more people than did Dick. Housing, and Urban Affairs. EC–1667. A communication from the Sec- considerable intellect, and especially a His daily prayers in the Senate acted retary of Transportation, transmitting, pur- scholar of the Old Testament and the as a reality check for each of us. One suant to law, the final report on the Tanker Jewish religion, about which we had morning his prayers began: Navigation Safety Research Baseline study; memorable conversations. Gracious Father in Heaven, help us to keep to the Committee on Commerce, Science, We will miss Reverend Halverson, es- our priorities straight. In this center of and Transportation. pecially in a time when partisan rancor power, secondary matters have a way of pre- EC–1668. A communication from the Chair- seems so sharp and divisive here in occupying our attention and preempting our man of the Nuclear Regulatory Commission, Capitol Hill, and in a society where time. Help us not to take ourselves too seri- transmitting, pursuant to law, the report on the nondisclosure safeguards information for bedrock values like belief in God and ously, forgetting that we are fallible human beings with many needs. Deliver us from VIP the quarter beginning July 1 through Sep- respect for one another seem to be at syndrome which expects or demands pref- tember 30, 1995; to the Committee on the En- such risk. His warm presence always erential treatment. vironment and Public Works. stood in strong contrast to the trials of It is these actions and thoughts f the moment. We have faith that he is which live on in our hearts and minds in the embrace of a loving God. as we think of Dick. His words and love PETITIONS AND MEMORIALS Yet, I am confident he is praying for taught us much and each of us is the The following petitions and memo- us still. May God bless Reverend Hal- better for having known him. He was a rials were laid before the Senate and verson, and may He grant his family special gift to us and we shall remem- were referred or ordered to lie on the and many friends solace from the grief ber him. table as indicated: we share at his passing, and confidence f POM–476. A resolution adopted by the Ne- that life eternal is the reward for those vada League of Cities relative to the Nevada who live to His will. EXECUTIVE AND OTHER Test Site; to the Committee on Armed Serv- f COMMUNICATIONS ices. MEMORIAL TRIBUTE TO DR. The following communications were POM–477. A resolution adopted by the Interfaith Council to Assist Vietnamese Ref- RICHARD HALVERSON laid before the Senate, together with accompanying papers, reports, and doc- ugees relative to Vietnamese asylum seek- Mrs. KASSEBAUM. Mr. President, ers; to the Committee on Foreign Relations. uments, which were referred as indi- POM–478. A resolution adopted by the last week the Senate and the Nation cated: lost a gifted spiritual adviser. All of us Greater Nashville Regional Council of Nash- mourn the death of Dr. Richard Halver- EC–1659. A communication from the Senior ville, Tennessee relative to the Southern Deputy Assistant Administrator of the U.S. Power Administration; to the Committee on son, who served here for 14 years as Agency for International Development (for Energy and Natural Resources. Senate Chaplain before retiring last Legislative and Public Affairs), transmit- POM–479. A resolution adopted by the February. ting, pursuant to law, the report on financial American Legislative Exchange Council rel- As shepherd of his Senate flock, Dr. statements on the Micro and Small Enter- ative to the Consumer Price Index; to the Halverson always brought strength of prise Development (‘‘MSED’’) Program for Committee on Labor and Human Resources. fiscal year 1994; to the Committee on Gov- faith and a wealth of patience in his ac- f tions to all, whether on the floor of the ernmental Affairs. Senate or to the broader national audi- EC–1660. A communication from the Chair- EXECUTIVE REPORTS OF man of the Federal Maritime Commission, COMMITTEES ence. For 14 years, his prayers began transmitting, pursuant to law, the report each of our working days and did so under the Inspector General Act for the pe- The following executive reports of with spiritual substance, expecting riod April 1 through September 30, 1995; to committees were submitted: from all of us the very best standards the Committee on Governmental Affairs. By Mr. THURMOND, from the Com- of conduct, understanding and commit- EC–1661. A communication from the Execu- mittee on Armed Services: ment. tive Director of the Federal Retirement In- The following U.S. Army Reserve of- vestment Board, transmitting, pursuant to I valued his friendship as well as his ficers for promotion in the Reserve of spiritual leadership. I will hold a spe- law, audit reports issued during fiscal year 1995; to the Committee on Governmental Af- the Army to the grades indicated under cial memory of his committed caring fairs. title 10, U.S.C. sections 3371, 3384 and and the twinkle in his eye. EC–1662. A communication from the Execu- 12203(a): f tive Director of the Harry Truman Scholar- To be major general ship Foundation, transmitting, pursuant to Brig. Gen. Jorge Arzola, 000–00–0000. TRIBUTE TO THE REVEREND DR. law, the report on the system of internal ac- Brig. Gen. William E. Barron, 000–00–0000. RICHARD HALVERSON counting and financial controls in effect dur- Brig. Gen. Tommy W. Bonds, 000–00–0000. ing fiscal year 1995; to the Committee on Mr. JEFFORDS. Mr. President, in Brig. Gen. William N. Clark, 000–00–0000. Governmental Affairs. one of his books, Dr. Halverson wrote, Brig. Gen. George W. Goldsmith, Jr., 000– EC–1663. A communication from the Comp- ‘‘It is foolish to say there is no God. 00–0000. troller General of the United States, trans- Brig. Gen. Ralph L. Haynes, 000–00–0000. But it is infinitely more foolish to say mitting, pursuant to law, reports of three de- Brig. Gen. William B. Hobgood, 000–00–0000. there is and to live as though there ferrals of budget authority; referred jointly, Brig. Gen. Curtis A. Loop, 000–00–0000. were not.’’ Dr. Halverson’s special pursuant to the order of January 30, 1975, as Brig. Gen. James M. McDougal, 000–00–0000. grace was in his way of helping us to modified by the order of April 11, 1986, to the Brig. Gen. William C. Mercurio, 000–00–0000. Committee on Appropriations, to the Com- bridge the gap between faith and prac- Brig. Gen. Evo Riguzzi, Jr., 000–00–0000. tice. As a preacher, Chaplain Halverson mittee on the Budget, to the Committee on To be brigadier general fought against unbelief but, as a pas- Finance, and to the Committee on Foreign tor, he was equally concerned about Relations. Col. Patricia J. Anderson, 000–00–0000. EC–1664. A communication from the Under Col. William S. Anthony, 000–00–0000. hypocrisy. Secretary of Defense, transmitting, pursuant Col. David R. Bockel, 000–00–0000. Dick, as he was known to all of us in to law, the report of a violation of the Col. Robert W. Chestnut, 000–00–0000. the Senate, loved his country, loved Antideficiency Act, case number 93-02; to the Col. Richard E. Coleman, 000–00–0000. the Senate as an institution, but more Committee on Appropriations. Col. James M. Collins, Jr., 000–00–0000.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18016 CONGRESSIONAL RECORD — SENATE December 5, 1995 Col. Perry V. Dalby, 000–00–0000. *In the Army Reserve there are 29 pro- mittee on Agriculture, Nutrition, and For- Col. William N. Kiefer, 000–00–0000. motions to the grade of major general and estry. Col. Robert M. Kimmitt, 000–00–0000. below (list begins with Jorge Arzola) (Ref- f Col. Robert A. Lee, 000–00–0000. erence No. 711) Col. Paul E. Lima, 000–00–0000. **In the Air Force Reserve there are 19 pro- SUBMISSION OF CONCURRENT AND Col. Richard D. Lynch, 000–00–0000. motions to the grade of lieutenant colonel SENATE RESOLUTIONS Col. Robert G. Mennona, Jr., 000–00–0000. (list begins with Monika K. Botschner) (Ref- The following concurrent resolutions Col. H. Douglas Robertson, 000–00–0000. erence No. 714) Col. Jon R. Root, 000–00–0000. **In the Navy there are 6 appointments to and Senate resolutions were read, and Col. John L. Scott, 000–00–0000. the grade of lieutenant (list begins with referred (or acted upon), as indicated: Col. Gerry G. Thames, 000–00–0000. Brian G. Buck) (Reference No. 715) By Mr. SIMON (for himself and Ms. Col. Thomas A. Wessels, 000–00–0000. MOSELEY-BRAUN): The following-named officer for appoint- **In the Army there are 5 promotions to S. Res. 197. A resolution to congratulate ment to the grade of lieutenant general in the grade of colonel and below (list begins the Northwestern University Wildcats on the U.S. Army while assigned to a position of with Travis L. Hooper) (Reference No. 718) winning the 1995 Big Ten Conference football importance and responsibility under title 10, **In the Army there are 4 promotions to championship and on receiving an invitation U.S.C., section 601(a): the grade of lieutenant colonel list begins with Bobby T. Anderson) (Reference No. 719) to compete in the 1996 Rose Bowl, and to To be lieutenant general *Admiral Henry G. Chiles, Jr., USN to be commend Northwestern University for its Maj. Gen. Thomas A. Schwartz, 000–00–0000. placed on the retired list in the grade of ad- pursuit of athletic and academic excellence; The following-named officer to be placed miral (Reference No. 724) considered and agreed to. on the retired list of the U.S. Army in the Total: 1,932. f grade indicated under section 1370 of title 10, f U.S.C. STATEMENTS ON INTRODUCED To be lieutenant general INTRODUCTION OF BILLS AND BILLS AND JOINT RESOLUTIONS Lt. Gen. Paul E. Funk, 000–00–0000. JOINT RESOLUTIONS By Mr. PRESSLER (for himself The following-named officer for appoint- The following bills and joint resolu- and Mr. BURNS): ment to the grade of Vice Admiral in the tions were introduced, read the first S. 1445. A bill to authorize appropria- U.S. Navy while assigned to a position of im- and second time by unanimous con- tions for the National Science Founda- portance and responsibility under title 10, sent, and referred as indicated: tion, and for other purposes. U.S.C., section 601: By Mr. BREAUX (for himself and Mr. THE NATIONAL SCIENCE FOUNDATION To be vice admiral JOHNSTON): AUTHORIZATION ACT OF 1995 Rear Adm. Alexander J. Krekich, 000–00– S. 1444. A bill to provide for 1 additional Mr. PRESSLER. Mr. President, 0000. Federal judge for the middle district of Lou- today, as chairman of the Committee The following-named officer to be placed isiana and 1 less Federal judge for the east- on Commerce, Science, and Transpor- on the retired list of the U.S. Navy in the ern district of Louisiana; to the Committee tation, I am introducing the National on the Judiciary. grade indicated under section 1370 of title 10, Science Foundation Authorization Act U.S.C. By Mr. PRESSLER (for himself and of 1995. The bill provides a 3-year au- To be admiral Mr. BURNS): S. 1445. A bill to authorize appropriations thorization for the science and edu- Adm. Henry G. Chiles, Jr., 000–00–0000. for the National Science Foundation, and for cation programs of the National (The above nominations were re- other purposes; to the Committee on Labor Science Foundation [NSF]. Our econ- ported with the recommendation that and Human Resources, pursuant to the order omy, our quality of life, and our na- they be confirmed.) of March 3, 1988, with instructions, that if re- tional security are increasingly de- Mr. THURMOND. Mr. President, for ported the bill then be referred to the Com- pendent on our leadership in science mittee on Commerce, Science and Transpor- the Committee on Armed Services, I and technology. Since its beginnings in report favorably the attached listing of tation for a period not to exceed 30 session days. 1950, the NSF has played a central role nominations. By Mr. MCCAIN: in maintaining that leadership through Those identified with a single aster- S. 1446. A bill to amend the Inspector Gen- its research programs. In fact, NSF re- isk (*) are to be placed on the Execu- eral Act of 1978 (5 U.S.C. App.) to establish mains the principal source of funding tive Calendar. Those identified with a an Inspector General of the Administrative for fundamental research at our Na- double asterisk (**) are to lie on the Office of the United States Courts, and for tion’s academic institutions. Secretary’s desk for the information of other purposes; to the Committee on the Ju- While America is still doing well in any Senator since these names have al- diciary. science and technology, our leadership ready appeared in the CONGRESSIONAL By Ms. MIKULSKI (for herself, Mr. KENNEDY, and Mr. PRYOR): position is slipping. For example, while RECORD of October 27 and 31, November S. 1447. A bill to amend the Older Ameri- the U.S. leads the world in total dollars 7 and 8, 1995, and ask unanimous con- cans Act of 1965 to provide for Federal-State spent on research and development, sent, to save the expense of reprinting performance partnerships, to consolidate all both Japan and Germany currently on the Executive Calendar, that these nutrition programs under the Act in the De- outspend the United States as a per- nominations lie at the Secretary’s desk partment of Health and Human Services, to centage of GNP. Similarly, a recent for the information of Senators. extend authorizations of appropriations for study by the White House Office of The PRESIDING OFFICER. Without programs under the Act through fiscal year Science and Technology Policy re- 1998, and for other purposes; to the Com- objection, it is so ordered. vealed the U.S. leads in 27 critical tech- (The nominations ordered to lie on mittee on Labor and Human Resources. By Mr. KERRY: nologies, but Europe and Japan are the Secretary’s desk were printed in S. 1448. A bill to establish the National catching up in many of those areas. the RECORDS of October 27, 31, Novem- Commission on Gay and Lesbian Youth Sui- There is little question that meeting ber 7 and 8, 1995, at the end of the Sen- cide Prevention, and for other purposes; to these challenges in science and tech- ate proceedings.) the Committee on Labor and Human Re- nology requires a strong and robust *Rear Admiral Alexander J. Krekich, USN sources. NSF. To that end, the legislation I am to be vice admiral (Reference No. 682) By Mr. FEINGOLD: introducing today provides $3.2 billion S. 1449. A bill to make agricultural pro- **In the Army Reserve there are 49 pro- for each of fiscal years 1996, 1997, and motions to the grade of colonel and below motion boards and councils more responsive (list begins with Raymond W. Carpenter) to producers whose mandatory assessments 1998 to allow NSF to continue its ef- (Reference No. 700) support the activities of such boards and forts to keep America at the forefront **In the Army Reserve there are 2 appoint- councils, to improve the representation and of basic research. In a fiscal environments to the grade of lieutenant colonel (list participation of such producers on such mental in which we are looking to begins with Nelson M. Alverio) (Reference boards and councils, to ensure the independ- eliminate entire agencies, this author- No. 704) ence of such boards and councils, to ensure ization bill reflects a strong commit- **In the Navy there are 1,233 appointments the appropriate use of promotion funds, to ment to basic science. The annual to the grade of ensign (list begins with prevent legislatively authorized promotion Bobby Z. Abadi) (Reference No. 705) and research boards from using mandatory funding is only slightly below NSF’s **In the Army Reserve there are 583 pro- assessments to directly or indirectly influ- fiscal year 1995 funding level. More- motions to the grade of colonel (list begins ence legislation or governmental action or over, the bill’s funding authorizations with Virgil A. Abel) (Reference No. 706) policy, and for other purposes; to the Com- for both the overall agency and its

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18017 major individual accounts correspond develop a new generation of scientists izes the Foundation’s research and re- to the appropriations levels approved and engineers to tackle future sci- lated activities at $2.3 billion and its for NSF by the Senate in September. entific challenges and to ensure a tech- education and human resources activi- Mr. President, of the total NSF au- nologically literate Nation. NSF’s pro- ties at $599 million each year. thorization, the bill authorizes $2.3 bil- grams support educational activities Our authorization includes a total of lion for the research and related activi- reaching students at all levels in South $56 million for the Experimental Pro- ties account, the main source of NSF’s Dakota and all across the Nation. gram to Stimulate Competitive Re- research grants. This is roughly the Science education must be a national search [EPSCoR] and related activities same as the fiscal year 1995 funding priority if we are to remain competi- that have provided needed assistance level. NSF’s research programs support tive in our increasingly global and for universities in rural States such as important work in advanced materials, technologically oriented marketplace. my State of Montana. The primary biotechnology, global climate studies, My bill’s full funding for NSF’s edu- purpose of EPSCoR is to serve as a general science and math, and high cation programs indicates the high pri- change agent and catalyst to develop a performance computing. Many of the ority I place on science education. competitive research base in our rural products and services we take for Finally, I note that my bill author- areas. The development of this strong granted are the direct result of re- izes $100 million for the facilities pro- research base will in turn improve the search funded by NSF grants. gram at NSF. Good science requires quality of education we provide to our Within the Research Account, let me good research facilities. The NSF fa- citizens at all levels, and generate make special mention of one program: cilities program provides funding to spin-off technologies. the Experimental Program to Stimu- enable our research institutions to ren- The Bill also authorizes the National late Competitive Research [EPSCoR] ovate old facilities and buy up-to-date Science Foundation to spend $100 mil- at NSF. This program has been par- lab equipment so our scientists will lion each year for Academic Research ticularly helpful in strengthening the have the proper tools and environment Infrastructure. This activity provides research capabilities of colleges in to conduct their studies. grants to universities to upgrade and States that historically have been un- Mr. President, we in South Dakota improve research and lab equipment able to effectively compete for Federal are especially grateful for the work of and renovate facilities. Good research research opportunities. EPSCoR has NSF. Currently, NSF is supporting requires good facilities and good lab been so successful at NSF that it has more than 50 research and education equipment. Full funding for this ac- also been adopted at five other Federal projects in South Dakota educational count will help to rebuild the U.S. aca- science agencies, including NASA. institutions ranging from elementary demic institutions to facilitate the To allow EPSCoR to continue its im- school to graduate school. These ac- conduct of leading-edge research. portant work in our rural States, my tivities have been crafted to reflect the Finally, this bill supports the Foun- bill provides an annual authorization special expertise of those schools and dation’s science education programs. of $46 million for the program. This is Strengthening the math and science universities as well as the particular a 24-percent increase over its fiscal literacy of our young people is the only year 1995 level of $37 million. Unfortu- needs of our region. For instance, NSF is supporting re- way to insure their involvement in our nately, when it comes to many Federal search at the South Dakota School of increasingly technological world. I am science programs, my home State of Mines and Technology designed to bet- especially interested in activities South Dakota and other rural States ter understand and predict weather and aimed at K through 12 education. I also have had little, if any, involvement— climate to help our agriculture com- think it is important to take advan- either as participants or beneficiaries. tage of communications technology to munity. NSF also is funding several These States, too, must be part of the make our educational system more ef- projects in South Dakota to improve technological revolution. In that re- fective, such as the distance learning/ the teaching of math and science at gard, the National Science Foundation, teacher enhancement projects at Mon- our schools. In September, for example, through EPSCoR and other programs, tana State University developed to im- NSF began funding for a project de- has done a tremendous job of including prove the skills of teachers in remote signed to create degree programs in rural States in that revolution. areas of the Northwest. In that connec- science, engineering, and mathematics I should mention the bill funds tion, I sponsored language in the bill at our tribal colleges. This important EPSCoR out of the Research Account which establishes a pilot program at work must be allowed to continue. rather than its current funding source, the Foundation to provide, in a com- Mr. President, my bill will enable the Education Account. This change is petitive basis, financial support for these and other NSF projects to move intended to encourage greater coordi- States with two or more tribally-con- forward and to keep America strong in nation and interaction between trolled community colleges. This as- science and technology. I look forward EPSCoR and the larger research pro- sistance will establish interactive tele- to working with my colleagues to get grams. communication systems at these col- this important legislation enacted. To further build on the successful leges to enhance and improve their Mr. BURNS. Mr. President, today I EPSCoR concept, my bill authorizes educational programs and curricula. stand with Senator PRESSLER as a co- $10 million a year for a new pilot pro- These are the kinds of activities that sponsor of the National Science Foun- gram to provide research grants to we need to stress if our Nation is to re- dation Authorization Act of 1995 (S. partnerships formed by EPSCoR insti- main competitive. 1445). The National Science Foundation tutions and large research universities. Again, I would like to state my sup- is an independent Federal agency that This program will enable small schools port for the National Science Founda- provides grants for basic research to participating in EPSCoR to graduate tion Authorization Act of 1995 and look colleges, universities, and nonprofit or- from the smaller EPSCoR science forward to working with my colleagues ganizations. NSF supports research in projects into larger mainstream pro- to enact this legislation during this the basic science and mathematic grams by joining with a big brother re- Congress. search university like MIT. The large areas in addition to supporting schools participating in the program precollege, undergraduate, and grad- By Mr. MCCAIN: stand to gain as well. The program uate students, as well as post-doctoral S. 1446. A bill to amend the Inspector would enable large schools to become associates. The foundation’s support General Act of 1978 (5 U.S.C. App.) to more competitive by combining their for basic research and science edu- establish an inspector general of the talent, experience, and resources with cation is one major reason for our Administrative Office of the United those of their rural counterparts. In world leadership in science and tech- States Courts, and for other purposes; short, Mr. President, if approved, this nology. to the Committee on the Judiciary. program will help broaden and The bill authorizes the National THE INSPECTOR GENERAL OF THE ADMINISTRA- strengthen America’s science and tech- Science Foundation to spend $3.2 bil- TIVE OFFICE OF THE UNITED STATES COURTS nology base. lion in fiscal years 1996, 1997, and 1998, ACT OF 1995 My bill also provides $599 million for which is 95 percent of the administra- ∑ Mr. MCCAIN. Mr. President, today I the education account at NSF to help tion’s budget request. The bill author- am introducing legislation to establish

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18018 CONGRESSIONAL RECORD — SENATE December 5, 1995 an inspector general within the Admin- By Ms. MIKULSKI (for herself, S. 1447 istrative Office of the United States Mr. KENNEDY, and Mr. PRYOR): Be it enacted by the Senate and House of Rep- Courts. S. 1447. A bill to amend the Older resentatives of the United States of America in The Administrative Office, com- Americans Act of 1965 to provide for Congress assembled, monly referred to as the AO, was estab- Federal-State performance partner- SECTION 1. SHORT TITLE; REFERENCES IN ACT; lished in 1939 to provide the Federal ships, to consolidate all nutrition pro- TABLE OF CONTENTS. (a) SHORT TITLE.—This Act may be cited as courts with administrative support. grams under the Act in the Depart- The office is in charge of the day-to- the ‘‘Older Americans Act Amendments of ment of Health and Human Services, to 1995’’. day operations of the Federal judici- extend authorizations of appropria- (b) REFERENCE.—Except as otherwise ex- ary, including budgets, automation, se- tions for programs under the Act pressly provided in this Act, whenever in curity, and office space. The AO oper- through fiscal year 1998, and for other this Act an amendment or repeal is ex- ates on a budget of $44 million and a purposes; to the Committee on Labor pressed in terms of an amendment to, or re- staff of 900 but coordinates the judi- and Human Resources. peal of, a section or other provision, the reference shall be considered to be made to a ciary’s budget of $2.7 billion and a staff THE OLDER AMERICANS ACT AMENDMENTS OF section or other provision of the Older Amer- of over 27,000 employees. 1995 icans Act of 1965 (42 U.S.C. 3001 et seq.). While the AO employs a significant ∑ Ms. MIKULSKI. Mr. President, I in- number of people and manages a siz- (c) TABLE OF CONTENTS.—The table of con- troduce the Older Americans Act tents of this Act is as follows: able budget, it has no inspector general Amendments of 1995, which is the Clin- Sec. 1. Short title; references in Act. to promote efficiency within its pro- ton administration’s proposal for the grams. Many agencies within the exec- TITLE I—PERFORMANCE PARTNERSHIPS reauthorization of this critical legisla- Sec. 101. Responsibilities of Assistant Sec- utive branch, including those similar tive initiative. in size to the AO—such as the Smithso- retary. The Older Americans Act [OAA] cele- Sec. 102. Funding of performance partner- nian Institution, the Corporation of brated its 30th anniversary this year ship administrative costs and Public Broadcasting, the Corporation and with it, a great number of accom- incentive awards. for National and Community Service, plishments. The Older Americans Act, Sec. 103. Responsibilities of States. the EEOC, the OPM, the Nuclear Regu- enacted in 1965, was the first program Sec. 104. Area plans: reorganization, stream- latory Commission, the Railroad Re- lining, and incorporation of to focus on the community-based serv- performance partnerships. tirement Board, and the U.S. Informa- ices for seniors. It articulates a com- tion Agency—have inspector generals Sec. 105. State plans: reorganization, prehensive set of services, designed to streamlining, and incorporation which provide the American public meet the diverse needs of older persons. of performance partnerships. with a valuable service by conducting Implemented at state and local levels, Sec. 106. Effective date. objective and independent oversight of these programs are critical to the TITLE II—OTHER AMENDMENTS TO THE agency activity. OLDER AMERICANS ACT OF 1965 In the past, the Congress has been health and well-being of millions of PART A—ADMINISTRATION ON AGING hesitant to require the AO, a judicial senior Americans in Maryland and Sec. 201. National Eldercare Locator Serv- agency, to have an inspector general throughout the United States. Now, the Congress is beginning the ice. like executive agencies, in the effort to process of reauthorizing the Older Sec. 202. Authorization of appropriations. avoid even the appearance of encroach- Americans Act for another 3 to 5 years. PART B—STATE AND COMMUNITY PROGRAMS ing on the separation of powers. How- As we seek a vision for the Older Amer- ON AGING ever, I trust my colleagues will agree Sec. 211. Clarification concerning services to that the efficient and cost-effective use icans Act in the 21st century, I believe we must assess all aspects of the pro- non-elderly. of taxpayer dollars is as important in Sec. 212. Coordination of services for indi- the administration of the judiciary as gram and look to the future needs of viduals with disabilities under it is in the executive branch. The es- seniors and their families. This in- area plans. tablishment of an IG within the AO cludes examination of the core ele- Sec. 213. Eligibility of older indians for serv- will help ensure the appropriate and ef- ments of the act, being more realistic ices under area plans. Sec. 214. State option for cost sharing. ficient use of taxpayer dollars without to streamlining the scope of services that the act provides, and allowing Sec. 215. State option concerning consumer- unduly burdening or diminishing in director services. any way the independence of the Judi- service providers to focus on improving Sec. 216. Transfer of funds between pro- ciary. the quality of those services. grams. Mr. President, this legislation is not In an effort to expand the debate on Sec. 217. Disaster relief. intended to be a harsh criticism of the the reauthorization of the Older Ameri- Sec. 218. Nutrition services incentive pro- AO. Certainly, the Administrative Of- cans Act, I am introducing today the gram. Sec. 219. Waivers of certain requirements for fice, like many other governmental administration’s proposal. This legislation combines consolidation of pro- State programs. agencies, has had its share of waste and Sec. 220. Consolidation of authorities for inefficiency. My colleagues are aware grams while encouraging greater flexi- supportive services and senior of concerns I have expressed about the bility in the delivery of services to sen- centers. National Fine Center, which the AO is iors. While I am not in agreement with Sec. 221. Consolidation of authorities for nu- taking steps to rectify, and the Federal every aspect of this proposal, I do be- trition services. Courthouse Construction Program. I lieve that it will contribute to the de- Sec. 222. Authorization of appropriations. simply believe any bureaucracy with a bate of this very important program. PART C—RESEARCH, DEVELOPMENT, AND large budget and many employees can I look forward to collaborating with DEMONSTRATIONS benefit from independent oversight. Senator JUDD GREGG, our chairman of Sec. 231. Revision of title IV. However, I am certainly open to any the Subcommittee on Aging and Sen- PART D—COMMUNITY SERVICE EMPLOYMENT suggestions about how this bill could ator NANCY KASSEBAUM, our chair of FOR OLDER AMERICANS be improved. the Senate Labor and Human Re- Sec. 241. Transfer of authority. I want to make clear that the inspec- sources Committee, as we work to- Sec. 242. Phased reduction of Federal share. tor general at the AO would have no gether with out Senate colleagues in Sec. 243. Authorization of appropriations. authority to review and report on mat- reauthorizing the Older Americans Act. PART E—GRANTS FOR NATIVE AMERICANS ters involving the Federal courts’ judi- I am dedicated to seeing that the best Sec. 251. Authorization of appropriations. cial decisions. Jurisdiction would be of the Older Americans Act remains PART F—VULNERABLE ELDER RIGHTS limited strictly to the administrative and thrives. I ask my colleagues to join PROTECTION functions performed by the AO. me in this important effort. Sec. 261. Assistance program for insurance Again, I believe this is a common Mr. President, I ask unanimous con- and public benefits. sense, good Government piece of legis- sent that the text of the bill be printed Sec. 262. Authorization of appropriations. lation which will enhance the cost-ef- in the RECORD. PART G—TECHNICAL AMENDMENTS fective use of the taxpayer resources There being no objection, the bill was Sec. 271. Definitions. utilized to administer our Federal ordered to be printed in the RECORD, as PART H—EFFECTIVE DATE courts.∑ follows: Sec. 281. Effective date.

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TITLE III—WHITE HOUSE CONFERENCE ‘‘(1) IN GENERAL.—In order to meet the re- mitted by a State under subsection ON AGING quirements of this subsection, a performance (c)(1)(E)— Sec. 301. White House Conference author- partnership proposal submitted to the As- ‘‘(A) the progress achieved nationally to- ized. sistant Secretary by a State agency under ward each of the objectives in the core set of Sec. 302. Conference administration. title III or VII shall contain— performance partnership objectives; and Sec. 303. Policy Committee; related commit- ‘‘(A) a list of one or more objectives (de- ‘‘(B) in consultation with each State, the tees. rived from the performance partnership ob- State’s progress toward each objective Sec. 304. Report of the Conference. jectives specified under subsection (b)) to- agreed upon in the performance partnership Sec. 305. Authorization of appropriations. ward which the State will work and a per- under such title. Sec. 306. Authorization of appropriations. formance target for each objective which the The Assistant Secretary shall make assess- TITLE I—PERFORMANCE PARTNERSHIPS applicant will seek to achieve by the end of ments publicly available. the partnership period (which shall be coter- ‘‘(2) PERIODIC ON-SITE REVIEWS.—The As- SEC. 101. RESPONSIBILITIES OF ASSISTANT SEC- minous by the period covered by the State sistant Secretary shall conduct an on-site re- RETARY. plan under section 307); view of each State’s adherence to its per- (a) FUNCTIONS OF ASSISTANT SECRETARY.— ‘‘(B) a rationale for the applicant’s selec- formance partnership agreement under title Section 202(a)(3) is amended by inserting be- tion of its objectives, including its perform- III or VII not less often than every five fore the semicolon ‘‘, and to negotiate per- ance targets, and timeframes; years. formance partnership agreements with the ‘‘(C) a statement of the applicant’s strate- ‘‘(f) INCENTIVE AWARDS FOR EFFECTIVE PER- States under titles III and VII’’. gies for achieving the objectives over the FORMANCE.—From amounts reserved under (b) PERFORMANCE PARTNERSHIPS.—Title II course of the grant period; section 304(a), the Assistant Secretary may is amended by inserting after section 202 the ‘‘(D) a statement of the estimated amount make an incentive award to any State deter- following new section: to be expended to carry out each strategy; mined, on the basis of assessments or on-site ‘‘PERFORMANCE PARTNERSHIPS and reviews under subsection (e) or other inves- ‘‘SEC. 202A. (a) IN GENERAL.—The Assistant ‘‘(E) an assurance that the State will re- tigation, to have performed effectively under Secretary shall negotiate performance part- port to the Assistant Secretary, not later a performance partnership agreement under nership agreements with States in accord- than 60 days after the end of each fiscal year, title III or VII and to have made significant ance with the provisions of this section. on progress in the State toward accom- progress toward meeting core national objec- ‘‘(b) PERFORMANCE OBJECTIVES AND MEAS- plishing core performance objectives speci- tives. Incentive awards made to States shall URES.— fied under subsection (b)(1)(B) (regardless of be available only for use in furnishing addi- ‘‘(1) DESIGNATION OF OBJECTIVES.—The As- whether it is working toward those objec- tional services under the State’s agreement sistant Secretary, in consultation (as appro- tives) and the specific objectives toward under such title.’’. priate) with the States, local governments, which the State is working under the per- (c) DEFINITIONS.—Section 102 is amended tribal organizations, and other entities, shall formance partnership. A State may select an by adding at the end the following new para- specify, by the end of September 1996 (and objective that is not a specified performance graph: ‘‘(45)(A) The term ‘performance indicator’ from time to time revise, as needed), with re- partnership objective under subsection means a quantifiable characteristic used as a spect to the goals specified in sections 305A (b)(1)(A) if it demonstrates to the Assistant measurement. and 704A— Secretary that the objective relates to a sig- ‘‘(B) The term ‘performance target’ means ‘‘(A) a list of performance partnership ob- nificant concern of older Americans in the a numerical value sought to be achieved jectives to accomplish the goals of each such State that would not otherwise be addressed within a specified period of time.’’. section, and appropriately (and that a suitable perform- SEC. 102. FUNDING OF PERFORMANCE PARTNER- ‘‘(B) a core set for each such section of ob- ance indicator exists to measure progress to- SHIP ADMINISTRATIVE COSTS AND jectives that address needs of older Ameri- ward the objective). INCENTIVE AWARDS. cans of national significance. ‘‘(2) ELEMENTS OF STATE PROPOSALS RELAT- (a) STATE ADMINISTRATIVE COSTS RELATED ‘‘(2) ELEMENTS OF PERFORMANCE PARTNER- ING TO SPECIAL POPULATIONS.—Each State TO PERFORMANCE PARTNERSHIPS.—Section 308 SHIP OBJECTIVES.—Each performance partner- proposal for a performance partnership under is amended by adding at the end the fol- ship objective specified under paragraph (1) title III or VII shall, as appropriate, include lowing new subsection: shall include— objectives— ‘‘(d) In addition to amounts otherwise ‘‘(A) a performance indicator; ‘‘(A) designed, in consultation with tribal available under this section, each State may ‘‘(B) the specific population being ad- governments (or their representatives) to ad- use, for costs relating to the administration dressed; dress the needs of older Indians or Native of performance partnerships under this title ‘‘(C) a quantifiable performance target; Hawaiians within the State to ensure that an and title VII, including costs of developing, and appropriate and equitable share of State negotiating, administering, monitoring, ‘‘(D) a date by which the target level is to funding under such title is used to meet such evaluating, and reporting on performance be achieved. needs; and under, such partnerships, such additional ‘‘(3) GENERAL CRITERIA FOR DESIGNATION OF ‘‘(B) designed to give priority to activities amounts from the allotment to the State OBJECTIVES.—In specifying the performance addressing the needs of vulnerable older indi- under section 304 (not to exceed 2 percent of partnership objectives, the Assistant Sec- viduals in the State. such allotment) as the Assistant Secretary retary shall be guided by the following prin- ‘‘(d) NEGOTIATIONS AND ADJUSTMENT.— may permit.’’. ciples: ‘‘(1) INITIAL NEGOTIATIONS.—In the negotia- (b) SET-ASIDE FOR INCENTIVE AWARDS.—(1) ‘‘(A) objectives should be closely related to tions concerning a proposed performance IN GENERAL.—Section 304 is amended— the goals of the section concerned, and be partnership agreement submitted under this (1) by redesignating subsections (a) viewed as important by and understandable section, the Assistant Secretary shall— through (e) as subsections (b) through (f); to State policymakers and the general pub- ‘‘(A) consider the extent to which the and lic; State’s proposed objectives, performance tar- (2) by inserting after ‘‘SEC. 304.’’ the fol- ‘‘(B) actions taken under the partnership gets, timeframes, and strategies are likely to lowing new subsection: agreement should be expected to have an im- address appropriately the most significant ‘‘(a) RESERVATION OF FUNDS FOR PERFORM- pact on the objective; needs of older Americans (as measured by ap- ANCE PARTNERSHIP INCENTIVE AWARDS.— ‘‘(C) measurable progress in achieving the plicable indicators) within the State, includ- From each of the sums appropriated under objective should be expected over the period ing the needs of vulnerable populations, and section 303 for each fiscal year, the Assistant of the grant; ‘‘(B) give particular consideration to the Secretary may reserve up to 10 percent for ‘‘(D) objectives should be results-oriented, State’s proposed performance partnership in performance incentive awards to States in including a suitable mix of outcome, process addressing progress toward the core set of accordance with section 205(f).’’. and capacity measures, and, if an objective performance partnership objectives. (2) CONFORMING AMENDMENT.—Section measures process or capacity, it should be ‘‘(2) ADJUSTMENT.—The Assistant Sec- 304(b), as redesignated by subsection (a), is demonstrably linked to the achievement of a retary and a State may at any time in the amended by striking ‘‘from the sums appro- specified outcome for older Americans; and course of a performance partnership renego- priated’’ and inserting ‘‘from the amounts ‘‘(E) data to track the objective shall, to tiate, and revise by mutual agreement, the remaining, after application of subsection the extent practicable, be comparable for all elements of the partnership agreement in (a), from the sums appropriated’’. States, meet reasonable statistical standards light of new information or changed cir- SEC. 103. RESPONSIBILITIES OF STATES. for quality, and be available in a timely cumstances (including information or (a) UNDER BASIC STATE GRANTS PROGRAM.— fashion, at appropriate periodicity, and at changes identified during assessments or on- Title III is amended by inserting after sec- reasonable cost, and, with respect to core ob- site reviews under subsection (e)). tion 305 the following new section: jectives, shall include as appropriate the ‘‘(e) ANNUAL ASSESSMENTS; PERIODIC ON- ‘‘PERFORMANCE PARTNERSHIPS data specified in section 202(a)(19), collected SITE REVIEWS.— ‘‘SEC. 305A. (a) GOALS.—The goals of this in accordance with the uniform procedures ‘‘(1) ASSESSMENTS.—The Assistant Sec- section are for the States and the Federal established pursuant to section 202(a)(29). retary shall assess annually with respect to Government, working together in a partner- ‘‘(c) STATE PERFORMANCE PARTNERSHIP performance partnerships under such titles ship, to accomplish the purposes specified in PROPOSAL.— III and VII, on the basis of the report subsection 301(a).

