E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION

Vol. 144 WASHINGTON, WEDNESDAY, OCTOBER 7, 1998 No. 139 Senate The Senate met at 9:29 a.m., on the proceed to H.R. 10, the financial serv- feating such luminaries of Arkansas expiration of the recess, and was called ices reform bill, followed by a second politics as Win Rockefeller and J.W. to order by the President pro tempore vote on the motion to invoke cloture Fulbright. [Mr. THURMOND]. on S. 442, which is the Internet tax bill. I worked for DALE’s opponent in 1980, Assuming cloture is invoked, the Sen- not because I was enamored by his op- PRAYER ate will remain on the Internet tax bill ponent, but because I was upset with The Chaplain, Dr. Lloyd John with amendments being offered and de- some of DALE’s votes. That has always Ogilvie, offered the following prayer: bated throughout today’s session. been the way with DALE BUMPERS; you Gracious God, without whom we can In addition to the Internet tax bill, either agreed with him passionately or do nothing of lasting value, but with the Senate may consider the VA–HUD you disagreed vehemently. whom there is no limit to what we can appropriations conference report under While DALE has always been as accomplish, we ask You to infuse us a 40-minute time agreement reached smooth as honey, he has never tried to with fresh strength and determination last night. The Senate may also con- varnish his views or dilute his posi- as we press toward the goal of finishing sider other available conference re- tions to make them more palatable to the work of this 105th Congress. Help ports or any legislative or executive the general public, whether it was the us to do all we can, in every way we items cleared for action. Panama Canal or the space station. can, and as best we can to finish well. The leader reminds all Members that Mr. President, I mentioned that in Inspire us to follow the cadence of there are only a few days left in which Arkansas, political lives and careers Your drumbeat. to consider remaining appropriations intersect frequently. In 1986, my broth- Bless the Senators in these crucial bills and other important legislation. er ASA, then a U.S. attorney and now hours. Replace any weariness with the Members are encouraged to plan their serving in the U.S. House of Represent- second wind of Your Spirit. Rejuvenate schedules accordingly to accommodate atives, ran against Senator BUMPERS in those whose vision is blurred by stress a very busy week, with votes beginning his second reelection campaign. and deliver those who may be discour- early each morning and extending late I worked in ASA’s campaign, and I en- aged or disappointed. In the quiet of into the evenings. countered and experienced firsthand this moment, we return to You, recom- I thank my colleagues for their at- the high esteem in which the people of mit our lives to You, and receive Your tention, and I yield the floor. Arkansas hold DALE BUMPERS. After revitalizing energy. We accept the Mr. HUTCHINSON addressed the Senator BUMPERS won that race re- psalmist’s reorienting admonition, Chair. soundingly, delivering a good old coun- ‘‘Wait on the Lord; be of good courage, The PRESIDENT pro tempore. The try thumping to the HUTCHINSONs, I re- and He shall strengthen your heart; able Senator from Arkansas is recog- turned to my service in the Arkansas wait, I say, on the Lord!’’—Psalm 27:14. nized. legislature and ASA became the State In the Name of our Lord and Saviour. f GOP chairman. We continued to follow Amen. Senator BUMPERS’ career from afar, oc- TRIBUTE TO SENATOR DALE f casionally bumping into him at events BUMPERS in the State. RECOGNITION OF THE ACTING Mr. HUTCHINSON. Mr. President, I In 1990, ASA ran for attorney general MAJORITY LEADER rise today to pay tribute to my retiring of Arkansas. It was a politically tough, The PRESIDENT pro tempore. The colleague from Arkansas, Senator mean, even nasty race. It was hard able acting majority leader is recog- DALE BUMPERS. Arkansas is a State fought and a very close race. I remem- nized. with a small population, and it is a ber one day as I was working in ASA’s f State where politicians of even oppos- headquarters in Little Rock, DALE ing political parties and philosophies BUMPERS walked in off the street unan- SCHEDULE find their lives and careers intersecting nounced. He came by, he said, to wish Mr. ALLARD. Mr. President, this and intertwining. us well and to say that he always re- morning there will be a period for As a high school student, I followed spected us and thought well of us. I saw morning business until 10 a.m. Follow- DALE BUMPERS’ meteoric rise from an a side of DALE BUMPERS that those who ing morning business, under a previous unknown country lawyer from Charles- know him well see all the time. He order, the Senate will proceed to two ton, AR, to the Governor of the State knows well that there is life beyond stacked rollcall votes. The first vote and a man who became known in Ar- the political arena and that politicians will be on adoption of the motion to kansas politics as the giant killer, de- are, first and foremost, human beings.