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18020 CONGRESSIONAL RECORD — SENATE December 5, 1995

‘‘(b) PERFORMANCE PARTNERSHIP AS ELE- ‘‘(A) supportive services (including at least (9) by striking subparagraphs (I) and (K) of MENT OF STATE PLAN.—In order to be eligible the service specified in paragraph (2)); paragraph (6) (community-based long-term to receive a grant from its allotment under ‘‘(B) nutrition services; and care services) and inserting after paragraph this title, except as provided in section ‘‘(C) where appropriate, the establishment, (6) the following new paragraph: 309(a), a State shall propose to and negotiate maintenance, or construction of multipur- ‘‘(7) COMMUNITY-BASED LONG-TERM CARE with the Assistant Secretary a performance pose senior centers.’’; SERVICES.—The plan shall provide that the partnership agreement in accordance with (3) in paragraph (2)— area agency will facilitate the coordination the provisions of this section and section (A) by inserting ‘‘PRIORITY SERVICES.—The of community-based, long-term care services 202A, and shall include such agreement as plan shall’’ after ‘‘(2)’’; designed to enable older individuals to re- part of the State plan under section 307. (B) by striking ‘‘section 307(a)(22)’’ and in- main in their homes, by means including— ‘‘(c) ADVISORY COUNCIL.—The State shall serting ‘‘section 307(a)(2)’’; ‘‘(A) development of case management establish an Advisory Council, with members (C) by striking ‘‘and specify annually in services as a component of the long-term including representatives of other State such plan, as submitted or as amended’’ and care services, consistent with the require- agencies administering programs serving the inserting ‘‘and assurances that the area ments of paragraph (8); elderly, private entities providing services agency will report annually to the State ‘‘(B) involvement of long-term care pro- under the State plan, and older individuals agency’’; and viders in the coordination of such services; (with appropriate efforts to include members (D) by striking the semicolon at the end and of minority groups), whose responsibilities and inserting a period; ‘‘(C) increasing community awareness of shall include— (4) by striking paragraphs (3) (designation and involvement in addressing the needs of ‘‘(1) reviewing and commenting on the of focal points for service delivery in each residents of long-term care facilities.’’; State’s proposed performance partnership community) and (4) (information and assist- (10) by relocating and redesignating para- agreement under this section (and such com- ance services); graph (20) as paragraph (8), and amending ments shall be included with the State plan ‘‘(5) by inserting after paragraph (2) the such paragraph by inserting ‘‘PROVISION OF submission under section 307); and following new paragraphs: CASE MANAGEMENT SERVICES.—The plan ‘‘(2) evaluating and reporting on the ‘‘(3) DETERMINATION OF NEEDS.—The plan shall’’ after ‘‘(8)’’; State’s performance under the final agree- shall provide for determining the extent of (11) by redesignating paragraph (11) as ment negotiated with the Assistant Sec- need for the services specified in paragraphs paragraph (9), and amending such para- retary.’’. (1) and (2) in the area taking into consider- graph— (b) UNDER VULNERABLE ELDER RIGHTS PRO- ation, among other things— (A) by inserting ‘‘MAINTENANCE OF EFFORT TECTION PROGRAM.—Title VII is amended by ‘‘(A) the numbers of older individuals re- FOR OMBUDSMAN PROGRAM.—The plan shall’’ inserting after section 704 the following new siding in such area— after ‘‘(9)’’; section: ‘‘(i) who have low incomes, (B) by striking ‘‘section 307(a)(12)’’ and inserting ‘‘section 307(a)(9)’’; and ‘‘PERFORMANCE PARTNERSHIPS ‘‘(ii) who have greatest economic need (with particular attention to individuals who (C) by striking the semicolon at the end ‘‘SEC. 704A. (a) GOALS.—The goals of this are members of historically disadvantaged and inserting a period; section are for the States and the Federal (12) by redesignating and relocating para- Government, working together in partner- groups), ‘‘(iii) who have greatest social need (with graph (6)(P) as paragraph (10), and amending ship, to protect the rights of vulnerable older particular attention to individuals who are such paragraph— individuals and to prevent elder abuse, ne- members of historically disadvantaged (A) by inserting ‘‘GRIEVANCE PROCEDURE.— glect, and exploitation. groups), or The plan shall’’ after ‘‘(10)’’; and ‘‘(b) STATE PERFORMANCE PARTNERSHIP AS ‘‘(iv) who are Indians; and (B) by striking the semicolon and inserting ELEMENT OF STATE PLAN.—In order to be eli- a period; gible to receive a grant from its allotment ‘‘(B) the effectiveness of use of resources (including efforts of volunteers and vol- (13) by striking paragraphs (6)(N), (18), and under this title, a State shall propose to and (19), and inserting after paragraph (10) the negotiate with the Assistant Secretary a untary organizations) in meeting such need. ‘‘(4) PERFORMANCE PARTNERSHIP OBJEC- following paragraph: performance partnership agreement in ac- ‘‘(11) SERVICES TO NATIVE AMERICANS.—The TIVES.—The plan shall identify area objec- cordance with the provisions of this section tives, for purposes of the performance part- plan shall provide the following assurances and section 202A, and shall include such nership required under sections 305A and concerning services to older Native Ameri- agreement as part of the State plan under 704A, on the basis of the determinations cans: section 307. ‘‘(A) If there is a significant population of under paragraph (3) (and including objectives ‘‘(c) ADVISORY COUNCIL.—The responsibil- older individuals who are Indians in the area, required under paragraph (5)), and shall be ities of the advisory council established by the area agency will pursue activities, in- amended as necessary to incorporate, as ap- the State pursuant to section 305A(c) State cluding outreach, to increase access of such propriate, the objectives specified in the shall include— individuals to programs and benefits under agreements negotiated by the State agency ‘‘(A) reviewing and commenting on the this title. under such sections 305A and 704A.’’; State’s proposed performance partnership ‘‘(B) The area agency will, to the max- (6) in paragraph (5)— agreements under this title (and such com- imum extent practicable, coordinate the (A) by inserting ‘‘OBJECTIVES FOR SERVICES ments shall be included with the State plan services it provides under this title with TO OLDER INDIVIDUALS WITH GREATEST NEED.— submission under section 307); and services provided under title VI.’’; The plan shall’’ after ‘‘(5)’’; and ‘‘(B) evaluating and reporting on the (14) by striking paragraph (12) (area option (B) by striking the semicolon at the end State’s performance under the final agree- concerning volunteer services coordinator); and inserting a period; ment negotiated with the Assistant Sec- (15) by striking paragraphs (13) through (7) in paragraph (6)— retary under this title.’’. (16) (description of and assurances con- (A) by inserting ‘‘Policy Development.— (c) STATE PLAN REQUIREMENT.—Section cerning activities of area agency); and The plan shall—’’ after ‘‘(6)’’; 307(a) is amended in the first sentence by (16) by redesignating paragraph (17) as (B) by striking subparagraphs (A) (evalua- striking ‘‘which meets such criteria’’ and in- paragraph (12) and amending such para- tions and public hearings) and (B) (technical serting ‘‘which includes the performance graph— assistance to providers); partnership agreements under this title and (A) by inserting ‘‘SPECIAL MENUS IN NUTRI- (C) by relocating and redesignating subtitle VII negotiated with the Assistant Sec- TION PROGRAMS.—’’ after ‘‘(12)’’; retary under sections 202A, 305A, and 704A, paragraph (D) as subparagraph (A); (B) by striking ‘‘section 307(a) (13) (G)’’ and (D) by relocating and redesignating sub- and meets such other criteria’’. inserting ‘‘section 307(a) (10) (D)’’; and paragraph (F) as subparagraph (B); SEC. 104. AREA PLANS: REORGANIZATION, (C) by striking the semicolon and inserting (E) by striking the semicolon at the end of STREAMLINING, AND INCORPORA- a period. subparagraph (C) and inserting a period; and TION OF PERFORMANCE PARTNER- (b) STATE WAIVERS.—Section 306(b) is SHIPS. (F) by striking subparagraphs (E) (arrange- amended— (a) AREA PLAN REQUIREMENTS.—Section ments with specified organizations), (G) (1) by striking paragraph (2) (procedural re- 306(a) is amended— (methods for determining priority services), quirements for State agency waivers to area (1) in the matter preceding paragraph (1), (H) (coordination among programs), (J) agencies); and by striking ‘‘Each such plan shall—’’ and in- (identification of protective services pro- (2) by striking ‘‘(1)’’ after ‘‘(b)’’. viders, (L) (coordination of services for Alz- serting ‘‘Each such plan shall comply with SEC. 105. STATE PLANS: REORGANIZATION, the following requirements:’’; heimer’s patients), (M) (coordination of men- STREAMLINING, AND INCORPORA- (2) in paragraph (1), to read as follows: tal health services), (O) (information on TION OF PERFORMANCE PARTNER- ‘‘(1) SERVICES PROVIDED.—The plan shall higher education), (Q) (coordination with SHIPS. provide for the furnishing, through a com- housing providers), (R) (telephone listings of (a) STATE PLAN REQUIREMENTS.—Section prehensive and coordinated system, of serv- area agencies), and (S) (coordination of 307(a) is amended— ices the need for which has been determined transportation services); (1) by striking paragraphs (1) and (2) and pursuant to paragraph (3), and which are de- (8) by striking paragraphs (7) through (10) inserting the following: signed to meet the performance objectives (assurances that funds will be spent for the ‘‘(1) AREA PLANS AND PERFORMANCE PART- specified under paragraph (4), including— purposes awarded); NERSHIPS.—The plan shall—

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18021 ‘‘(A) require each area agency designated plan shall provide that the State agency (20) by redesignating paragraphs (25) as under section 305(a) (2) (A) to— will— paragraph (16), and amending such paragraph ‘‘(i) develop and submit to the State agen- ‘‘(A) afford an opportunity for a hearing by inserting ‘‘OLDER INDIVIDUALS WITH SE- cy for approval, in accordance with a uni- upon request, in accordance with published VERE DISABILITIES.—’’ after ‘‘(15)’’; form format developed by the State agency, procedures, to any area agency submitting a (21) by redesignating paragraph (26) as an area plan meeting the requirements of plan under this title, or to any provider of paragraph (17), and amending such para- section 306 which specifies area objectives (or applicant to provide) services under such graph— for purposes of performance partnerships a plan; and (A) by inserting ‘‘COMMUNITY-BASED SERV- under sections 305A and 704A, as required by ‘‘(B) issue guidelines applicable to griev- ICES.—(A) LONG-TERM CARE SERVICES.—’’ section 306(a)(4); and ance procedures required by section after ‘‘(26)’’; and ‘‘(ii) amend such area plan as necessary to 306(a)(10).’’; (B) by striking ‘‘section 306(a)(6)(I)’’ and incorporate, as appropriate, objectives speci- (6) in paragraph (6), by inserting ‘‘RE- inserting ‘‘section 306(a)(6)(D)’’; fied in the performance partnership agree- PORTS:—’’ after ‘‘(6)’’; (22) by relocating and redesignating para- ments negotiated by the State agency under (7) in paragraph (7)— graph (44) as paragraph (17)(B); such sections 305A and 704A; (A) by inserting ‘‘FISCAL CONTROLS.—’’ (23) by striking paragraph (27) (assurances ‘‘(B) be based on such area plans; and after ‘‘(7)’’; and concerning part D in-home services pro- ‘‘(C) include the performance partnership (B) by striking subparagraph (C); gram); agreements negotiated by the State agency (8) by redesignating paragraph (10) as para- (24) by striking paragraph (28) (assurances with the Assistant Secretary under such sec- graph (8) and amending such paragraph by concerning part E special needs program); tions 305A and 704A.’’; inserting ‘‘RESTRICTION ON DIRECT PROVISION (25) by redesignating paragraph (30) as (2) by striking paragraphs (3) (A) (evalua- OF SERVICES.—’’ after ‘‘(8)’’; paragraph (18), and amending such paragraph tion of need for services), (9) (information (9) by striking paragraph (11) (hiring pref- by inserting ‘‘TITLE VII PROGRAM.—’’ after and assistance services), and (22) (funding erence for older individuals and individuals ‘‘(18)’’; shares for priority services), and amending trained in field of aging); (26) by striking paragraph (31) (State vol- paragraph (2) to read as follows: (10)(A) by redesignating paragraph (12) as unteer services coordinator); ‘‘(2) DETERMINATION OF SERVICE NEEDS.— paragraph (9), and amending such para- (26) by redesignating paragraph (32) as The plan shall provide that the State agency graph— paragraph (19), and amending such paragraph will— (i) by inserting ‘‘LONG-TERM CARE OMBUDS- by inserting ‘‘TECHNICAL ASSISTANCE TO PRO- ‘‘(A) evaluate, using uniform procedures MAN PROGRAM.—’’ after ‘‘(9)’’; and VIDERS.—’’ after ‘‘(19)’’; under section 202(a) (29) the need for sup- (ii) by adding before the period ‘‘, and ‘‘will (27) (A) by redesignating paragraph (34) as portive services (including legal assistance, expend for such purpose not less than the paragraph (20), and amending such paragraph information and assistance, and transpor- total amount so expended by the State agen- by inserting ‘‘OLDER NATIVE AMERICANS.— tation services), nutrition services, and mul- cy in fiscal year 1991’’; and (A)’’ after ‘‘(34)’’; and (B) by striking paragraph (21); (B) by redesignating subparagraphs (A) and tipurpose senior centers within the State; (11) by redesignating paragraph (13) as ‘‘(B) determine the extent to which exist- (B) of paragraph (35) as clauses (i) and (ii), paragraph (10), and amending such para- ing public or private programs and resources and redesignating and relocating such paragraph— (including volunteers and programs and serv- graph (35) as subparagraph (B) of paragraph (A) by inserting ‘‘NUTRITION SERVICES.—’’ ices of voluntary organizations) meet such (20); after ‘‘(10)’’; (28) by redesignating paragraph (36) as need; and (B) by striking subparagraphs (B) (primary paragraph (21), and amending such paragraph ‘‘(C) specify a minimum percentage of the consideration to congregate meals), (D) (ac- by inserting ‘‘CASE MANAGEMENT PRO- funds received by each area agency for part cessibility of congregate meal site), (E) (out- B to be expended (unless waived by the State VIDERS.—’’after ‘‘(21)’’; reach), (H) (grandfathered providers of home- (29) by striking paragraphs (38) and (39) (as- agency under section 306(b)) by such area delivered meals), and (M) (nonfinancial eligi- agency to provide each of the categories of surances concerning use of funds); bility criteria); and (30) by striking paragraph (40) (assurances services specified in section 306(a) (2).’’; (B)(i) by inserting ‘‘and’’ at the end of sub- (3) by striking paragraphs (3)(B) (maintain- concerning part G program for in-home care- paragraph (K); takers); ing rural funding), (29) and (37) (rural serv- (ii) by striking ‘‘; and ’’ at the end of sub- (31) by striking paragraph (41) (efforts to ices and costs thereof), and (33) (intra-State paragraph (L) and inserting a period; and coordinate services and provide funding formula), and adding after paragraph (iii) by redesignating subparagraph (C) and multigenerational activities); and (2) the following new paragraph: the remaining subparagraphs as subpara- (32) by striking paragraph (42) (coordina- ‘‘(3) INTRA-STATE FUNDING REQUIREMENTS.— graphs (B) through (H); The plan shall— (12) by striking paragraph (14) (restrictions tion of transportation services). ‘‘(A) shall include (and may not be ap- on use of funds under the Act for acquisition, SEC. 106. EFFECTIVE DATE. proved unless the Assistant Secretary ap- alteration, or construction of facilities); The amendments made by this title shall proves) the statement and demonstration re- (13) (A) by redesignating paragraph (15) as become effective with respect to a State on quired by paragraphs (2) and (4) of section 305 paragraph (11), and amending such para- the effective date of the first State plan (d) (concerning intra-State distribution of graph— under section 307 of the Older Americans Act funds); and (A) by inserting ‘‘LEGAL ASSISTANCE.—’’ of 1965 that takes effect one year or later ‘‘(B) with respect to services to older indi- after ‘‘(11)’’; and after the enactment of this Act. viduals residing in rural areas— (B) (i) by striking ‘‘and’’ at the end of sub- TITLE II—OTHER AMENDMENTS TO THE ‘‘(1) provide assurances that the State paragraph (D); and OLDER AMERICANS ACT OF 1965 agency will spend for each fiscal year, under (ii) by striking the period at the end of PART A—ADMINISTRATION OF AGING this title and titles V and VII, not less than subparagraph (E) and inserting ‘‘; and’’; and 105 percent of the amount so expended for (B) (i) by amending paragraph (18) by strik- SEC. 201. NATIONAL ELDERCARE LOCATOR SERV- fiscal year 1978; ing all that precedes ‘‘assign personnel’’ and ICE. ‘‘(ii) identify, for each fiscal year under the inserting ‘‘the State will’’; and Section 202(a)(24) is amended to read as fol- plan, the projected costs of providing such (ii) by relocating and redesignating such lows: services (including the cost of providing ac- paragraph (18) as paragraph (11)(F); ‘‘(24) develop and operate, either directly cess to such services); and (14) by redesignating paragraph (16) as or through contracts, grants, or cooperative ‘‘(iii) describe the methods used to meet paragraph (12), and amending such paragraph agreements, a National Eldercare Locator the needs for such services in the fiscal year by inserting ‘‘PREVENTION OF ABUSE.—’’ after Service, providing nationwide toll-free infor- preceding the first year to which such plan ‘‘(12)’’; mation and assistance services to identify applies.’’; (15) by striking paragraph (17) (in-service community resources for older individuals;’’. (4) by striking paragraph (4) (methods of personnel training); SEC. 202. AUTHORIZATIONS OF APPROPRIA- administration, personnel standards); (16) by striking paragraph (19) (guarantees TIONS. (5) by striking paragraph (8) (evaluations that area agencies may give grants or con- (a) FEDERAL COUNCIL ON THE AGING.—Sec- and hearings) and inserting after paragraph tracts to providers of education and training tion 204(g) is amended by striking all that (3) the following paragraph: services); follows ‘‘to carry out this section’’ and in- ‘‘(4) EVALUATIONS.—The plan shall provide (17) by redesignating paragraph (20) as serting ‘‘$226,000 for fiscal year 1996 and such that the State agency will conduct periodic paragraph (13), and amending such paragraph sums as necessary for each of fiscal years evaluations of, and public hearings on, ac- by inserting ‘‘OLDER INDIVIDUALS OF LIMITED 1997 and 1998.’’. tivities and projects carried out under the ENGLISH-SPEAKING ABILITY.—’’; (b) ADMINISTRATION ON AGING.—Section 215 State plan.’’; (18) by redesignating paragraph (23) as is amended to read as follows: (5) by striking paragraph (43) (grievance paragraph (14), and amending such paragraph ‘‘SEC. 215. There are authorized to be ap- procedures) and amending paragraph (5) by inserting ‘‘SPECIAL NEEDS POPULATIONS.— propriated, for carrying out the responsibil- (hearing for area agencies and providers) to ’’ after ‘‘(14)’’; ities of the Administration on Aging under read as follows: (19) by redesignating paragraph (24) as this title— ‘‘(5) ‘‘HEARINGS FOR AREA AGENCIES AND paragraph (15), and amending such paragraph ‘‘(1) for fiscal year 1996, $18,149,000, plus PROVIDERS; GRIEVANCE PROCEDURES.—The by inserting ‘‘OUTREACH.—’’ after ‘‘(15)’’; such additional sums as may be necessary to

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18022 CONGRESSIONAL RECORD — SENATE December 5, 1995 carry out responsibilities with respect to ‘‘(B) (i) exempt from cost-sharing require- (4) in subsections (b)(1) and (c,) by insert- programs under section 311 and title V trans- ments individuals with incomes below a lowing ‘‘and tribal organizations’’ after ferred to the Administration on Aging by the income threshold set by the State, and ‘‘States’’. Older Americans Act Amendments of 1995, ‘‘(ii) set cost-sharing rates for individuals SEC. 218. NUTRITION SERVICES INCENTIVE PRO- and with incomes above such threshold on a slid- GRAM. ‘‘(2) such sums as may be necessary for ing-fee scale based on income.’’. (A) ESTABLISHMENT OF PROGRAM.—Section each of fiscal years 1997 and 1998, (b) AREA PLAN REQUIREMENT.—Section 311, including the heading thereof, is amend- of which up to $1,000,000 for each such fiscal 306(a) (as amended by section 104 of this Act) ed to read as follows: year shall be available for operation of the is further amended— ‘‘NUTRITION SERVICES INCENTIVE PROGRAM National Eldercare Locator Service under (1) by striking the period at the end of ‘‘SEC. 311. (a) PURPOSE.—The purpose of the section 202(a)(24).’’. paragraph (11) and inserting a semicolon; and program under this section is to provide in- PART B—STATE AND COMMUNITY (2) by adding at the end the following new centives to encourage and reward effective PROGRAMS ON AGING paragraph: performance by States and tribal organiza- ‘‘(12) provide assurances that any require- tions in the efficient delivery of nutritious SEC. 211. CLARIFICATION CONCERNING SERV- ments for cost-sharing by recipients of serv- ICES TO NONELDERLY. meals to older Americans. ices under the plan will be consistent with ‘‘(b) PAYMENTS TO TRIBAL ORGANIZA- Section 301 is amended by adding at the the provisions of the State plan under sec- TIONS.—(1) FUNDING.—The Assistant Sec- end the following new subsection: tion 307(a)(31)’’. retary shall reserve 3 percent of the total ‘‘(d) SCOPE OF SERVICES; USE OF FUNDS.— amount appropriated for a fiscal year under ‘‘(1) RESTRICTED USE OF RESOURCES UNDER SEC. 215. STATE OPTION CONCERNING CON- SUMER-DIRECTED SERVICES. subsection (d) for payment to tribal organi- ACT.—Federal funds paid to States under this zations in accordance with paragraph (2). title, and cash and in-kind contributions re- Section 307(a) (as amended by sections 105 ‘‘(2) ALLOTMENT AND PAYMENT.—The As- quired by section 304(e) (as redesignated by and 214 of this Act) is further amended by adding at the end the following new para- sistant Secretary shall allot and pay, to each section 102 of this Act) as the non-Federal tribal organization with a plan approved share of expenditures under this title, shall graph: ‘‘(32) The plan shall specify— under title VI for a fiscal year, an amount be used only for activities and services to bearing the same ratio to the total amount benefit older individuals and other individ- ‘‘(A) whether (and if so, with respect to which supportive or nutrition services) the reserved under paragraph (1) as the number uals as specifically provided in this title. of meals served by such tribal organization, ‘‘(2) RESTRICTION INAPPLICABLE TO OTHER State elects to permit area agencies on under such plan approved for the preceding RESOURCES.—Neither paragraph (1) nor any aging— fiscal year, bears to the total number of other provision of this title shall be con- ‘‘(i) to provide services to older individuals meals served by all tribal organizations strued to prohibit State or area agencies on through direct contracts with the individ- under all such plans approved for such pre- aging from engaging in activities or pro- uals delivering such services; or ‘‘(ii) to provide vouchers or cash to older ceding fiscal year. viding services to benefit individuals not de- ‘‘(c) PAYMENTS TO STATES.—(1) FUNDING.— scribed in paragraph (1) using cash or in-kind individuals to permit such older individuals to contract with individuals or entities for The Assistant Secretary shall allot among resources from sources not described in para- the States for each fiscal year, in accordance graph (1). the delivery of such services (and, if so, any requirements for the setting of payment with paragraph (2), the balance of amounts SEC. 212. COORDINATION OF SERVICES FOR INDI- rates or amounts); appropriated under subsection (d) remaining VIDUALS WITH DISABILITIES UNDER after application of subsection (b). AREA PLANS. ‘‘(B) the qualifications and other requirements that must be met by individuals and ‘‘(2) ALLOTMENT AND PAYMENT.—The As- Section 306(a) (as amended by section 104 of sistant Secretary shall allot and pay, to each this Act) is further amended by inserting entities providing services under such arrangements; and State agency with a plan approved under after paragraph (3) the following new para- this title for a fiscal year, an amount bear- graph: ‘‘(C) whether (and, if so, the conditions under which) services may be provided to an ing the same ratio to the total amount re- ‘‘(4) provide assurances that the area agen- served under paragraph (1) as the number of cy on aging will coordinate planning, identi- older individual by a family member under such an arrangement.’’. meals served in the State, under such plan fication, assessment of needs, and service for approved for the preceding fiscal year, bears older individuals with disabilities, with par- SEC. 216. TRANSFER OF FUNDS BETWEEN PRO- to the total number of meals served in all GRAMS. ticular attention to individuals with severe States under all such plans approved for such (a) STREAMLINING OF GENERAL RULES.— disabilities, with agencies that develop or preceding fiscal year. Section 308(b) is amended— provide services for individuals with disabil- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ities.’’. (1) in paragraph (4)— For carrying out the purposes of this sec- SEC. 213. ELIGIBILITY OF OLDER INDIANS FOR (A) by striking ‘‘(A)’’ after ‘‘(4)’’; and tion, there are authorized to be appropriated SERVICES UNDER AREA PLANS. (B) by striking subparagraph (B) (Assistant $151,250,000 for fiscal year 1996 and such sums (a) UNDER AREA PLANS.—Section 306(a) (18) Secretary’s discretion to permit State to as may be necessary for each of fiscal years is amended by inserting before the semicolon transfer additional amounts between con- 1997 and 1998.’’. ‘‘, including assurances that, notwith- gregate and home-delivered meal programs); (b) ELIMINATION OF MAINTENANCE OF EF- standing any provision of this Act restrict- and FORT.—Section 339A is repealed. ing eligibility for services to individuals (2) in paragraph (5) (authority to transfer SEC. 219. WAIVERS OF CERTAIN REQUIREMENTS aged 60 or older, it will make services under funds between nutrition and services pro- FOR STATE PROGRAMS. the area plan available, to the same extent grams), to read as follows: (a) GENERAL WAIVER AUTHORITY.—Part A as such services are available to older indi- ‘‘(5) Of the funds received by a State for a of title III is amended by adding at the end viduals within the service area, to older Indi- fiscal year from funds appropriated under the following new section: subsections (a)(1), and (b)(1) and (2), of sec- ans eligible for services under an approved ‘‘WAIVERS tion 303, the State may elect to transfer not plan under title VI’’. ‘‘SEC. 315. (a) IN GENERAL.—The Assistant more than 20 percent between programs (b) UNDER GRANTS FOR NATIVE AMERI- Secretary may waive any of the provisions under part B and part C, for use as the State CANS.—Sections 602, 611, 613, and 614 are each enumerated in subsection (b) with respect to considers appropriate. amended by striking ‘‘individuals who are’’ a State, upon application by the State agen- (b) WAIVER AUTHORITY.—For the Assistant each place it appears. cy containing or accompanied by docu- Secretary’s authority to waive limitations SEC. 214. STATE OPTION FOR COST SHARING. mentation sufficient to establish, to the sat- on amounts transferable between programs, (a) STATE PLAN REQUIREMENT.—Section isfaction of the Assistant Secretary, that— 307(a) (as amended by section 105 of this Act) see section 219 of this Act, adding a new sec- ‘‘(1) approval of the State legislature has is further amended by adding at the end the tion 314. been obtained or is not required; following new paragraph: SEC. 217. AVAILABILITY OF DISASTER RELIEF ‘‘(2) the State agency has consulted with ‘‘(31) If the State elects to require cost FUNDS TO TRIBAL ORGANIZATIONS. area agencies on aging with respect to the sharing by recipients of services under the Section 310 is amended— proposal for which waiver is sought; State plan (or to require or permit area (1) in subsection (a)(1)— ‘‘(3) such proposal has been made available agencies on aging to require cost sharing by (A) by inserting ‘‘(or to any tribal organi- for public review and comment within the recipients of services under area plans), the zation receiving a grant under title VI)’’ State (and a summary of comments received plan shall— after ‘‘any State’’; and shall be included with the application); and ‘‘(A) provide that no cost sharing shall be (B) by inserting ‘‘(or used by such tribal ‘‘(4) the State agency has given adequate required for— organization)’’ before ‘‘for the delivery of consideration to the probable positive and ‘‘(i) information and assistance, outreach, supportive services’’; negative consequences of approval of the or case management services; (2) in subsection (a)(2), by inserting ‘‘and waiver application, and the probable benefits ‘‘(ii) ombudsman or other protective serv- tribal organizations’’ after ‘‘States’’; and for older individuals can reasonably be ex- ices; or (3) in subsection (a)(3), by inserting ‘‘or pected to outweight any negative con- ‘‘(iii) congregate or home-delivered nutri- tribal organization’’ after ‘‘State’’ each place sequences, or particular circumstances in tion services; and it appears; and the State otherwise justify the waiver.

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‘‘(b) REQUIREMENTS SUBJECT TO WAIVER.— amended by striking subsection (d), (e), (f), ‘‘(b) ACTIVITIES GIVEN SPECIAL ATTEN- The provisions of this title that may be and (g), and by redesignating subsection (h) TION.—The activities supported under this waived under this section are— as subsection (d). title are intended to fulfill the objectives for ‘‘(1) any provisions of sections 305, 306, and (B) CONFORMING AMENDMENT.—Sections older Americans specified in section 101, 307 requiring statewide uniformity of pro- 202(a)(24) and 304(b)(2) are each amended by with special attention to the service and ad- grams under this title, to the extent nec- striking ‘‘303(h)’’ and inserting ‘‘303(d)’’. vocacy goals expressed in section 301(a)(1) essary to permit demonstrations, in limited SEC. 221. CONSOLIDATION OF AUTHORITIES FOR (A), (B), (C) and (D) and section 601, and to areas of a State, of innovative approaches to NUTRITION SERVICES. the special population groups identified as assist older individuals; (a) SCHOOL/BASED MEALS AS CONGREGATE vulnerable and at risk throughout the Act. ‘‘(2) any area plan requirement under sec- NUTRITION SERVICES.— ‘‘PART A—EDUCATION AND TRAINING tion 306(a); (1) Section 331 is amended by inserting ‘‘(a) ‘‘(3) any State plan requirement under sec- IN GENERAL.—’’after ‘‘331.’’. ‘‘PURPOSE tion 307(a); (2) Section 338(a) is relocated and redesig- SEC. 410. The purpose of this part is to im- ‘‘(4) any restriction, under section 308(b)(4) nated as subsection (b) of section 331, and is prove the quality of service and to help meet or (5), on the amount that may be trans- amended, in the matter preceding paragraph critical shortages of adequately trained per- ferred between programs under part B and (1), by striking all that precedes ‘‘projects’’ sonnel for programs in the field of aging by part C, or between programs under subpart 1 and inserting instead the following: activities including— and subpart 2 of part C; and ‘‘(b) SCHOOL-BASED MEALS AND ‘‘(1) identifying work force training and de- ‘‘(5) all or any part of the reduction in al- MULTIGENERATIONAL PROGRAMS.—The State velopment needs in the field of aging; lotment required under section 309(c) with may include, in programs under this sec- ‘‘(2) developing a broad range of edu- respect to a State which reduces expendi- tion,’’. tures under its State plan (but only to the cational and training programs and activi- (b) REPEAL OF SUPERSEDED AUTHORITY.— ties for professionals, paraprofessionals, ad- extent that the non-Federal share of expend- (1) SUBSTANTIVE AUTHORITY.—Part C of itures is not reduced below any minimum ministrators, technicians and service work- title III is amended by striking subpart 3 and ers; specified in section 304(d) or any other provi- redesignating subpart 4 as subpart 3. ‘‘(3) encouraging recruitment, training and sion of this title.’’. (2) AUTHORIZATION OF APPROPRIATIONS.— placement of minority trainees in key posi- (b) CONFORMING AMENDMENT.—Section Section 303(b)(3) is repealed. tions within agencies and organizations of 307(b) is amended— SEC. 222. AUTHORIZATION OF APPROPRIATIONS. (1) by striking paragraph (2) (waiver of the aging network; (a) SUPPORTIVE SERVICES AND SENIOR CEN- maintenance of effort for rural areas); and ‘‘(4) improving academic gerontology TERS.—Section 303(a)(1) is amended by strik- (2) by striking ‘‘(1)’’ after ‘‘(b)’’. training and education programs to make ing all that precedes ‘‘for the purpose’’ and them more responsive to changing require- SEC. 220. CONSOLIDATION OF AUTHORITIES FOR inserting ‘‘There are authorized to be appro- SUPPORTIVE SERVICES AND SENIOR ments; priated $306,711,000 for fiscal year 1996 and CENTERS. ‘‘(5) increasing the capacity of aging plan- such sums as may be necessary for each of (a) COMMUNITY-BASED CARE AND SERV- ning and service organizations to improve fiscal years 1997 and 1998,’’. ICES.—Section 321(a)(5) is amended by strik- the performance of their staff and other pro- (b) CONGREGATE NUTRITION SERVICES.—Sec- ing ‘‘including’’ and all that follows and in- viders through training and other develop- tion 303(b)(1) is amended by striking all that serting ‘‘including— mental activities; and precedes ‘‘for the purpose’’ and inserting ‘‘(A) client assessment, case management, ‘‘(6) improving the knowledge and skills of and development and coordination of com- ‘‘There are authorized to be appropriated $375,809,000 for fiscal year 1996 and such sums teachers, instructors, trainers, guidance munity services; counselors and other personnel development ‘‘(B) in-home services for frail older indi- as may be necessary for each of fiscal years year 1997 and 1998,’’. staff in aging concepts and workforce oppor- viduals (including supportive services for tunities and practices. victims of Alzheimer’s disease and related (c) HOME-DELIVERED NUTRITION SERVICES.— disorders with neurological and organic Section 303(b)(2) is amended by striking all ‘‘GRANTS AND CONTRACTS brain dysfunction, and for the families of that precedes ‘‘for the purpose’’ and insert- ‘‘SEC. 411. (a) IN GENERAL.—The Assistant such individuals); ing ‘‘There are authorized to be appropriated Secretary may make grants to any public or ‘‘(C) supportive activities to meet the spe- $94,065,000 for fiscal year 1996 and such sums nonprofit private agency, organization or in- cial needs of caregivers, including caretakers as may be necessary for each of fiscal years stitution, and may enter into contracts with who provide in-home services to frail older 1997 and 1998,’’. any agency, organization, institution, or in- individuals; PART C—RESEARCH, DEVELOPMENT, dividual, or activities to achieve the pur- ‘‘(D) in-home and other community serv- AND DEMONSTRATIONS poses of this part, including— ices, including home health, homemaker, SEC. 231. REVISION OF TITLE IV. ‘‘(1) development and improvement of mul- shopping, escort, reader, and letter writing Title IV is amended by striking all that tidisciplinary education and training pro- services, to assist older individuals to live follows the heading of the title and inserting grams (including expansion and improve- independently in a home environment;’’. the following: ment of curricula, instructional methods and (d) DISEASE PREVENTION AND HEALTH PRO- ‘‘STATEMENT OF PURPOSE materials, faculty and teacher development, MOTION.—Section 321(a)(8) is amended by in- and program administration) in academic inserting ‘‘disease prevention and health pro- ‘‘SEC. 401. (a) It is the purpose of this title stitutions and other educational organiza- motion services and information, including’’ to expand the Nation’s knowledge and under- tions which prepare individuals for employ- after ‘‘(8)’’. standing of aging and the aging process; to ment in programs and occupations serving (c) GENERAL AUTHORITY.—Section 321(a)(22) design, test, and promote utilization of inno- older individuals; vative ideas and best practices in programs is amended by inserting ‘‘necessary for the ‘‘(2) development and improvement of con- and services for older individuals; to help general welfare of older individuals’’ after tinuing education and in-service training op- meet the needs for trained personnel in the ‘‘any other services’’. portunities for individuals already working field of aging; and to increase the awareness (d) RELOCATION OF DEFINITIONS.— in the field of aging, including the personnel (1) Section 342 (definition of ‘‘in-home serv- of citizens of all ages of the need to assume of State offices, area agencies on aging, sen- ices’’) is relocated and redesignated as para- personal responsibility for their own aging ior centers, and nutrition, counseling, om- graph (46) of section 102, and is amended by through— budsman, adult protective services, and legal striking ‘‘For purposes of this part, the ‘‘(1) education and training to develop an assistance programs; and term’’ and inserting ‘‘The term’’. adequately trained work force to work with (2) Section 363 (definition of ‘‘disease pre- and on behalf of older individuals; ‘‘(3) development of curriculum and guid- vention and health promotion services’’) is ‘‘(2) research and policy analysis to im- ance materials for students in secondary and relocated and redesignated as paragraph (47) prove access to and delivery of services; vocational schools to encourage them to pur- of section 102, and is amended by striking ‘‘(3) development of methods and practices sue employment and careers in the field of ‘‘For purposes of this part, the term’’ and in- to improve quality and effectiveness of serv- aging. serting ‘‘The term’’. ices; ‘‘(b) PROJECTS GIVEN SPECIAL CONSIDER- (e) REPEAL OF SUPERSEDED AUTHORITIES.— ‘‘(4) demonstration of new approaches to ATION.—To achieve the purposes of this title, (1) SUBSTANTIVE AUTHORITY.—Part D (In- design, delivery and coordination of pro- the Assistant Secretary shall give special Home Services for Frail Older Individuals), grams and services; consideration to the support of projects part E (Additional Assistance for Special ‘‘(5) technical assistance on planning, de- that— Needs of Older Individuals), part F (Disease velopment, implementation, evaluation, and ‘‘(1) improve opportunities for career train- Prevention and Health Promotion Services), improvement of programs and services under ing activities to ensure an adequate and and part G (Supportive Activities for Care- this Act; and competent workforce in aging; takers Who Provide In-Home Services to ‘‘(6) dissemination of information on aging ‘‘(2) increase the capacity of State and area Frail Older Individuals) are repealed. issues, their impact on individuals and soci- agency and non-profit service organizations (2) AUTHORIZATION OF APPROPRIATIONS.—(A) ety, and programs and services benefiting to provide short-term in-service training to REPEALS; REDESIGNATION.—Section 303 is older individuals. staff and volunteers;

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18024 CONGRESSIONAL RECORD — SENATE December 5, 1995 ‘‘(3) develop leadership knowledge and ‘‘(A) promote individual choice in the se- homeowners on housing options, including skills of managers and administrators of or- lection of services; eligibility requirements; application proc- ganizations and agencies which plan, advo- ‘‘(B) eliminate access barriers for popu- esses; financing; and legal rights and respon- cate, and provide services to older individ- lations with greatest need; sibilities of tenancy and restricted owner- uals, through workshops, seminars, and ‘‘(C) reduce or eliminate duplication and ship, including foreclosure and eviction. training institutes; fragmentation of services; ‘‘(3) EDUCATION AND TRAINING.—Projects to ‘‘(4) provide in-service training opportuni- ‘‘(D) strengthen the quality, efficiency, and provide education and training to older indi- ties for program directors and providers of cost-effectiveness of non-profit service pro- viduals designed to enable them to lead more services to older Indians under title VI viders; productive lives through development and through grants to tribal and other nonprofit ‘‘(E) improve the quality and effectiveness demonstration of— Indian aging organizations; and of personnel of public and private entities in- ‘‘(A) older adult literacy programs, includ- ‘‘(5) improve the training and preparation volved in service delivery; and ing use of peer tutoring; of the workforce (including professionals, ‘‘(F) develop cooperative relationships ‘‘(B) pre-retirement counseling and edu- paraprofessionals and volunteers) providing with private entities to increase the effec- cation programs; and home and community services for older indi- tive use of available public and private re- ‘‘(C) older adult occupational training and viduals with physical and cognitive disabil- sources. employment placement and counseling ac- ities and mental health disorders. ‘‘(2) PREVENTION OF CRIME, VIOLENCE, AND tivities not currently supported under title ABUSE.—Planning, development, implemen- ‘‘PART B—RESEARCH, DEVELOPMENT, V or programs administered by the Depart- tation, and evaluation of comprehensive AND DEMONSTRATIONS ment of Labor. community, State, and tribal models de- ‘‘(4) TRANSPORTATION SERVICES.—Projects ‘‘PURPOSE signed to prevent crime, violence and abuse to improve and develop transportation sys- ‘‘SEC. 420. The purpose of this part is to im- against the elderly which include— tems which— prove the quality and efficiency of programs ‘‘(A) public education on prevention for ‘‘(A) increase access of older individuals, serving older individuals through research older individuals; especially low-income individuals and those and development projects, and demonstra- ‘‘(B) supportive services for older individ- living in rural areas, to community services tion projects, designed to— uals who have been victimized; essential to independent living; ‘‘(1) conduct research and policy analysis ‘‘(C) improvements in information and ‘‘(B) provide low-cost commuter transpor- to— data reporting systems; tation for in-home personal care aides serv- ‘‘(A) develop and synthesize knowledge ‘‘(D) coordination of public and private sec- ing functionally impaired older individuals about aging programs, practices and policies tor services and resources; and in under-served public transit areas; and from multidisciplinary perspectives; and ‘‘(E) in-service and cross-service training ‘‘(C) provide assisted transportation serv- ‘‘(B) assess the effectiveness of services and of personnel in criminal justice, health, men- ices for frail and disabled older individuals. practices designed to improve access to and tal health, law enforcement, social and pro- ‘‘(5) VOLUNTEER OPPORTUNITIES.—Projects delivery of service programs; and tective services, and aging and advocacy ‘‘(2) develop, test, and evaluate innovative developed in conjunction with the Corpora- service systems. tion for National and Community Service to planning, advocacy, and service practices ‘‘(c) ADDITIONAL PROJECTS.—The Assistant and programs. develop— Secretary may support under this section ‘‘(A) innovative opportunities for older vol- ‘‘RESEARCH AND DEVELOPMENT PROJECTS any project designed to achieve the purposes unteers to fulfill community needs which are ‘‘SEC. 421. (a) IN GENERAL.—The Assistant of this part, including the following: not being met by existing programs (includ- ‘‘(1) COMPREHENSIVE COMMUNITY SERVICES Secretary may make grants to any public or ing volunteer programs), including opportu- TO INDIVIDUALS AT RISK OF LOSING INDEPEND- nonprofit private agency, organization, or nities to provide— institution, and may enter into contracts ENCE.—Projects to assist older individuals at ‘‘(i) multigenerational services addressing with any agency, organization, institution, risk of losing their independence without as- the needs of youth and children; and or individual for research or policy analysis sistance in accomplishing activities of daily ‘‘(i) peer support and home and community related to the purposes of this part, includ- living, including those disabled by Alz- services to other older individuals with func- ing development of practices, assessment in- heimer’s Disease and related disorders, phys- tional impairments or otherwise at risk of struments, and applications involving— ical disability, mental illness or emotional losing their ability to live independently; ‘‘(1) use of technology for planning and de- stress, and developmental disabilities, and livery of services; and through comprehensive State and commu- ‘‘(B) innovative multigenerational volun- ‘‘(2) use of interactive communication sys- nity model programs for such supportive teer programs affording opportunities for tems and assistive devices to maintain or in- services to such individuals, their families children, youth, and adults to serve unmet crease the independence of older individuals. and caregivers, including— needs of functionally impaired older individ- ‘‘(b) CONSULTATION AND COLLABORATION ‘‘(A) in-home health care; uals regardless of their living situation. WITH OTHER FEDERAL AGENCIES.—The Assist- ‘‘(B) social and medical adult day care; ‘‘(6) HEALTH-RELATED SERVICES.—Projects ant Secretary may consult with, and may ‘‘(C) homemaker aides and personal care to demonstrate effective home and commu- enter into formal agreements with, other attendants; nity rehabilitative, health and mental health ‘‘(D) transportation to and from commu- Federal agencies supporting aging research promotion, and disease prevention activities nity health, mental health and social service and development activities, including agree- for older individuals at risk of losing their facilities; ments involving interagency transfer of ability to live independently. ‘‘(E) respite care, caregiver education, funds to support collaborative research ac- ‘‘(7) CONSUMER PROTECTION.—Projects to training, and counseling and other sup- tivities consistent with the conditions speci- develop innovative approaches to consumer portive services for primary caregivers of fied in section 451(b). protection for older individuals in home and persons with Alzheimer’s Disease, physical ‘‘DEMONSTRATION PROJECTS community settings, addressing consumer and developmental disabilities, or other seri- rights and protections relating to auto, ‘‘SEC. 422. (a) IN GENERAL.—The Assistant ous functional impairments; and health, life, and other insurance policies; Secretary may make grants to any public ‘‘(F) information and referral, outreach, mortgages, leases, and similar property and agency or nonprofit private organization or counseling and other services to increase ac- housing rights; and personal loans and other enter into contracts with any agency or or- cess to appropriate medical, nutritional, and financial transactions. ganization to design, test and demonstrate supportive services. new approaches to planning and delivery of ‘‘(2) HOUSING SERVICES.—Projects address- ‘‘PART C—CENTERS supportive services, nutrition services and ing the special housing needs of older indi- ‘‘PURPOSE other activities to maintain or increase the viduals by activities including— ‘‘SEC. 431. The purpose of this part is to im- independence and improve the quality of life ‘‘(A) developing programs to enable or as- prove the quality of services available to of older individuals. sist older homeowners— older individuals through multi-function, ‘‘(b) PROJECTS GIVEN PRIORITY CONSIDER- ‘‘(i) to maintain their residences through multi-disciplinary centers and other cross- ATION.—The Assistant Secretary shall give repairs or renovations, and cutting activities as resources for planners, priority consideration to funding the fol- ‘‘(ii) to increase their physical safety administrators, policy-makers and providers lowing projects under this section: through structural modifications or alter- in the field of aging. ‘‘(1) COMMUNITY SERVICES FOR FUNCTION- ations and installation of security devices; ALLY IMPAIRED INDIVIDUALS.—Planning, de- ‘‘(B) studying and demonstrating methods ‘‘FUNCTIONS OF GRANTEES AND CONTRACTORS; velopment, and implementation of new ap- of adapting existing housing, or construction ADVISORY BOARDS proaches to delivery of home and commu- of new housing, to meet the needs of older ‘‘SEC. 432. (a) FUNCTIONS.—Grantees and nity-based supportive services for older indi- individuals with functional impairments; contractors under this part shall, as appro- viduals with disabilities limiting their abil- ‘‘(C) coordinating counseling services with priate, perform the following functions: ity to perform activities of daily living, in- those available to residents of Federal and ‘‘(1) evaluate, analyze, and report on pro- cluding projects involving coordination and State assisted housing facilities with high gram policies and practices to assess their integration of such services with those for concentrations of older residents; effectiveness in meeting the needs and im- nonelderly individuals with similar disabil- ‘‘(D) developing information, counseling proving the quality of life of older individ- ities, including approaches that— and referral programs for older renters and uals and their families and caregivers;

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18025 ‘‘(2) compile, select, and make available re- ment practices for the workforce needed to mation dissemination activities of Centers search, evaluation and demonstration find- plan, administer and provide services under authorized under part C and other Federal ings which provide useful guidance in deter- this Act, and to promote policy discussion information clearinghouses and document mining the needs of older individuals and im- and development to prepare the Nation for repositories. proving practices in the field of aging; the increased and changing demands of its ‘‘GRANTS AND CONTRACTS ‘‘(3) develop strategies and models to im- aging population. ‘‘SEC. 442. (a) IN GENERAL.—The Assistant prove the quality, efficiency, and effective- ‘‘(2) FUNCTIONS OF CENTERS.—Centers fund- Secretary may make grants to any public ness of service programs and activities; ed under this subsection may include— agency or non-profit private organization or ‘‘(4) develop technical assistance and train- ‘‘(A) multidisciplinary academic centers of enter into contracts with any agency or oring materials and participate in workshops, gerontology to conduct applied research, ganization for activities to carry out the conferences and events which promote trans- education, training, technical assistance and purposes of this part, including the fol- fer of useful information and practices; dissemination activities with special atten- lowing: ‘‘(5) sponsor activities which enhance the tion to human resource and development ‘‘(1) activities of the National Aging Infor- education and training of a competent work- issues affecting special population groups; mation Center established under section force in the field of aging; and 202(e). ‘‘(6) assist other grantees conducting dem- ‘‘(B) a national leadership institute on ‘‘(2) sponsorship and co-sponsorship with onstration or pilot projects under the Act by aging to develop and conduct training activi- other Federal agencies and other public and providing documentation, assessment, and ties for executive managers and senior offi- private organizations of national and re- other assistance in the planning and imple- cials of government and non-profit agencies, gional conferences and other meetings which mentation of such pilot projects; and voluntary groups, professional associations, disseminate discretionary project findings ‘‘(7) conduct information dissemination ac- and other organizations responsible for plan- and information related to issues and con- tivities in coordination with such activities ning, financing, and providing programs and cerns affecting the well-being of older indi- of the National Aging Information Center. services for older individuals. viduals; and ‘‘(b) ADVISORY BOARDS.—Each center sup- ‘‘(c) CROSS-CUTTING POLICY CENTERS.—(1) ‘‘(3) A National Academy on Aging to serve ported by a grant under this part shall estab- IN GENERAL.—In addition to the grants and as a forum for policy analysis and debate on lish an advisory board which— contracts authorized under subsections (a) current and emerging issues and for inform- ‘‘(1) shall provide policy guidance with re- and (b), the Assistant Secretary may make ing policy officials and the public about such spect to the planning and conduct of activi- grants to or enter into contracts with any issues. ties under such grant; and public or non-profit private entities, for re- ‘‘PART E—GENERAL PROVISIONS ‘‘(2) whose members shall include rep- search, policy analysis, technical assistance, ‘‘AUTHORIZATION OF APPROPRIATIONS information dissemination or training ac- resentatives of— ‘‘SEC. 451. (a) AUTHORIZATION.—There are ‘‘(A) State and area agencies on aging; tivities, as appropriate on any area or areas authorized to be appropriated to carry out ‘‘(B) appropriate national, State, and local of broad national interest (including social, the provisions of title $44,384,000 for fiscal service organizations; and economic, health, mental health, and envi- year 1996, and such sums as necessary for ‘‘(C) other groups as appropriate. ronmental issues) affecting older individuals. each of fiscal years 1997 and 1998. ‘‘GRANTS AND CONTRACTS ‘‘(2) ISSUES ADDRESSED.—Issues that may ‘‘(b) RESTRICTONS.—No funds appropriated be addressed under a grant under this sub- ‘‘SEC. 433. (a) NATIONAL CENTERS PROVIDING under this title— section include— SUPPORT TO ADMINISTRATORS OF GRANT PRO- ‘‘(1) may be transferred to any office or ‘‘(A) broad societal issues addressed in sec- GRAMS.—(1) IN GENERAL.—The Assistant Sec- other authority of the Federal Government tion 101, including transportation, housing, retary may make grants to or enter into which is not directly responsible to the As- employment, income security, public safety, contracts with any public or non-profit pri- sistant Secretary, unless those funds are health, and mental health; and vate entities, for the purpose of operating used for purposes authorized under this title ‘‘(B) concerns of special population groups national centers serving primarily as infor- in accordance with conditions specified by among older individuals, including low in- mational resources to State and area agen- formal inter-agency agreements with other come, older women, rural elderly, minori- cies administering programs under titles III Federal agencies; ties, and disabled populations. and VII, tribal organizations and other orga- ‘‘(2) may be used for any program or activ- nizations administering programs under title ‘‘PART D—INFORMATION DISSEMINATION AND ity which is not specifically authorized by VI, and providers of services under such pro- RELATED ACTIVITIES this title (except as specifically authorized grams. ‘‘PURPOSE by this Act); or ‘‘(3) may be combined with funds appro- ‘‘(2) FUNCTIONS OF CENTERS.—Centers fund- ‘‘SEC. 441. (a) IN GENERAL.—The purpose of priated under any other Act if the purpose of ed under this subsection shall focus on se- this part is to improve the quality, effi- combining funds is to make a single discre- lected subject-matter areas (including all ciency, availability, and accessibility of tionary grant or a single discretionary pay- policy and program issues, such as develop- services for older individuals through sup- ment, unless such funds appropriated under ment, delivery, financing, and coordination port of information dissemination and utili- this title are separately identified in such of services, concerning such subject-matter zation activities which— grant or payment and are used for the pur- area) relating to programs under titles III, ‘‘(1) collect, preserve, and disseminate, poses of this title. VI, and VII, and may include centers such as publish, or otherwise make available rel- those focusing on the following program evant materials concerning matters such as ‘‘PAYMENT OF GRANTS areas: research and demonstration findings, and ‘‘SEC. 452. (a) CONTRIBUTIONS BY GRANTEES ‘‘(A) Comprehensive home and community- training and technical assistance materials; AND CONTRACTORS.—To the extent the Assist- based services, including long-term care ‘‘(2) synthesize, publish, and disseminate ant Secretary deems appropriate, the Assist- services, intended to enable functionally im- information concerning completed projects ant Secretary shall require the recipient of paired elderly to remain in their homes and under this title which are of demonstrated any project grant or contract under this title communities. value, including— to contribute money, facilities, or services ‘‘(B) Nutrition services, including con- ‘‘(B) technical assistance and training in for carrying out the project for which such gregate and home-delivered meals, dietary the implementation and adaptation of grant or contract is made. standards, and related matters. project methods; and ‘‘(b) METHOD OF PAYMENT.—Payments ‘‘(C) Information and referral services. ‘‘(C) the development of additional mate- under this title pursuant to a grant or con- ‘‘(D) Older Native Americans, including in- rials which increase the awareness and ac- tract may be made (after necessary adjust- dividuals living in tribal and in non-tribal ceptance of such project results; ment, in the case of grants, on account of areas. ‘‘(3) locate, publicize, and make available previously made overpayments or underpay- ‘‘(E) Legal assistance. practical self-help information for older indi- ments) in advance or by way of reimburse- ‘‘(3) NATIONAL OMBUDSMAN AND ELDER viduals and their families and encourage de- ment, and in such installments and on such ABUSE CENTERS.—Funds available under this velopment of appropriate public education conditions, as the Assistant Secretary may subsection may be used, to the extent the activities; determine. Assistant Secretary finds necessary, to sup- ‘‘(4) support conferences, forums, and other ‘‘ADMINISTRATION port the activities of the National Ombuds- meetings designed to identify, disseminate ‘‘SEC. 453. (a) ADMINISTRATION ON AGING.— man Resource Center under section 202(a)(21) and promote utilization of research findings, In order to carry out the provisions of this and the activities of the National Center on policy practices, and best practices; and title effectively, the Assistant Secretary Elder Abuse under section 202(d). ‘‘(5) provide technical assistance to grant- shall administer this title through the Ad- ‘‘(b) NATIONAL EDUCATION AND TRAINING ees under this title and other recipients of ministration on Aging. CENTERS.—(1) IN GENERAL.—The Assistant support under this Act on the design, devel- ‘‘(b) ASSISTANCE FROM OTHER AGENCIES.— Secretary may make grants to or enter into opment and promotion of products and infor- In carrying out the provisions of this title, contracts with any public or non-profit pri- mation materials. the Assistant Secretary may request the vate entities, for the purpose of operating ‘‘(b) COORDINATION WITH OTHER INFORMA- technical assistance and cooperation of other national centers to encourage leadership and TION SOURCES.—Activities supported under agencies and departments of the Federal improve education, training, and employ- this part will be coordinated with the infor- Government as may be appropriate.

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‘‘(c) OUTREACH TO APPLICANTS.—The As- date of this section shall be on the effective PART F—VULNERABLE ELDER RIGHTS sistant Secretary shall ensure that applica- date of this section shall be unaffected by PROTECTION tions from agencies, organizations, and insti- the enactment of this section. SEC. 261. ASSISTANCE PROGRAM FOR INSUR- tutions representing minorities, are encour- (5) CONTINUATION OF SUITS.—Judicial pro- ANCE AND PUBLIC BENEFITS. aged in the writing of grant proposal solici- ceedings and proceedings before administra- (a) CLARIFICATION OF IMPLEMENTATION OP- tations and contract requests for proposals. tive law judges under or with respect to such TIONS.—Section 741(d) is amended by adding ‘‘(d) CONSULTATION.—The Assistant Sec- title V pending on the effective date of this at the end the following new sentence: ‘‘If retary shall, in developing priorities, con- section shall be unaffected by the enactment the State elects to award funds under this sistent with the requirements of this title, of this section, except that the Secretary of section to area agencies on aging or other for awarding grants under this title, consult Health and Human Services and the Assist- local entities, it shall give priority to local with State agencies on aging, area agencies ant Secretary for Aging shall be substituted areas which have high concentrations of on aging, recipients of grants under title VI, for the Secretary of Labor as parties to such older individuals with greatest economic or institutions of higher education, organiza- proceedings. social need, and in which outreach activities, tions representing beneficiaries of services (c) CONFORMING AMENDMENTS.— application assistance, and benefits coun- under this Act, and other organizations and (1) Section 502(b) (1) (P) is amended by seling are inadequate.’’. individuals with expertise in aging issues. striking ‘‘Department of Labor’’ and insert- (b) REPEAL OF INCONSISTENT PROVISION.— ‘‘(e) EVALUATIONS AND REPORTS.—The As- ing ‘‘Department of Health and Human Serv- Section 705(a) is amended— sistant Secretary shall ensure that grants ices’’. (1) by adding ‘‘and’’ at the end of paragraph and contacts awarded under this title— (2) Section 502(c)(1) is amended by striking (6); ‘‘(1) conduct evaluations and prepare re- ‘‘Health and Human Services’’ and inserting (2) by striking paragraph (7); and ports indicating their benefit to older indi- ‘‘Labor’’. (3) by redesignating paragraph (8) as para- viduals, and to programs under this Act; and (3) Section 503(a)(1) is amended by striking graph (7). ‘‘(2) comply with the requirements under ‘‘the Secretary shall, through the Assistant this Act. Secretary for Aging,’’ and inserting ‘‘the As- SEC. 262. AUTHORIZATION OF APPROPRIATIONS. ‘‘(f) REPORT TO CONGRESS.—The Assistant sistant Secretary shall’’. (a) OMBUDSMAN PROGRAM.—Section 702(a) Secretary shall submit, to the Speaker of the (4) Section 503(a)(2) is amended by striking is amended by striking all that follows House of Representatives and the President ‘‘The Secretary of Labor and the Assistant ‘‘chapter 2,’’ and inserting $4,449,000 for fiscal pro tempore of the Senate, a report for each Secretary for Aging’’ and inserting ‘‘The As- year 1996, and such sums as may be necessary fiscal year that describes activities for which sistant Secretary’’. for each of fiscal years 1997 and 1998.’’. funds were provided under this title includ- (5) Section 503(b)(1) is amended— (b) PREVENTION OF ELDER ABUSE, NEGLECT, ing— (A) in the first sentence, by striking ‘‘The AND EXPLOITATION.—Section 702(b) is amend- ‘‘(1) an abstract describing the purpose and Secretary’’ and inserting ‘‘The Assistant ed by striking all that follows ‘‘chapter 2,’’ activities of each grant or contract awarded Secretary and the Secretary of Labor’’; and and inserting $6,232,000 for fiscal year 1996, or continued; (B) in the second sentence— and such sums as may be necessary for each ‘‘(2) the name and address of the organiza- (i) by striking ‘‘The Secretary’’ and insert- of fiscal year 1997 and 1998.’’. tional recipient; ing ‘‘The Assistant Secretary’’, and (c) STATE ELDER RIGHTS AND LEGAL AS- ‘‘(3) the name and affiliation of the project (ii) by striking ‘‘by the Assistant Sec- SISTANCE DEVELOPMENT PROGRAM.—Section director; retary for Aging,’’. 702(c) is amended by striking all that follows ‘‘(4) the period of project performance; and (6) Section 505(a) is amended— ‘‘chapter 4,’’ and inserting such sums as may be necessary for each of fiscal years 1996, ‘‘(5) the amount of Federal funds awarded (A) by striking ‘‘The Secretary’’ and in- 1997, and 1998.’’. in the fiscal year on which the report is serting ‘‘The Assistant Secretary’’; and (d) OUTREACH, COUNSELING, AND ASSISTANCE made. (B) by striking ‘‘the Assistant Secretary ‘‘(g) EXTERNAL REVIEW.—The Assistant PROGRAM.—Section 702(d) is amended by for Aging’’ and inserting ‘‘the Secretary of Secretary shall establish by regulation and striking all that follows ‘‘chapter 5,’’ and in- Labor’’. implement an external review process to serting $1,976,000 for fiscal year 1996, and (7) Section 505(b) is amended by striking evaluate applications for discretionary grant such sums as may be necessary for each of ‘‘Secretary of Health and Human Services’’ awards under this title.’’. fiscal years 1997 and 1998.’’. and inserting ‘‘Secretary of Labor’’. (e) NATIVE AMERICAN PROGRAMS.—Section PART D—COMMUNITY SERVICE (8) Title V is further amended throughout 751(d) is amended by striking all that follows EMPLOYMENT FOR OLDER AMERICANS by striking ‘‘Secretary’’ each place it ap- ‘‘this section,’’ and inserting ‘‘such sums as SEC. 241. TRANSFER OF AUTHORITY. pears (except where preceded by ‘‘Assistant’’ may be necessary for each of fiscal years (a) IN GENERAL.—Section 502(a) is amended or followed by ‘‘of’’) and inserting ‘‘Assistant 1996, 1997, and 1998.’’. by striking ‘‘Secretary of Labor (hereinafter Secretary’’. in this title referred to as the ‘Secretary’)’’ SEC. 242. PHASED REDUCTION OF FEDERAL PART G—TECHNICAL AMENDMENTS and inserting ‘‘Assistant Secretary’’. SHARE. SEC. 271. DEFINITIONS. (b) TRANSFER OF CONTRACTS, GRANTS, Section 502(c) is amended— (a) RELOCATION, REORDERING, AND REDESIG- ETC.— (1) in paragraph (1), by striking ‘‘90 per- NATION OF DEFINITIONS.— (1) IN GENERAL.—There are transferred cent’’ and inserting ‘‘the Federal share, as (1)(A) Paragraphs (1) and (2) of section 302 from the Department of Labor to the Depart- specified in paragraph (2),’’; are relocated and redesignated as paragraphs ment of Health and Human Services any con- (2) by redesignating paragraphs (2) and (3) (48) and (49) of section 102. tracts, grants, records, and unexpended bal- as paragraphs (3) and (4); and (B) Paragraph (3) of section 302 is repealed. ances of appropriations, authorizations, allo- (3) by adding after paragraph (1) the fol- (2)(A) Section 102(5) is amended by insert- cations, and other funds employed, held, or lowing new paragraph: ing ‘‘(A)’’ after ‘‘(5)’’. used in connection with or arising from the ‘‘(2) the Federal share, for purposes of this (B) Section 102(6) is amended— administration of the program under title V subsection, shall be— (i) by striking ‘‘(A)’’ and ‘‘(B)’’ and insert- of the Older Americans Act of 1965. ‘‘(A) 90 percent for fiscal year 1996, ing ‘‘(i)’’ and ‘‘(ii)’’; and (2) INTERAGENCY ARRANGEMENTS.—The Sec- ‘‘(B) 89 percent for fiscal year 1997, (ii) by striking ‘‘(6)’’ and inserting ‘‘(B)’’. retaries of Labor and Health and Human ‘‘(C) 87.5 percent for fiscal year 1998, (C) Section 102(7) is amended by striking Services shall enter into and implement such ‘‘(D) 86.5 percent for fiscal year 1999, and ‘‘(7)’’ and inserting ‘‘(C)’’. arrangements as they find reasonable and ‘‘(E) 84 percent for fiscal year 2000 and each (3)(A) Section 102(8) is amended— necessary for the orderly transfer of such succeeding fiscal year.’’. (i) by striking the subparagraph designa- program in accordance with this section. SEC. 243. AUTHORIZATION OF APPROPRIATIONS. tions ‘‘(A)’’ through ‘‘(H)’’ and inserting (3) CONTINUATION OF REGULATIONS, GRANTS, Section 508(a) is amended to read as fol- clause designations ‘‘(i)’’ through ‘‘(viii); and CONTRACTS, ETC.—All rules, regulations, ad- lows: (ii) by inserting ‘‘(A)’’ after ‘‘(8)’’. ministrative directives, grants, contracts, ‘‘(a) There are authorized to be appro- (B) Section 102(9) is amended— and other determinations and agreements in priated to carry out this title such sums as (i) by striking the subparagraph designa- effect under such title V on the effective may be necessary for each of fiscal years tions ‘‘(A)’’ and ‘‘(B)’’ and inserting the date of this section shall remain in effect 1996, 1997, and 1998.’’. clause designations ‘‘(i)’’ and ‘‘(ii)’’; and until modified, terminated, suspended, set (ii) by striking ‘‘(9)’’ and inserting ‘‘(B)’’. aside, or repealed by the Secretary of Health PART E—GRANTS FOR NATIVE AMERICANS (4) The paragraphs of section 102 are reor- and Human Services or the Assistant Sec- dered in alphabetical order by term defined, retary. References to the Secretary of Labor SEC. 251. AUTHORIZATION OF APPROPRIATIONS. and renumbered accordingly. in such determinations and agreements shall Section 633(a) is amended by striking all be considered references to the Secretary of that precedes ‘‘to carry out this title’’ and PART H—EFFECTIVE DATE Health and Human Services or the Assistant inserting ‘‘There are authorized to be appro- SEC. 281. EFFECTIVE DATE. Secretary for Aging, as appropriate. priated $18,402,000 for fiscal year 1996, and Except as otherwise specifically provided, (4) CONTINUATION OF AUDITS.—Audits relat- such sums as may be necessary for each of the amendments made by this title shall being to such title V pending on the effective fiscal years 1997 and 1998’’. come effective October 1, 1995.