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

S11643

. S11644 CONGRESSIONAL RECORD — SENATE October 7, 1998 I saw this again in 1996 when I was I and many of my colleagues, will not spare parts to keep at least a few fly- running for the U.S. Senate. It was the support airstrikes in Kosovo, and espe- ing. It is not uncommon for this to closing days of a very close race. DALE cially a ground force presence, unless happen at a low-priority unit in the and my predecessor, Senator David the President agrees to submit a budg- United States; however, allowing this Pryor, were campaigning for my oppo- et that addresses the related readiness to happen in the front-line deploy- nent in a fly-around of the State. I sup- and operational tempo requirements of ments like Bosnia where we might soon pose DALE was returning the favor the U.S. military. go into combat is inexcusable. from a decade before when I was cam- Also, we must be careful not to be- Aircraft carriers are being deployed paigning for his opponent. lieve that there is an easy or inexpen- with personnel slots empty. A recent In the closing days, my son Timothy sive long-term solution to the problems report has one carrier on a peacekeep- was involved in a tragic and terrible in Kosovo. The administration would ing mission with a crew that is lacking automobile accident. Timothy was se- have us believe that NATO airstrikes 1,000 persons to perform the essential riously injured, and I was in the hos- will somehow solve the problem. I, and tasks. In other words, the United pital room, not sure whether he was many colleagues, disagree. States has aircraft carriers on missions going to make it or not. The phone The recent massacre of ethnic Alba- that are lacking about 20 percent of rang, and it was DALE BUMPERS. He nians in two small villages in Kosovo what is considered a full crew. How called to assure me of his thoughts and has heightened awareness and con- ready are these carriers to perform his prayers and to tell me that he and demnation of Serbian aggression. Pow- their missions? David were suspending campaigning erful airstrikes and military action We have Army units arriving for crit- until it was clear that my son was could send a strong and unambiguous ical combat training at the Army’s na- going to be OK. message to the Serbian leader. As in tional training center in California DALE, we will miss you around this Bosnia, empty threats of NATO action with mechanics and ‘‘mounted’’ infan- place. I won’t miss your votes, but I never does anything to get the job try simply missing. These units have will miss you. I will miss your stories, done. junior noncommissioned officers filling and I will miss your humor. I will miss There is good reason to be concerned roles traditionally filled by senior ex- your eloquence, and I will miss your about 400,000 Albanians forced from perienced noncommissioned officers. passion. I am grateful that our Senate their homes as winter approaches. I am This is a problem that permeates careers overlapped for these 2 years. concerned. I am deeply concerned every branch of the Armed Forces. We Thanks for your advice and counsel, about that. But I am more concerned simply are not retaining the seasoned, and best wishes on this next phase of about involving U.S. lives in ill-con- well-trained military personnel and your life. ceived military campaigns. I am deeply professionals. I and Senator STEVENS Mr. President, I yield the floor. concerned that we will be sending an are commissioning an important study Mr. ROBERTS addressed the Chair. already weary and overextended mili- by GAO to find out exactly why our The PRESIDING OFFICER (Mr. AL- tary into a situation for which there is military persons are leaving the serv- LARD). The Senator from Kansas. no quick and easy solution. ice in unprecedented numbers. Mr. ROBERTS. I thank the Chair. Mr. President, as you know, the U.S. The troops that I personally visited (The remarks of Mr. ROBERTS per- defense budget has declined for the in the Persian Gulf made it clear that taining to the introduction of S. 2563 past several years. At the same time, morale is low there. They are tired of are located in today’s RECORD under nontraditional deployments have constantly being separated from their ‘‘Statements on Introduced Bills and stretched an already extended military families. I believe this separation Joint Resolutions.’’) force to its limits. This is largely the would be tolerable if the operational Mr. ROBERTS. I thank the Presiding result of downsizing of our force struc- tempo required of them were humane. Officer and yield the floor. ture while increasing the number and I believe the separation would also be Mr. DOMENICI addressed the Chair. the frequency of deployments overseas eased, if they were assured that their The PRESIDING OFFICER. The Sen- for purposes other than a war. families had adequate housing and food ator from New Mexico. We have been asking our Armed on the table. Mr. DOMENICI. Parliamentary in- Forces to do more with less for several I believe the separation would be tol- quiry. years. They are finally admitting that erable and their loyalty to the military Under the order, how much time does they cannot do more with what the secure, if it weren’t for the fact that each Senator have in morning busi- President has given them. Yet, the ad- they also question the purpose of the ness? ministration is asking them to still do missions. The PRESIDING OFFICER. Five more. minutes. Now I and many of my colleagues Mr. President, I believe we are failing Mr. DOMENICI. I ask I be given the wish to ask the administration one own soldiers on all counts. 5 minutes. question: Will you do more? Will you That brings us to the question of The PRESIDING OFFICER. The Sen- ensure that readiness does not suffer money. There is simply not enough ator from New Mexico. further? Will you stop the hollowing money in the defense budget as it is f out of our military forces? currently projected to do everything Some may think that this readiness that needs to be done. There is an ef- KOSOVO AND MILITARY issue isn’t real. I am sure there are fort underway to provide emergency READINESS those who think that there is no crisis supplemental funding for military Mr. DOMENICI. Mr. President, I have in readiness. Well, I believe that a few readiness. I support that effort. How- asked for this time today to address examples of the crisis in readiness are ever, this will not solve the bigger two serious and interrelated concerns: absolutely persuasive. problems. One, the President’s plans to intervene Here are just a few of the symptoms The U.S. defense budget has been in a in Kosovo; and, two, the already evi- of this crisis: constant decline since 1985. In the case dent crisis in readiness of the U.S. One, Navy pilot retention has sunk to of Bosnia, the administration has re- military. an all-time low of 10 percent. This is lied on Congress to repeatedly supply There are some who believe that the lowest in recorded history of pilot ‘‘emergency supplemental’’ moneys to these two concerns should be dealt retention programs. provide for a ‘‘contingency’’ operation with separately. Some may argue that Air Force pilot retention is at 30 per- that started in December, 1995. We are linking the two is merely an excuse for cent, and it is projected to decline fur- currently supporting over 8,000 troops U.S. inaction. I wish to be very clear. ther. The Air Force is now 700 pilots in Bosnia, and the President persists in Developments in Kosovo may compel short. asking us to join him in a charade that the United States and our allies to in- The aircraft deployed on primary, the U.S. presence in Bosnia is an ‘‘un- tervene. However, this intervention peacekeeping deployments—such as foreseen emergency.’’ should not be paid for by further Bosnia—are being ‘‘cannibalized,’’ The budget shortfalls are eroding hollowing out of the Armed Forces. meaning, they are being stripped for readiness, but, more importantly, they October 7, 1998 CONGRESSIONAL RECORD — SENATE S11645 are contributing to a precipitous de- world without a plan, without a which are cause for concern. One such cline in the moral of the soldiers in thought, and have credibility. article appeared in the Sunday, Octo- uniform. I ask the question of the administra- ber 4, edition of the Washington Post, Mr. President, we believe it would be tion, Have we done everything we can titled ‘‘Bid to Trump Inquiry Shelved.’’ an unacceptable policy to send our do at the bargaining table with Mr. The piece discussed White House ef- troops into harm’s way without ad- Milosevic? Have we put every economic forts to produce a letter signed by at dressing the scarcity of spare parts and sanction that can be put? Have we iso- least 34 Democratic Senators declaring relevant readiness issues that cur- lated this country to the extent that that they would not vote to convict the rently permeate the forces. Of course, I we can—as we have also tried to do President, should the House decide to am not prepared to support the half with Iraq—to show this leader that he write articles of impeachment. Accord- baked, not thought through ideas that cannot continue to act in an irrespon- ing to the report, Minority Leader TOM I fear are still being contemplated by sible manner toward human beings in DASCHLE has discouraged such an at- this administration for what currently his own country and get by with it? tempt. serves as our ‘‘policy’’ in Bosnia and Have we done everything we can do I commend the Democratic leader, Kosovo. first? If we have—and I don’t think we Mr. DASCHLE, for his wise and judicious We must send a clear signal to the have—if the administration makes the counsel on this matter. He has done administration that we will not paint case that we have, then, and only then, the White House, he has done the ourselves into another Bosnia, espe- should we be considering other options. President, he has done all Senators, cially without the administration’s as- Mr. President, if we are going to and, indeed, the entire nation a great, surance that our military will not once bomb another country because of a great service. again be asked to do more with even civil conflict, a sovereign country that I am concerned about the ugly and less. is in a civil conflict, have we thought very partisan tone that has enveloped Before we commit American lives to through what the exit strategy is? many discussions of this matter, and another dangerous mission overseas, Have we thought through what our re- about the extreme polarization which we must clearly define our objectives sponsibility is going to be for doing has already occurred. The House Judi- and be realistic in the commitment re- that? I haven’t seen a plan. I haven’t ciary Committee has voted to begin an quired to achieve them. More impor- seen any kind of ‘‘after plan’’ after impeachment inquiry. I have had noth- tantly, we must give our men and bombing. Yes, we have talked about ing to say about that. I don’t intend to women in uniform sufficient assurance bombing. But if we are bombing for the have anything to say about that. This that their loyalty is not a one-way purpose of saying to Milosevic, ‘‘You is the House’s business. There is a con- street. This can only be achieved by must withdraw your police so that the stitutional process in place. That proc- ess has begun. The ball is in the field of stopping the decline in defense budgets Albanians who live in Kosovo can come out of the hills and go into their the House of Representatives at this and ensuring a higher quality of life for homes,’’ how is that to be enforced? point. We here in the Senate should our soldiers. We have been told by administration I am pleased to be joined by the dis- await the decision of the House of Rep- officials that there would not be Amer- resentatives as to whether or not arti- tinguished Senator from Texas in these ican troops on the ground unless there cles of impeachment will, indeed, be remarks this morning. is a peace agreement, something to en- The PRESIDING OFFICER. The Sen- formulated. force. Yet yesterday the Secretary of Senators may at some point have to ator’s time has expired. Defense opened the door on American sit as jurors. Let me say that again. Mr. DOMENICI. I yield the floor. troops on the ground with NATO Senators may at some point have to sit Mrs. HUTCHISON addressed the forces. Yet we haven’t seen a plan. We as jurors in this matter and will be re- Chair. haven’t seen what the American role quired to take an oath before they do. The PRESIDING OFFICER. The Sen- will be. We have certainly not been I read this oath into the RECORD a few ator from Texas. consulted to determine if the United days ago. I want to read it again, be- Mrs. HUTCHISON. Mr. President, I States is ready to expand its mission in cause the Senate will shortly be going want to really follow on what the dis- the Balkans. out, not to return at least until after tinguished Senator from New Mexico We were told we would be out of Bos- the elections, and perhaps not until the was saying, because I think he laid out nia a year ago. We were told a year and new Congress convenes in January. very well the problems that we are fac- a half ago, we were told 2 years ago To repeat this oath at this point, ing with our military today. No one that our mission in Bosnia would be might be well advised. The Bible says, questions the job our military is doing. complete when the parties were sepa- ‘‘a word fitly spoken is like apples of They are doing their jobs well. But it is rated and the elections had been held. gold in pictures of silver,’’ and so I clear that we are losing our experi- The parties are separated. The elec- think it is a good time to repeat this enced people. tions have been held. Yet American oath, which will be incumbent upon As the Senator from New Mexico has taxpayers have spent $10 billion in Bos- every Senator, should articles of im- just pointed out, we are losing our ex- nia, and the President is now saying peachment come to this Chamber. Here perienced pilots, we do not have there is an ‘‘unending mission’’ there. it is: enough parts to keep the airplanes run- He has refused to put a timetable on it. I solemnly swear that in all things apper- ning, and the Army had its worst re- This week the President has asked the taining to the trial of the impeachment now cruiting year last year since the late U.S. Congress for $2 billion more for pending, I will do impartial justice according 1970s. Bosnia in a supplemental appropria- to the Constitution and laws: So help me At the time that we are looking at tion, as if this were an emergency. Why God. mission fatigue, our troops being over- didn’t the administration put this in Note the word ‘‘impartial.’’ We all deployed away from their families on the budget? He says it is an unending need to remember the solemn respon- missions that are not security threats mission, yet we have an emergency ap- sibility we may be required to shoul- to the United States, we are now seeing propriation. der. a mixed message from this administra- I conclude by saying we cannot fling I would suggest by way of friendly tion about yet expanding their respon- ourselves around the world without a advice to the White House, don’t tam- sibilities. clear strategy and a clear role for the per with this jury. Don’t tamper with We were told in the last few weeks United States. I am looking to the this jury. I have been in Congress 46 that NATO is contemplating airstrikes President for leadership and I haven’t years. I have been in this Senate 40 in Serbia. This is, of course, a terrible seen it. years. There are some people here who and tragic situation in Kosovo. And, I yield the floor. take their constitutional responsibil- clearly, we want to try to do every- f ities very seriously. This will not be thing possible to curb atrocities that politics as usual if articles of impeach- are happening and may happen in the DON’T TAMPER WITH THIS JURY ment come to this body. future in Kosovo. But, Mr. President, a Mr. BYRD. Mr. President, I have re- My friendly words of advice to my superpower cannot fling around the cently read several articles in the press colleagues are these: We may have to S11646 CONGRESSIONAL RECORD — SENATE October 7, 1998 sit as jurors. Don’t let it be said that mate question that could ever face this House and Senate also illustrated how even we allowed ourselves to be tampered Senate. So I say to my colleagues: Be lawmakers who want Clinton to remain in with, no matter who attempts the tam- careful. office are placing clear limits on what they pering, no matter how subtle the at- Mr. President, just to illustrate how will do to short-circuit the constitutional process of reviewing the allegations of im- tempt. How can we commit ourselves close we are to making a total farce of peachable behavior that independent counsel to vote for or against articles of im- the situation, I note that Larry Flynt, Kenneth W. Starr presented last month. peachment without having seen them, publisher of a magazine called Hustler, The hope, as Democrats familiar with the without having heard the managers on has offered $1 million to anyone who discussions described it, was to get at least the part of the House prosecute the ar- will come forward with evidence of a 34 Democrats—or more than one-third of the ticles, without having heard the im- sexual liaison with a Member of Con- Senate—to declare up front that they would peached person’s lawyers and rep- gress or other high-ranking official. never vote to convict. Since two-thirds of resentatives or even the impeached How much lower can we go? Now, that the Senate must vote to evict a president, such a letter would make a House impeach- person himself make the defense? How makes a farce of the Constitution. ment vote moot, for all practical purposes. can we as Senators, who will be pro- Such tactics and countertactics only Clinton, sources said, apparently hoped that spective jurors, commit ourselves at serve to convince the people of this Na- the letter could defeat the gathering momen- this point, or at any point, as to how tion that whatever course we eventu- tum for a full impeachment inquiry in the we will vote on such articles? We can- ally take will amount to nothing more House, which is set to authorize the process not do it and live up to the oath that than partisan politics at its very worst. later this week. we will be required to take. It is a sol- Now, we all play partisan politics, but ‘‘This is an idea which was generated on this is one thing that won’t bear touch- the Hill which is not getting much traction, emn matter, it is not politics as usual, because it’s premature,’’ said a senior White and I personally will resent—and I hope ing with partisan politics on either House official. every other Senator will personally re- side, Republican or Democrat. This is Also yesterday, sources said U.S. District sent—any effort on the part of anybody the Constitution which we have sworn Judge Norma Holloway Johnson had ap- in these United States to tamper with that we will support and defend. One pointed an outside expert known as a ‘‘spe- Senators as prospective jurors. I will may say, well, there is no impeachable cial master’’ to help her determine whether personally resent it on behalf of the offense. This is something we don’t Starr’s office illegally leaked grand jury ma- Senate and on behalf of the Constitu- know. If Senators commit themselves terial to reporters, as Clinton’s lawyers have complained. tion. I urge all Senators to be on their prematurely and then find, in reading Starr’s office has denied illegal leaks, but guard. the articles, that there is one article Clinton’s lead private attorney, David R. There has been a great deal of gratu- that is very, very difficult to vote Kendall, contends that the independent itous advice given by people on the against, it may be your own seat that counsel’s office has been the source of grand outside, and some on the inside, who you are imperiling. jury material whose publication was damag- know very little, probably, about the I urge all Senators, many of whom ing to Clinton. Late last month, Johnson de- history of impeachment, about the his- are going home to stand for reelection, cided instead to appoint a special master, tory of the Senate, about responsibil- to avoid making commitments on this whose identity was not revealed, to conduct the inquiry and report back to her. ities of Senators under the Constitu- matter and to resist lobbying at- Clinton’s advisers have resigned them- tion in such an event. We don’t know tempts, no matter how subtle, and no selves to the virtual certainty that an im- what the House may decide to include matter who attempts to lobby them. peachment inquiry will be approved by the in articles of impeachment when and if We must resist pressure from all sides. House this week, but they hope perceptions they ever come to the Senate. There The people are watching. This should that the vote was a partisan rush to judg- can be an inquiry by the House, yet not, this cannot, this must not, become ment can turn this legal setback into a polit- bad, boring, beltway ‘‘politics as ical gain. never be any articles formulated. That The House Judiciary Committee will begin is up to the House. But if the House de- usual.’’ This is a matter in which par- its formal deliberations on authorizing an cides to formulate articles of impeach- tisan politics should play no role. I say impeachment inquiry Monday, and is plan- ment, we have no choice here in the this to my Republican friends as well. ning to vote that day or Tuesday. Demo- Senate but to vote up or down. We There is far, far too much at stake for cratic sources in the administration and can’t amend such articles. We have no the President, for the Presidency, for Congress said yesterday they are confident a way of knowing what the House may the system of separation of powers, for measure authorizing an open-ended impeach- consider to be an impeachable offense. Members of Congress, and for our coun- ment inquiry will pass with only Republican support, over the objections of Democrats An impeachable offense does not have try as well. Mr. President, I ask unanimous con- backing a more focused inquiry that would to be an indictable offense at law. be completed by Thanksgiving. So I warn Senators, and I warn those sent to have printed in the RECORD the A day after the last major release of docu- at the other end of the avenue, to exer- article from the October 4, 1998 Wash- ments from Starr, Clinton’s legal and politi- cise the utmost care lest somebody be ington Post. cal team yesterday had focused its own vote- unjustly prejudiced because of tongues There being no objection, the article counting efforts on the full House floor, in that wag too easily and too early. was ordered to be printed in the anticipation of a vote authorizing an im- I also condemn the circus atmosphere RECORD, as follows: peachment inquiry by the end of the week. On the floor, Clinton’s hopes for making which has overtaken this city. There [From