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TITLE III—WHITE HOUSE CONFERENCE tivities in advance of the Conference, as part (1) ESTABLISHMENT.—There is established a ON AGING of the process of planning for the Conference, Policy Committee comprised of 25 members SEC. 301. WHITE HOUSE CONFERENCE AUTHOR- and activities subsequent to the Conference to be selected, not later than 90 days after IZED. in connection with dissemination, discus- the enactment of the Older Americans Act of (a) AUTHORITY TO CALL CONFERENCE.—Not sion, and implementation of recommenda- 1995, as follows: later than December 31, 2005, the President tions of the Conference); (A) PRESIDENTIAL APPOINTEES.—13 members shall convene the White House Conference on (4) make available for public comment a shall be selected by President and shall in- Aging in order to develop recommendations proposed agenda, prepared by the Policy clude— (i) 3 members who are officers or employ- for additional research and action in the Committee, for the Conference which will reflect to the greatest extent possible the ees of the United States; and field of aging which will further the policy (ii) 10 members with experience in the field set forth in subsection (b). major issues facing older individuals consistent with the provisions of subsection (a), of aging, who may include representatives of (b) PLANNING AND DIRECTION.—The Con- public aging agencies, institution-based or- ference shall be planned and conducted under (5) prepare and make available background materials for the use of delegates to the Con- ganizations, and minority aging organiza- the direction of the Secretary in cooperation tions, and shall include a member of the Fed- with the Assistant Secretary for Aging and ference which the Secretary deems necessary, and eral Council on the Aging. the heads of such other Federal departments (B) HOUSE APPOINTEES.—4 members shall be and agencies as are appropriate. Such assist- (6) engage such additional personnel as may be necessary to carry out the provisions selected by the Speaker of the House of Rep- ance may include the assignment of per- resentatives, after consultation with the Mi- sonnel. of this section without regard to provisions of title 5, United States Code, governing ap- nority Leader of the House of Representa- (c) PURPOSE OF THE CONFERENCE.—The pur- tives, and shall include members of the Com- pose of the Conference shall be— pointments in the competitive service, and without regard to chapter 51 and subchapter mittee on Economic and Educational Oppor- (1) to increase the public awareness of the tunities and the Committee on Ways and interdependence of generations and the es- III of chapter 53 of such title relating to classification and General Schedule pay rates. Means of the House of Representatives. Not sential contributions of older individuals to more than 3 members selected under this society for the well-being of all generations: (b) DUTIES.—The Secretary shall, in carrying out the Secretary’s responsibilities subparagraph may be associated or affiliated (2) to identify the problems facing older in- with the same political party, dividuals and the commonalities of the prob- and functions under this section, and as part of the White House Conference on Aging, en- (C) SENATE APPOINTEES.—4 members shall lems with problems of younger generations; be selected by the Majority Leader of the (3) to examine the well-being of older indi- sure that— (1) the conferences under subsection (a)(3) Senate, after consultation with the Minority viduals, including the impact the well-being shall— Leader of the Senate, and shall include mem- of older individuals has on our aging society; (A) include a conference on older Indians bers of the Committee on Labor and Human (4) to develop such specific and comprehen- to identify conditions that adversely affect Resources and the Special Committee on sive recommendations for executive and leg- older Indians, to propose solutions to amelio- Aging of the Senate. Not more than 3 mem- islative action as may be appropriate for rate such conditions, and to provide for the bers selected under this subparagraph may maintaining and improving the well-being of exchange of information relating to the de- be associated or affiliated with the same po- the aging; livery of services to older Indians, and litical party. (5) to develop recommendations for the co- (B) be so conducted as to ensure broad par- (D) JOINT APPOINTEES.—4 members shall be ordination of Federal policy with state and ticipation of older individuals, selected jointly by the Speaker of the House local needs and the implementation of such (2) the agenda prepared under subsection of Representatives and the Majority Leader recommendations; and (a)(4) for the Conference is published in the of the Senate, after consultation with the (6) to review the status and Federal Register not later than 30 days after minority leaders of the House and Senate, multigenerational value of recommendations such agenda is approved by the Policy Com- and shall include representatives with expe- adopted at previous White House Conferences mittee, and the Secretary may republish rience in the field of aging, who may include on Aging. such agenda together with the recommenda- representatives described in subsection (d) CONFERENCE PARTICIPANTS AND DELE- tions of the Secretary regarding such agen- (a)(1)(A)(ii). Not more than 2 members se- GATES.— da, lected under this subparagraph may be asso- (1) PARTICIPANTS.—In order to carry out (3) the personnel engaged under subsection ciated or affiliated with the same political the purposes of this section, the Conference (a)(5) shall be fairly balanced in terms of party. shall bring together— points of views represented and shall be ap- (2) DUTIES OF THE POLICY COMMITTEE.—The (A) representatives of Federal, State, and pointed without regard to political affili- Policy Committee shall initially meet at the local governments, ation or previous partisan activities, call of the Secretary, but not later than 30 (B) professional and lay people who are (4) the recommendations of the Conference days after the last member is selected under working in the field of aging, and are not inappropriately influenced by any subsection (a). Subsequent meetings of the (C) representatives of the general public, appointing authority or by any special inter- Policy Committee shall be held at the call of particularly older individuals. est, but will instead be the result of the inde- the chairperson of the Policy Committee. (2) SELECTION OF DELEGATES.—The dele- pendent judgement of the Conference, and Through meetings, hearings, and working gates shall be selected without regard to po- (5) current and adequate statistical data, sessions, the Policy Committee shall— litical affiliation or past partisan activity including decennial census data, and other (A) make recommendations to the Sec- and shall, to the best of the appointing information on the well-being of older indi- retary to facilitate the timely convening of authority’s ability, be representative of the viduals in the United States are readily the Conference; (B) formulate and approve a proposed agen- spectrum of thought in the field of aging. available, in advance of the Conference, to da for the Conference not later than 60 days Delegates shall include individuals who are the delegates of the Conference, together after the first meeting of the Policy Com- professionals, individuals who are nonprofes- with such information as may be necessary sional, minority individuals, and individuals mittee; to evaluate Federal programs and policies (C) make recommendations for partici- from low-income families. A majority of del- relating to aging. In carrying out this para- egates shall be aged 55 or older. pants and delegates of the Conference; graph, the Secretary is authorized to make (D) establish the number of delegates to be SEC. 302. CONFERENCE ADMINISTRATION. grants to, and enter into cooperative agree- selected under section 301(d)(2); and (a) ADMINISTRATION.—In administering this ments with, public agencies and nonprofit (E) formulate and approve the initial re- section, the Secretary shall— private organizations. port of the Conference in accordance with (1) provide written notice to all members (c) GIFTS.—The Secretary may accept, on section 304. of the Policy Committee of each meeting, behalf of the United States, gifts (in cash or (3) QUORUM; COMMITTEE VOTING; CHAIR- hearing, or working session of the Policy in kind, including voluntary and uncompen- PERSON.— Committee not later than 48 hours before the sated services), which shall be available to (A) QUORUM.—13 members shall constitute occurrence of such meeting, hearing, or carry out this title. Gifts of cash shall be a quorum for the purpose of conducting the working session, available in addition to amounts appro- business of the Policy Committee, except (2) request the cooperation and assistance priated to carry out this title. that 17 members shall constitute a quorum of the heads of such other Federal depart- (d) RECORDS.—The Secretary shall main- for purposes of approving the agenda re- ments and agencies as may be appropriate in tain records regarding— quired by paragraph (2)(B) and the report re- the carrying out of this section, (1) the sources, amounts, and uses of gift quired by paragraph (2)(E). (3) furnish all reasonable assistance, in- accepted under subsection (c); and (B) VOTING.—The Policy Committee shall cluding financial assistance, to State agen- (2) the identity of each person receiving as- act by the vote of the majority of the mem- cies on aging and to area agencies on aging, sistance to carry out this title, and the bers present. and to other appropriate organizations (in- amount of such assistance received by each (C) CHAIRPERSON.—The President shall se- cluding organizations representing older In- such person. lect a chairperson from among the members dians), to enable them to organize and con- SEC. 303. POLICY COMMITTEE; RELATED COM- of the Policy Committee. The chairperson duct conferences and other activities in con- MITTEES. may vote only to break a tie vote of the junction with the Conference (including ac- (a) POLICY COMMITTEE.— other members of the Policy Committee.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18028 CONGRESSIONAL RECORD — SENATE December 5, 1995 (b) OTHER COMMITTEES.—The Secretary (3) the term ‘‘Secretary’’ means the Sec- tragic waste of young life in our coun- may establish such other committees, in- retary of Health and Human Services, try that the suicides of gay teens rep- cluding technical committees, as may be (4) the term ‘‘Conference’’ means the White resent. necessary to assist in the planning, con- House Conference on Aging, and ducting, and reviewing of the Conference. (5) the term ‘‘State’’ means any of the sev- Although the benefits from the Com- (c) COMPOSITION OF COMMITTEES.—Each eral States, the District of Columbia, the mission will be great, its cost will not. committee established under subsection (b) Commonwealth of Puerto Rico, Guam, Amer- The Commission will use the existing shall be composed of professionals and public ican Samoa, the Virgin Islands, the Com- resources of the Department of Health members, and shall include individuals from monwealth of the Northern Mariana Islands, and Human Services. The members of low-income families, and individuals who are and the Trust Territory of the Pacific Is- the Commission will not be paid. And Native Americans. Appropriate efforts shall lands. be made to include individuals who are mem- the Commission will not be another of SEC. 306. AUTHORIZATION OF APPROPRIATIONS. bers of minority groups. A majority of the the Government bodies that, once es- (a) AUTHORIZATION.— public members of each such committee tablished, endures to eternity. It will (1) IN GENERAL.—There are authorized to be shall be 55 years of age or older. appropriated such sums as may be necessary sunset 6 months after its initial meet- (d) COMPENSATION.—Appointed members of for fiscal years 2005 through 2007 to carry out ing. any such committee (other than any officers Too often, Mr. President, we hear or employees of the Federal Government), this title. while attending conferences or meetings of (2) CONTRACTS.—Authority to enter into stories of harassment and abuse which the committee or otherwise serving at the contracts under this title shall be effective lead to depression, emotional problems request of the Secretary, shall be entitled to only to the extent, or in such amounts as and suicide. We cannot ignore the obvi- receive compensation at a rate to be fixed by are, provided in advance in appropriation ous fact that gay and lesbian youth are the Secretary, but not to exceed the daily Acts. subjected to enormous societal pres- (b) AVAILABILITY OF FUNDS.— prescribed rate for GS–18 under section 5332 (1) IN GENERAL.—Except as provided in sure and we certainly cannot turn our of title 5, United States Code (including trav- paragraph (3), funds appropriated to carry back on the chilling evidence that gay el time). While away from their homes or out this title and funds received as gifts and lesbian youth are three times more regular places of business, such members under section 303(c) shall remain available may be allowed travel expenses, including likely to commit suicide than other for obligation or expenditure until the expi- per diem in lieu of subsistence, as authorized young people. ration of the one-year period beginning on under section 5708 of such title for persons Current official youth suicide preven- the date the Conference adjourns. employed intermittently in Federal Govern- tion programs do not address this (2) UNOBLIGATED FUNDS.—Except as pro- ment service. vided in paragraph (3), any such funds nei- issue, and it is high time they did. We SEC. 304. REPORT OF THE CONFERENCE. ther expended nor obligated before the expi- need to get serious about putting an (a) PROPOSED REPORT.—A proposed report ration of the one-year period beginning on end to this preventable epidemic. That of the Conference, which shall include a the date the Conference adjourns shall be is what this bill does. I urge my col- statement of comprehensive coherent na- available to carry out the Older Americans tional policy on aging together with rec- leagues to support this effort. Act of 1965.∑ ommendations for the implementation of the Mr. President, I ask unanimous consent that the text of the bill be printed policy, shall be published and submitted to By Mr. KERRY: the chief executive officers of the States not in the RECORD. later than 90 days following the date on S. 1448. A bill to establish the Na- There being no objection, the bill was tional Commission on Gay and Lesbian which the Conference is adjourned. The find- ordered to be printed in the RECORD, as ings and recommendations included in the Youth Suicide Prevention, and for follows: published proposed report shall be imme- other purposes; to the Committee on diately available to the public. Labor and Human Resources. S. 1448 (b) RESPONSE TO PROPOSED REPORT.—The Be it enacted by the Senate and House of Rep- THE GAY AND LESBIAN YOUTH SUICIDE chief executive officers of the States, after resentatives of the United States of America in PREVENTION ACT reviewing and soliciting recommendations Congress assembled, ∑ Mr. KERRY. Mr. President, today I and comments on the report of the Con- SECTION 1. SHORT TITLE. ference, shall submit to the Policy Com- am introducing the Gay and Lesbian This Act may be cited as the ‘‘Gay and mittee, not later than 90 days after receiving Youth Suicide Prevention Act. Lesbian Youth Suicide Prevention Act’’. the report, their views and findings on the Mr. President, my bill is a companion SEC. 2. ESTABLISHMENT. recommendations of the Conference. to legislation introduced in the House There is established a commission to be (c) REPORTS.— of Representatives by my friend, Con- (1) INITIAL REPORT.—The Policy Committee known as the National Commission on Gay shall, after reviewing the views and rec- gressman MARTIN MEEHAN of Massa- and Lesbian Youth Suicide Prevention (re- ommendations of the chief executive officers chusetts. This bill is a modest begin- ferred to in this Act as the ‘‘Commission’’). of the States, prepare and approve an initial ning to address a pernicious crisis SEC. 3. MEMBERSHIP. report of the Conference, which shall include among our teenagers. The bill estab- (a) NUMBER AND APPOINTMENT.—The Com- a compilation of the actions of the chief ex- lishes a Federal commission seeks to mission shall be composed of 31 members ap- ecutive officers of the States and take into identify the root causes and report on pointed by the Secretary of Health and consideration the views and findings of such possible methods to prevent suicide Human Services. Members of the Commis- officers. sion shall include professionals and experts (2) PUBLICATION OF INITIAL REPORT; FINAL among gay and lesbian adolescents. in the field of youth suicide prevention. REPORT.—Not later than 60 days after such In 1989, then Secretary of the Depart- (b) TERMS.—Each member of the Commis- initial report is transmitted by the Policy ment of Health and Human Services, sion shall be appointed for the life of the Committee, the Secretary shall publish such Dr. Louis Sullivan, issued a report on Commission. Any vacancy in the Commis- initial report in the Federal Register. The youth suicide. The report’s most dra- sion shall not affect the powers of the Com- Secretary shall republish a final report to- matic findings included a particularly mission, but shall be filled in the same man- gether with such additional views and rec- ner as the original appointment. ommendations as the Secretary considers to alarming statistic—nearly one-third of all teen suicide occurred among gay (c) MEETINGS.—The Commission shall, dur- be appropriate. ing a 6-month period, meet with the Sec- (d) RECOMMENDATIONS OF THE POLICY COM- and lesbian youth. retary of Health and Human Services and ad- MITTEE.—The Policy Committee shall, within This is a disturbing trend. Instead of vise various offices within the Department of 90 days after submission of the views of the ignoring this epidemic as past adminis- Health and Human Services on an ongoing chief executive officers of the States, publish trations have chosen to do, the Com- basis. and transmit to the President and to the mission my bill would establish will (d) CHAIRPERSON.—The Secretary of Health Congress recommendations for the adminis- and Human Services shall select a chair- trative action and the legislation necessary devise ways to address effectively the person for the Commission from among the to implement the recommendations con- situations of gay youth in existing sui- members of the Commission. tained within the report. cide prevention programs. It will make SEC. 305. DEFINITIONS. recommendations to the Secretary of SEC. 4. DUTIES OF COMMISSION. For the purposes of this title— HHS on methods to curb suicide among (a) IN GENERAL.—The Commission shall (1) the term ‘‘area agency on aging’’ has gay teens. And it will expand existing carry out activities to combat the epidemic of suicide among gay and lesbian youth, who the meaning given the term in section 102 of research on youth suicide to include the Older Americans Act of 1965, account for 30 percent of completed youth (2) the term ‘‘State agency on aging’’ gay and lesbian adolescents. A full and suicides, as reported by the Department of means the State agency designated under appropriate airing of these issues will Health and Human Services in the 1989 ‘‘Re- section 305(a)(1) of the Act, mean the beginning of the end of the port of the Secretary’s Task Force on Youth

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18029 Suicide’’. The Commission shall advise the viduals which do not exceed the daily equiva- grams collect roughly $500 million an- Secretary of Health and Human Services and lent of the annual rate of basic pay pre- nually from producers and processors heads of other Federal and State youth serv- scribed for level V of the Executive Schedule of commodities. According to USDA, 90 ice agencies concerning how to include the under section 5316 of such title. percent of all U.S. producers contribute concerns of gay and lesbian youth in suicide SEC. 8. SUNSET PROVISION. money for promotion programs, either prevention policies, programs, and research. The Commission shall terminate 6 months (b) GOALS OF COMMISSION.—The goals of the after the date of the first meeting of the State or federally authorized. The Commission shall be to— Commission.∑ growth in the number of these pro- (1) work to include the concerns of gay and grams in the last decade is not sur- lesbian youth in suicide prevention programs By Mr. FEINGOLD: prising. As Federal dollars to support at the national and State level; S. 1449. A bill to make agricultural agriculture dwindle due to budget con- (2) develop and make specific recommenda- promotion boards and councils more straints, Congress has stood ready to tions to the Secretary of Health and Human responsive to producers whose manda- allow producers to engage in these self- Services and heads of other relevant Federal tory assessments support the activities help efforts. I understand that when and State agencies about how to stem the the Congress addresses omnibus farm epidemic of gay and lesbian youth suicide; of such boards and councils, to improve (3) work to expand research on youth sui- the representation and participation of legislation either this year or next cide to include research on gay and lesbian such producers of such boards and year, that my colleagues and I will be youth suicide; and councils, to ensure the appropriate use asked to approve additional com- (4) work to amend existing youth suicide of promotion funds, to prevent legisla- modity promotion programs for pop- policies, guidelines, and programs to include tively authorized promotion and re- corn, canola and rapeseed and perhaps policies, guidelines, and programs appro- search boards from using mandatory other commodities as well. priate for gay and lesbian youth. assessments to directly or indirectly But Mr. President, while the goals of SEC. 5. REPORTS. influence legislation or governmental these programs are truly admirable, I (a) INTERIM REPORTS.—The Commission am concerned that some of the issues shall conduct regional public hearings action or policy, and for other purposes; to the Committee on Agri- raised by some farmers with respect to around the United States to gather informa- these programs have been swept away tion from youths, family members of such culture, Nutrition, and Forestry. in the Congressional tide to approve youths, and professionals, about the problem THE AGRICULTURAL PROMOTION more and more producer-supported of gay and lesbian youth suicide, on an ongo- ACCOUNTABILITY ACT ing basis. The Commission shall prepare and ∑ Mr. FEINGOLD. Mr. President, I in- checkoff programs. Congress has ap- submit an interim report to the Secretary of troduce legislation addressing existing proved so many of these programs in Health and Human Services. The interim re- such a short period of time that we and future agricultural promotion pro- port shall contain findings and conclusions have not taken a step back to look at grams. Fundamentally, Mr. President, of the Commission, based on the hearings. overall principles guiding these pro- my legislation, the Agricultural Pro- (b) FINAL REPORT.—The Commission shall grams and whether or not the promotion and Accountability Act, makes prepare and submit a final report to the Sec- grams are operating as they should be. retary of Health and Human Services. The some modest and common sense re- These programs are typically re- final report shall contain a detailed state- forms to all of the existing agricultural ment of the findings and conclusions of the ferred to as checkoff programs since promotion programs in order to make the funds that producers must pay to Commission. them more accountable to, and rep- SEC. 6. POWERS OF THE COMMISSION. the promotion boards and councils are resentative of, the farmers who pay for automatically deducted from the pro- (a) INFORMATION FROM FEDERAL AGEN- the programs. These congressionally CIES.—The Commission may secure directly ducer’s check received for commodities from any Federal department or agency such authorized programs create boards and sold. In many cases, the checkoff is a information as the Commission considers councils, made up of agricultural pro- fixed amount, such as 15 cents per hun- necessary to carry out the provisions of this ducers, which have the authority to as- dred pounds of milk sold, or $1 per head Act. Upon request of the Chairperson of the sess a mandatory fee on producers to of beef or dairy cattle sold. In other Commission, the head of such department or pay for the costs of board or council cases, the amount deducted is a per- agency shall furnish such information to the sponsored self-help promotion activi- centage of the market value of the Commission. ties. (b) POSTAL SERVICES.—The Commission commodity sold. The checkoff payment Agricultural promotion programs are is mandatory and essentially perma- may use the United States mails in the same designed to allow producers to engage manner and under the same conditions as nent once a majority of producers ap- other departments and agencies of the Fed- in self-help initiatives to promote their prove of the overall program in an ini- eral Government. products to the consumer, to enhance tial referendum. (c) USE OF VOLUNTARY AND UNCOMPENSATED demand and ultimately improve the To give my colleagues an idea of the SERVICES.—Notwithstanding section 1342 of economic security of farmers paying scope of producer contributions, con- title 31, United States Code, the Secretary of the assessment. It is hard to argue with sider the annual investment of a small Health and human Services is authorized to that basic goal, Mr. President. These Wisconsin dairy farm. A milk producer accept voluntary and uncompensated serv- programs are fully funded and managed ices in furtherance of the purposes of this with a 50 cow herd, averaging 18,000 Act. by farmers, with oversight conducted pounds per cow per year, would pay by the Department of Agriculture. The SEC. 7. COMMISSION PERSONNEL MATTERS. about $1,350 annually for State, re- boards or councils authorized by Con- (a) COMPENSATION.—Members of the Com- gional, and Federal milk promotion ac- mission shall serve on the Commission with- gress collect the producer funds and tivities. Mr. President, that is a large out compensation. then conduct generic promotion activi- contribution for such a small farm. (b) TRAVEL EXPENSES.—The members of ties for the specific commodity by con- Consider that a large dairy with 1,000 the Commission shall be allowed travel ex- tracting out the specific advertising cows, such as those in the southwest penses, including per diem in lieu of subsist- and research projects to private enti- and western regions of the country, ence, at rates authorized for employees of ties. averaging 18,000 pounds of milk per agencies under subchapter I of chapter 57 of While some of these programs have cow, contributes about $27,000 annually title 6, United States Code, while away from existed for nearly 30 years, the major- their homes or regular places of business in for mandatory milk promotion. Con- the performance of services for the Commis- ity were created and implemented in sider also that a dairyman who also sion. the last 10 years. In fact, since 1982, raises hogs, replacement heifers, and (c) DETAIL OF GOVERNMENT EMPLOYEES.— when national promotion programs col- soybeans would contribute to the pork, Any Federal Government employee may be lected just $45 million annually, the beef, and soybean promotion program. detailed to the Commission without reim- amount of money collected under man- Mr. President, these mandatory con- bursement, and such detail shall be without datory promotion programs has in- tributions represent a sizable invest- interruption or loss of civil service status or creased ten-fold. ment by the individuals required to privilege. These programs currently cover (d) PROCUREMENT OF TEMPORARY AND pay them. INTERMITTENT SERVICES.—The Chairperson of about 16 agricultural commodities in- On the surface, these programs ap- the Commission may procure temporary and cluding milk, beef, pork, eggs, soy- pear well-supported by farmers and intermittent services under section 3109(b) of beans, cotton as well as many specialty others paying the mandatory assess- title 5, United States Code, at rates for indi- commodities. All totalled these pro- ments. However, as I have travelled the

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18030 CONGRESSIONAL RECORD — SENATE December 5, 1995 countryside of Wisconsin, holding lis- more to advance the political objec- other activities intended to influence tening sessions in each of Wisconsin’s tives of certain contracting organiza- government action or policy. It makes 72 counties each year, I have learned tions. Such activities may violate the some conforming changes to existing that, in fact, these programs tend to be prohibition on the use of checkoff statutes to ensure that all promotion controversial among farmers in Wis- funds to influence government action programs are subject to the same re- consin. In my home State, where some or policy. Last August, during the Sen- strictions. counties are home to more cows than ate subcommittee hearing mentioned The bill addresses the concern that people, the most controversial of the previously, staff of USDA pointed out too much money is spent on broad boards are the National Dairy Pro- one specific promotion effort that may scale public relations work and not motion and Research Board and the have entered the grey area of prohib- enough on direct promotion of the Cattlemen’s Beef Promotion and Re- ited activities. product, by limiting the types of public search Board. The programs provide preferential relations works that can be conducted. In the 103d Congress, when I served as treatment to certain industry-governed In fairness to all producers in arguably a member of the Senate Agriculture farmer organization to the exclusion of heterogenous agricultural sectors, in- Committee, I had the opportunity to be others. Some farmers contend that the dustry image enhancement activities involved in the creation of new pro- ties between some promotion boards are prohibited. What might be a desir- motion programs as well as the modi- and the industry-lobbying organization able image for one segment of an agri- fication of existing programs. I are too tight and may create a conflict cultural sector, might not be desirable learned, Mr. President, that the con- of interest for those boards. for other segments of the industry. troversy stemming from these pro- The programs that do provide con- Since the checkoff assessments are lev- grams goes well beyond the beef and tracts or grants to specific lobbying or- ied equally on all producers, in most dairy programs. In each case, Mr. ganizations may be indirectly sup- cases, general public relations work President, when the Committee ad- porting or subsidizing the legislative with checkoff funds is not an appro- dressed promotion programs from eggs activities of that organization. This priate or equitable use of promotion to sheep to beef, the controversy concern has been voiced by a number of dollars. Instead, all boards will be al- among the producers footing the bill members of the Senate and the House lowed to promote the image of the ge- for the program was significant. In re- with respect to the use of Federal funds neric product itself, which is consistent sponse to some of the concerns raised and grants provided to lobbying organi- with the goal of enhancing consumer by farmers, the Senate Subcommittee zations. In fact, much time and effort demand. on Domestic and Foreign Marketing has been expended in the Senate to en- The bill also improves the demo- and Promotion held a hearing on the sure that Congressionally authorized cratic nature of promotion boards and beef and dairy promotion programs. funding is not ultimately used for lob- councils by providing producers with The House Agriculture Committee held bying activities. The concerns that an opportunity to reauthorize their a similar hearing on the beef, pork, farmers have raised with respect to the program, on average, every 5 years. eggs and dairy checkoff programs in use of checkoff dollars are consistent Referenda on approval or termination the 103d Congress. The bill I am intro- with these concerns. of the mandatory promotion programs ducing today addresses the concerns The mandatory nature of the pro- would be held periodically to assure that have been voiced in these hearings grams and the contractual relationship that producers continue to support the during my tenure on the Committee maintained by some of the boards im- program in which they make substan- and since that time. plicate the First Amendment rights of tial annual investments. During that The concerns checkoff paying farm- producers who should not be required referendum, producers will also be al- ers have raised include: to associate with a group with whom lowed to decide whether or not they The promotion programs do not pro- they do not agree. In fact, some state- favor instituting refunds of assess- vide for adequate input by,or represen- wide promotion programs similar to ments to producers who request them. tation of, the producers paying for the the individual promotion programs ad- These provisions will provide the program. dressed in my legislation, have been checkoff paying producer with more The programs once authorized con- successfully challenged on First control over the promotion boards they tinue into perpetuity with little oppor- Amendment grounds. fund. Additionally, producers argue tunity for producer review or reauthor- Mr. President, I think these are seri- that if they are allowed a regular re- ization. All but one of the existing pro- ous concerns. The fact that these pro- view of their programs, the boards will grams are permanently authorized by grams impose an additional targeted be more accountable to the farmers Congress. tax on producers purportedly for their who foot the bill. In most cases concerned producers own good, should compel the Congress The concern about the fungibility of must expend their own time and re- to take these complaints seriously, as checkoff dollars paid in contracts to sources to gather enough names on a well. Producers initially approved all industry-governed lobbying organiza- petition—usually 10 percent of all eligi- of these promotion programs based on tions is perhaps one of the most dif- ble producers—in order to call for an- very specific goals and with a number ficult issues to address. It is, of course, other approval referendum. of requirements and constraints. As not a new issue. In fact, just 3 years In the case of the dairy promotion members of the body that authorized ago, Secretary of Agriculture Dan program, cooperatives are allowed to these programs, we must ensure that Glickman, then a member of Congress, vote on behalf of their producers, the initial goals of these programs are stated in a promotion program over- which some farmers contend biases the being met and that those farmers re- sight hearing that ‘‘Congress should referendum by drowning out the voices quired to pay for them have assurances not be in the business of enacting proof dissenting producers. that the programs are operated fairly grams which will result in the collec- The promotion programs require all and democratically within the bounds tion of funds from all farmers for the producers to pay for a program regard- of the statute and without bias towards benefit of lobbying groups which may less of whether they agree with the or against specific segments of the represent the view of just a fraction of program, whether they think the pro- taxed industry. the farmers.’’ As I stated earlier, that gram is working, and whether they The legislation I am introducing is exactly what some producers con- spend their own money on individual today will help accomplish those goals tend is happening under some of the promotion efforts. without restricting the ability of the agricultural promotion programs. The programs far too often engage in promotion boards to accomplish their To address those concerns the Agri- activities well beyond those intended objectives of enhancing consumer de- cultural Promotion Accountability Act by the producers who approved the pro- mand for the commodity. The Agricul- creates a number of safeguards to en- gram at its initiation. Some producers tural Promotion and Accountability sure the independence of the boards complain that broad-scale public rela- Act provides guidelines to promotion from their contractors, to avoid con- tions work funded by checkoff dollars boards and councils on the prohibited flicts of interest between the board and does little to enhance demand and far activities with respect to lobbying and any contractor or grantee, to ensure

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00098 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18031 that contracts are let on both an equi- information activities under a promotion (I) the watermelon research, development, table and efficient basis providing a program); advertising, and promotion program estab- voice for all check-off paying pro- (II) planning, preparing, funding, or dis- lished under the Watermelon Research and ducers, and to safeguard against any tributing any publicity or propaganda to af- Promotion Act (7 U.S.C. 4901 et seq.); fect the opinion of the general public or a (J) the pecan promotion, research, indus- checkoff dollars being used for prohib- segment of the public in connection with a try information, and consumer information ited activities. pending legislative matter; or program established under the Pecan Pro- Mr. President, I think the modest (III) urging members of the general public motion and Research Act of 1990 (7 U.S.C. changes this legislation makes to pro- or any segment of the general public to con- 6001 et seq.); motion programs will go a long way to tribute to, or participate in, any mass dem- (K) the mushroom promotion, research, ensure the continued productivity and onstration, march, rally, fund-raising drive, and consumer and industry information pro- success of these promotion boards lobbying campaign, letter-writing campaign, gram established under the Mushroom Pro- or telephone campaign in connection with a motion, Research, and Consumer Informa- while providing producers a greater pending legislative matter; voice in how their money is spent. I tion Act of 1990 (7 U.S.C. 6101 et seq.); (C) carrying out a legislative liaison activ- (L) the lime research, promotion, and con- urge my colleagues to support this leg- ity, including attendance at a legislative ses- sumer information program established islation. sion or committee hearing to gather infor- under the Lime Research, Promotion, and I ask unanimous consent that a let- mation regarding legislation or to analyze Consumer Information Act of 1990 (7 U.S.C. the effect of legislation, if the activity is ter of support for the Agricultural Pro- 6201 et seq.); carried on in support of, or in knowing prep- motion Accountability Act from the (M) the soybean promotion, research, con- aration for, an effort to influence legislation sumer information, and industry informa- National Farmers Union be included in or government action or policy; tion program established under the Soybean the RECORD. I ask unanimous consent (D) carrying out an opinion survey of the Promotion, Research, and Consumer Infor- that the text of the legislation be general public or a segment of the public, mation Act (7 U.S.C. 6301 et seq.); printed in the RECORD. general research, or information gathering, (N) the fluid milk advertising and pro- if carried out in support of, or in knowing There being no objection, the mate- motion program established under the Fluid preparation for, an effort to influence legis- rial was ordered to be printed in the Milk Promotion Act of 1990 (7 U.S.C. 6401 et lation or government action or policy; or RECORD, as follows: (E) attempting to influence any agency ac- seq.); S. 1449 tion or agency proceeding, as the terms are (O) the flowers and greens promotion, con- Be it enacted by the Senate and House of Rep- defined in section 551 of title 5, United States sumer information, and related research pro- resentatives of the United States of America in Code, through— gram established under the Fresh Cut Flow- Congress assembled, (i) communication with any government ers and Fresh Cut Greens Promotion and In- formation Act of 1993 (7 U.S.C. 6801 et seq.); SECTION 1. SHORT TITLE. official or employee who may participate in (P) the sheep promotion, research, con- This Act may be cited as the ‘‘Agricultural the action or proceeding (not including a sumer information, education, and industry Promotion Accountability Act of 1995’’. communication to an appropriate govern- information program established under the SEC. 2. PURPOSE. ment official in response to a written request by the official for factual, scientific, or tech- Sheep Promotion, Research, and Information The purpose of this Act is to make agricul- nical information relating to the conduct, Act of 1994 (7 U.S.C. 7101 et seq.); and tural promotion boards and councils more implementation, or results of promotion, re- (Q) any other coordinated program of pro- responsive to producers whose mandatory as- search, consumer information or education, motion, research, industry information, and sessments support the activities of such or industry information of producer informa- consumer information that is funded by boards and councils, to improve the rep- tion activities under a promotion program); mandatory assessments on producers and de- resentation and participation of such pro- (ii) planning, preparing, funding, or distrib- signed to maintain and expand markets and ducers on such boards and councils, to en- uting any publicity or propaganda to affect uses for an agricultural commodity, as deter- sure the independence of such boards and the opinions of the general public or any seg- mined by the Secretary. councils, to ensure the appropriate use of ment of the general public in connection (3) SECRETARY.—The term ‘‘Secretary’’ promotion funds, and to prevent legislatively with the action or proceeding; or means the Secretary of Agriculture. authorized agricultural promotion and re- (iii) urging members of the general public search boards from using mandatory assess- SEC. 4. INFLUENCING LEGISLATION OR GOVERN- or any segment of the general public to con- MENTAL ACTION OR POLICY. ments to directly or indirectly influence leg- tribute to, or participate in, any mass dem- islation or governmental action or policy. onstration, march, rally, fundraising drive, (a) IN GENERAL.—A board or council estab- SEC. 3. DEFINITIONS. lobbying campaign, letter-writing campaign, lished by a promotion program may not use In this Act: or telephone campaign in connection with any funds collected by the board or council (1) INFLUENCING LEGISLATION OR GOVERN- the action or proceeding. for the purpose of directly or indirectly in- MENTAL ACTION OR POLICY.—The term ‘‘influ- (2) PROMOTION PROGRAM.—The term ‘‘pro- fluencing legislation or governmental action encing legislation or governmental action or motion program’’ means— or policy, except for the development and policy’’ includes— (A) the cotton research and promotion pro- recommendation of amendments to the pro- (A) establishing, administering, contrib- gram established under the Cotton Research uting to, or paying the expenses of a polit- and Promotion Act (7 U.S.C. 2101 et seq.); motion program to the Secretary. ical party campaign, political action com- (B) the potato research, development, ad- (b) CONFORMING AMENDMENTS.— mittee, or other organization established for vertising, and promotion program estab- (1) COTTON.—Section 7(h) of the Cotton Re- the purpose of influencing the outcome of an lished under the Potato Research and Pro- search and Promotion Act (7 U.S.C. 2106(h)) election; motion Act (7 U.S.C. 2611 et seq.); is amended by striking ‘‘influencing govern- (B) attempting to influence— (C) the egg research, consumer and pro- mental policy or action’’ and inserting ‘‘di- (i) the outcome of any Federal, State or ducer education, and promotion program es- rectly or indirectly influencing legislation or local election, referendum, initiative, or tablished under the Egg Research and Con- governmental action or policy (as defined in similar procedure through a cash contribu- sumer Information Act (7 U.S.C. 2701 et seq.); section 3(1) of the Agricultural Promotion tion, in-kind contribution, endorsement, (D) the beef promotion and research pro- Accountability Act of 1995)’’. publicity or public relations activity or simi- gram established under the Beef Research (2) POTATOES.—Section 308(f)(3) of the Po- lar activity; and Information Act (7 U.S.C. 2901 et seq.); tato Research and Promotion Act (7 U.S.C. (ii) the introduction, modification, or en- (E) the wheat research and nutrition edu- 2617(f)(3)) is amended by striking ‘‘influ- actment of any Federal or State legislation cation program established under the Wheat encing governmental policy or action’’ and or signature or veto of any enrolled Federal and Wheat Foods Research and Nutrition inserting ‘‘directly or indirectly influencing or State legislation, including through— Education Act (7 U.S.C. 3401 et seq.); legislation or governmental action or policy (I) communication with any member or (F) the dairy promotion program estab- (as defined in section 3(1) of the Agricultural employee of a legislative body or agency or lished under the Dairy Production Stabiliza- Promotion Accountability Act of 1995)’’. with any governmental official or employee tion Act of 1983 (7 U.S.C. 4501 et seq.); (3) EGGS.—Section 8(h) of the Egg Research who may participate in the formulation of (G) the honey research, promotion, and and Consumer Information Act (7 U.S.C. the legislation, including engaging State or consumer education program established 2707) is amended by striking ‘‘influencing local officials in similar activity (not includ- under the Honey Research, Promotion, and governmental policy or action’’ and inserting a communication to an appropriate gov- Consumer Information Act (7 U.S.C. 4601 et ing ‘‘directly or indirectly influencing legis- ernment official in response to a written re- seq.); lation or governmental action or policy (as quest by the official for factual, scientific, or (H) the pork promotion, research, and con- defined in section 3(1) of the Agricultural technical information relating to the consumer information program established Promotion Accountability Act of 1995)’’. duct, implementation, or results of pro- under the Pork Promotion, Research, and (4) BEEF.—Section 5(10) of the Beef Re- motion, research, consumer information and Consumer Information Act (7 U.S.C. 4801 et search and Information Act (7 U.S.C. 2904(10)) education, industry information, or producer seq.); is amended—

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00099 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18032 CONGRESSIONAL RECORD — SENATE December 5, 1995 (A) by striking ‘‘influencing governmental tion or governmental action or policy (as de- contracting with, or entering into an agree- action or policy’’ and inserting ‘‘directly or fined in section 3(1) of the Agricultural Pro- ment with, an established national nonprofit indirectly influencing legislation or govern- motion Accountability Act of 1995)’’. industry-governed organization. mental action or policy (as defined in section (13) SOYBEANS.—Section 1969(p) of the Soy- (b) COMPETITIVE BIDDING.—It is the policy 3(1) of the Agricultural Promotion Account- bean Promotion, Research, and Consumer In- of Congress that boards and councils should, ability Act of 1995)’’; and formation Act (7 U.S.C. 6304(p) is amended— to the extent practicable, use competitive (B) by inserting ‘‘to the Secretary’’ before (A) in paragraph (1), by striking ‘‘influ- bidding in the awarding of contracts and the period at the end. encing legislation or governmental action or grants for activities authorized under a pro- (5) WHEAT.—Section 1706(i) of the Wheat policy’’ and inserting ‘‘directly or indirectly motion program. and Wheat Foods Research and Nutrition influencing legislation or governmental ac- (c) INDEPENDENCE OF BOARDS AND COUN- Education Act (7 U.S.C. 3405(i)) is amended tion or policy (as defined in section 3(1) of CILS.— by striking ‘‘influencing governmental pol- the Agricultural Promotion Accountability (1) APPLICATIONS AND RECOMMENDATIONS icy or action’’ and inserting ‘‘directly or in- Act of 1995)’’; and NOT BINDING.—Notwithstanding any other directly influencing legislation or govern- (B) in paragraph (2)— provision of law, a board or council estab- mental action or policy (as defined in section (i) in subparagraph (A), by inserting ‘‘to lished by a promotion program shall not be 3(1) of the Agricultural Promotion Account- the Secretary’’ before the semicolon; and bound by a proposed application for a board ability Act of 1995)’’. (ii) in subparagraph (B), by inserting ‘‘, in or council contract or a recommendation or (6) DAIRY.—Section 113(j) of the Dairy Pro- response to a request made by the officials,’’ advice of a potential contractor or a national duction Stabilization Act of 1983 (7 U.S.C. after ‘‘officials’’. nonprofit industry-governed organization on 4504(j)) is amended by striking ‘‘influencing (14) MILK.—Section 1999H(j)(1) of the Fluid the use of board or council receipts. governmental policy or action’’ and insert- Milk Promotion Act of 1990 (7 U.S.C. (2) INTERLOCKING BOARDS OR MEMBERSHIP.— ing ‘‘directly or indirectly influencing legis- 6407(j)(1)) is amended by striking ‘‘influ- Notwithstanding any other provision of law, lation or governmental action or policy (as encing legislation or governmental action or no person shall be eligible to be a member of defined in section 3(1) of the Agricultural policy’’ and inserting ‘‘directly or indirectly any board or council established by a pro- Promotion Accountability Act of 1995),’’. influencing legislation or governmental ac- motion program (including operating and (7) HONEY.—Section 7(h) of the Honey Re- tion or policy (as defined in section 3(1) of nominating committees) if the person serves search, Promotion, and Consumer Informa- the Agricultural Promotion Accountability in any decision making capacity, such as tion Act (7 U.S.C. 4606(h)) is amended by Act of 1995)’’. that of a member of the board of directors, striking ‘‘influencing governmental policy or (15) FLOWERS AND GREENS.—Section 5(i) of executive committee, or other committee, action’’ and inserting ‘‘directly or indirectly the Fresh Cut Flowers and Fresh Cut Greens for an entity that enters into a contract or influencing legislation or governmental ac- Promotion and Information Act of 1993 (7 other agreement with the board or council. tion or policy (as defined in section 3(1) of U.S.C. 6804(i)) is amended by striking ‘‘influ- (3) REQUIREMENTS FOR CONTRACTING.—A the Agricultural Promotion Accountability encing legislation or government action or contractor or grantee of a board or council Act of 1995)’’. policy’’ and inserting ‘‘directly or indirectly may not use funds collected through manda- (8) PORK.—Section 1620(e) of the Pork Pro- influencing legislation or governmental ac- motion, Research, and Consumer Informa- tory assessments under a promotion program tion or policy (as defined in section 3(1) of tion Act (7 U.S.C. 4809(e)) is amended by to fund any staff (including expenses or the Agricultural Promotion Accountability striking ‘‘influencing legislation’’ and all other activities of the staff) who, in part, en- Act of 1995)’’. that follows through the period at the end gage in 1 or more activities to influence leg- (16) SHEEP.—Section 5(l)(1) of the Sheep and inserting the following: ‘‘directly or in- islation or governmental action or policy. Promotion, Research, and Information Act directly influencing legislation or govern- (d) PRODUCER APPROVAL OF RELATIONSHIPS of 1994 (7 U.S.C. 7104(l)(1)) is amended by mental action or policy (as defined in section WITH BOARDS OR COUNCILS.— striking ‘‘influencing legislation or govern- 3(1) of the Agricultural Promotion Account- (1) IN GENERAL.—Except as provided in ment action or policy’’ and inserting ‘‘di- ability Act of 1995), except to recommend paragraph (2) and notwithstanding any other rectly or indirectly influencing legislation or amendments to the order to the Secretary.’’. provision of law, the entering into of a per- governmental action or policy (as defined in (9) WATERMELONS.—Section 1647(g)(3) of the manent cooperative arrangement or the es- Watermelon Research and Promotion Act (7 section 3(1) of the Agricultural Promotion tablishment of a joint committee (including U.S.C. 4906(g)(3)) is amended by striking ‘‘in- Accountability Act of 1995)’’. an arrangement that is advisory in nature) fluencing governmental policy or action’’ SEC. 5. PROMOTING THE IMAGE OF AN INDUSTRY by a board or council established by a pro- and inserting ‘‘directly or indirectly influ- PROHIBITED. motion program with a national nonprofit encing legislation or governmental action or (a) IN GENERAL.—A board or council estab- industry-governed organization shall require policy (as defined in section 3(1) of the Agri- lished by a promotion program may not use the prior approval of at least 2⁄3 of the eligi- cultural Promotion Accountability Act of any funds collected by the board or council ble producers under the promotion program. 1995)’’. for the purpose of enhancing the image of an (2) EXCEPTION.—Paragraph (1) shall not (10) PECANS.—Section 1910(g)(1) of the industry, except that the board or council apply to a cooperative arrangement or joint Pecan Promotion and Research Act of 1990 (7 may promote the image of a product with committee— U.S.C. 6005(g)(1)) is amended— the express intent of stimulating demand for (A) that was established prior to January (A) in the matter preceding paragraph (1)— and sales of an agricultural product in the 1, 1995; or (i) by striking ‘‘to,’’ and inserting ‘‘for the marketplace. (B) that includes representatives or par- purpose of,’’; and (b) CONFORMING AMENDMENTS.— ticipation from all producer-, processor-, or (ii) by striking ‘‘to—’’ and inserting ‘‘for (1) BEEF.—Section 3(9) of the Beef Research handler-governed national nonprofit organi- the purpose of—’’; and Information Act (7 U.S.C. 2902(9)) is zations (including general farm organiza- (B) in paragraph (1), by striking ‘‘influence amended by striking ‘‘, increased efficiency’’ tions) that represent any but an insignifi- legislation or governmental action’’ and in- and all that follows through ‘‘industry’’ and cant number of producers, processors, or serting ‘‘directly or indirectly influencing inserting ‘‘and increased efficiency’’. handlers paying assessments under the pro- legislation or governmental action or policy (2) PECANS.—Section 1907(12) of the Pecan motion program to the board or council, as (as defined in section 3(1) of the Agricultural Promotion and Research Act of 1990 (7 U.S.C. determined by the Secretary. Promotion Accountability Act of 1995)’’; 6002(12)) is amended by striking ‘‘, increased (3) PERMANENT COOPERATIVE ARRANGE- (C) in paragraph (2), by striking ‘‘engage’’ efficiency’’ and all that follows through ‘‘in- MENT.—In this subsection, the term ‘‘perma- and inserting ‘‘engaging’’; and dustry’’ and inserting ‘‘and increased effi- nent cooperative arrangement’’ means a for- (D) in paragraph (3), by striking ‘‘engage’’ ciency’’. mal or informal, written or unwritten agree- and inserting ‘‘engaging’’. (3) MUSHROOMS.—Section 1923(7) of the ment or understanding establishing a rela- (11) MUSHROOMS.—Section 1925(h) of the Mushroom Promotion, Research, and Con- tionship, a liaison, a sole source contract, or Mushroom Promotion, Research, and Con- sumer Information Act of 1990 (7 U.S.C. an operational mechanism under which a sumer Information Act of 1990 (7 U.S.C. 6103(7)) is amended by striking ‘‘, increased board or council shares staff, facilities, or 6104(h)) is amended by striking ‘‘influencing efficiency’’ and all that follows through ‘‘in- other resources or carries out coordinated legislation or governmental action or pol- dustry’’ and inserting ‘‘and increased effi- activities with any entity on a more or less icy’’ and inserting ‘‘directly or indirectly in- ciency’’. permanent and exclusive basis. fluencing legislation or governmental action (4) SOYBEANS.—Section 1967(7) of the Soy- (e) FUNGIBILITY OF BOARD OR COUNCIL or policy (as defined in section 3(1) of the Ag- bean Promotion, Research, and Consumer In- FUNDS.— ricultural Promotion Accountability Act of formation Act (7 U.S.C. 6302(7)) is amended (1) IN GENERAL.—The Inspector General of 1995)’’. by striking ‘‘, and activities’’ and all that the Department of Agriculture shall conduct (12) LIMES.—Section 1955(g) of the Lime Re- follows through ‘‘industry’’. an annual review of contractual arrange- search, Promotion, and Consumer Informa- SEC. 6. LIMITATIONS ON CONTRACTING. ments between each board or council estab- tion Act of 1990 (7 U.S.C. 6204(g)) is amended (a) PERMITTED CONTRACTS OR AGREE- lished by a promotion program and any enti- by striking ‘‘influencing legislation or gov- MENTS.—Notwithstanding any other provi- ty or association that engages in activities ernmental policy or action’’ and inserting sion of law, a board or council established by to influence legislation or governmental ac- ‘‘directly or indirectly influencing legisla- a promotion program shall not be limited to tion or policy and receives a significant