the Washington Post, Oct. 4, 1998] the case that the effort against him is a par- are attack dogs on both sides, on the BID TO TRUMP INQUIRY SHELVED—CLINTON tisan affair are more clouded. A significant talk shows and in the press, and their LOBBYING BEHIND THE SCENES TO AVOID IM- number of Democrats are prepared to vote in wild and rabid rhetoric is hardly con- PEACHMENT favor of the impeachment inquiry, which tributing to an atmosphere of reason or (By John F. Harris) many administration and congressional offi- respect. I believe that everyone must Hoping to quash the congressional im- cials say is all but certain to pass. Estimates stop playing for advantage. And by peachment process in its nascent stages, on the precise number of these Democratic that, I mean Republicans and Demo- President Clinton in recent days discussed defectors vary widely. One Democratic crats alike; I mean people at both ends with Senate Minority Leader Thomas A. source who has consulted with lawmakers Daschle (D–S.D.) organizing an effort to have said lower-end scenarios would have about 20 of the avenue and in between. Democratic senators sign a letter declaring Democrats voting with the GOP. A House If the Senate votes on impeachment that none of the allegations or evidence in Democratic leadership aide said the number articles, that will be the most solemn, the Monica S. Lewinsky investigation would may be as high as 50; many of these law- the most sobering, and the most far- merit impeachment, according to Demo- makers are planning to vote yes for both the reaching vote that Senators in this cratic sources. Democratic inquiry resolution and then, if body will ever cast. Voting for a dec- Daschle discouraged the idea, which Clin- that fails, the Republican version. laration of war does not compete with ton apparently first heard from another What was striking this weekend was the voting to convict or not to convict a Democratic senator about a week ago, and passive public posture of the White House. for now it has been shelved. Although the Clinton administration usually President. We won’t be voting to con- But the effort illustrates the intensive be- engages in aggressive public advocacy, on vict a Federal judge and to remove hind-the-scenes lobbying Clinton is doing to the eve of a vote that is critical to Clinton’s that judge from office. In this case, it ensure his future in office. The skepticism of future the White House was not sending its would be the ultimate vote on the ulti- Daschle and other Democrats in both the representatives on the usual Sunday talk October 7, 1998 CONGRESSIONAL RECORD — SENATE S11647 show circuit. Lawyers yesterday did nothing Operation Rescue leader Randall Terry. cial landscape? We need to modernize to expand the public defense they offered Paez became upset with some of the the United States to go global? I think Friday, when Clinton’s team claimed the pro-life language Terry used and we need to pause and ask what does 4,610 pages of new material released were fur- ‘‘stormed off the bench.’’ Additionally, going global mean and do we want to ther evidence of what they said was Starr’s go there at this time? In this current tendency to suppress exculpatory evidence. he angrily warned the defendants that The strategy of staying quiet, aides said, their Bible would be confiscated if they global environment of national finan- reflected a confidence that public percep- continued to wave or consult it. cial collapses, IMF bailouts and hedge tions of the case are already breaking in While a sitting District Judge, Paez funds rescue packages have become Clinton’s favor, and that Democratic House gave a speech at UC-Berkeley’s law daily occurrences. These are the ‘‘yel- members were better positioned to make the school in which he called California’s low flashing lights’’ and I believe we case that the process Republicans are pro- Proposition 209 an ‘‘anti-civil rights must proceed with caution to avoid posing is unfair. initiative.’’ In that speech, he also rash and irrevocable changes when the The latest release of documents ‘‘didn’t said, ‘‘legal action is essential’’ to savings of hard working families and even lead the news last night. There’s no rea- the viability of our communities could son to look for opportunities to elevate this ‘‘achieving the goal of diversifying the story,’’ one White House official said of the bench.’’ He characterizes himself as a be put in serious jeopardy. quiet weekend. ‘‘Not that we’re uninvolved, ‘‘liberal.’’ Judge Paez is an extremist Frankly, I am also concerned that but the ball has now shifted to the congres- and should not be confirmed. the bill before us is the result of last- sional realm.’’ Lastly, and briefly, the nomination minute deal making. The issues here ‘‘Whatever was there hasn’t caused a huge of Timothy Dyk to the Federal Court: are too important for hasty decision- stir. Without any revelations, it hasn’t While in private practice, Mr. Dyk, making. The decisions this bill makes changed the perception of what we have to successfully fought the FCC’s ban on affect the financial security of average do with the Hill and the American public. Americans who are working and saving Our focus is still on the resolution and the indecent programming to protect chil- dren. to provide for their families, U.S. fi- Democratic alternative and how we can build nancial institutions, the American on it,’’ said another Clinton adviser outside He has sat on the board of People for the White House. the American Way, and while working economy and the global financial mar- as an attorney for People for the Amer- ketplace. Mr. BYRD. Mr. President, I thank all These are not trivial issues. We are ican Way, he successfully defended a Senators for their patience. I thank the being asked to establish a legislative county school board that forced stu- Chair and yield the floor. framework for the financial services Mr. INHOFE addressed the Chair. dents to read materials their parents industry for decades to come. These are The PRESIDING OFFICER. The Sen- believed violated their deeply held reli- irrevocable decisions. ator from Oklahoma has sought rec- gious beliefs. A member of Mr. Dyk’s As changes were made to accommo- ognition earlier. legal team called the concerned par- date this interest or that interest, I am Mr. INHOFE. Mr. President, first of ents ‘‘somehow less important’’ and concerned that we have lost sight of all, let me associate myself with the said ‘‘the enemy was really not’’ the the overall impact of the bill before us. remarks of the most distinguished sen- plaintiffs ‘‘but [Rev. Jerry] Falwell.’’ I am concerned that we do not know ior Senator from West Virginia. I believe that Mr. Dyk is also an ex- enough about what’s in the bill at this f tremist and should not be confirmed in juncture, and what it will mean for our his nomination. JUDICIAL NOMINATIONS economic security. In the haste to get I yield the floor. the job done before the Congress ad- Mr. INHOFE. Mr. President, in the f journs for the year, I have serious and midst of all the confusion and anxiety deep reservations that changes have of the last week, we are going to be THE FINANCIAL SERVICES ACT OF 1998—MOTION TO PROCEED been made that have not been well asked to vote on the confirmation of thought out or thought through. If en- three judges that I think should be Ms. MIKULSKI. Mr. President, I will acted, we will end up with unintended, looked at very carefully. vote against the motion to proceed on but nevertheless, negative con- First is the nomination of William H.R. 10, the Financial Services Act of sequences because we rushed to the fin- Fletcher to the Ninth Circuit Court of 1998. I oppose this legislation because it ish line. Appeals. Groups are in opposition due is inappropriate to bring down the pro- Advocates of this legislation always to a Law Review article in which he tective firewalls in U.S. financial serv- mention the free market. They believe stated that judicial discretion trumps ices while a firestorm is sweeping glob- that buyers and sellers acting in their legislative discretion when a legisla- al financial institutions. Mr. President, own self-interests will produce winners ture fails to act. this is the wrong time to be relaxing and losers, and bring about the best Presently, Fletcher’s mother is sit- our protective financial services regu- and most efficient outcome for banking ting on the Ninth Circuit, which is his- lations. customers. But look at what the free torically the most liberal and activist I understand the intellectual argu- market has brought us lately— a glob- court in the United States. Over the ment to reform our financial services. al financial meltdown and hedge funds last 3 years, the Supreme Court over- In fact, I do not dispute it. There is no that are ‘‘too big to fail’’. As Kissinger turned the Ninth Circuit more than doubt that the U.S. needs to be com- suggested, indiscriminate globalism any other. petitive in the global marketplace. I has generated a world-wide assault on In a book review, about which Mr. would suggest to my colleagues, the concept of free financial markets. Fletcher was questioned before the though, that changes in the global eco- In the United States, where we used to committee, he stated that political cir- nomic picture make this bill unwise. boast about our well functioning cap- cumstances outweigh a literal reading The global economic situation is vastly ital markets, we now bail out those in- of the Constitution. In short, the Con- different now than when this bill was vestors who make foolish decisions. stitution is what Judge Fletcher says being drafted. One need look no further than the it is. Judge Fletcher is an extremist There are a number of what I call Long-Term Capital debacle to see evi- and should not be confirmed. ‘‘yellow flashing lights’’ or warning dence that even the brightest minds on Nomination of Richard Paez to the signals that now is not the right time Wall Street, acting in the free market, Ninth Circuit Court of Appeals: In an to enact this legislation. Let me men- sometimes make very poor decisions. outrageous ruling in 1997, Judge Paez tion a few. Former Secretary of State The collapse of this high-flying hedge ruled that an American company could Henry Kissinger recently stated in the fund was a failure of proper super- be liable for human rights abuses com- Washington Post that no government vision. As Kenneth Guenther explains mitted by their partners in another and virtually no economist predicted in the Baltimore Sun, this raises seri- country. this global economic crisis, understood ous questions about our regulatory Paez has shown a bias against reli- its extent or anticipated its staying structure: ‘‘it doesn’t make sense to gious and conservative groups. In one power. have too-big-to-fail institutions if the of the most publicized cases Paez heard Now the United States Senate is regulatory structure is not up to regu- as a District Judge was the 1989 trial of going to rearrange the national finan- lating them. . . . if the regulators S11648 CONGRESSIONAL RECORD — SENATE October 7, 1998 have to make a choice between the basic banking services and credit to erts, John Warner, John McCain, safety of the financial system and the help their communities grow. If we Frank Murkowski, Larry E. Craig, and free market, the financial system will have a Consumer Product Safety Com- William V. Roth, Jr. win. There is no free market and there mission to protect children from flam- Mr. DORGAN. Mr. President, I ask never will be. It’s the height of hypoc- mable sleepware, I believe we should for the yeas and nays. risy to talk about the free market in also have a strong regulatory frame- The PRESIDING OFFICER. Is there a one breath and bail out Long-Term work to protect consumers, not just in- sufficient second? Capital . . . in the next breath.’’ Mr. vestors, in the financial services mar- There is a sufficient second. President, I oppose this legislation be- ketplace. The yeas and nays were ordered. cause in this environment, we need A strong regulatory framework will CALL OF THE ROLL more oversight and enforcement in our not be provided by the Federal Reserve, The PRESIDING OFFICER. By unan- financial services, not less. as is proposed in this legislation. I imous consent, the mandatory quorum Beyond these concerns that this is share the concerns of John Hawke, Un- call under the rule is waived. not the right time to enact these dersecretary of the Treasury Depart- VOTE sweeping changes buttressed by the fol- ment, that shifting the regulatory The PRESIDING OFFICER. The lies of the free market, I have other, power from the Office of the Controller question is, Is it the sense of the Sen- structural concerns with the proposed of the Currency to the Federal Reserve ate that debate on the motion to pro- changes to our financial services laws. Board is a highly questionable regu- ceed to Calendar No. 588, H.R. 10, the fi- First, I am concerned that if we relax latory protection. This would be like nancial services bill, shall be brought the laws about who can own and oper- letting the bankers regulate them- to a close? On this question, the yeas ate financial institutions, an selves. The decision making of the Fed- and nays have been ordered, and the unhealthy concentration of financial eral Reserve is directly linked to the clerk will call the roll. resources will be the inevitable result. banking industry that it would regu- The assistant legislative clerk called The savings of the many will be con- late. Bankers elect two thirds of the the roll. trolled by the few. If we relax banking Federal Reserves directors. It is true Mr. FORD. I announce that the Sen- regulations in this country, Americans that the Federal Reserve is independ- ator from Ohio (Mr. GLENN), is nec- will know less about where their depos- ent of the administration, but it is not essarily absent. its are kept and about how they are independent of the bankers and finance The PRESIDING OFFICER. Are there being used. companies that it would regulate. any other Senators in the Chamber Marylanders used to have savings ac- Mr. President, I am not opposed to a who desire to vote? counts with local banks where the tell- necessary reform of our financial serv- The yeas and nays resulted—yeas 88, er knew their name and their family. ices laws. But this is not the legisla- nays 11, as follows: We have already seen the trend toward tion and this is not the time to do it. [Rollcall Vote No. 301 Leg.] mega-mergers, accompanied by higher The U.S. stock market has had one of YEAS—88 fees, a decline in service, and the loss the worst quarters since 1990 and world of neighborhood financial institutions. Abraham Enzi Lott leaders are currently strategizing Akaka Faircloth Lugar This bill accelerates that trend. about how to stanch the global eco- Allard Feinstein Mack With a globalization of financial re- nomic crisis. Ashcroft Ford McCain sources, the local bank could be bought The Congress will be back in 90 days. Baucus Frist McConnell by a holding company based in Thai- Bennett Graham Moseley-Braun Hopefully, the world market will be Biden Grams Moynihan land. Instead of the friendly teller, con- calmer, it will be after the election, Bingaman Grassley Murkowski sumers will be contacting a computer and we will be able to study the lessons Bond Gregg Murray operator in a country half-way around