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00100 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18033 amount of funding from the board or council lobbying is prohibited under current law, [Mr. LEVIN] were added as cosponsors as determined by the Secretary. your bill makes the prohibition meaningful of S. 1058, a bill to provide a com- (2) SCOPE OF REVIEW.—A review under para- by clearly defining the prohibited activities. prehensive program of support for vic- (2) It is essential that producers control graph (1) shall examine whether any funds tims of torture. collected by the board or council are used to how their dollars are spent. Your legislation directly or indirectly fund or subsidize an en- ensures that decisions are made by inde- S. 1178 tity or association that engages in influ- pendent, accountable boards. Your legisla- At the request of Mr. CHAFEE, the encing legislation or governmental action or tion also helps ensure that all producers name of the Senator from Iowa [Mr. policy. have a voice, not just those who belong to a HARKIN] was added as a cosponsor of S. (3) REPORT.—The Secretary shall submit a specific trade association. Your legislation 1178, a bill to amend title XVIII of the report on the findings of any review under further promotes producer control by prohib- Social Security Act to provide for cov- this subsection and make recommendations iting bloc voting. (3) It is essential that an independent re- erage of colorectal screening under for any actions that should be taken as a re- part B of the Medicare Program. sult of the findings to the Committee on Ag- view of funding be conducted annually. We riculture of the House of Representatives support naming the Inspector General of S. 1335 and the Committee on Agriculture, Nutri- USDA to conduct this review. At the request of Mr. MCCONNELL, tion, and Forestry of the Senate. (4) It is essential that periodic referenda the name of the Senator from Arkansas are held to provide producers the oppor- SEC. 7. PERIODIC REFERENDA. [Mr. BUMPERS] was added as a cospon- tunity to review whether the promotion pro- (a) IN GENERAL.—Notwithstanding any gram is worth continuing. Your legislation sor of S. 1335, a bill to provide for the other provision of law, not less than 4 nor achieves this by specifying a referendum protection of the flag of the United more than 6 years after the date of enact- every five years, including a referendum on States and free speech, and for other ment of this Act or the date on which the refunds. purposes. Secretary determines the results of the most (5) It is essential that assessments are used S. 1432 recent referendum for a promotion program, for activities to enhance producer price. The At the request of Mr. MCCAIN, the whichever is earlier, and not less than once proposed legislation meets this goal by pro- every 5 years thereafter, the Secretary shall hibiting use of funding for influencing regu- name of the Senator from Delaware conduct a referendum to determine whether latory bodies, and other purposes not specifi- [Mr. BIDEN] was added as a cosponsor of to approve or terminate the order under the cally linked to product promotion. S. 1432, a bill to amend title II of the promotion program and whether refunds Thank you for your work on behalf of fam- Social Security Act to provide for in- should be made under the order. ily farmers. Promotion assessments affect (b) PROCEDURE.—The referendum under creases in the amounts of allowable nearly every farmer and the topic always subsection (a) shall be conducted using the earnings under the Social Security produces much debate whenever discussed by same eligibility and other procedures as the earnings limit for individuals who have producers. Your legislation is a positive step referendum used to approve the original in addressing many concerns. We look for- attained retirement age, and for other order under the promotion program, except ward to working with you to pass this bill. purposes. that, notwithstanding any other provision of Sincerely, law, no greater than a simple majority of eli- LELAND SWENSON, f gible producers shall be required to approve President.∑ the making of refunds to producers. SENATE RESOLUTION 197—TO CON- (c) TERMINATION.— f GRATULATE THE NORTH- (1) IN GENERAL.—If the percentage of per- ADDITIONAL COSPONSORS sons voting to approve the order does not WESTERN UNIVERSITY WILD- equal or exceed the percentage of persons S. 295 CATS At the request of Mrs. KASSEBAUM, necessary to approve the continuation of the Mr. SIMON (for himself and Ms. original order under the promotion program, the name of the Senator from Ken- MOSELEY-BRAUN) submitted the fol- the Secretary shall terminate the order. tucky [Mr. MCCONNELL] was added as a lowing resolution; which was consid- (2) TIME OF TERMINATION.—The Secretary cosponsor of S. 295, a bill to permit ered and agreed to: shall terminate the order at the end of the labor management cooperative efforts marketing year during which the referendum that improve America’s economic com- S. RES. 197 is conducted. petitiveness to continue to thrive, and Whereas the Northwestern University (d) REFUNDS.—If the making of refunds is Wildcats are the 1995 Big Ten Conference approved in a referendum under subsection for other purposes. football champions and have been invited to (a), the Secretary shall establish a procedure S. 968 participate in the Rose Bowl on January 1, for making the refunds not later than 180 At the request of Mr. MCCONNELL, 1996, in Pasadena, California; days after the date of the referendum. the name of the Senator from Ten- Whereas the winning of the 1995 Big Ten (e) COOPERATIVE ASSOCIATION.—Notwith- nessee [Mr. FRIST] was added as a co- Conference football championship by the standing subsection (b), a cooperative asso- Wildcats completes an unprecedented 1-year ciation may not vote on behalf of the mem- sponsor of S. 968, a bill to require the Secretary of the Interior to prohibit turnaround of the Northwestern University bers of the association in a referendum con- football program; and ducted under this section. the import, export, sale, purchase, and Whereas Northwestern University is com- (f) INACTIVE PROMOTION PROGRAMS.—The possession of bear viscera or products mitted to athletic competitiveness without Secretary shall not conduct a referendum of that contain or claim to contain bear diminution of scholastic standards: Now, a promotion program under this section if viscera, and for other purposes. therefore, be it the Secretary determines that the promotion S. 978 Resolved, That the Senate— program is not active. (1) congratulates Northwestern University At the request of Mrs. HUTCHISON, the and its athletes, coaches, faculty, students, NATIONAL FARMERS UNION, names of the Senator from Montana November 7, 1995. administration, and alumni on the winning Re legislation to regulate producer assess- [Mr. BURNS] and the Senator from of the 1995 Big Ten Conference football ments for promotion funding. Rhode Island [Mr. CHAFEE] were added championship by the Wildcats and on the re- as cosponsors of S. 978, a bill to facili- ceipt by the Wildcats of an invitation to Hon. RUSS FEINGOLD, compete in the 1996 Rose Bowl; and U.S. Senator, tate contributions to charitable organizations by codifying certain exemp- (2) recognizes and commends Northwestern Washington, DC. University for its pursuit of athletic as well DEAR SENATOR FEINGOLD: On behalf of the tions from the Federal securities laws, as academic excellence. nearly 300,000 farm families of the National to clarify the inapplicability of anti- Farmers Union, I write to express our strong trust laws to charitable gift annuities, f support of the Agricultural Promotion Ac- and for other purposes. countability Act of 1995. Many of our mem- S. 984 bers pay multiple mandatory assessments for AMENDMENTS SUBMITTED promotion funding, amounting to thousands At the request of Mr. GRASSLEY, the of dollars per year, per producer. Our 1995 na- name of the Senator from Virginia [Mr. tional policy statement calls for legislative WARNER] was added as a cosponsor of S. THE PARTIAL-BIRTH ABORTION safeguards to insure the use of promotion 984, a bill to protect the fundamental BAN ACT OF 1995 funds is controlled by the producers who pay right of a parent to direct the upbring- the assessments, and that dollars are used to ing of a child, and for other purposes. enhance producer profitability. Your pro- S. 1058 posed legislation will help address several SMITH AMENDMENT NO. 3080 items of concern. At the request of Mr. WELLSTONE, the (1) It is essential that mandatory assess- names of the Senator from Illinois [Mr. Mr. SMITH proposed an amendment ments are not used for lobbying. Although SIMON] and the Senator from Michigan to the bill (H.R. 1833) to amend title 18,

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18034 CONGRESSIONAL RECORD — SENATE December 5, 1995 United States Code, to ban partial- (c) APPLICABILITY.—The provisions of this to medicine and biotechnology have birth abortions; as follows: section shall govern— helped to make the American health On page 2, at the end of line 9, insert the (1) the approval or the effective date of ap- care industry the most innovative and following: ‘‘This paragraph does not apply to proval of applications under section 505(b)(2), productive in the world. 505(j), 507, or 512(n), of the Federal Food, a partial-birth abortion that is necessary to Glaxo Wellcome has just received ap- save the life of a mother whose life is endan- Drug, and Cosmetic Act (21 U.S.C. 355 (b)(2) and (j), 357, and 360b(n)) submitted on or proval from the Food and Drug Admin- gered by a physical disorder, illness, or in- istration for its latest drug, Epivir, an jury, provided that no other medical proce- after the date of enactment of this Act; and dure would suffice for that purpose.’’ (2) the approval or effective date of ap- aggressive new treatment for AIDS. proval of all pending applications that have Epivir received FDA approval in less not received final approval as of the date of DOLE AMENDMENT NO. 3081 than 5 months, but the advent of this enactment of this Act. new treatment is the result of years of Mr. DOLE proposed an amendment to hard work and millions of dollars in- amendment No. 3080 proposed by Mr. BOXER AMENDMENT NO. 3083 vested by Glaxo Wellcome. SMITH to the bill, H.R. 1833, supra; as The firm also announced that it has follows: Mrs. BOXER proposed an amendment to amendment No. 3083 proposed by Mr. set itself the goal of bringing an un- In the pending amendment, strike all after PRYOR to the bill, H.R. 1833, supra; as precedented three new medicines to the word ‘‘This’’ and insert in lieu thereof market each year by the beginning of the following: ‘‘paragraph shall not apply to follows: a partial-birth abortion that is necessary to At the end of the amendment, add the fol- the next century. This is an enormous save the life of a mother whose life is endan- lowing new sentence: ‘‘The prohibition in endeavor. It will require threefold in- gered by a physical disorder, illness, or in- section 1531(a) of title 18, United States crease in Glaxo Wellcome’s research jury, provided that no other medical proce- Code, shall not apply to any abortion per- and development productivity. dure would suffice for that purpose.’’ formed prior to the viability of the fetus, or The merger of Glaxo and Burroughs This paragraph shall become effective one after viability where, in the medical judg- Wellcome produced an enormous port- day after enactment. ment of the attending physician, the abor- folio of research and development tion is necessary to preserve the life of the projects. The ensure the most efficient PRYOR (AND OTHERS) woman or avert serious adverse health consequences to the woman.’’. integration of the two firms, the entire AMENDMENT NO. 3082 portfolio was reviewed according to Mr. PRYOR (for himself, Mr. CHAFEE, f rigorous standards. The resulting R&D and Mr. BROWN) proposed an amend- AUTHORITY FOR COMMITTEES TO portfolio now includes 50 major re- ment to the bill, H.R. 1833, supra; as MEET search projects and 93 development follows: projects. These projects run the gamut COMMITTEE ON FINANCE At the appropriate place, insert the fol- from cardiovascular disease and cancer Mr. BENNETT. Mr. President, I ask lowing new section: to the neurosciences. Significant re- unanimous consent that the Com- SEC. . APPROVAL AND MARKETING OF PRE- sources are being committed to SCRIPTION DRUGS. mittee on Finance be permitted to projects involving the respiratory sys- (a) APPROVAL OF APPLICATIONS OF GENERIC meet Tuesday, December 5, 1995, begin- tem: anti-viral infection: the central DRUGS.—For purposes of acceptance and con- ning at 10 a.m. in room SD–215, to con- nervous system and other areas. To- sideration by the Secretary of an application duct a hearing on the Organization for gether, Glaxo Wellcome’s total R&D under subsections (b), (c), and (j) of section Economic Cooperation and Develop- 505, and subsections (b), (c), and (n) of sec- spending for 1996 will exceed $1.9 bil- ment [OECD] Shipbuilding Subsidies tion 512, of the Federal Food, Drug, and Cos- lion. Agreement. metic Act (21 U.S.C. 355 (b), (c), and (j), and That’s good news for the millions of The PRESIDING OFFICER. Without 360b (b), (c), and (n)), the expiration date of Americans who suffer from life threat- a patent that is the subject of a certification objection, it is so ordered. ening diseases for which there is cur- under section 505(b)(2)(A) (ii), (iii), or (iv), COMMITTEE ON GOVERNMENTAL AFFAIRS rently no known treatment. Good news section 505(j)(2)(A)(vii) (II), (III), or (IV), or Mr. BENNETT. Mr. President, I ask section 512(n)(1)(H) (ii), (iii), or (iv) of such also for their families, their employers, Act, respectively, made in an application unanimous consent on behalf of the and their neighbors. This massive in- submitted prior to June 8, 1995, or in an ap- Governmental Affairs Committee to vestment in the future of American plication submitted on or after that date in meet on Tuesday, December 5, at 9:30 health care is good news for all of us. which the applicant certifies that substan- a.m. for a hearing on S. 88, Local Em- Pioneering the next ‘‘miracle drug’’ tial investment was made prior to June 8, powerment and Flexibility Act of 1995. is not easy. It costs, on average, 12 1995, shall be deemed to be the date on which The PRESIDING OFFICER. Without years and $350 million to develop just such patent would have expired under the objection, it is so ordered. law in effect on the day preceding December one new pharmaceutical. Only one in 8, 1994. SUBCOMMITTEE ON THE ADMINISTRATIVE 5,000 compounds tested in a laboratory (b) MARKETING GENERIC DRUGS.—The rem- OVERSIGHT AND THE COURTS ever finds its way onto pharmacy edies of section 271(e)(4) of title 35, United Mr. BENNETT. Mr. President, I ask shelves. And only a third of those ever States Code, shall not apply to acts— unanimous consent that the Sub- earns full return on the vast invest- (1) that were commenced, or for which a committee on the Administrative ment of time, money, and thought substantial investment was made, prior to Oversight and the Courts of the Com- made to discover it. June 8, 1995; and mittee on the Judiciary, be authorized Because of the costly pioneering re- (2) that became infringing by reason of section 154(c)(1) of such title, as amended by to meet during the session of the Sen- search of pharmaceutical companies section 532 of the Uruguay Round Agree- ate on Tuesday, December 5, 1995, at 10 like Glaxo Wellcome, American con- ments Act (Public Law 103–465; 108 Stat. a.m., in the Senate Dirksen Building, sumers have access to the next genera- 4983). room 226, to hold a hearing on S. 984, tion of pharmaceuticals and state-of- (c) EQUITABLE REMUNERATION.—For acts the Parental Rights and Responsibil- the-art medical treatments. Taxpayers described in subsection (b), equitable remu- ities Act. also benefit because of the savings to neration of the type described in section The PRESIDING OFFICER. Without be realized in future health care costs. 154(c)(3) of title 35, United States Code, as amended by section 532 of the Uruguay objection, it is so ordered. Pioneers like Glaxo Wellcome hold our Round Agreements Act (Public Law 103–465; f best hope for the discovery of break- 108 Stat. 4983) shall be awarded to a patentee through medicines in the future. I sa- only if there has been— ADDITIONAL STATEMENTS lute Glaxo Wellcome for deepening its (1) the commercial manufacture, use, offer commitment to the future of American to sell, or sale, within the United States of medicine.∑ an approved drug that is the subject of an ap- GLAXO WELLCOME f plication described in subsection (a); or ∑ Mr. FAIRCLOTH. Mr. President, I (2) the importation by the applicant into want to applaud a dramatic new com- THE NATIONAL HIGHWAY SYSTEM the United States of an approved drug or of DESIGNATION ACT OF 1995 active ingredient used in an approved drug mitment by Glaxo Wellcome, a North that is the subject of an application de- Carolina-based pioneer pharmaceutical ∑ Mr. JOHNSTON. Mr. President, on scribed in subsection (a). research company whose contributions November 28, 1995, President Clinton

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS December 5, 1995 CONGRESSIONAL RECORD — SENATE S18035 signed into law the National Highway ish President Martinez, and their com- tion and land use process has become a System Designation Act of 1995 which munity did make a difference. As a re- model for the rest of the country to will make a number of desperately sult of their involvement, the Federal learn and benefit from. needed changes to our Nation’s trans- Government has now dedicated itself to Mr. President, I ask that my col- portation infrastructure. I am pleased finding the best way to fix Dead Man’s leagues join me in congratulating Paul to have had the opportunity to work Curve. I am pleased that the National Bofinger on an exemplary career as a with my colleagues to pass this legisla- Highway System Designation Act of leader of New Hampshire forest con- tion. More importantly, I want to take 1995 includes $250,000 for this problem. I servation and a voice of wise modera- special notice of a particular section of am most pleased, however, that Con- tion. I wish him good fortune and God- this law and the Louisiana citizens who gress and the President have proven speed as, upon retirement, he pursues did their civic duty in bringing a seri- that our system works and that civic new life challenges.∑ ous problem to the attention of their ∑ duty has not lost its meaning. f representatives in Washington. f The National Highway System Des- EXECUTIVE SESSION ignation Act contains numerous spe- TRIBUTE TO PAUL O. BOFINGER cific projects that will benefit society ∑ Mr. GREGG. Mr. President, it gives and commerce and, as with all of the me great pleasure today to rise to pay EXECUTIVE CALENDAR legislation we concern ourselves with tribute to Paul O. Bofinger, president Mr. DOLE. Mr. President, I ask unan- in the U.S. Senate, proves the worth of of the Society for the Protection of imous consent that the Senate proceed our democratic process. Included in New Hampshire Forests, upon his re- to executive session to consider the fol- this law is a provision which I think tirement. Paul has served the New lowing military nominations reported most clearly demonstrates how impor- Hampshire conservation community out of the Armed Services Committee tant our system of representative de- loyally for 30 years as an intelligent today: Thomas Schwartz and Paul mocracy is and, hopefully, will help to and clear voice of reason and stubborn Funk. renew our sense of civic duty and al- common sense. Upon graduation from I further ask unanimous consent that leviate the apathetic attitude toward Cornell University in 1953 and the Uni- the nominations be confirm, en bloc; government that is so common today. versity of Michigan in 1955, Paul has In one of the fastest growing areas in that the motions to reconsider be laid been actively involved in the New upon the table, en bloc; that any state- Louisiana, Ascension Parish, there is a Hampshire conservation debate. Paul’s section of State Highway 42 known ments relating to the nominations ap- profound insight and powerful influ- pear at the appropriate place in the commonly as ‘‘Dead Man’s Curve.’’ Un- ence on New Hampshire environmental fortunately, this name truly reflects RECORD; that the President be imme- policy has helped to create the special diately notified of the Senate’s action; the road’s history. On this section of tradition of balance and consensus the two lane highway which curves and that the Senate then return to leg- building that we are proud of in New drastically and cannot accommodate islative session. Hampshire. its growing traffic load, nearly 50 seri- The PRESIDING OFFICER. Without Over the past three decades Paul objection, it is so ordered. ous automobile accidents have oc- Bofinger has received numerous awards curred in the last 4 years. When the The nominations considered and con- and honors including the American firmed, en bloc, are as follows: road becomes wet, as roads often do in Foresters John Artson Warder Medal, To be lieutenant general south Louisiana, this poorly designed the Nature Conservancy’s Conservation road becomes a death trap causing nu- Achievement Award, the University of Maj. Gen. Thomas A. Schwartz, 000–00–0000, merous multiple car sideswipes and U.S. Army. New Hampshire Granite State Award, head-on collisions. One particularly and the Audubon Society of New To be lieutenant general tragic accident last year took the lives Hampshire Tudor Richards Award. Lt. Gen. Paul E. Funk, 000–00–0000, U.S. of three young people and galvanized Paul received a 1982 Governor’s Award Army. public support for the effort to make of Distinction and was named 1994 For- f LA 42 safe. On August 20, 1994, in a head-on colli- ester of the Year by the Granite State LEGISLATIVE SESSION Division of the Society of American sion on this dangerous S-curve, Mandy The PRESIDING OFFICER. Under Acosta age 18, her cousin Brett Foresters. He is a Franklin Pierce Col- lege Honorary Doctor of Human Let- the previous order, the Senate will now Leggette age 13, and his friend Brett return to legislative session. Frederic also age 13 died. In one hor- ters, and a recipient of the Chevron rible accident two sisters had lost their Conservation Award. Paul Bofinger f served in 1984 and 1985 at Harvard Uni- teen-aged children. An extended family DEFENSE PRODUCTION ACT versity as a C. Bullard Fellow. and an entire community were dev- AMENDMENTS OF 1995 astated. Paul’s leadership assured the success When the grieving period had run its of the New Hampshire Land Conserva- Mr. DOLE. Mr. President, I ask unan- course, these sisters decided that they tion Investment Program and the cre- imous consent that the Senate proceed would not simply stand by and watch ation of the majestic Lake Umbagog to the immediate consideration of cal- history repeat itself, but would become National Fish and Wildlife Refuge. endar No. 239, H.R. 2204. involved to make sure that this road Under his presidency, the New Hamp- The PRESIDING OFFICER. The would not take more of our sons and shire Forest Society has become one of clerk will report. daughters. Ms. Templet and Ms. the premier land trusts in the Nation. The assistant legislative clerk read Leggette organized the community During the past several years Mr. as follows: through public marches and petition Bofinger and the New Hampshire For- A bill (H.R. 2204) to extend and re-author- drives. They contacted Parish Presi- est Society have contributed greatly to ize the Defense Production Act of 1950, and dent Tommy Martinez who imme- the work of the Northern Forest Lands for other purposes. diately mobilized his resources. Engi- Council. He has positioned New Hamp- The PRESIDING OFFICER. Is there neers Mr. Glenn Shaheen and Mr. Mark shire as a leader in the regional effort objection to the immediate consider- DeBossier were called in to find out to protect the traditional land use pat- ation of the bill? what needed to be done. Mr. David terns of the great Northern Forest for There being no objection, the Senate Young coordinated their message and the benefit of future generations. proceeded to consider the bill. worked with the Louisiana congres- Through Paul’s stewardship of New Mr. DOLE. Mr. President, I ask unan- sional delegation to find the surest way Hampshire conservation policy, his imous consent that the bill be deemed to get the Government to fulfill its strong commitment to the develop- read a third time, passed, the motion duty in protecting the lives of its citi- ment of broad consensus-based groups, to reconsider be laid upon the table and zens. and his disciplined approach to con- any statements relating to the bill be Mr. President, the dedicated and pas- servation policy through respectful di- placed at the appropriate place in the sionate work of these two sisters, Par- alog, New Hampshire’s forest conserva- RECORD.

VerDate Aug 31 2005 03:33 May 29, 2008 Jkt 041999 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 J:\ODA15\1995_F~1\S05DE5.REC S05DE5 mmaher on MIKETEMP with SOCIAL SECURITY NUMBERS S18036 CONGRESSIONAL RECORD — SENATE December 5, 1995 The PRESIDING OFFICER. Without ceed on that basis. I know we have at reform. I think we have about con- objection, it is so ordered. least 60 votes to proceed and I hope we cluded the conference. I just ask my So the bill (H.R. 2204) was deemed have 60 votes if cloture is needed on the colleagues, the original bill passed in read the third time and passed. amendment itself. the Senate by a vote of 87 to 12. We be- f We can expect votes to occur possibly lieve we have retained most of the Sen- on the constitutional amendment and ate provisions in the conference, and I ORDERS FOR WEDNESDAY, can expect amendments to the partial- ask my colleagues on both sides—this DECEMBER 6, 1995 birth abortions bill. bill had strong bipartisan support—to Mr. DOLE. Mr. President, I ask unan- Also, for the information of all my take a close look. imous consent that when the Senate colleagues, the schedule for the next Eighty-eight percent of the American completes its business today, it stand few days is as follows: As I said, tomor- people want welfare reform. We will in adjournment until the hour of 10 row we will start at 10 a.m. on flag have it on the floor, we hope, next a.m. on Wednesday, December 6; that burning, or debate a motion to proceed week. We hope the President of the following the prayer, the Journal of to that measure; at 5 p.m., resume the United States will sign it. In my view, proceedings be deemed approved to partial-birth abortions bill. Therefore, it is a good resolution of differences be- date; that no resolutions come over late sessions can be anticipated. tween the House and the Senate. We under the rule; that the call of the Cal- On Thursday and Friday, complete still have one or two minor—well not endar be dispensed with; that the action on partial-birth abortions if not minor—issues in disagreement we hope morning hour be deemed to have ex- previously disposed of; resume and, to resolve tomorrow, and then we hope hopefully, complete action on the con- pired; and that the time for the two to bring it up by midweek next week. leaders be reserved for their use later stitutional amendment regarding flag in the day. desecration. f Also, the Senate could be asked to The PRESIDING OFFICER. Without consider any available appropriations objection, it is so ordered. ADJOURNMENT UNTIL 10 A.M. conference reports once received from Mr. DOLE. Mr. President, I further TOMORROW the House. We expect to receive State, ask unanimous consent that the hour Justice, Commerce from the House on Mr. DOLE. Mr. President, if there is of 5 p.m. on Wednesday, the Senate re- Wednesday afternoon. no further business to come before the sume consideration of H.R. 1833, re- And then the following week, the Senate, I now ask unanimous consent garding partial-birth abortions in sta- State Department reorganization bill, that the Senate stand in adjournment tus quo. S. 1441, if agreement cannot be reached under the previous order. The PRESIDING OFFICER. Without to activate the original consent agree- There being no objection, the Senate, objection, it is so ordered. ment of September 29, 1995, we will at 7:19 p.m., adjourned until Wednes- f start on that bill on Monday. day, December 6, 1995, at 10 a.m. PROGRAM Other items next week: Available appropriations conference reports; H.R. f Mr. DOLE. Mr. President, it will be 660, fair housing exemption bill, hope- the majority leader’s intention to fully under a time agreement of 1 hour. CONFIRMATIONS move to proceed to House Joint Reso- It may be that we can dispose of that Executive nominations confirmed by lution 79, the constitutional amend- this week. the Senate December 5, 1995: ment regarding flag desecration, at 10 There will be a Bosnia resolution IN THE ARMY a.m. on Wednesday, December 6. I hope next week. We are still in the process between now and then we will have THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT of drafting that resolution. We have TO THE GRADE OF LIEUTENANT GENERAL IN THE U.S. consent to go to that. We would like to had meetings today, and we hope to ARMY WHILE ASSIGNED TO A POSITION OF IMPORTANCE complete action on this bill on Decem- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION have additional discussions tomorrow 601(A): ber 7. and the next day. It is my hope that we To be lieutenant general I know there has been an objection can have some resolution that can be raised as to consideration. I hope we do supported by a majority of our col- MAJ. GEN. THOMAS A. SCHWARTZ, 000–00–0000 THE FOLLOWING-NAMED OFFICER TO BE PLACED ON not have to file cloture to proceed to leagues. I am not certain what day THE RETIRED LIST OF THE U.S. ARMY IN THE GRADE IN- this very important piece of legislation next week that will come up. DICATED UNDER SECTION 1370 OF TITLE 10, U.S.C. and that my colleagues may cooperate It is very likely next week there will To be lieutenant general with us. If it takes that, we will pro- also be a conference report on welfare LT. GEN. PAUL E. FUNK, 000–00–0000

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MOVEMENT TOWARD PERMANENT talks in late February, can not, and must not, Earl was born in a sod-roofed log cabin on PEACE IN NORTHERN IRELAND become a moving target. a ranch near Vernal, UT, on June 19, 1906. The delegation is commended for its firm His grandfather, Joel Bascom, was one of the HON. BENJAMIN A. GILMAN statement and understanding of what needs to very first frontier lawmen, and his father, dep- OF NEW YORK be done. Talks must soon begin in earnest, uty sheriff John Bascom, chased the outlaw and the future of all Ireland settled at the bar- IN THE HOUSE OF REPRESENTATIVES Butch Cassidy in the late 1880's. Earl showed gaining table by the warm and generous peo- an early interest in art, drawing scenes of his Tuesday, December 5, 1995 ple of Ireland, not by any bombs or guns. young cowboy life on pieces of scrap paper. Mr. GILMAN. Mr. Speaker, President Clin- The future generations of Irish youth and This interest blossomed when his family left ton's recent visit to the north and south of Ire- Ireland's many friends here and all around the Utah by covered wagon to start a new ranch land, has enhanced the momentum toward world will be following very closely the life in Alberta, Canada in 1914. There he finding lasting peace and justice on the whole progress toward lasting peace which President worked as a cowhand for a dollar a day and island. The President is to be commended for Clinton's visit has stimulated once again. We furthered his dream under the direction of re- his efforts in this important cause. in the Congress will do all in our power to see nowned western artist Charlie Russell. The peace process that has seen a cease- that this momentum does not slip away. In 1933, at the age of 27, and having never fire in the north of Ireland honored on all sides Mr. Speaker, I request that the full text of graduated from high school, Earl was accept- for more than 15 months, has yet to produce the bi-partisan delegation's statement be ined to study art at Brigham Young University. the critical all-party inclusive talks essential to cluded at this point in the RECORD. He was the first student to pay his way finding through political dialogue, a lasting rec- CONGRESSIONAL DELEGATION APPLAUDS MOVE- through college exclusively as a rodeo cow- onciliation and a permanent peace. The peo- MENT TOWARD PERMANENT PEACE AND REC- boy, giving him the title of ``Rodeo's First Col- ONCILIATION; URGES CONTINUED PROGRESS ple of all Ireland clearly desire those goals, as legiate Cowboy.'' As an early pioneer of (Dublin, Ireland, December 1, 1995) was demonstrated by the joyous, supportive, rodeo, he invented innovative rodeo equip- and warm reception the President's peace visit Chairman James Walsh (R–NY)—Head of ment still used today. He graduated as one of the Bi-Partisan Delegation accompanying received in both parts of the island. President Clinton’s visit to Ireland issued the great rodeo legends, with his art degree, The Congress was well represented on this the following statement on behalf of the del- in 1940. important, historical trip of President Clinton to egation. Earl retired from rodeo, married Nadine help advance the peace process in Ireland, at ‘‘The enormous celebration of Peace we Diffey, and moved to Los Angeles in 1940 to a point in time when it was stalled, the mo- have all witnessed among people of both the pursue his art career. As that developed, he mentum lost, and a return to violence a real north and south of Ireland is a reflection of worked in construction, ranched, taught, and possibility. the enormous desire to make the current even did some film work with Roy Rogers. In peace permanent, and find lasting justice on A strong bipartisan delegation of both the whole island of Ireland. The young peo- 1968, Earl began sculpting, and 5 years later, House and Senate members led by my good ple of Ireland’s future must be secured he and his youngest son, John, set up their friend JAMES WALSH (R±NY), the chairman of through the removal of violence as a means own bronze casting foundry to produce mag- the Friends of Ireland accompanied the Presi- for change. nificent works of western art. dent. The congressional delegation met with ‘‘After seeing an obvious display of support Mr. Speaker, I ask that you join me, our col- all the parties in the north and south, and en- for peace by the people of Ireland, and after leagues, Earl's family and many friends in rec- gaged in an important and further dialogue to meeting with all political parties, north and ognizing Earl Bascom's extraordinary work south, the delegation is firmly convinced help sustain the progress toward peace, which that a lasting political solution can, and and remarkable life. Earl lived one of the most President Clinton's visit had motivated. must, be found through political dialogue. interesting lives ever known in modern cowboy The bipartisan congressional delegation is- Specifically, we support the recent twin history. ``I've tried to portray the West as I sued a statement, which in part unanimously track agreement. knew itÐrough and rugged and tough as an stated, that the delegation urges that ``* * * a Mr. Walsh went on to say, ‘‘I applaud old boot but with a good heart and honest as fixed and concrete date be promptly set for all President Clinton’s continued leadership in the day is long,'' he said. It is only fitting that party inclusive talks following the completion helping move the peace process forward and the House recognize Earl Bascom today. of the International Body's findings under the using the influence and moral will of Amer- ica to help advance the peace process.’’ f leadership of former United States Senator Mr Walsh concluded by saying, ‘‘The dele- George Mitchell of Maine.'' gation was unanimous in urging that a fixed TRIBUTE TO WILLIAM F. The arms decommissioning issue that this and concrete date be promptly set for all- ARMSTRONG International Body will address by mid-January party inclusive talks following the comple- 1996 has sadly too often been a smoke tion of the International Body’s findings HON. JOSEPH P. KENNEDY II under the leadership of former United States screen, and unfortunately used as a totally un- OF MASSACHUSETTS Senator George Mitchell of Maine.’’ warranted precondition by many to stall and IN THE HOUSE OF REPRESENTATIVES prevent critical all-party inclusive talks and dia- f Tuesday, December 5, 1995 logue. What the north of Ireland needs in A TRIBUTE TO EARL WESLEY order to truly get the arms held by both sides BASCOM Mr. KENNEDY of Massachusetts. Mr. out of the process, is really a decommission- Speaker, I rise today in honor and recognition ing of the mind set of the many who are re- HON. JERRY LEWIS of Mr. William F. Armstrong and 1995 marks sistant to change on both sides. That must Mr. Armstrong's 50th anniversary of being OF CALIFORNIA and can only take place across the bargaining founder and president of Armstrong Ambu- IN THE HOUSE OF REPRESENTATIVES table in this long, tragic, and deeply divisive lance Services. ``troubles'' that must come to a permanent Tuesday, December 5, 1995 Mr. Armstrong is certainly dedicated. He du- end. Mr. LEWIS of California. Mr. Speaker, I am tifully served his tour of duty in the U.S. Ma- Once the arms issue report is completed by proud, yet saddened, to bring to your attention rine Corps. Upon his return, he established his the International Body in mid-January next today the recent passing of Earl Wesley very own ambulatory service. This personal year, it is hoped that no more excuses, delay- Bascom of Victorville, CA. Earl was a cowboy service currently thrives as the Armstrong Am- ing tactics, nor any one side's veto will be tol- hero and a true inspiration to many of us, par- bulance Service. erated by the interested governments. We ticularly in the West. I'd like to take a moment Mr. Armstrong's perseverance and hard must soon thereafter have a fixed concrete to share with you a glimpse of Earl's remark- work to benefit and safeguard the well-being and nonnegotiable date set for all party talks able life and the legacy he has left for future of others is exemplary. He lived on call for at the peace table. The target date for these generations. others 24 hours a day, for over five decades.

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E 2284 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 Due to his unwavering leadership, Armstrong Edward Gibson on the occasion of his 104th CFC ban is debatable'' and the agreement to Ambulance Service has grown to accommo- birthday and for his tireless dedication as terminate the use of CFC's ``is the result of a date the medical transportation for over trustee emeritus of the New Central Baptist media scare.'' 40,000 people a year in the Greater Boston Church of Philadelphia. Brother Gibson has A couple of weeks later, the Royal Swedish area. lived a life of service to God and the church. Academy of Science announced this year's I applaud the accomplishments of Mr. Arm- He has served the New Central Baptist Nobel Prize in chemistry was awarded for strong. His special evening of recognition on Church since 1915, in many capacities from work that led to the international ban on December 16, 1995, will be a perfect oppor- usher board member to trustee emeritus. Not chemicals believed to be depleting the Earth's tunity to reflect upon such a joyous occasion only is he a valued and cherished member of protective ozone layer. These scientists dis- with family and friends. I would like to extend the trustees, he is so much more, he is a covered that when chlorofluorocarbons my deepest congratulations to Mr. William F. source of inspiration and comfort to the entire [CFC's], standard coolants in refrigerators and Armstrong. His 50th anniversary of serving congregation of the New Central Baptist air-conditioners, leak, they rise heavenward others is truly commendable and is a fine ex- Church. Brother Gibson has served the New and destroy ozone molecules that shield the ample of the notion of community. Central Baptist Church with honor, dignity, and Earth from the Sun. f commitment, offering new and innovative As you know, in 1985, scientists confirmed ideas to the community. the existence of a hole in the ozone layer over IN MEMORY OF H.G. ‘‘SKINNY’’ I join with the congregation of the New Antarctica. This ecological crisis spurred more TAYLOR Central Baptist Church, friends, family, and the than 120 countries to negotiate and approve Philadelphia community today in celebrating the Montreal Protocol on Substances That De- HON. GLENN POSHARD the 104th birthday of James Edward Gibson. plete the Ozone Layer, which President Reagan signed in 1987. In 1989, Congress OF ILLINOIS I wish Brother Gibson and the New Central enacted a tax on ozone-depleting chemicalsÐ IN THE HOUSE OF REPRESENTATIVES Baptist Church the very best as together they CFC's or chlorofluorocarbonsÐto provide an Tuesday, December 5, 1995 continue their service to the Philadelphia community. economic incentive to reduce production and Mr. POSHARD. Mr. Speaker, I rise today to f use of these destructive substances. This tax commemorate the passing of H.G. ``Skinny'' has very successfully accelerated the phase- Taylor, an Illinois political legend. For years an PROCLAMATION HONORING DONNA out of harmful chemicals while at the same actively involved Republican, friends on both MAHFOUZ time it has spurred development of ozone-safe sides of the aisle throughout the 19th Con- alternatives. gressional District and the State of Illinois will However, TOM DELAY, the House majority HON. ROBERT W. NEY whip, remains unconvinced. In the November miss his wit, style, and grace. It is with great OF OHIO 4 Houston Chronicle, DELAY said the Nobel sadness that I offer my condolences to his IN THE HOUSE OF REPRESENTATIVES family. Prize has not changed his opinion that the ban A graduate of Robinson, IL, High School Tuesday, December 5, 1995 on the chemicals to protect the ozone layer and Millikin University, Skinny owned and op- Mr. NEY. Mr. Speaker, I commend the fol- was the result of media scare. In a separate erated the Decatur Warehouse Co. A dedi- lowing article to my colleagues: interview, one of the three Nobel winners for ozone-depletion research, Mario Molina of the cated member of his community, Skinny took Whereas, Donna Mahfouz has faithfully leadership roles in the Kiwanis Club, the De- served the Anthem Blue Cross and Blue Massachusetts Institute of Technology, said catur Association of Commerce, the West- Shield family for twenty-three years; and such charges evidently result from DELAY's minster Presbyterian Church, and the Millikin Whereas, Donna Mahfouz has held the post lack of knowledge * * * and that all I can say is it's ignorance, real ignorance. DELAY was Alumni Association. But his greatest impres- of legislative secretary for the Government Relations Office, since its inception seven- also quoted as saying that SwedenÐwhere sion was left in politics, presiding as the chair- teen years ago; and, the Nobel program is basedÐis an extremist man of the Macon County Republican Party Whereas, her strong work ethic, super- country, and the award to Molina and the two for 39 years, while also serving as a Repub- lative organizational skills, and warm sense other scientists was nothing more than the lican precinct committeeman for 54 years. In of humor have greatly contributed to the Nobel appeasement prize linked to a Swedish both posts he was instrumental in acquainting success of Blue Cross and Blue Shield; and agenda. the Decatur area with State and national politi- Whereas, Anthem Blue Cross and Blue Shield owes Donna Mahfouz a great deal of DELAY said the Nobel Prize notwithstanding, cians. Skinny introduced many statewide can- he and a number of scientists are not per- didates to the nuances of campaigning in gratitude for her selfless devotion and dedicated service; and, suaded by the Chicken Little theory that ozone downstate Illinois, urging them to get in touch Whereas, I join the employees of Anthem depletion is being caused by CFC's or other with the problems that affected rural commu- Blue Cross and Blue Shield, with distinct manmade materials, or that there would be nities. pleasure, in honoring Donna Mahfouz upon substantial negative effects even if that hap- Mr. Speaker, ``Skinny'' Taylor handled these her retirement as legislative secretary for pened. many roles with a gentleness that impressed the Government Relations Office. DELAY said his University of Houston biol- all that met him. He touched many lives, and f ogy degree and his many years of dealing brought to politics the common sense belief PROPOSING CUTBACKS IN ENVI- with chemicals as owner of a pest-control that good government was good politics. In company enable him to interpret scientific find- the sometimes fractious environment in Wash- RONMENTAL POLICY REGARDING THE OZONE LAYER ings, including emerging research that calls ington, we can all learn from his example. Let the CFC ban into question. us duly note a life well lived. To support a ban on chemicals to protect f HON. FORTNEY PETE STARK the ozone layer, he said he would want to see OF CALIFORNIA ``a direct correlation'' between CFC's and A 104TH BIRTHDAY SALUTE TO IN THE HOUSE OF REPRESENTATIVES ozone depletion, and also ``make sure the so- JAMES EDWARD GIBSON OF Tuesday, December 5, 1995 called UV [ultraviolet] radiation that's sup- PHILADELPHIA posed to make people drop like flies is actu- Mr. STARK. Mr. Speaker, according to TOM ally making people drop like flies. HON. THOMAS M. FOGLIETTA DELAY, House majority whip, ``What has hap- Common sense dictates that waiting for this OF PENNSYLVANIA pened over the last 10 to 20 years is the envi- degree of evidence is waiting too long. A per- IN THE HOUSE OF REPRESENTATIVES ronmental extremists have had their way with son doesn't need to wait for a brick to drop on regulators and with Congress and they've his head before he believes it would hurt. The Tuesday, December 5, 1995 gone way beyond reasonableness and com- proof that Mr. DELAY requires is exactly the Mr. FOGLIETTA. Mr. Speaker, I rise today mon sense''ÐOctober 8 Houston Chronicle. type of catastrophe that current legislation re- to salute James Edward Gibson on the occa- In support of this argument, Mr. DELAY has garding ozone-depleting chemicals was en- sion of his 104th birthday and for his dedi- introduced a bill to lift the ban on the chemi- acted to prevent. cated service to the New Central Baptist cals covered by the ozone-layer ban and other Normally, I would not take this type of know- Church. substances. In the October 27 Washington nothingness seriously. However, with the new On December 25, 1995, the New Central Post, DELAY, a former exterminator, was Republicans and their antienvironment. Con- Baptist Church will proudly join with James quoted as saying ``the science underlying the tract With America it appears they are not December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2285 going to let real ignorance stand in the way of A TRIBUTE TO HENRY AND BOB- colleagues. At a time when Congress, and the attacking environmental policy, policy which BIE SHAFFNER; TWO EXCEP- country, is wrestling with devolution of a Fed- was supported by Republican Presidents Ron- TIONAL COMPOSERS eral Government and personal responsibility, ald Reagan and George Bush. Therefore, it is Dr. Saxon's words leapt from the pages as I very important that we continue to rally sup- HON. TOM LANTOS read them. A BETTER COUNTRY—A THANKSGIVING port from the scientific community, environ- OF CALIFORNIA SERMON IN THE HOUSE OF REPRESENTATIVES mental groups, and our constituents in opposi- (By Rev. Dr. Randall Lee Saxon) tion to this type of real ignorance so that we Tuesday, December 5, 1995 HEBREWS 11: 8, 12–16 may preserve our Nation's and the world's Mr. LANTOS. Mr. Speaker, I invite my col- By faith Abraham obeyed when he was most precious commodity, the environment. leagues to join me in thanking and congratu- called to set out for a place that he was to lating Henry and Bobbie Shaffner who com- receive as an inheritance; and he set out, not f knowing where he was going. posed an evocative and hauntingly beautiful Therefore from one person, and this one as musical score dedicated to Swedish humani- JAMES COLGATE CLEVELAND, good as dead, descendants were born, ‘‘as tarian and Holocaust hero, Raoul Wallenberg. many as the stars of heaven and as the innu- FORMER MEMBER OF CONGRESS Their composition of the song, ``Wallenberg,'' merable grains of sand by the seashore’’. together with the lyrics of Ms. Lillian Lewis, All of these died in faith without having captivated an audience of over 650 people at received the promises, but from a distance HON. BUD SHUSTER they saw and greeted them. They confessed the dedication of the bust of Wallenberg in the that they were strangers and foreigners on OF PENNSYLVANIA Great Rotunda of the U.S. Capitol on Novem- the earth, for people who speak in this way ber 2, 1995. IN THE HOUSE OF REPRESENTATIVES make it clear that they are seeking a home- The song, ``Wallenberg,'' is a tribute to land. Tuesday, December 5, 1995 Raoul Wallenberg the Swedish diplomat cred- If they had been thinking of the land that ited with savings 100,000 Jewish lives in Bu- they had left behind, they would have had Mr. SHUSTER. Mr. Speaker, I rise today to dapest in 1944. Using false passports, dip- opportunity to return. But as it is, they desire a better country, that is, a heavenly pay tribute to James C. Cleveland, a long-time lomat safe houses, and extraordinary bravery, one. Therefore God is not ashamed to be and invaluable member of the Public Works Wallenberg repeatedly deceived and evaded called their God; indeed, he has prepared a and Transportation Committee. Jim passed the Nazis in his heroic mission to prevent the city for them. away on December 3, in his beloved State of deportation of Hungary's Jews in the death A BETTER COUNTRY New Hampshire. camps. Wallenberg was arrested by Soviet au- Christians are always in search of a better thorities after the war and disappeared into the country. Those who take their faith seri- Jim came to the House of Representatives Gulag. His ultimate fate remains a mystery. ously endeavor to move beyond a feel-good in 1963 after more than a decade in the New The Shaffners' interest and concern about religion to a follow-Jesus faith. Such a faith Hampshire State Senate. His tenure in the Wallenberg's fate grew after they read about demands that we continue on our journey of Granite State legislature was marked by an in- him in a 1980 New York Times article. They discovery, to build upon the good that was present before us, to bring down the walls tense and detailed interest in infrastructure joined the Wallenberg Committee of the Unit- that divide us, to bridge chasms—real or and economic development issues. Indeed, he ed States decided to join those seeking to find imagined—that separate us. Christians are was the chief force behind creation of the New him and honor his miraculous deeds. always in search of a better country. Hampshire Industrial Development Authority. In 1986, the committee commissioned the As with the people of the early Christian Shaffners to compose an inspiring piece that Church and as with the people who followed When Jim came to Congress in 1963, he would embody Wallenberg's heroic spirit. In the patriarchs of early Judaism, the way of immediately sought and gained a seat on the 1992, the song was performed with the lyrics the Christian is the way of the Pilgrim. Public Works Committee, a position he would Those who have the good fortune to visit of Lillian Lewis at the committee's annual the Old Town of Rotterdam, in The Nether- hold for the next 18 years. He was a recog- meeting in New York. lands, may visit still the Pilgrim Fathers’ nized legislative expert in the fields of trans- Today's the Shaffners' inspirational music is Church—as it is yet called—in which the portation, water resources, and economic depart of a program titled: ``Raoul Wallenberg: A Scrooby Pilgrims and the Leyden Pilgrims velopment. His determined belief in the value Study in Heroes'' which has been imple- held their last service prior to entering on of public works projectsÐprojects which then mented in over 50 schools in New York, Mas- their incredible journey to discover a better sachusetts, and North Carolina, in kinder- country. Those staunch and visionary fore- and now add value to our Nation and to our bears of ours worshipped together, then everyday livesÐhelped drive the committee garten through the eighth grade. Plan call for made their way down to the water where through the 1960's and 1970's. the program to soon spread across the coun- they boarded the Speedwell to begin their try. In addition to his leadership in the House, westward journey. Written bold upon a At the dedication ceremony of the plaque secured to a warehouse on that Rot- he was also an inspiration to those of us new Wallenberg bust, the song was performed by terdam waterfront is a commemoration to arrivals on the committee. I was one of those the U.S. Army Band, Sergeant First Class the departure of the Pilgrims. arrivalsÐin 1973Ðand I can say that Jim was Beverly Benda, soprano, and Staff Sergeant From The Netherlands, the little ship bear- a superb mentor and a good friend. His belief ing the Pilgrim band sailed to Plymouth, Mary Beth Mailand, harp. England. In the English port, after a period in infrastructure and his leadership style was f of time, the pilgrims boarded a larger ship, not forgotten when I had the distinct honor to the Mayflower, and set sail for the brave new A BETTER COUNTRY— pick up the gavel as committee chairman in world awaiting them across the dark and THANKSGIVING SERMON the 104th Congress. brooding Atlantic waters. As in Rotterdam, so in Plymouth one may today read of this There is another and equally compelling as- HON. RAY LaHOOD bold departure of the Pilgrims, commemo- pect to Jim's passingÐwe have lost yet an- rating in words writ upon the grand OF ILLINOIS other member of the ``Command Generation.'' Mayflower Monument the extraordinary IN THE HOUSE OF REPRESENTATIVES These were the men and women who were event of the journey to discover a better Tuesday, December 5, 1995 country and thus a better life. born during the Nation's resurgence in the We can imagine that these pious people re- 1920's, weathered with determination the Mr. LAHOOD. Mr. Speaker, I rise today to flected on the words of Hebrews 11 in the Great Depression, served in World War II, and insert into the extension of remarks of the Holy Scripture: People who speak in this then helped create the international leviathan CONGRESSIONAL RECORD a sermon that my way make it clear that they are seeking a for prosperity and justice that was post-war constituent, Dr. Randall Lee Saxon, pastor of homeland. If they had been thinking of the land that they had left behind, they would America. the First Presbyterian Church, Peoria, IL, made to his congregation on November 19, have had opportunity to return. But, as it is, Jim Cleveland was a soldier, a statesman, 1995, in preparation for Thanksgiving. they desired a better country . .. and a committed private citizen who selflessly We know that many factors figured in the Mr. Speaker, I read the sermon and was so Pilgrims’ decision to leave home and cross served his country with extraordinary distinc- moved by Dr. Saxon's words and insightful the great sea in search of a new land, a bet- tion. The entire Nation is diminished by his thought that I wanted to insert it in the CON- ter country. As children in public and pri- passing. GRESSIONAL RECORD for the benefit of all my vate schools across America, we are given E 2286 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 opportunity to re-examine the religious and experience freedom as the Pilgrims sought to of our sixteenth president, that our govern- political persecutions and deep yearning of create to. We are fearful instead. Our every- ment may be of, by and for the people. Rath- the human spirit which emboldened the Pil- day lives point to this truth. er than deride the people you elected to rep- grims to set sail for America. They sought Consider our overstocked medicine cabi- resent you, work with them to shape a an opportunity to worship as they thought nets, burglar alarms, vast ghettos, and drug brighter, better future for all who call Amer- fitting, to engage themselves in self-deter- culture. Eighteen-hundred New Yorkers are ica home. mination and the utilization of individual murdered every year by their fellow citizens 5. Live each day as if it were your last, de- gifts for the common purpose of building in a city whose police department is larger voting energy to those profoundly simple community. They yearned for a government than the standing army of many nations. acts of discipleship we discover by lifting up which would be best described by an Amer- We have become fearful of one another. We faith, hope and love. And, in that instant, ican president 243 years after they sailed seem to have lost our way on that journey to make a difference for good and to God’s from Plymouth, a government in which the a better country. Where is the vision of the glory in the life of someone else. Do you common people were involved; a government Pilgrim people? Why do we cower in fear and begin to realize what a radical difference you of the people, for the people, and by the peo- confusion, choosing to attempt to outrun the can initiate simply by lifting up the values ple. darkness rather than turn and say with con- and mores which helped build this country, Yet, strange-seeming upon first consider- viction, ‘‘Enough!’’. Those people of varied those aspects of national character which ation, these same Pilgrims who were willing races and religious tradition and ages who begin on our hearths and in our hearts as we to leave hearth and homeland for a wild and have taken such a stand against corruption teach our children about God and goodness distant country viewed themselves as strang- in their individual communities have made a and grace? ers and foreigners on the earth. As people of difference, they have shined a light into the Yes, Christians are always in search of a God, they sought with great diligence to live darkness and recaptured a vision of a better better country. Those who take their faith as people of faith in an often faithless world. country. May God bless them, and our native seriously endeavor to move beyond a feel- These Pilgrims held values which tran- land! good religion to a follow-Jesus faith. The scended the simple ‘‘be a good person, be nice The time has come again for the people of choice, really, is up to you. You can sit mo- to your neighbor’’ values in human relation- God to become a Pilgrim people! The time rosely by, captured by a culture of complaint ships. These values demanded much more of has come again for the people of God to say and compliance, or you can let the living the individual and of society than simply what they believe, and to set sail on a jour- God fill your sails with the wind of His Spir- it, empowering you to move forward on that ‘‘being nice’’; these values demanded one’’s ney that will lead us all to a better country. journey to a better country. life commitment to the upbuilding of the What am I saying? Leave America for an- The America of tomorrow awaits your de- kingdom of God. It is no wonder historians other place? Not at all! Despite her flaws, America is cision to act. Decide wisely, pilgrim, for you who trace the Euro-American pilgrimage touch the trembling, fragile future with your from its inception to the present day call the yet the greatest nation on earth, for people still risk their lives to make this land their individual hands and hearts. May God bless experiment of the Pilgrims by the name America. May God bless you. Amen. ‘‘Zion in the Wilderness’’. There was purpose home. Hear me now! I am calling us to recap- f and commitment in what the Pilgrims set ture the vision of a better country. And to out to accomplish. Their journey was to a lift up that vision. I am calling us to work PRESENTATION OF LIBERATION better country! together, beginning right here in our own The Church today is called to remember it community, to shape a better country so OF SURVIVORS STAMP is still on that same journey that set sail the that the little children around us can grow Pilgrims so long ago. up in a better world. I am calling us to be HON. BENJAMIN A. GILMAN The Church exists today as resident aliens, done with the idiocy of self-centered petti- OF NEW YORK an adventurous colony in a society of unbe- ness that only desecrates, divides, and deni- IN THE HOUSE OF REPRESENTATIVES lief. As a society of unbelief, Western culture grates the World of God. I am calling us to is devoid of a sense of journey, of adventure, catch the vision of a better country, and to Tuesday, December 5, 1995 because it lacks belief in much more than lift it high in the name of our blessed Lord, Mr. GILMAN. Mr. Speaker, this morning I the cultivation of an ever-shrinking horizon Jesus Christ, who has already journeyed joined with Senator CARL LEVIN, Postmaster of self-preservation and self-expression. ahead of us, calling. ‘‘Follow me!’’. General Runyan, and Postal Governor David The ancient Hebrew patriarchs, the disci- How do we do this? How do we answer this ples of Jesus of Nazareth, the Pilgrims of the call? We begin by doing away with the habit Fineman to present a framed enlargement of seventeenth century, the visionaries who of blaming others for our troubles. We be- the liberation of survivors stamp to the U.S. held ‘‘these Truths to be self-evident, that come more proactive and less reactive. I say Holocaust Museum. all Men are created equal, that they are en- this to you in response to the challenge be- It is appropriate that we are presenting this dowed by their Creator with certain fore us: stamp this year, as we observe the 50th anni- unalienable Rights, that among these are 1. Pray without ceasing that God will use versary of the liberation of the concentration Life, Liberty, and the Pursuit of Happiness’’, you and this congregation to build a better camps by U.S. Armed Forces. This Holocaust the founders of this visionary congregation— country. Every great change in the nation stamp pays tribute to the many thousands of First Presbyterian Church of Peoria, IL—160 began in the minds and hearts and spirits of American soldiers whose considerable self- the people who helped make this country years ago, all were traveling the road to a sacrifice and heroism as liberators of the better country. They had, as the Rev. Dr. great. Change may be facilitated ‘‘out Martin Luther King has said, ‘‘a dream.’’ there’’, but it must begin in here, in the death camps led to the disclosure of the truth, To tell the truth, that dream, those vi- mind and heart and spirit of the individual. and to the enormity of such crimes against the sions, have taken on the fearful characteris- And in the home towns of America. Jewish people and humanity. The liberators tics of a nightmare. The nation—the better 2. Pray to forgive those who divide and de- selfless dedication will never be forgotten, just country—the Pilgrim people sought to dis- ride; counsel them to repent and turn to the as those who perished will never be forgotten. cover and build upon has drifted loose from Lord, so their vision may be outward and up- Year after year there are fewer witnesses it moral moorings into a sea of self- ward rather than inward and downward. Re- remaining among us. The efforts of institutions centeredness, a Devil’s Triangle of you-do- member John Kennedy’s words: ‘‘Ask not like the U.S. Holocaust Museum and the U.S. your-thing-and-I’ll-do-mine-and-that’s-all- what your country can do for you, ask what that-matters-anyway boorishness that you can do for your country!’’. Then do it. Postal Service in commemorating this histori- shakes the very foundation of our society. 3. Open your eyes and your mind to see cal event will help ensure that the future gen- The home of the brave and land of the free where your unique, personal gifts can be erations will not forget the Holocaust. We must in the 1990s—fifteen generations after the used to help make life better. For example, remember that we must fight every day in the Pilgrims landed on the Massachusetts offer to ring a bell at a Salvation Army ket- war against ignorance and bigotry. It is our re- shore—has become the home of the fearful tle, join hands with others at work in one of sponsibility to remain forever vigilant, as we and the land of the imprisoned. America our city soup kitchens or other missions, as- pursue justice for ourselves and for others today has more citizens in prison, per capita, sist as a hospital volunteer, give blood: one through out the world who face oppression. than any other nation in the free world. The pint of that vital fluid may save a life, sign f experience of being ‘‘free’’ is what many do on the line on the back of your driver’s li- not experience! cense and commit yourself to becoming an A TRIBUTE TO HARDY L. BROWN We have winked at the discord in our na- organ donor (hundred of thousands of lives tion. We have turned away from taking per- could be saved annually if more of us would sonal responsibility to become change agents do this), visit the hospitalized, run an errand HON. JERRY LEWIS involved in the creation of a better country. for one who is ill, comfort the afflicted, chal- OF CALIFORNIA We have come to blame the three branches of lenge the comfortable, teach in our Sunday IN THE HOUSE OF REPRESENTATIVES our federal government for our troubles, School. You get the idea. The need is great; Tuesday, December 5, 1995 making scapegoats of the very people we open your eyes and minds and respond. have elected to lead us. It is hard to hear and 4. Contact our elected representatives and Mr. LEWIS of California. Mr. Speaker, I am harder again to admit, but many of us do not urge them to remember and act on the words proud to bring to your attention today the fine December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2287 work and outstanding public service of Hardy ceived great recognition for founding and im- for the SECA campaign. Mrs. Lyons is an out- Brown. Hardy, the first African-American man plementing reverse sting operations in Miami, standing individual who should be commended to serve two terms as vice president and then developing methods to curtail civil disturb- for her contributions to the Philadelphia com- two terms as president of the Board of Edu- ances, and has authored various texts on munity. cation of the San Bernardino City Unified sound managerial concepts and programs. Mrs. Lyons has also played a vital role in School District, is retiring after 12 remarkable Commissioner Anderson is also the recipient many programs in the Philadelphia community years of service with the board. He will be of the Bronze Star Medal for meritorious serv- as an active member of the Canaan Baptist honored for his service at a dinner in his ice in the armed services. In July 1992, he Church, where she began working with the so- honor on December 14. was elected the national president of the Na- cial service committee and the breast cancer Hardy Brown was administered the oath of tional Organization of Black Law Enforcement support group. She was instrumental in orga- office for the board of education on December Executives. nizing the breast cancer support group where 6, 1983, and was elected vice president of the I applaud the accomplishments of Commis- her primary goals were to provide educational board for the 1985±86 school year. Shortly sioner Perry L. Anderson and would like to ex- resources, international workshops, and spir- thereafter, he was elected as the first black tend my congratulations and best wishes for itual uplifting. Through Mrs. Lyons' efforts, male president of the board and served for his many years of service to safeguard others. over 100 women have been reached through- both the 1987±88 and 1988±89 school years. As a paragon of leadership he has enabled out the Philadelphia area. In addition, he has served as a representative many people to live with a bettered sense of I wish to join today with the department of to the CSBA Delegate Assembly for the 1990± security. public welfare, Mrs. Lyons' family and friends 91 and 1992±93 school years, and has served f in recognizing her for her many years of serv- CSBA in many diverse leadership roles. ice with the Pennsylvania Department of Pub- The San Bernardino City Unified School CONGRATULATIONS TO JOHN lic Welfare and the Philadelphia community. I District is the ninth largest in California with ROARK ON HIS RETIREMENT wish her health, happiness, and prosperity in over 44,000 students, 60 percent of whom are her retirement years. It is well deserved. minorities. Through his service to the board of HON. GLENN POSHARD f education, Hardy Brown has been a thoughtful OF ILLINOIS and dedicated advocate for providing equal TRIBUTE TO SALLY HAVICE FOR IN THE HOUSE OF REPRESENTATIVES educational opportunities to all children in our SERVICE TO THE ABC SCHOOL community. He is also well known and re- Tuesday, December 5, 1995 BOARD spected by community leaders, parents, cler- Mr. POSHARD. Mr. Speaker, I rise today to gy, business people, political leaders, rep- wish Mr. John Roark a happy, and well de- HON. ESTEBAN EDWARD TORRES resentatives of higher education, and civil served retirement. John is a trusted friend, OF CALIFORNIA rights groups, and I always welcome the opportunity to talk IN THE HOUSE OF REPRESENTATIVES Hardy Brown has a great deal of experience with him about issues affecting the 19th Con- Tuesday, December 5, 1995 with multiethnic, multicultural, and varied so- gressional District of Illinois. cioeconomic groups. His enthusiasm, commit- Throughout his professional career John Mr. TORRES. Mr. Speaker, I ask my col- ment, and expertise in alternative programs has worked hard to help improve his commu- leagues to join me today in honoring Ms. Sally addressing at-risk students, guidance, dropout nity. For 3 years he owned his own business, Havice as she steps down from the presi- prevention, school safety, and vocational edu- has 13 years teaching experience, was direc- dency of the ABC School Board. Sally was cation has made him particularly influential tor of Organization for American Federation of first elected to the school board in 1989 and and well respected. Most importantly, his lead- Teachers for Illinois and Wisconsin, and has was reelected to a second term in 1993. As ership style encourages creative and innova- worked with the Macon-Dewitt Job Training board president, she chaired several commit- tive ideas to deal with the greatest challenges Program Administration [JTPA] for 17 years. tees, including the School Safety Committee facing education and society today. John will retire as the executive director of the and the District Goals Committee. During her Mr. Speaker, I ask that you join me, our col- Macon-Dewitt JTPA, and I am proud to join leadership, she initiated a code of conduct for leagues, Hardy Brown's family, and many with his family and friends in celebrating his the members of the board. friends in recognizing his extraordinary work decades of community service. Sally has devoted much of her life to im- and selfless public service. His dedication to Mr. Speaker, John Roark is a friend of many proving herself and giving to others through education and making a real difference in the in central Illinois. He will be missed at the education. After attending business college, lives of children is an example worthy of emu- Macon-Dewitt JTPA, but I am confident that she had a successful career in municipal gov- lation by all of us. It is only fitting that the John will continue to discover new ways to ernment. She later returned to school to pur- House pay tribute to Hardy Brown today. help his community during his retirement. I sue a bachelor's degree and teaching creden- f want to take this opportunity to once again tial that enabled her to realize her life-long ambition of becoming a teacher. She earned TRIBUTE TO PERRY ANDERSON, thank John for his decades of commitment to two associate in arts degrees from Cerritos JR. the people of the State of Illinois and wish him a healthy and memorable retirement. College; one in social studies and the other in f Spanish. She went on to receive her bach- HON. JOSEPH P. KENNEDY II elor's degree in English and a master's degree OF MASSACHUSETTS A SALUTE TO NOVELLA LYONS OF in linguistics, with doctoral studies at USC and IN THE HOUSE OF REPRESENTATIVES PHILADELPHIA the University of Hawaii. During her active pro- Tuesday, December 5, 1995 fessional and academic career, she raised Mr. KENNEDY of Massachusetts. Mr. HON. THOMAS M. FOGLIETTA three sons: Edward, Raul, and Joseph. She is Speaker, I rise today to honor and recognize OF PENNSYLVANIA also grandmother to seven children. Mr. Perry Anderson, Jr., who is currently the IN THE HOUSE OF REPRESENTATIVES For the last 22 years, Sally has been a professor of English at Cerritos College. She police commissioner of the Cambridge Police Tuesday, December 5, 1995 Department in Cambridge, MA teaches English composition and literature, as Commissioner Anderson has led a success- Mr. FOGLIETTA. Mr. Speaker, I rise today well as speech communication. She also ful and distinguished career. He worked for to salute Mrs. Novella Lyons on the occasion served as interim assistant dean of liberal arts the Miami Police Department for many years. of her retirement from the Pennsylvania De- and community liaison for the cultural arts. Her During his tenure he rose from the ranks of partment of Public Welfare and to congratulate work on campus also has included participa- police officer to the appointment of chief of po- her on her many years of service to the Phila- tion on numerous committees such as the Citi- lice before retiring in 1991. His steadfastness delphia community. zen's Resource Advisory, Cerritos College is seen through his many police and executive In 1960, Mrs. Novella Lyons began her ten- Faculty Association Executive Board, and the positions. Most notably was his position as ure with the department of public welfare. She faculty senate, which selected her after her major in charge of the community relations has proudly held several positions within the first term as outstanding faculty senator. section and deputy and assistant chief in department from repayment adjuster to in- Sally's involvement in the community has charge of the criminal investigation division. come maintenance caseworker. In 1989, Mrs. been extensive and impressive. She helped to Commissioner Anderson's dedication to the Lyons received the Employee of the Year implement the cultural performing arts after- Police Force is truly commendable. He has re- Award and has since served as chairperson school program. This unique music and dance E 2288 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 instruction program benefits hundreds of chil- NEW FACILITY TO BE NAMED IN HONOR OF GERALDINE dren in Artesia, Cerritos, Downey, Hawaiian CHARLES A. HAYES POST OFFICE BARBARA POSNER Gardens, Lakewood, La Mirada, and Norwalk. She is a member of the Southeast Area Task HON. JAMES P. MORAN Force on Youth Violence, and an executive HON. CARDISS COLLINS OF VIRGINIA board member of the ``Su Casa'' Family Vio- OF ILLINOIS lence Center. Other memberships in area or- IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES ganizations include the Southeast Regional Tuesday, December 5, 1995 Occupations Program, the Latina Leadership Tuesday, December 5, 1995 Network, Comision Femenil, the National Mr. MORAN. Mr. Speaker, I would like to Women's Political Caucus, the American As- Mrs. COLLINS of Illinois. Mr. Speaker, today call my colleagues attention to the passing of I am joined by my friend and Illinois colleague, a great AmericanÐMrs. Geraldine Barbara sociation of University Women, the State Su- Representative DENNIS HASTERT in introducing Posner. Mrs. Posner served in the Air Force perintendent of Public Education's Advisory legislation naming a United States Postal Fa- Nurse Corps and was among the first to land Committee, the Optimist International, the cility in Chicago as the ``Charles A. Hayes at Normandy. League of United Latin-American Citizens, and Post Office.'' The post office, to be located in After returning from the war, she continued the Asian Indian Women's Rights Group. She the 2600 block of E. 75th Street in Chicago is her education and served as a training super- has also been president of the Cerritos Col- currently under construction and will open in visor for the D.C. Department of Human Re- lege Faculty Association, in addition to having November 1996. sources. Mrs. Posner was a beloved constitu- served as vice president and secretary. Congressman Charles A. Hayes was first ent and a patriot. Please join with me in hon- Mr. Speaker, I ask my colleagues to join me elected to Congress in 1983, in a special elec- oring her memory. in saluting a model public servant. It is with tion, succeeding former Member of Congress, GERALDINE BARBARA POSNER great pride that we pay tribute to Sally Havice Harold Washington who resigned from the Geraldine Barbara Posner, 73, a former for her dedicated service to the ABC Unified House after being sworn in as Mayor of Chi- captain in the Air Force Nurse Corps and a School District. cago. He was the First international union retired nurse in-service training supervisor leader to be elected to Congress and spent for the D.C. Department of Human Re- f his early years as a working man, organizing sources, died of cancer Sept. 28 at the Na- his first union and elected to his first union of- tional Naval Medical Center in Bethesda. TRIBUTE TO JUDY BLUESTONE fice as President of Local 1424 of the Car- Capt. Posner, who lived in Alexandria, en- penter's International Union at age 20. tered the Army Nurse Corps in 1944 and, after basic training, landed on Normandy beaches Congressman Hayes went on to secure bar- shortly after D-Day, setting up combat field HON. THOMAS M. BARRETT gaining rights for workers in Chicago's stock- hospitals. After World War II, she was as- OF WISCONSIN yards through the United Packinghouse Work- signed to various military hospitals and re- ers of America. In 1954 he was elected Dis- ceived a commission in the Air Force in 1948. IN THE HOUSE OF REPRESENTATIVES trict Director of the Packinghouse Union and A native of Brooklyn, N.Y., she received a diploma in nursing from Mercy Hospital in Tuesday, December 5, 1995 moved continuously through the ranks and after several mergers, became International Springfield, Mass. After leaving the military Mr. BARRETT of Wisconsin. Mr. Speaker, in 1952, she received a nursing degree from Vice President of the United Food and Com- Adelphi University in New York. today I congratulate Judy Bluestone, winner of mercial Workers Union, then the largest union She also took postgraduate nursing the State of Israel BondsÐGolda Meir Division in the AFL±CIO. Rising from the small town of courses at Hofstra College before settling in Leadership Award of 1995. The award will be Cairo, IL, ``Charlie'' became one of the most the Washington area in 1960. She began a presented tonight at a gala event in Milwau- important labor leaders in America. seven-year career with the D.C. Department kee. Charlie was urged by labor leaders through- of Human Resources in 1970. out Chicago to run for the Congressional seat Survivors include her husband, retired Air The Leadership Award is bestowed on Force Maj. Gen. Jack I. Posner of Alexan- those who provide outstanding leadership and vacated by Mayor Harold Washington. He won dria; three daughters, Geraldine A. Porter of devotion to Jewish values of community and the August Democratic Primary, defeating 13 Marshall, Va., Air Force Maj. Jacqueline B. compassion in the spirit of Golda Meir. Judy other Democratic contenders and was sworn Posner of Alexandria and Ginnean C. Bluestone, through her voluntarism and dedi- into Congress in September of 1983. Quisenberry of Enterprise, Ala.; two sons, cation to our community, exemplifies the intent Former Congressman Hayes fought fiercely Air Force Lt. Col. John D. Posner of Tyndall of the award. to protect American jobs, has been active in Air Force Base, Fla.; and Air Force Capt. Jo- seph R. Posner of Robins Air Force Base, Judy Bluestone's efforts have focused on the fight to increase Federal funds for schools, Ga.; three sisters, Carol Fleury of Holyoke, improving the lives of children. As a speech to increase funds for public works, protections Mass., Janice Devine of Ware, Mass., and pathologist at St. Francis Children's Center, for civil rights and the rights of ordinary work- Lorraine Curley of Centerville, Mass.; and through her involvement with the Wisconsin ers. He introduced full employment legislation three grandchildren. Alliance for Children, and more recently as and denounced unemployment as ``morally unacceptable'' while politicians were arguing f chair of Start Smart! Milwaukee, Judy about how best to cut taxes on the rich. He Bluestone has been a successful advocate for supported National Health Insurance from his PERSONAL EXPLANATION children. She recognizes and promotes the im- earliest union days and is the only Member of portance of nurturing environments for all chil- Congress with a 100 percent lifetime voting dren. HON. BART STUPAK record on issues important to labor. The Leadership Award also commends a OF MICHIGAN Prior to his departure, Congressman IN THE HOUSE OF REPRESENTATIVES lifelong commitment to the Jewish people and Charles A. Hayes chaired the Committee on the State of Israel. Here again, Judy Post Office and Civil Service Subcommittee on Tuesday, December 5, 1995 Bluestone has achieved distinction with her in- Postal Personnel and Modernization. He was volvement as a board member of the Jewish Mr. STUPAK. Mr. Speaker, on Wednesday, known to his friends as the ``Labor Democrat'' November 29, 1995, I was unavoidably absent Community Center, and executive committee and long recognized as a first-rate public serv- from the House on official travel and missed member of the Milwaukee Jewish Federation ant and first-class friend, worked hard to make four recorded votes. Had I been here, I would Women's Division. Her leadership and dedica- sure that workers across the country had food have voted ``No'' on rollcall No. 833, the motion is a lasting tribute to the spirit of Golda on the table, had pensions that were protected tion to table the measure House Resolution Meir and the prominent role women have and were safe on the job. 288; ``yes'' on rollcall No. 832, the vote on played in Israel's growth and development. Charlie's frequent calls for ``Regular Order'' final passage of H.R. 1788, to authorize ap- I congratulate Judy Bluestone, along with on the House floor have been missed. We are propriations for AMTRAK; ``yes'' on rollcall No. her supportive husband Stanton, on her selec- pleased to honor his efforts on behalf of work- 831, the Nadler amendment to H.R. 1788; and tion as the 1995 State of Israel Bonds Leader- ing Americans. We urge our Illinois colleagues ``yes'' on rollcall No. 830, the Collins Illinois ship Award winner. to cosponsor this measure. amendment to H.R. 1788. December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2289 ROMANIAN NATIONAL DAY est. The daily comings and goings of the hard- Tim, who is an A±B student, is also a stand- working men and women of Denton and their out basketball player (he averaged more than HON. BARBARA B. KENNELLY families were chronicled in the weekly publica- 36 points per game last year) and part of the tion of the Denton Record. News both big and wonderful community spirit and pride of Hyden OF CONNECTICUT small found a place in its pages. If it hap- and Leslie County. IN THE HOUSE OF REPRESENTATIVES pened in Denton, you could read about it in Not only did this community of 375 rally Tuesday, December 5, 1995 the Denton Record. around their favorite son, they brought out the Mrs. KENNELLY. Mr. Speaker, I rise today In many ways, the Denton Record was a best in their team (an 11±3 record) and the in recognition of Romania's national day. On throwback to a bygone era. The newspaper entire region. December 1, the people of Romania cele- has been published since 1940, the Wallaces Tim Couch's success provides hope not brated the 77th anniversary of the creation of have operated the Denton Record since 1962, only for every aspiring young football player, the modern Romanian state. The Romanian and they have owned it since 1984. What but for his community and everyone who nation, of course, is much older, and is one of made the weekly paper unique was that it knows this very talented young man from the the culturally richest societies in Europe. cared about the community in which it was mountains with the desire and ability to make The modern Romanian state arose after published. The citizens of Denton responded it big. He has set a standard of excellence for World War I and the demise of Austro-Hungar- in kind and supported the Record for more Leslie County, its young people and the entire ian empire. For most of the ensuing 70 years, than half a century. In this era of corporate- Nation. I know that Tim will continue to be an Romania's people lived through one difficulty owned media giants, it was quite refreshing to excellent example for all to follow. after another, culminating in the long oppres- have your hometown newspaper published by Congratulations on your standout prep ca- sive rule of the communist dictator Nicolai homegrown people. All of that will come to reer, Tim, and good luck in your future. Let's Ceaucescu. end with the end of 1995. hope you are the one removing Dan Marino's Just as modern Romania was created after We will miss reading Venus' ``Squibbles'' name from the NFL's record books. the fall of an empire, so too has Romania column. We will miss Suzy's photos of sport- f been renewed by the fall of an empire. The ing events and Miss Denton pageants. We will demise of communism in Eastern Europe and miss Ed's steady hand which has guided the HONORING MARY GORMLEY the Soviet Union was welcomed by the Roma- paper through its weekly scramble to write nian people, who staged a revolution in 1989 headlines and meet deadlines. Most of all we HON. THOMAS M. DAVIS that overthrew Ceaucescu and launched the will miss knowing that if something happened in Denton we could read about in the Denton OF VIRGINIA rebirth of their nation. The new Romania has IN THE HOUSE OF REPRESENTATIVES experienced the initial excitement of freedom Record. tempered by the daunting realities of rebuild- On behalf of the citizens of the sixth district Tuesday, December 5, 1995 ing its economy, solidifying democracy and of North Carolina, we offer our congratulations Mr. DAVIS. Mr. Speaker, I rise today to catching up with the rest of Europe. to the Wallaces for decades of newspaper ex- honor Mary Gormley, who was recently elect- Mr. Speaker, I visited Romania earlier this cellence and best wishes for life after the Den- ed President of the Virginia Congress of Par- year and have seen the hard work and com- ton Record. ents and TeachersÐVirginia PTAÐduring the mitment of its people. Romania is making f association's annual convention in Richmond. steady progress on all fronts. The economy I have had the privilege of knowing and has been invigorated by the expanding role of TIM COUCH’S STANDOUT PREP CAREER working with Mary for over 16 years during my the private sector and is growing at a healthy terms serving on the Fairfax County Board of pace; Romania's multi-party parliament de- Supervisors and since joining this honorable bates legislation openly and the free press has HON. HAROLD ROGERS Chamber. Mary has been active in the PTA for grown. Romania has expressed a strong de- OF KENTUCKY more than 20 years, and has also been in- sire to join NATO, affirming its desire to be- IN THE HOUSE OF REPRESENTATIVES volved in many other community and school come a permanent member of the western related activities. She has chaired or served Tuesday, December 5, 1995 camp of democracies. Next year, Romania like on the executive Boards of a variety of com- the United States, will hold an election for Mr. ROGERS. Mr. Speaker, just this week, mittees. She chaired the Volunteers for the president. This election must and will be the Nation's football fans enjoyed a passing of International Children's Festival, held annually democratic, hotly contested and widely cov- the torch, or the football, in the National Foot- at Wolftrap Farm Park in Vienna, VA. She was ered by the media. ball League. Miami Dolphins Quarterback Dan President of the Annandale High School Band Romania still has a long way to go. There Marino, who recently became the NFL's all- Boosters as well as President of the Annan- is much to be done but the direction is clear. time yardage leader, surpassed Fran dale High School PTSA. She also has served After 77 years of hardship, things are finally Tarkenton's touchdown passes record. as Secretary and Membership Chairman of beginning to look up for the Romanian people. The day before Marino's recordbreaking the Fairfax Committee of 100, and as 1st and I ask my colleagues to join me in congratulat- day, Kentucky's own recordbreaking prep 2nd Vice President of the Fairfax County ing he people of Romania on their national quarterback struck again, too. Leslie County Council of PTA's. Additionally, Mary has day anniversary and expressing our support High School's Tim Couch, a legend at the served on various Fairfax County School for Romania's continued progress. prep level, threw his 133rd touchdown pass to Board committees including, School Consoli- f become the all-time high school touchdown dation, Substance Abuse, and the Division Su- pass career leader. Tim's 1-yard pass to Jona- perintendent Dr. Robert Spillane's Advisory A TRADITION COMES TO A CLOSE than Morgan on the last play of his high Committee to name a few. school career broke Bobby Lucht's national On the road to attaining the prestigious po- HON. HOWARD COBLE record in dramatic fashion. sition of Virginia State PTA President Mary OF NORTH CAROLINA Like Marino, Tim Couch had already be- served on the State level as 1st and 2nd Vice IN THE HOUSE OF REPRESENTATIVES come the all-time high school passing yardage President. leader by shattering Josh Booty's national Mary's many years of giving have been rec- Tuesday, December 5, 1995 passing record the week before. Couch com- ognized by her receiving an Honorary Life Mr. COBLE. Mr. Speaker, as the year pleted his illustrious high school career with Membership in the National PTA; an Honorary comes to a close, a tradition also comes to a 12,092 yards. He also is the all-time leader in Life Membership in the Virginia PTA; Lady close in Denton, NC. I am, of course, referring completions (872) and completed an outstand- Fairfax for the Fairfax County Fair, and Com- to the sad departure of the Denton Record. I ing 63.6 percent of his passes. mendations from the Fairfax County Board of join with many other readers in saying we will Recently featured in a two-page Sports Illus- Supervisors and the Fairfax County School miss our weekly copy of the Denton Record. trated article, Tim Couch has given Leslie Board. For years, Ed and Venus Wallace have kept County, eastern Kentucky, and all of Ameri- Mary is the wife of Brian Gormley and the the people of Denton and the surrounding ca's football fans something to stand up and proud mother of 3 children, Sean, Matthew, area informed with news of community inter- shout about. and Brienne Gormley. E 2290 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 Mr. Speaker, I know my colleagues join me As a child, the artist was teased and pun- end.'' On behalf of the House of Representa- in honoring Mary Gormley, a woman who puts ished for speaking Spanish in school. But as tives, I would like to extend my praise of Gerri not only the good of the community, but our she grew older and wiser, she used her art as Schmidt and Robin Dorman who truly define children's education and well-being ahead of a bridge to get past her anger, and to reflect heroism. Thanks to our hometown heroes. herself. her pride in our culture. f f Her work is a touching glossary of childhood memories in Kingsville, TX. The scenes she THE BEST SMALL TOWN IN NORTHWESTERN UNIVERSITY’S depicts include: her grandfather peacefully wa- AMERICA CHAMPIONSHIP FOOTBALL TEAM tering his corn; the local faith healer expelling the flu from a neighbor; and a community HON. SAM GEJDENSON HON. RICHARD A. GEPHARDT cakewalk to raise money to send young peo- OF CONNECTICUT OF MISSOURI ple to college. IN THE HOUSE OF REPRESENTATIVES She told me about the peace she found IN THE HOUSE OF REPRESENTATIVES Tuesday, December 5, 1995 growing up in south Texas with her family, and Tuesday, December 5, 1995 her desire to pass that along to the next gen- Mr. GEJDENSON. Mr. Speaker, I rise today Mr. GEPHARDT. Mr. Speaker, I rise today eration through her art. She remembers the to recognize Essex, CT, on being named the in support of the resolution congratulating times we all remember with our family, eating Best Small Town in America by author Nor- Northwestern University's championship foot- on the front porch, making tamales, picking or- man Crampton. Mr. Crampton's book, ``The ball team, the Wildcats, for its 1995 Big Ten anges, swimming in the Gulf of Mexico, and 100 Best Small Towns in America,'' recog- Conference Championship and for its invitation celebrating birthdays. nizes Essex for qualities its residents, and to the 1996 Rose Bowl. One of the most memorable paintingsÐand people across Connecticut, have appreciated For the second time in its 122-year history, one just purchased by the Smithsonian for its for many years. The residents, officials, and Northwestern is going to a bowl game. The permanent collectionÐis a tribute to her moth- business people of the community should be 1995 winning season represents an unprece- er who supported her dreams of becoming an very proud of this honor, which acknowledges dented turnaround for Northwestern football. artist. The painting portrays the artist and her their commitment to their community. Northwestern University has won the Big sister laying on the roof dreaming under the Mr. Crampton ranked towns across the Na- Ten Conference Championship with a perfect stars as their mother prepares their beds. tion using several criteria, including per capita record in conference play. It recently received Lomas Garza describes her mother as laying income, crime rate, public school expenditure its invitation to the Rose Bowl. We will all be out the bed for our dreams of the future. per pupil, and percentage of population with a watching New Year's Day as the Wildcats play Mr. Speaker and colleagues, I highly rec- bachelor's degree. While every survey seeking our friends at USC. We will all be cheering ommend this exhibit to you and your constitu- to rate communities relies on similar factors, with Coach Gary Barnett, just as we cheered ents. the author also considered community efforts 4 years ago, when he first came to Northwest- f to provide housing to all income groups and to ern and promised to take ``the Purple to Pasa- encourage residents to play an active role in SALUTE TO HOMETOWN HEROES dena.'' town affairs. We celebrate with University's President In the final analysis, Essex rose above Henry Bienen, Coach Barnett and his dedi- HON. ROSA L. DeLAURO every other small town in America to be cated and hard working team of coaches and OF CONNECTICUT named No. 1. Since settlers first came to the athletes. We commend Northwestern Univer- IN THE HOUSE OF REPRESENTATIVES area in the mid-1600's, Essex, which encom- sity for its Big Ten Championship and for its Tuesday, December 5, 1995 passes the villages of Centerbrook, Ivoryton, invitation to the Rose Bowl. Northwestern's Ms. DELAURO. Mr. Speaker, I rise today to and Essex, has distinguished itself. For much academic excellence has never been doubted; pay tribute to Gerri Schmidt and Robin of the 18th and early-19th centuries, Essex now let no one doubt its athletic excellence. Dorman of Branford, CT for their truly heroic was known as a world-class shipbuilding cen- Everyone wondered how this miracle oc- effort to save the lives of three small children ter. In fact, the first ship commissioned by the curred, but for Northwestern fans, it wasn't a from a fire last Wednesday. These women dis- U.S. Navy in 1775, the Oliver Cromwell, was question of how, but a question of when. played inspiring selflessness in aiding their built in Essex and provided to our fledgling Mr. Speaker, I encourage all my colleagues neighbors and dousing the flames that en- Government by the State of Connecticut. In to join us in celebrating Northwestern football. gulfed a local condominium. addition to building the ships which were the f According to the authorities with the Bran- lifeline of commerce in the 1700's and 1800's, ford Fire Department, three children aged 5, 3, Essex was an important commercial port for TRIBUTE TO CARMEN LOMAS and 14 months are alive and well today be- trade throughout the world, especially between GARZA cause of these two fine women. Careless the eastern United States and the islands of playing with matches by one of the children is the Caribbean. The village of Ivoryton was so HON. SOLOMON P. ORTIZ said to have caused the blaze. names because Essex was home to one of OF TEXAS Yesterday, as Gerri Schmidt walked her dog the leading manufacturers of piano keys. Man- IN THE HOUSE OF REPRESENTATIVES and Robin Dorman backed her car out of the ufacturers in Essex also helped to pioneer commercial production of which hazel and the Tuesday, December 5, 1995 drive, an elderly woman raced from a condominium on Watch Hill Road, screaming, community remains home to one of the Mr. ORTIZ. Mr. Speaker, I rise today to pay ``Fire! Fire!'' Schmidt and Dorman ran to the world's largest distillers of this product. tribute to a very unique artist from Kingsville, woman who told them of the children trapped Mr. Speaker, it is obvious to this Member TX, whose works illuminate the life and times by the fire inside the building. why Essex has been ranked No. 1. The com- of south Texans. Carmen Lomas Garza's im- Not thinking of themselves, these women munity has something to offer to everyone. pressionistic paintings illustrate the various as- raced inside. There Schmidt found the five- Families can take advantage of first-rate public pects of life in our native community through year-old and the three-year-old in a bedroom schools, affordable housing, and local employ- the eyes of her childhood and can now be and the 14-month-old in a hallway and carried ment opportunities. Lying on the banks of the seen at the Smithsonian Museum. them outside to safety. Dorman, meanwhile, lower Connecticut River, Essex boasts tidal Her exhibit, now showing at the Hirshorn ran up the stairs through heavy smoke and flats and marshes, coves and inlets which pro- Museum and Sculpture Garden, is entitled: beat back the flames with a blanket. By the vide valuable habitat for many species of fish, ``Directions: Carmen Lomas Garza.'' Her work time the firefighters arrived on the scene, the wildlife and birds. Visitors can enjoy leisurely inspired a popular children's book. Children's children were safe and the flames were nearly rides on the Connecticut Valley Railroad, af- Book Press of San Francisco saw the wisdom extinguished. fectionately known by locals as the Essex of illustrating her paintings with short descrip- Real life heroes are all too rare in this day Steamtrain, and conclude their day with a tions of what the paintings show. and age. Gerri Schmidt and Robin Dorman great meal at the historic Griswold Inn, which Cuadros de familiaÐFamily PicturesÐis have earned our praise, our thanks, our admi- has been serving visitors for more than 200 Children's Book Press' best seller, selling over ration and our acknowledgement, and I want years. 195,000 copies. It includes 32 reflections of to recognize them for their bravery. During the course of writing his book, Mr. the Mexican-American life in south Texas. It is Webster's Dictionary defines heroism as Crampton interviewed citizens in communities an ideal gift for a youngster at Christmas. ``fulfilling high purpose or attaining a noble around the Nation. His conversations with December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2291 those in Essex highlighted another char- And regardless of the final outcome of the Reform should concentrate on helping acteristic which makes this community spe- game, the Wildcats and all of Northwestern Medicare meet the genuine needs of bene- cialÐthe volunteer spirit of its residents. Until are winners. ficiaries and avoid artificial boundaries that cannot, in any case, be policed effectively. f recently, virtually every local official served Broadened coverage need not necessarily be without pay and many continue to do so REAL TALK ABOUT MEDICARE the enemy of cost control and in some in- today. Fires are fought by volunteers, school stances may be its ally. playgrounds are built by parents, and elections Lest this proposal for expanded coverage are monitored by civic-minded citizens who HON. FORTNEY PETE STARK suggest we have lost touch with fiscal re- never receive a penny for their dedication to OF CALIFORNIA ality, we must emphasize that the costs of their community. Mr. Richard Gamble summed IN THE HOUSE OF REPRESENTATIVES care may be reduced in many ways. Less expensive forms of care can substitute for more up the contribution of Essex's residents by Tuesday, December 5, 1995 saying ``we're unusually blessed by people heroic interventions. Unnecessary and mar- Mr. STARK. Mr. Speaker, I commend to my ginally necessary care can be lessened. The who are not only capable, but willing to spend amounts paid for particular interventions the time.'' colleagues an opinion piece in today's Wash- ington Post. Professors Jerry Mashaw and can be restrained. Mr. Speaker, I am proud to joint residents But reformers should remember that Medi- from Essex in celebrating this much deserved Theodore Marmor provide a straight to the care administrators have been quite success- honor. Parochially, I believe every small town point analysis of what maintaining the best ful at constraining costs when given the across the Second Congressional District health insurance program in the world, Medi- tools and political support to do so. They can could qualify for the No. 1 spot. However, care, requires. be even more effective in the current con- today we celebrate the achievements of this REAL TALK ABOUT MEDICARE text, in which private insurers are doing similar things. Providers now have nowhere community and welcome people from across Although Medicare reform has been at the very center of the budget negotiations be- to hide from system-wide demands for cost the country to come join us in America's No. control. 1 Small TownÐEssex. tween Congress and the administration, much of the political discussion on this issue Taxes can be raised. So can premiums. f has been about as thoughtful as a food fight. Anyone who thinks that an earmarked tax for a popular program can’t be increased TRIBUTE TO THE NORTHWESTERN Republicans have made the claim that Medicare faces bankruptcy and offered their marginally in the current political climate WILDCATS ‘‘Medicare Preservation Act,’’ cutting $270 simply has not been paying attention to billion in projected spending on the program what we have been doing over the past dec- HON. SIDNEY R. YATES in order to ‘‘preserve, protect and strength- ade—or to what opinion polls say Americans will support. On the other hand, there is no OF ILLINOIS en’’ the program. Democrats respond that this would mean Medicare’s destruction and reason that a program originally designed to IN THE HOUSE OF REPRESENTATIVES that big cuts are unnecessary—except to fa- prevent financial catastrophe for the elderly Tuesday, December 5, 1995 cilitate tax cuts for the rich while keeping and disabled should use general revenues to the Republican promise to eliminate the def- subsidize 80 percent of all their expenditures Mr. YATES. Mr. Speaker, our long, long icit. for physician services (Part B). Some of wait is over. The Northwestern Wildcats are Behind this unilluminating, alarmist de- these costs can and should be distributed dif- going to the Rose Bowl. bate there are some hard facts that need to ferently. In other words, reform should (and The last time Northwestern went to the be considered: almost surely will) require some adjust- Rose Bowl was in 1949, my first year in Con- Medicare does need fiscal adjustment. A 10 ments in current payment arrangements: gress. Back then we all thought there was a percent annual growth rate in program costs who pays, how much and through what types dynasty in the making; we felt sure the Wild- is simply not sustainable in the long run. of levies, charges or deductibles. Finally, those who are old or disabled—and cats would play in the Rose Bowl for years to Changes in longevity, medical technology, cultural conceptions of adequate medical also sick—deserve a more patient-friendly come. I never dreamed that I'd have to wait care, national fiscal capacity and a host of system of health insurance. Offering them a 46 years to see this moment again. But I am other factors demand that any long-term smorgasbord of private insurance alter- a patient man and this victory is well worth the program of medical insurance accept peri- natives may appeal to those for whom ‘‘pri- wait. And knowing both the 1949 team and odic adjustments. Rigid defense of the status vatization’’ is the presumptive answer to all our current champions, I feel safe in saying quo is silly. But so is the demand for ‘‘pres- questions of public policy. The political and that the Wildcats, like Congressmen, improve ervation’’ by complete overhaul. Reformers economic realities, however, are very dif- with age. should attend to the many small adjust- ferent. Thanks to a dedicated and talented Wildcat ments that really will preserve a highly val- This type of ‘‘freedom of choice,’’ not of ued program. They should not search for doctors but of ‘‘plans,’’ would increase the team, the leadership and patience of its some untried one big thing that will ‘‘fix’’ administrative costs and complexity of Med- coach, Gary Barnett, and the continuing insist- the system for all time. icare while driving most of the old and the ence of Northwestern President Henry S. Talk of the projected ‘‘bankruptcy’’ of the sick to distraction. How it would save fed- Bienen and Chancellor Arnold R. Weber that ‘‘trust fund’’ is an unhelpful way to think eral dollars remains a mystery. Moreover, a university could simultaneously have aca- about the urgency of Medicare’s financial responsible privatization would actually re- demic and athletic excellence, the Big Ten problems. The trust fund is an accounting quire massive federal regulation of the insur- Champion Wildcats will be playing in Pasa- convention signaling that Medicare’s hos- ance industry to try to prevent ‘‘cherry pick- dena on New Year's Day. These are accom- pital insurance (Part A) is financed by ear- ing’’ of the better risks and cost shifting be- marked taxes. If time is needed to make sen- tween the Medicare and non-Medicare pa- plishments which should be celebrated in an sible, gradual adjustments in Medicare, the tients by insurers covering both. era of athlete factories and degree mill univer- ‘‘fund’’ for Part A can be increased by ex- The earlier proposal for mandatory HMOs sities. The Wildcats have the second highest tremely modest new taxes or by temporary for all generated effective political resist- team average SAT score in all of NCAA Divi- transfers from the surpluses in the Social Se- ance—and for good reason. Most HMOs have sion I. Newsweek notes that every one of curity retirement accounts. In any event, no catered to a quite different and much Gary Barnett's players who didn't transfer to one is going to wake up some Saturday healthier slice of the population. Whether another school has continued on to gradua- morning to find that his hospital coverage HMOs can serve the elderly and disabled tion. The Wildcats, with grace and spirit, dem- has suddenly ceased because Medicare is well, and at reduced costs, is unknown. ‘‘broke.’’ Reforming Medicare will be neither simple onstrated that winning and learning are not in- Costs are not the only problem. For exam- nor painless, and wise solutions are unlikely consistent. ple, major elements in the treatment of to emerge from political processes that dis- It is out of this incredible pride that I feel for chronic disease are not covered by Medicare, tort the real issues and the real alternatives. Northwestern that I am today introducing a nor are pharmaceutical therapies and long- President Clinton should veto virtually any resolution which recognizes the amazing ac- term care. These gaps not only ensure that Medicare ‘‘reform’’ that emerges from the complishments of the Wildcats and congratu- the program fails to meet important needs of current, overheated, political context. The lates them on winning the 1995 Big Ten the elderly and the disabled, they also pro- president should then remind Sen. Bob Dole Championship and on receiving the coveted mote costly gaming of the system. To get and his congressional colleagues of the sen- Medicare payments for nursing home care, ator’s earlier suggestion for a presidential invitation to compete in the 1996 Rose Bowl. patients must be cycled through hospital commission on Medicare that would not re- As an old alum from the University of Chi- stays, whether needed or not. Personal as- port until after the 1996 elections. Handing cago, I long considered the Wildcats to be bit- sistance must be provided by highly paid off to a commission really is the right thing ter rivals. But today, we are all Northwestern nurses, even if the ‘‘medical’’ content of the to do now just as it was in achieving sensible fans. care is minimal. tension reforms in the early 1980s. E 2292 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 NATO ENLARGEMENT AND RUSSIA framework for NATO-Russia relations’’ by realities. Instead, as Secretary Christopher the end of the year. has said, ‘‘Europe’s institutional arrange- What is the content of that proposed ments should be determined by the objective HON. LEE H. HAMILTON NATO-Russia framework? demands of the present, not the tragedies of OF INDIANA When the study mentions ‘‘elaborating Europe’s past.’’ IN THE HOUSE OF REPRESENTATIVES basic principles for security cooperation,’’ Second, NATO’s eventual enlargement will what does that mean? What are those basic not take place in a vacuum. It represents but Tuesday, December 5, 1995 principles? one aspect of our approach to the broader Mr. HAMILTON. Mr. Speaker, on October When the study mentions ‘‘the develop- evolution of Europe’s security architecture. 10, 1995, I wrote to Secretary of State Chris- ment of mutual political consultations,’’ European affairs can no longer be defined what does that mean? How would that differ within the old ‘‘zero-sum’’ framework; the topher concerning a study on NATO enlarge- from current consultation? security of one state is indivisible from the ment, issued by NATO in September 1995. I 7. The NATO study makes the following security of all. Bodies such as the European asked a number of questions about the study statements: Union (EU), the Western European Union and the Russia factor in NATO policy. On No- (Paragraph 23) ‘‘We have agreed that con- (WEU), the Council of Europe (COE) and es- vember 28, 1995, I received a detailed reply structive, cooperative relations of mutual pecially the Organization for Security and from the State Department. I would like to respect, benefit and friendship between the Cooperation in Europe (OSCE) will each play bring the correspondence to the attention of Alliance and Russia are a key element for se- important roles as economic, political and curity and stability in Europe.’’ security institutions continue to adapt and my colleagues. The text follows: (Paragraph 27) ‘‘NATO decisions, however, develop over the coming years. Each of these COMMITTEE ON INTERNATIONAL cannot be subject to any veto or droit de re- bodies contributes to European integration RELATIONS, gard by a non-member state . . . ’’ and stability. While NATO remains the key Washington, DC, October 10, 1995. How do you reconcile these statements? link between the U.S. and Europe, we should Hon. WARREN CHRISTOPHER, If NATO decides to admit new members avoid lending credence to the false notion Secretary, Department of State, over the objections of Russia, how would this that NATO is the only organization with a Washington, DC. create constructive, cooperative relations direct impact on the European security DEAR MR. SECRETARY: I write with respect between NATO and Russia? equation. to the recent study on NATO enlargement, How would enlargement of NATO over Rus- It is within this overall framework that issued by NATO on September 20, 1995. I sia’s objections enhance security and stabil- NATO can expand without creating new divi- would like to ask a number of questions ity in Europe? sions in Europe. Because those states which about the study and about the Russia factor I appreciate that these questions are dif- do not join the Alliance—either early or at in NATO policy. ficult, but I believe your answers are impor- all—will continue to participate in European 1. The North Atlantic Council communique tant in enhancing articulation and public bodies like the OSCE, they will not be ex- of May 30, 1995 states: ‘‘When the members of understanding of U.S. and NATO policy. cluded from key decision-making institu- the Alliance decide to invite new members, I look forward to your early reply. tions. While we reject any suggestion that their objective will be to enhance security With best regards. the OSCE should assume the role of NATO’s for all countries in Europe, without creating Sincerely, overseer, we nonetheless recognize that as dividing lines.’’ LEE H. HAMILTON, the only all-European institution the OSCE How will NATO enlargement enhance the Ranking Democratic Member. plays a unique role in setting the European security of those European states that are political and security agenda. For that rea- not invited to join NATO? U.S. DEPARTMENT OF STATE, son, we are supporting the OSCE’s ongoing How will NATO enlargement enhance secu- Washington, DC, November 28, 1995. work on a European security model for the rity in Europe if key European powers—Rus- DEAR MR. HAMILTON: You have asked a next century and have consistently pushed sia, and perhaps states not invited to join thoughtful series of questions on NATO en- for practical steps to enhance the organiza- NATO—oppose that enlargement? largement and NATO-Russia relations in tion’s effectiveness. How can NATO enlargement avoid creating your October 10 letter to Secretary Chris- Moreover, we do not accept the view that new dividing lines in Europe? topher. Agreement on a new framework for integration can only be achieved through 2. The study of September 20th states: security cooperation in Europe is a task of membership in a particular institution. In ‘‘Russia has raised concerns with respect to historic proportions. Your voice has been one some cases, membership is appropriate; the enlargement process of the Alliance.’’ of the most consistent in support of a strong, NATO’s expansion process will determine Does Russia have concerns about enlarge- decisive U.S. role in the world. We have espe- which states should join the Alliance. But in ment, or does Russia oppose NATO enlarge- cially appreciated your support for our com- many other cases, active diplomatic engagement? prehensive approach to European security, of ment with an organization can be almost as What is the impact of recent NATO air- which NATO enlargement is a very impor- useful as membership. A good example of strikes in Bosnia on Russia’s perspective on tant component. this is the U.S. relationship with the Euro- NATO enlargement? In preparing this reply, we welcomed the pean Union; we may not have a vote in EU Does any political figure in Russia today opportunity to review and sharpen our own councils, but through an active program of support enlargement of NATO? thinking on these key issues. Because the se- consultation and policy coordination we can How do you respond to the stated views of curity situation in Europe is continuously often influence EU decisions. The two key leading Russian reformers that NATO en- evolving, we and our NATO allies have elements in NATO’s evolution and program largement undercuts political and economic sought to be flexible in responding to the of outreach have thus been the creation of reform and reformers, and enhances reac- fundamental changes that have taken place the North Atlantic Cooperation Council tionary forces in Russia? since 1989. However, we have been firm and (NACC) and the Partnership for Peace (PFP), 3. President Yeltsin stated last month that absolute in our commitment that Alliance which provides fora for non-member states NATO’s expansion to the ‘‘borders of Russia’’ policies be inclusive rather than exclusive. to engage directly and consult closely with would ‘‘light the fires of war all over Eu- This has been especially true in regard to NATO. rope.’’ Russia and NATO-Russian relations. The NACC and PFP ensure that non-mem- How do you respond to Russian statements Your letter begins by asking how NATO’s bers are able to cooperate with the Alliance that NATO enlargement will re-create new eventual enlargement will enhance the secu- on key European security issues. Russia and and hostile blocs in Europe? rity of non-members and avoid the creation other states have taken full advantage of the 4. How do you expect Russia to respond to of new divisions in Europe. Before turning opportunities thus provided to make their NATO enlargement? directly to that question, I want to make views known on a host of issues. Moreover, Would you expect increased pressure by two important points. First, the Alliance’s states which do not eventually join the Alli- Russia on neighboring states? failure to expand would not be consistent ance can remain active members of the Would you expect Russia to repudiate arms with the evolutionary changes taking place NACC and PFP. The post-expansion Alliance control agreements, or try to re-create mili- in Europe. A number of European states have will not shut itself off from the rest of Eu- tary alliances? made tremendous political and economic rope; an enlarged NATO will have the same How would military confrontation between progress in recent years and will soon be need for interaction and close relationships NATO and a non-communist Russia serve the ready for full membership in various West- with non-members that currently exists. By interests of the United States? ern institutions. To exclude the possibility expanding its membership and by maintain- 5. What is your strategy for convincing of their eventual NATO membership would ing these important and productive relation- Russia, Ukraine, Belarus and other states condemn these countries to a security ‘‘grey ships, NATO will avoid either the reality or that NATO enlargement enhances their secu- zone,’’ which would itself be a source of in- the appearance of creating new divisions or rity? stability. Moreover, it would freeze the Alli- new blocs in Europe. What precise relationship do you envisage ance within artificial boundaries—set by the Turning to your questions regarding Rus- between an enlarged NATO and Russia? historical anomaly of the Cold War—at the sian concerns about NATO enlargement and 6. The NATO study of September 20th men- same time other institutions are adapting to the future of NATO-Russia relations, the Al- tions that NATO aims to achieve a ‘‘political meet new political, economic and security liance and Russia have a complex, still December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2293 evolving relationship, which we hope will be- rope. While no Russian leader has publicly THE ADMINISTRATION NEEDS TO come a crucial element of the emerging Eu- endorsed NATO’s enlargement, senior offi- SUPPORT TAIWAN ropean security architecture. This is not to cials—including President Yeltsin—have re- suggest that NATO-Russia relations are peatedly acknowledged the importance of without strain. As you note, Russian offi- HON. BENJAMIN A. GILMAN partnership with NATO and the West. cials have objected to NATO actions in the OF NEW YORK former Yugoslavia, asserting that the Alli- Thus, in policy-level discussions with the IN THE HOUSE OF REPRESENTATIVES ance acted without properly consulting other Russians we will continue to state clearly Tuesday, December 5, 1995 interested states. While we reject such con- that NATO is willing to go the extra mile in tentions—NATO acted under a clear UN Se- developing an effective partnership with Mr. GILMAN. Mr. Speaker, recently A.M. curity Council mandate—the fact remains Russia, that the Alliance’s eventual enlarge- Rosenthal of the New York Times wrote two that many Russians perceive themselves and ment is not aimed against Russia or any thought provoking articles regarding Taiwan. their country as having been marginalized. He points out how the administration's appar- Similarly, President Yeltsin and other senior other state, and that Moscow’s interests would not be served by repudiating the still- ent weakness in supporting our democratic Russian officials have voiced serious con- friends there plays into the hands of the dic- cerns about NATO’s enlargement, often in evolving NATO-Russian relationship (or any quite stark terms. arms control agreements) because of NATO tators in Beijing. Although Moscow’s opposition to NATO expansion. We will also continue to monitor There are a number of territorial disputes in enlargement is often based on carefully reports of undue Russian pressure Asia. One of the most contentious is the own- misperceptions, we nevertheless recognize on neighboring states to create new military ership and future of the island of Taiwan. that these arguments must be addressed. blocs, as well as reports of Russian plans for Regretably, short of an early collapse of the Similarly, Russian concerns about their dictatorship in Beijing, the 45-year-old stale- stature in European affairs are real, but our military responses to NATO’s enlargement. As necessary, we will make clear that such mate over the issue shows no signs of an im- bilateral discussions—most recently at Hyde mediate resolution. Park—have made clear that both sides removes would only isolate Russia, impeding main committed to promoting Russia’s inte- its further integration into the European Taiwan is a free democracy. A nation where gration into key Western structures. The mainstream. people can express their thoughts and practice their religious beliefs. Through the long Russian leadership understands that altering Our demonstrated commitment to partner- or otherwise slowing this course would only years it has remained a loyal friend and stead- ship and cooperation has already alleviated isolate Russia and hinder reform at home. fast ally of the United States. The Republic of While we must be careful neither to under- some of the fears and concerns expressed by China is one of Asia's economic miracles fea- estimate nor exaggerate the importance of Russian officials. For example, our active ef- turing a strong and growing economy with less European security matters in Russian do- fort to involve the Russians in the imple- than 1-percent unemployment. From our per- mentation of a Bosnian peace settlement has mestic politics, Russian views will continue spective this is the type of free and democratic to evolve and we must be prepared for a demonstrated we do not want to go it alone. lengthy—and sometimes heated—dialogue Instead, we have engaged in an intensive, on- society we need to support in the region and with the Russian government. going dialogue with the Russians on this sen- around the world. On the other hand we have To put the broader issue of NATO-Russia sitive issue, most recently between President the People's Republic of China. The Beijing relations in context, you should recall that Clinton and president Yeltsin on October 23 leadership has repeatedly proven itself over the Alliance has engaged in a concerted ef- and between Secretary of Defense Perry and the years to be an oppressive dictatorship with fort to develop a close, cooperative partner- Minister of Defense Grachev on November 8. little regard for human and religious rights, ship with the new Russia. Even before the While we will not compromise on the abso- much less political freedom. Its military fought break-up of the Soviet Union, NATO had lute need for an effective, NATO-led oper- against ours in Korea, supported the Com- sought to establish productive, non-adversar- ation, if we are ultimately able to settle on ial relations with Moscow. With the dissolu- munists in North Vietnam, and currently ships tion of both the Warsaw Pact and the USSR, a workable arrangement for Russian engage- weapons of mass destruction to terrorist na- NATO created the North Atlantic Coopera- ment we will have helped assuage Russian tions in the Middle East. tion Council and the Russian Federation be- concerns that NATO is only interested in For the past 10 years whenever an effort came one of its first members. This consult- marginalizing Moscow. was attempted by the Congress to respond to ative arrangement set the stage for the es- In your final question you ask how the Beijing's egregious behavior we were told, that tablishment early last year of the Partner- statements ‘‘We have agreed that construc- there is a political transition period underway ship for Peace, which Russia joined in June tive, cooperative relations of mutual respect, in China and if we took any substantive action 1994. Within PFP, Russia has had the oppor- benefit and friendship between the Alliance we would be strengthening the hands of the tunity to engage directly with the Alliance and Russia are a key element for security to develop the capability of working with hardliners. NATO in support of common interests and and stability in Europe’’ and ‘‘NATO deci- And so for the last decade, whenever the goals in Europe. sions, however, cannot be subject to any veto Congress attempted to respond to China's ex- Moreover, under the ‘‘Beyond PFP’’ ar- or droit de regard by a non-member port of products made by slave labor, we were rangement approved this past May, NATO state . . .’’ can be reconciled. But these told by the State Department to back off. and Russia have agreed to take their rela- statements are not, in fact, contradictory. When we raised the issue of the Com- tionship a step further in terms of consulta- Notwithstanding NATO’s approach to en- munist's repression of religious and political tions and active cooperation. Finally, as you largement, the Alliance has a strategic in- thought, the State Department told us that note in your letter, the Alliance has offered terest in seeking constructive, cooperative economic liberalization will bring about political to develop a ‘‘political framework’’ for fu- relations with Russia. The fact that we are ture NATO-Russia relations. As we envision pluralism. it, in the near term NATO and Russia would actively planning to expand simply means Accordingly, Beijing has never paid a price agree on the basic principles which would that the enhanced Russian-NATO relation- for its unfair trade practices, arms proliferation, guide the relationship well into the 21st cen- ship will be with a larger NATO. We will lis- repression in occupied Tibet, massive military tury; NATO has already tabled a draft— ten to Russia’s concerns about enlargement buildup, the recent aggression in the Spratly which draws heavily on existing documents just as we listen to the thoughts of our other Islands, its disregard for intellectual property and agreements—for Russia’s consideration. partners; their views will be taken into con- rights, its illegal detention of Harry Wu, an Once the final principles are hammered out, sideration and will certainly influence our American citizen, and its threatening military we would work together to turn them into a thinking. But influence and a veto are two exercise off the cost of Taiwan. On the con- more formal, long-term understanding that quite different things; neither Russia nor would facilitate NATO-Russian cooperation. trary, the State Department believes that we Russia, therefore, already has a quite sig- any other non-member will have a veto over need to further soften our approach to Beijing. nificant relationship with NATO. The key Alliance membership (or any other) deci- I am all for working peacefully and negotiat- determinant in how our relations develop sions. ing quietly with the Chinese. But time and time will be Russia’s implementation of the var- Thank you for the opportunity to respond again, the State Department has failed to ious partnership mechanisms now available. to your thoughtful questions. We look for- bring home the bacon. Constructive engage- This is an ongoing, evolutionary process, ward to continuing our exchange as the Alli- ment cannot be just a one way endeavor. The which will certainly be affected to some de- ance moves closer to enlargement and as State Department needs to recognize this and gree by the domestic political climate in Russia. We remain convinced, however, that NATO-Russian relations continue to develop. adjust its course. Russian government will recognize that it is Sincerely, Considering all these facts, the Congress is to Moscow’s advantage to develop and main- WENDY R. SHERMAN, compelled to ask if Taiwan's time has come to tain a close relationship with the Alliance as Assistant Secretary for be recognized by the world's community of na- part of Russia’s overall policy toward Eu- Legislative Affairs. tions. And if so, what can this body do to help E 2294 CONGRESSIONAL RECORD — Extensions of Remarks December 5, 1995 the free people of Taiwan. Taiwan leadership The people of the island, ethnically Chi- flown outdoors to save Beijing a fit. In Wash- has repeatedly asked for our help in their nese, descend either from families that have ington, representatives of Taiwan cannot quest for their people to have the last word in lived here for centuries or from immigrants sully the State department or White House who fled to Taiwan with Nationalist army by their presence. So far, separate drinking their own future. when it was defeated by the Communists in fountains for Taiwanese representatives have Let me say that now is the time to help our 1949. not been set up. friends on the island of Taiwan. We have been The ruling party is the Kuomintang, a mel- Taiwan is not only barred from the U.N. waiting far too long to respond to their aspira- lowed offspring of the hard-handed party of but from all its many specialized agencies, tions and hope. Chiang Kai-shek. It is headed by President including those supposed to deal with such Accordingly, I ask that the full text of A.M. Lee Teng-hui. Mr. Lee gave Beijing a heart universal subjects as health and agri- Rosenthal's articles be printed in the RECORD attack recently by visiting his American culture—say, AIDS or starvation. at this point. alma mater, Cornell University, Beijing has The blockade is so obsessively enforced been trying ever since to give one apiece to that it even excludes aid to refugees. Last [From the New York Times, Nov. 28, 1995] him and the U.S. for such impertinence. year the U.N. appealed for funds for Rwandan YES, THERE ISA TAIWAN The Kuomintang stands for reunification refugees, among the most suffering of God’s (By A.M. Rosenthal) with the mainland—some day, when Beijing human creatures. Taiwan offered $2 million; manages to become non-Communist, and a TAIPEI, TAIWAN.—The trucks move day and refused. The Taiwanese did manage to get convert to human rights. So the KMT is de- night through the streets of Taiwan like their gift accepted—by channeling it through nounced by the New Party, made up of creatures alive and wild with their own en- an American committee for Unicef. breakaway KMT hard-liners, as kind of Con- ergy—shouting and singing through their Correspondents from Taiwan are not per- fucian Coalition. loudspeakers, denouncing, trumpeting, cajol- mitted to enter the U.N. As a former re- The major opposition is the Democratic ing, forbidding escape or the succor of a mo- porter at the U.N., in its early days, I have Progressive Party—strong for independence, ment’s silence. thought of slipping my pass to a correspond- but not ready to invite Communist attack by The loudspeakers, mounted fore, aft and ent from Taiwan, to annoy U.N. authorities, making a Taiwan July Fourth Declaration. atop, deliver a gigantic rolling headache. but I decided it wouldn’t work. Panting for the China trade, the U.S. for- Before Beijing commanded the U.N., cor- But they also deliver the sound of democ- bids Taiwan representatives to set foot in racy, to a small country new to it, and to a respondents from non-member peoples were the State Department or White House. But allowed in. I learned more about North Afri- huge glowering country whose leaders detest the weeks of democratic campaigning prove the thought of it. ca and Indonesia from independence-move- that whether Beijing and its international ment reporters than I ever did from the colo- This is campaign time in Taiwan, a free business lobby approve or not, Taiwan has campaign, fought hard, for the free election nial French or Dutch. produced a prosperous, growingly democratic North Korea and South Korea are members of a national legislature. It is the most im- society of its own, separate in political prac- portant democratic step since 40 years of and so were East and West Germany. The tice and desire from the mainland. Palestine Liberation Organization was given military rule ended in 1987 and the demo- Or, as it appears on posters around the is- cratic process began on this island—an often- representation at the General Assembly with land: ‘‘Yes, there is a Taiwan.’’ Send in more only a vote lacking. tested missile-distance across the waters trucks. from Communist China. But when China decided that any dreams And next March an even more important of independence, sovereignty or even dignity [From the New York Times, Dec. 1, 1995] that Taiwan might harbor were too dan- election will take place. The people of the is- THE BLOCKADES OF TAIWAN lands will take part in a direct presidential gerous to tolerate, this special apartheid was (By A.M. Rosenthal) election—the first direct election of a na- created for the island. The U.S. and most tional leader in the thousands of years of TAIPEI, TAIWAN.—They come almost every other U.N. members meekly kissed Beijing’s history of the Chinese people. day now—the military threats to this island iron slipper. The economic development of Taiwan country from the Communist Government in That means Taiwan cannot use an U.N. or moves ahead smartly, and so does its demo- Beijing. any normal diplomatic channel to raise an cratic development. That is news of impor- Chinese Army commanders order repeated alarm that had to be officially heard about tance far beyond this island. amphibious landings at the mainland coast the open military threats from Beijing. If Asia has a batch of countries developing nearest the island—the precise kind of oper- any other country had threatened another so economically but not democratically. Just ation that would be needed to invade Tai- blatantly the case would immediately have give Asians a full belly, the colonial West wan—and ‘‘tests’’ of missiles in the straits been on the U.N. agenda. Now of course most U.N. members, includ- used to say. Now that is amended: Just give dividing China and the island. In recent days ing the U.S., would be paralyzed with eco- them a motorbike and big-screen TV. there has been a series of leaked reports that nomic terror at the very idea of proposing Taiwan is crowded, its cities are messy and Beijing is considering a naval blockade of that Taiwan as well as China be represented its roadsides junk-strewn. But politically it Taiwan. Nobody knows whether the threats are at the U.N. But perhaps Washington, Lon- is becoming quite handsome, a living denial meant only to frighten all Taiwanese into don, Paris and Tokyo will dredge up enough of the slur that Chinese are content to live abandoning any thought of independence, courage to increase their own diplomatic without political freedom. however distant, or whether Beijing is ready- contacts with Taiwan as a warning to China. Westerners have a way of thinking of Tai- ing its people and the world for an attack. If Perhaps. wan in relation only to China and their own it does take place it is likely to be in the Until now the Chinese diplomatic blockade interests. Mostly they think nervously of spring of 1996 before or after Taiwan holds its and Western submission to it have been how furious Beijing will get if the West gives first direct presidential election. merely disgusting. Now they are getting dan- any acknowledgment or respect to this is- But the evidence is that the military com- gerous. land that the Communists say is their own mand is beginning to operate and plan inde- f province, now and forever. pendently of the civilian leadership in the The West trembles to breathe a word about Politburo. A BIRTHDAY TRIBUTE TO HIS allowing Taiwan to take part in inter- This much seems clear from here: The national activities—even helping refugees. MAJESTY KING RAMA IX OF West is operating on the assumption that if THAILAND Its skin crawls with fear that Beijing will reit says and does nothing, why, any dangers duce the West’s right to take part in the will vanish in a merciful blip. China trade and the privilege of buying from The studious silence arises from the fun- HON. DANA ROHRABACHER China billions of dollars more in goods than damental China policy of the West: Rock no OF CALIFORNIA the West has any hope of ever selling to Chinese boat lest Beijing throw easy Western China. access to the Chinese market overboard. IN THE HOUSE OF REPRESENTATIVES The worldwide diplomatic blockade that The West manages to maintain its silence Tuesday, December 5, 1995 Beijing has created against Taiwan is not because a Chinese blockade of Taiwan al- the worst of it. When Beijing thinks that the ready exists: the political and diplomatic Mr. ROHRABACHER. Mr. Speaker, I rise substantial movement toward an independ- blockade created by Beijing after it took today to extend my personal best regards and ent Taiwan is getting stronger, or sees the over the China seat in the U.N. in 1971. the respect and appreciation of all the mem- horror of democracy rising on this pros- The government on Taiwan was not only bers of the International Relations Committee perous island so close to the mainland, the ousted from the U.N. but from the inter- on the occasion of the birthday of the King of Chinese Communists mount menacing mili- national community. Taiwan, one of the Thailand, King Rama IX. tary operations. No pretense is made that largest trading nations in the world, has Earlier this year, all Members of the House the exercise and the ugly warnings by top been cut off from normal diplomatic and po- military men are not aimed at intimidating litical relations with almost the whole of Representatives were relieved when the Taiwan and aborting its growing fascination world. King made a complete and impressive recov- with democratic practice. Expect more The U.S. maintains an ‘‘institute’’ in Tai- ery from surgery and regained his full threats. pei headed by a ‘‘director.’’ But no flag is strength. December 5, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2295 As I have said on the floor of the House be- States are blessed to be able to call King and a long reign. I wish him and his family fore, the people of Thailand are blessed to Bhumibol our friend. greetings and good health from his friends in have such a wise leader. We, in the United I am honored, as the spokesman for my col- the United States. leagues, to wish the King a happy birthday Tuesday, December 5, 1995 Daily Digest Senate A unanimous-consent agreement was reached pro- Chamber Action viding for further consideration of the bill on Routine Proceedings, pages S17933–S18036 Wednesday, December 6, 1995 at 5 p.m. Measures Introduced: Six bills and one resolution Page S18036 were introduced, as follows: S. 1444–1449, and S. Nominations Confirmed: Senate confirmed the fol- Res. 197. Page S18016 lowing nominations: Measures Passed: 2 Army nominations in the rank of general. Page S18036 Congratulating Northwestern University: Senate agreed to S. Res. 197, to congratulate the North- Communications: Page S18015 western University Wildcats on winning the 1995 Petitions: Page S18015 Big Ten Conference football championship and on Executive Reports of Committees: Pages S18015±16 receiving an invitation to compete in the 1996 Rose Bowl, and to commend Northwestern University for Statements on Introduced Bills: Pages S18016±33 its pursuit of athletic and academic excellence. Additional Cosponsors: Page S18033 Pages S17964±65 Amendments Submitted: Pages S18033±34 Defense Production Authorization: Senate passed Authority for Committees: Page S18034 H.R. 2204, to extend and reauthorize the Defense Production Act of 1950, clearing the measure for the Additional Statements: Pages S18034±35 President. Pages S18035±36 Adjournment: Senate convened at 9:30 a.m., and Securities Litigation Reform Act—Conference adjourned at 7:19 p.m., until 10 a.m., on Wednes- Report: By 65 yeas to 30 nays, 1 responding present day, December 6, 1995. (For Senate’s program, see (Vote No. 589), Senate agreed to the conference re- the remarks of the Majority Leader in today’s Record port on H.R. 1058, to amend the Federal securities on page S18036.) laws to curb certain abusive practices in private securities litigation. Pages S17933±62, S17965±97 Committee Meetings Partial-Birth Abortion Ban: Senate resumed con- (Committees not listed did not meet) sideration of H.R. 1833, to amend title 18, United States Code, to ban partial-birth abortions, taking NOMINATIONS action on amendments proposed thereto, as follows: Committee on Armed Services: Committee ordered favor- Pages S17997, S18002±11 ably reported the nominations of Maj. Gen. Thomas Pending: A. Schwartz, United States Army, for appointment (1) Smith Amendment No. 3080, to provide a to the grade of lieutenant general, and Lt. Gen. Paul life-of-the-mother exception. Pages S18003±11 E. Funk, United States Army, to be placed on the (2) Dole Amendment No. 3081 (to Amendment retired list of the United States Army in the grade No. 3080), of a perfecting nature. Pages S18003±04 indicated under section 1370 of title 10, U.S.C., and (3) Pryor Amendment No. 3082, to clarify certain 1,932 routine nominations in the Army, Navy, and provisions of law with respect to the approval and Air Force. marketing of certain prescription drugs. Pages S18004±11 OECD SHIPBUILDING AGREEMENT (4) Boxer Amendment No. 3083 (to Amendment Committee on Finance: Committee held hearings on S. No. 3082), to clarify the application of certain provi- 1354, to approve and implement the Organization sions with respect to abortions where necessary to for Economic Cooperation and Development (OECD) preserve the life or health of the woman. Shipbuilding Trade Agreement, receiving testimony Pages S18004±11 from Jeffrey M. Lang, Deputy United States Trade D 1415 D 1416 CONGRESSIONAL RECORD — DAILY DIGEST December 5, 1995 Representative; Albert Bossier, Jr., Avondale Indus- on Intergovernmental Relations, both of Washing- tries, Inc., New Orleans, Louisiana; R.T.E. Bowler, ton, D.C. III, American Shipbuilding Association, Arlington, Hearings were recessed subject to call. Virginia; John Dane, III, Trinity Marine Group, Inc., Gulfport, Mississippi, representing the Amer- PARENTAL RIGHTS AND ican Waterways Shipyard Conference and the Ship- RESPONSIBILITIES ACT builders Council of America; and Peter J. Finnerty, Committee on the Judiciary: Subcommittee on Admin- Sea-Land Service, Inc. and CSX Corporation, Wash- istrative Oversight and the Courts concluded hear- ington, D.C., representing the American Institute of ings on S. 984, to protect the fundamental right of Merchant Shipping and the Coalition in Support of a parent to direct the upbringing of a child of the the OECD Commercial Shipbuilding Agreement. parent, after receiving testimony from Representative Hearings were recessed subject to call. Largent; Michael P. Farris, Home School Legal De- fense Association, Purcellville, Virginia; Colleen K. NOMINATION Pinyan, The Rutherford Institute, Washington, D.C.; Sammy J. Quintana, Pojoaque Valley School Committee on Finance: Committee concluded hearings Board, Santa Fe, New Mexico, on behalf of the Na- on the nomination of Joshua Gotbaum, of New tional School Boards Association; Wade F. Horn, York, to be an Assistant Secretary of the Treasury for National Fatherhood Initiative, Gaithersburg, Mary- Economic Policy, after the nominee testified and an- land; Margaret F. Brinig, George Mason University swered questions in his own behalf. School of Law, Arlington, Virginia; and E. W. Angell, Toccoa, Georgia. LOCAL EMPOWERMENT AND FLEXIBILITY ACT WHITEWATER Committee on Governmental Affairs: Committee held Special Committee to Investigate the Whitewater Develop- hearings on S. 88, to increase the overall economy ment Corporation and Related Matters: Committee re- and efficiency of Government operations and enable sumed hearings to examine issues relative to the more efficient use of Federal funding, by enabling Whitewater Development Corporation, receiving tes- local governments and private, nonprofit organiza- timony from Steven Irons, Supervisory Special tions to use amounts available under certain Federal Agent, Kevin Kendrick, Supervisory Special Agent, assistance programs in accordance with approved and Donald Pettus, former Special Agent in Charge, local flexibility plans, receiving testimony from Sen- all of the Federal Bureau of Investigation, Douglas ator Hatfield; Judy A. England-Joseph, Director, Frazier, Assistant Director for Evaluation and Re- Housing and Community Development Issues, Gen- view, Executive Office of United States Attorneys, eral Accounting Office; John A. Koskinen, Deputy and Charles Banks, former United States Attorney Director for Management, Office of Management and for the Eastern District of Arkansas, all of the De- Budget; Susan A. Cameron, Tillamook County partment of Justice; and William Kennedy, Rose Health Department, Tillamook, Oregon; and R. Law Firm, Little Rock, Arkansas, former Associate Scott Fosler, National Academy of Public Adminis- Counsel to the President. tration, and Charles Griffiths, Advisory Commission Hearings continue tomorrow.

House of Representatives tions for the Departments of Commerce, Justice, and Chamber Action State, the Judiciary, and related agencies for the fis- Bills Introduced: 14 public bills, H.R. 2703–2716; cal year ending September 30, 1996 (H. Rept. 5 private bills, H.R. 2717–2721; and 2 resolutions, 104–381); H.J. Res. 130 and H. Con. Res. 117 were intro- H. Res. 290, waiving points of order against the duced. Pages H14002±03 conference report to H.R. 1058, to reform Federal Reports Filed: Reports were filed as follows: securities litigation (H. Rept. 104–382); and Report entitled ‘‘Revised Subdivision of Budget H.R. 1710, to combat terrorism, amended (H. Totals for fiscal year 1996’’ (H. Rept. 104–380); Rept. 104–383). Page H14002 H. Res. 289, waiving points of order against the conference report to H.R. 2076, making appropria- December 5, 1995 CONGRESSIONAL RECORD — DAILY DIGEST D 1417 Speaker Pro Tempore: Read a letter from the Walter B. Jones Federal Building and United States Speaker wherein he designates Representative Everett Courthouse: H.R. 840, to designate the Federal build- to act as Speaker pro tempore for today. Page H13931 ing and United States courthouse located at 215 Recess: House recessed at 1:20 p.m. and reconvened South Evans Street in Greenville, North Carolina, as at 2 p.m. Page H13938 the ‘‘Walter B. Jones Federal Building and United States Courthouse’’; Pages H13955±57 Private Calendar: Agreed to dispense with the call Thomas D. Lambros Federal Building and United of the Private Calender. Page H13939 States Courthouse: H.R. 869, amended, to designate Committees to Sit: The following committees and the Federal building and U.S. Courthouse located at their subcommittees received permission to sit today 125 Market Street in Youngstown, Ohio, as the during proceedings of the House under the 5-minute ‘‘Thomas D. Lambros Federal Building and U.S. rule: Committees on Banking and Financial Services, Courthouse’’ (agreed to by a yea-and-nay vote of 414 Commerce, Economic and Educational Opportuni- yeas, Roll No. 834). Agreed to amend the title; ties, Transportation and Infrastructure, and Select In- Pages H13957±58, H13972 telligence. Page H13943 Romano L. Mazzoli Federal Building: H.R. 965, to Suspensions: House voted to suspend the rules and designate the Federal building located at 600 Martin pass the following measures: Luther King, Jr. Place in Louisville, Kentucky, as Big Thicket National Preserve land exchange: H.R. the ‘‘Romano L. Mazzoli Federal Building’’ (agreed 826, amended, to extend the deadline for the com- to by a yea-and-nay vote of 415 yeas, Roll No. 835); pletion of certain land exchanges involving the Big Pages H13958±61, H13973 Thicket National Preserve in Texas. Agreed to Judge Isaac C. Parker Federal Building: H.R. 1804, amend the title; Pages H13943±44 to designate the United States Post Office-Court- Amending the Doug Barnard, Jr. Olympic Commemora- house located at South 6th and Rogers Avenue, Fort tive Coin Act: H.R. 2336, to amend the Doug Ber- Smith, Arkansas, as the ‘‘Judge Isaac C. Parker Fed- nard, Jr.—1996 Atlanta Centennial Olympic Games eral Building’’ (agreed to by a yea-and-nay vote of Commemorative Coin Act; Pages H13944±46 373 yeas to 40 nays, with 2 voting ‘‘present’’, Roll Commemorative coin authorization and reform: H.R. No. 836); and Pages H13961±62, H13973±74 2614, to reform the commemorative coin programs Senior citizens right to work: H.R. 2684, amended, for the United States Mint in order to protect the to amend title II of the Social Security Act to pro- integrity of such programs and prevent losses of vide for increases in the amounts of allowable earn- Government funds, to authorize the United States ings under the social security earnings limit for indi- Mint to mint and issue platinum and gold bullion viduals who have attained retirement age (agreed to coins; Pages H13946±48 by a yea-and-nay vote of 411 yeas to 4 nays, Roll Hopewell Township land conveyance: H.R. 308, to No. 837). Pages H13962±71, H13974 provide for the conveyance of certain lands and im- Amendments Ordered Printed: Amendments or- provements in Hopewell Township, Pennsylvania, to dered printed pursuant to the rule appear on pages a nonprofit organization known as the ‘‘Beaver H14003–23. County Corporation for Economic Development’’ to provide a site for economic development; Quorum Calls—Votes: Four yea-and-nay votes de- Pages H13948±51 veloped during the proceedings of the House today James Lawrence King Federal Justice Building: H.R. and appear on pages H13972, H13973, 255, to designate the Federal Justice Building in H13973–74, and H13974. There were no quorum Miami, Florida, as the ‘‘James Lawrence King Fed- calls. eral Justice Building’’; Pages H13951±52 Adjournment: Met at 12:30 p.m. and adjourned at Bruce R. Thompson United States Courthouse: H.R. 9:14 p.m. 395, to designate the United States courthouse and Federal building to be constructed at the southeast- Committee Meetings ern corner of Liberty and South Virginia Streets in Reno, Nevada, as the ‘‘Bruce R. Thompson United REVISED SUBDIVISION States Courthouse and Federal Building’’; Committee on Appropriations: Approved a revised Pages H13952±54 602(b) subdivision for fiscal year 1996. Thurgood Marshall United States Courthouse: H.R. 653, to designate the United States courthouse under FOREIGN BANK SUPERVISION AND construction in White Plains, New York, as the DAIWA BANK ‘‘Thurgood Marshall United States Courthouse’’; Committee on Banking and Financial Services: Sub- Pages H13954±55 committee on Financial Institutions and Consumer D 1418 CONGRESSIONAL RECORD — DAILY DIGEST December 5, 1995 Credit held a hearing regarding foreign bank super- IN THE MATTER OF REPRESENTATIVE vision and the Daiwa Bank. Testimony was heard BARBARA-ROSE COLLINS from Alan Greenspan, Chairman, Board of Gov- Committee on Standards of Official Conduct: Met in ex- ernors, Federal Reserve System; Ricki Helfer, Chair- ecutive session and voted a Resolution of Preliminary man, FDIC; Eugene A. Ludwig, Comptroller of the Inquiry in the matter of Representative Barbara-Rose Currency, Department of the Treasury; Neil Levin, Collins. Superintendent of Banks, Banking Department, State of New York; and public witnesses. NATURAL DISASTER PROTECTION PARTNERSHIP ACT ALLEGATIONS OF FDA ABUSES OF Committee on Transportation and Infrastructure: Sub- AUTHORITY committee on Water Resources and Environment Committee on Commerce: Subcommittee on Oversight continued hearings on H.R. 1856, Natural Disaster and Investigations concluded hearings on Allegations Protection Partnership Act of 1995. Testimony was of FDA Abuses of Authority. Testimony was heard heard from Representatives Dreier and Parker; from David A. Kessler, M.D., Commissioner, FDA, Mozelle W. Thompson, Deputy Assistant Secretary, Department of Health and Human Services. Government Financial Policy, Department of the Treasury; Jane A. Bullock, Acting Chief of Staff, CAPITAL MARKETS DEREGULATION AND FEMA; Thomas J. McCool, Associate Director, Gen- LIBERALIZATION ACT eral Government Division, GAO; and public witnesses. Committee on Commerce: Subcommittee on Tele- communications and Finance concluded hearings on BOSNIA—INTELLIGENCE SUPPORT TO H.R. 2131, Capital Markets Deregulation and Liber- UNITED STATES FORCES alization Act of 1995. Testimony was heard from Permanent Select Committee on Intelligence: Met in execu- public witnesses. tive session to hold a hearing on Intelligence Sup- port to United States peacekeeping forces in Bosnia. PARENTS, SCHOOLS AND VALUES Testimony was heard from departmental witnesses. Committee on Economic and Educational Opportunities: Subcommittee on Oversight and Investigations held a hearing on Parents, Schools and Values. Testimony COMMITTEE MEETINGS FOR was heard from William Bennett, former Secretary of WEDNESDAY, DECEMBER 6, 1995 Education; and a public witness. (Committee meetings are open unless otherwise indicated) Hearings continue tomorrow. Senate CONFERENCE REPORT—COMMERCE, Committee on Armed Services, to hold hearings on the JUSTICE, STATE, AND THE JUDICIARY Bosnian Peace Agreement, the North Atlantic Council military plan and the proposed mission for United States APPROPRIATIONS military forces deployed with the Implementation Force Committee on Rules: Granted, by voice vote, a rule (IFOR), 10:15 a.m., SD–G50. waiving all points of order against the conference re- Committee on Energy and Natural Resources, business port to accompany H.R. 2076, making appropria- meeting, to consider pending calendar business, 9:30 tions for the Department of Commerce, Justice, and a.m., SD–366. State, the Judiciary, and related agencies for the fis- Committee on Governmental Affairs, to hold hearings on cal year ending September 30, 1996, and against its S. 356, to amend title 4, United States Code, to declare English as the official language of the Government of the consideration. Testimony was heard from Represent- United States, 9:30 a.m., SD–342. atives Rogers, McCollum, Mollohan, Conyers, and Committee on Labor and Human Resources, to hold joint Schumer. hearings with the Committee on Small Business, on certain issues relating to modifications to the Occupational CONFERENCE REPORT—SECURITIES Safety and Health Act of 1970, 9:30 a.m., SD–106. LITIGATION REFORM ACT Committee on Small Business, to hold joint hearings with the Committee on Labor and Human Resources, on cer- Committee on Rules: Granted, by voice vote, a rule tain issues relating to modifications to the Occupational waiving all points of order against the conference re- Safety and Health Act of 1970, 9:30 a.m., SD–106. port to accompany H.R. 1058, Securities Litigation Committee on Indian Affairs, to hold oversight hearings Reform Act, and against its consideration. Testi- on the implementation of the Native American Graves mony was heard from Chairman Bliley and Rep- Protection and Repatriation Act (P.L. 101–601), 9:30 resentatives Fields of Texas and Markey. a.m., SR–485. December 5, 1995 CONGRESSIONAL RECORD — DAILY DIGEST D 1419

Special Committee To Investigate Whitewater Development partments of Veterans Affairs and Housing and Urban Corporation and Related Matters, to continue hearings to Development, and for sundry independent agencies, examine certain issues relative to the Whitewater Devel- boards, commissions, corporations, and offices for the fis- opment Corporation, 10 a.m., SH–216. cal year ending September 30, 1996; H.R. 2546, making House appropriations for the government of the District of Co- lumbia and other activities chargeable in whole or in part Committee on Agriculture, Subcommittee on Department against the revenues of said District for the fiscal year Operations, Nutrition, and Foreign Agriculture, hearing ending September 30, 1996; and H.R. 1977, making ap- to review the USDA’s Office of Risk Assessment and propriations for the Department of the Interior and relat- Cost-Benefit Analysis, 2 p.m., 1300 Longworth. ed agencies for the fiscal year ending September 30, Committee on Commerce, Subcommittee on Energy and 1996, 3 p.m., H–313 Capitol. Power, oversight hearing on the Pacific Northwest Power Committee on Science, Subcommittee on Energy and Envi- System, 10 a.m., 2123 Rayburn. ronment, hearing on Superfund Research and Develop- Committee on Economic and Educational Opportunities, Sub- ment: The Role of R&D in a Reformed Superfund, 10 committee on Oversight and Investigations, to continue a.m., 2318 Rayburn. hearings, on Parents, Schools and Values, 9:30 a.m., 2175 Committee on Standards of Official Conduct, executive, to Rayburn. consider pending business, 11 a.m., HT–2M Capitol. Committee on Government Reform and Oversight, Sub- Committee on Ways and Means, Subcommittee on committee on Civil Service, hearing on Government Human Resources, hearing on current welfare reform suc- Shutdown: What’s Essential, 9 a.m. 2154 Rayburn. cess stories, 10 a.m., B–318 Rayburn. Subcommittee on the District of Columbia, hearing on H.R. 2661, District of Columbia Fiscal Protection Act of Joint Meetings 1995, 10 a.m., 2247 Rayburn. Committee on International Relations, hearing on United Conferees, on S. 652, to provide for a pro-competitive, States policy toward Bosnia, 10 a.m., 2172 Rayburn. de-regulatory national policy framework designed to ac- Subcommittee on Asia and the Pacific, to mark up H. celerate rapidly private sector deployment of advanced Res. 274, concerning Burma and the U.N. General As- telecommunications and information technologies and sembly; to be followed by a hearing on U.S. Security In- services to all Americans by opening all telecommuni- terests in South Asia, 2 p.m., 2172 Rayburn. cations markets to competition, 9 a.m., S–5, Capitol. Committee on National Security, to continue hearings on Conferees, on H.R. 2099, making appropriations for the the proposed deployment of United States ground forces Departments of Veterans Affairs and Housing and Urban to Bosnia, 9:30 a.m., 2118 Rayburn. Development, and for sundry independent agencies, Subcommittee on Military Research and Development boards, commissions, corporations, and offices for fiscal and Subcommittee on Fisheries, Wildlife and Oceans of year ending September 30, 1996, 2 p.m., H–140, Cap- the Committee on Resources, joint hearing on the dis- itol. posal of radioactive material and other toxic waste in Commission on Security and Cooperation in Europe, to hold oceans and tributaries, 1:30 p.m., 2118 Rayburn. hearings to examine the documentation of crimes against Committee on Rules, to consider the following Conference humanity in Bosnia and Herzegovina and Croatia this Reports: H.R. 2099, making appropriations for the De- year, 2 p.m., 2322 Rayburn Building. D 1420 CONGRESSIONAL RECORD — DAILY DIGEST December 5, 1995

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10 a.m., Wednesday, December 6 10 a.m., Wednesday, December 6

Senate Chamber House Chamber Program for Wednesday: Senate will consider H.J. Res. Program for Wednesday: Consideration of H.R. 1350, 79, proposing an amendment to the Constitution of the Maritime Security Act of 1995 (open rule, 1 hour of gen- United States authorizing the Congress and the States to eral debate); prohibit the physical desecration of the flag of the United Consideration of the conference report on H.R. 2076, States. Commerce-Justice-State Appropriations Act for fiscal year At 5 p.m., Senate will continue consideration of H.R. 1996 (rule waiving points of order); and 1833, Partial-Birth Abortion Ban Act. Conference report on H.R. 1058, Securities and Litiga- tion Reform Act (rule waiving points of order).

Extensions of Remarks, as inserted in this issue

HOUSE Gilman, Benjamin A., N.Y., E2283, E2286, E2293 Poshard, Glenn, Ill., E2284, E2287 Hamilton, Lee H., Ind., E2292 Rogers, Harold, Ky., E2289 Barrett, Thomas M., Wis., E2288 Kennedy, Joseph P., II, Mass., E2283, E2287 Rohrabacher, Dana, Calif., E2294 Coble, Howard, N.C., E2289 Kennelly, Barbara B., Conn., E2289 Shuster, Bud, Pa., E2285 Collins, Cardiss, Ill., E2288 LaHood, Ray, Ill., E2285 Stark, Fortney Pete, Calif., E2284, E2291 Davis, Thomas M., Va., E2289 Lantos, Tom, Calif., E2285 Stupak, Bart, Mich., E2288 DeLauro, Rosa L., Conn., E2290 Lewis, Jerry, Calif., E2283, E2286 Torres, Esteban Edward, Calif., E2287 Foglietta, Thomas M., Pa., E2284, E2287 Moran, James P., Va., E2288 Yates, Sidney R., Ill., E2291 Geijdenson, Sam, Conn., E2290 Ney, Robert W., Ohio, E2284 Gephardt, Richard A., Mo., E2290 Ortiz, Solomon P., Tex., E2290

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