Boxer Hagel Nickles learned from the financial events of Breaux Harkin Reed the globe through an 800 number. Their the past three months. For all the hard Brownback Hatch Reid account will be subject to financial work and all the negotiating and com- Bryan Helms Robb risks that have nothing to do with promise, now is not the time to go for- Burns Hollings Rockefeller their job, their community, or even the Byrd Hutchinson Roth ward and add more fuel to what is al- Campbell Inhofe Santorum economy of the United States. I know ready a very troubling global financial Chafee Inouye Sarbanes impersonalized globalization is not firestorm. Cleland Jeffords Smith (NH) what banking customers want when we Coats Johnson Smith (OR) f Cochran Kempthorne Snowe talk about modernization of the finan- Collins Kennedy Specter cial services. CONCLUSION OF MORNING Conrad Kerrey Stevens Second, I am concerned that complex BUSINESS Coverdell Kerry Thomas financial and insurance products will Craig Kohl Thompson The PRESIDING OFFICER. Morning now be sold in a cluttered market by D’Amato Kyl Thurmond business is closed. Daschle Landrieu Torricelli untrained individuals. Investment and DeWine Lautenberg Warner insurance planning for families is a f Dodd Leahy Wyden very important process, one of the Domenici Levin FINANCIAL SERVICES ACT OF Durbin Lieberman most important decisions a family 1998—MOTION TO PROCEED makes. It should be done with a profes- NAYS—11 sional who is certified and who is some- CLOTURE MOTION Bumpers Gramm Sessions one you can trust. By breaking down The PRESIDING OFFICER. Under Dorgan Hutchison Shelby the previous order, the Senate will now Feingold Mikulski Wellstone these firewalls and allowing various Gorton Roberts companies to offer insurance and com- proceed to vote on the motion to pro- NOT VOTING—1 plex investment products, we run the ceed to the consideration of H.R. 10, risk that consumers will be confused, which the clerk will report. Glenn defrauded, and treated like market seg- The assistant legislative clerk read The PRESIDING OFFICER. On this ments and not individuals with unique as follows: vote, the yeas are 88, the nays are 11. needs and goals. CLOTURE MOTION Three-fifths of the Senators duly cho- Finally, I believe that any mod- We the undersigned Senators, in accord- sen and sworn having voted in the af- ernization of our financial services law ance with the provisions of Rule XXII of the firmative, the motion is agreed to. should not just retain, but expand the Standing Rules of the Senate, do hereby f important consumer protections and move to bring to a close debate on the mo- tion to proceed to Calendar No. 588, H.R. 10, INTERNET TAX FREEDOM ACT community investment policies cur- the financial services bill. CLOTURE MOTION rently in place. Trent Lott, Alfonse D’Amato, Wayne Al- Consumers need protections and reg- lard, Tim Hutchinson, Dan Coats, Rick The PRESIDING OFFICER. Under a ulations to guarantee the safety of Santorum, Robert F. Bennett, Jon Kyl, previous order, the cloture motion hav- their deposits and the availability of Gordon Smith, Craig Thomas, Pat Rob- ing been presented under rule XXII, the October 7, 1998 CONGRESSIONAL RECORD — SENATE S11649 Chair directs the clerk to read the mo- Roberts Smith (NH) Thurmond tive at pleasure.’’ Charles Pinckney of South Rockefeller Smith (OR) Torricelli Carolina, Rufus King of Massachusetts and tion. Roth Snowe Warner The legislative clerk read as follows: Gouvernor Morris of Pennsylvania opposed, Santorum Specter Wellstone with Pinckney arguing that the president CLOTURE MOTION Sarbanes Stevens Wyden Sessions Thomas ‘‘ought not to be impeachable whilst in of- We the undersigned Senators, in accord- Shelby Thompson fice.’’ The third position, which ultimately ance with the provisions of Rule XXII of the carried the day, was that the president Standing Rules of the Senate, do hereby NAYS—4 should be impeachable, but only for a narrow move to bring to a close debate on Calendar Bumpers Gorton category of abuses of the public trust. No. 509, S. 442, the Internet tax bill: Dorgan Hollings It was George Mason of Virginia who took Trent Lott, John McCain, Wayne Allard, NOT VOTING—2 a lead role in promoting this more moderate Connie Mack, Gordon Smith, Paul course. He argued that it would be necessary Coverdell, Spencer Abraham, Mike Glenn Jeffords to counter the risk that the president might DeWine, Conrad Burns, James Inhofe, The PRESIDING OFFICER (Mr. obtain his office by corrupting his electors. Judd Gregg, Rod Grams, Craig Thomas, HUTCHINSON). On this vote, the yeas are ‘‘Shall that man be above’’ justice, he asked, Olympia Snowe, Rick Santorum, and 94, the nays are 4. Three-fifths of the ‘‘who can commit the most extensive injus- Larry E. Craig. tice?’’ The possibility of the new president Senators having voted in the affirma- becoming a near-monarch led the key CALL OF THE ROLL tive, the motion is agreed to. votes—above all, Morris—to agree that im- The PRESIDING OFFICER. By unan- f peachment might be permitted for (in imous consent, the mandatory quorum Morris’s words) ‘‘corruption & some few call under the rule is waived. IMPEACHMENT INQUIRY other offences.’’ Madison concurred, and Ed- VOTE Mr. LEAHY. Mr. President, as we mund Randolph of Virginia captured the wind down this session, certainly this emerging consensus, favoring impeachment The PRESIDING OFFICER. The on the grounds that the executive ‘‘will have question is, Is it the sense of the Sen- body and the other body have much on their mind regarding the actions of the great opportunitys of abusing his power; par- ate that debate on S. 442, the Internet ticularly in time of war when the military Tax Freedom Act, shall be brought to a House Judiciary Committee and the force, and in some respects the public close? whole area of an impeachment inquiry. money, will be in his hands.’’ The clear trend The yeas and nays are required under Every Member will have to speak for of the discussion was toward allowing a nar- the rule. himself or herself in both bodies in de- row impeachment power by which the presi- The clerk will call the roll. ciding what they believe is or is not an dent could be removed only for gross abuses of public authority. Mr. BYRD. Mr. President, the Senate impeachable offense. Many times we speak about what is To Pinckney’s continued protest that the is not in order. Will the Chair repeat separation of powers should be paramount, what the question is upon which the an impeachable offense without dis- Morris argued that ‘‘no one would say that Senators will be voting? cussing what it is not. I ask unanimous we ought to expose ourselves to the danger The PRESIDING OFFICER. The Sen- consent to have printed in the RECORD of seeing the first-Magistrate in foreign pay ator is correct. The Senate is not in an excellent article written in Sun- without being able to guard against it by dis- order. day’s Washington Post by Professor placing him.’’ At the same time, Morris in- sisted, ‘‘we should take care to provide some By unanimous consent, the manda- Sunstein, entitled ‘‘Impeachment?’’ I feel it will be helpful, as his writings mode that will not make him dependent on tory quorum call under the rule is the Legislature.’’ Thus, led by Morris, the waived. usually are, on this issue. There being no objection, the article framers moved toward a position that would The question is, Is it the sense of the maintain the separation between president Senate that debate on S. 442, the Inter- was ordered to be printed in the and Congress, but permit the president to be net Tax Freedom Act, shall be brought RECORD, as follows: removed in extreme situations. to a close? [From the Washington Post, Oct. 4, 1998] A fresh draft of the Constitution’s im- IMPEACHMENT? THE FRAMERS peachment clause, which emerged two weeks The yeas and nays are required under later on Aug. 6, permitted the president to be the rule. (By Cass Sunstein) impeached, but only for treason, bribery and The clerk will call the roll. We all now know that, under the Constitu- corruption (exemplified by the president’s Mr. BYRD. Thank you. tion, the president can be impeached for securing his office by unlawful means). With The legislative clerk called the roll. ‘‘Treason, Bribery, or other high Crimes and little additional debate, this provision was Mr. NICKLES. I announce that the Misdemeanors.’’ But what did the framers in- narrowed on Sept. 4 to ‘‘treason and brib- tend us to understand with these words? Evi- Senator from Vermont (Mr. JEFFORDS) ery.’’ But a short time later, the delegates dence of the phrase’s evolution is extensive— is necessarily absent. took up the impeachment clause anew. and it strongly suggests that, if we could so- Mason complained that the provision was Mr. FORD. I announce that the Sen- licit the views of the Constitution’s authors, too narrow, that ‘‘maladministration’’ ator from Ohio (Mr. GLENN) is nec- the current allegations against President should be added, so as to include ‘‘attempts essarily absent. Clinton would not be impeachable offenses. to subvert the Constitution’’ that would not The result was announced—yeas 94, When the framers met in Philadelphia dur- count as treason or bribery. nays 4, as follows: ing the stifling summer of 1787, they were But Madison, the convention’s most care- seeking not only to design a new form of [Rollcall Vote No. 302 Leg.] ful lawyer, insisted that the term ‘‘mal- government, but to outline the responsibil- administration’’ was ‘‘so vague’’ that it YEAS—94 ities of the president who would head the would ‘‘be equivalent to a tenure during Abraham Daschle Kempthorne new nation. They shared a commitment to pleasure of the Senate,’’ which is exactly Akaka DeWine Kennedy disciplining public officials through a system what the framers were attempting to avoid. Allard Dodd Kerrey of checks and balances. But they disagreed Hence, Mason withdrew ‘‘maladministra- Ashcroft Domenici Kerry about the precise extent of presidential tion’’ and added the new terms ‘‘other high Baucus Durbin Kohl Bennett Enzi Kyl power and, in particular, about how, if at all, Crimes and Misdemeanors against the Biden Faircloth Landrieu the president might be removed from office. State’’—later unanimously changed to, ac- Bingaman Feingold Lautenberg If we judge by James Madison’s characteris- cording to Madison, ‘‘against the United Bond Feinstein Leahy tically detailed accounts of the debates, this States’’ to ‘‘remove ambiguity.’’ The phrase Boxer Ford Levin question troubled and divided the members itself was taken from English law, where it Breaux Frist Lieberman of the Constitutional Convention. referred to a category of distinctly political Brownback Graham Lott The initial draft of the Constitution took offenses against the state. Bryan Gramm Lugar Burns Grams Mack the form of resolutions presented before the There is a further wrinkle in the clause’s Byrd Grassley McCain 30-odd members on June 13. One read that history. On Sept. 10, the entire Constitution Campbell Gregg McConnell the president could be impeached for ‘‘mal- was referred to the Committee on Style and Chafee Hagel Mikulski practice, or neglect of duty,’’ and, on July 20, Arrangement. When that committee’s ver- Cleland Harkin Moseley-Braun this provision provoked extensive debate. sion appeared two days later, the words Coats Hatch Moynihan The notes of Madison, who was representing ‘‘against the United States’’ had been Cochran Helms Murkowski Virginia, show that three distinct positions dropped, probably on the theory that they Collins Hutchinson Murray Conrad Hutchison Nickles dominated the day’s discussion. One extreme were redundant, although we have no direct Coverdell Inhofe Reed view, represented by Roger Sherman of Con- evidence. It would be astonishing if this Craig Inouye Reid necticut, was that ‘‘the National Legislature change were intended to have a substantive D’Amato Johnson Robb should have the power to remove the Execu- effect, for the committee had no authority to S11650 CONGRESSIONAL RECORD — SENATE October 7, 1998 change the meaning of any provision, let quent years. Whatever we do affects A leader of rare gifts, one who set out to alone the impeachment clause on which the the history and the course of the great- change history by convincing the electorate framers had converged. The Constitution as est democracy history has ever known. that he and his party wore the mantle of in- a whole, including the impeachment provi- In that regard, I believe Members dividual responsibility and personal account- sion, was signed by the delegates and offered ability, the President has since been forced to the nation on Sept. 17. will be wise to take the time to read an to take refuge in legalistic evasions, while These debates support a narrow under- op-ed piece written by former Presi- his defenders resort to the insulting mantra standing of ‘‘high Crimes and Misdemean- dent Gerald Ford from the New York that ‘‘everybody does it.’’ ors,’’ founded on the central notions of brib- Times on Sunday, October 4. After The best evidence that everybody doesn’t ery and treason. The early history tends in reading it, I was impressed enough to do it is the genuine outrage occasioned by the same direction. The Virginia and Dela- pick up the phone and call President the President’s conduct and by the efforts of ware constitutions, providing a background Ford and speak to him at some length. some White House surrogates to minimize its for the founders’ work, generally allowed im- significance or savage his critics. I had the privilege, when I was first a The question confronting us, then, is not peachment for acts ‘‘by which the safety of Member of the Senate, of serving with the State may be endangered.’’ And consid- whether the President has done wrong, but ered the words of the highly respected (and President Ford. I got to know him rather, what is an appropriate form of pun- later Supreme Court Justice) James Iredell, then. On many occasions in the 20 or so ishment for his wrongdoing. A simple apol- speaking in the North Carolina ratifying years since, I have been able to be with ogy is inadequate, and a fine would trivialize convention: ‘‘I suppose the only instances, in him or talk with him or seek his ad- his misconduct by treating it as a more ques- which the President would be liable to im- tion of monetary restitution. vice. I think what he says here is, At the same time, the President is not the peachment, would be where he had received a again, very worthwhile. It may not be only one who stands before the bar of judg- bribe, or had acted from some corrupt mo- something that each Member would ment. It has been said that Washington is a tive or other.’’ By way of explanation, Iredell agree with. I find a great deal of merit town of marble and mud. Often in these past referred to a situation in which ‘‘the Presi- few months it has seemed that we were all in dent had received a bribe . . . from a foreign in it. Again, President Ford speaks not only of the history involved, but of the danger of sinking into the mire. power, and under the influence of that bribe, Twenty-five years after leaving it, I still had address enough with the Senate, by arti- country and of his own long experi- consider myself a man of the House. I never fices and misrepresentations, to seduce their ences as a Member of the House. I com- forget that my elevation to the Presidency consent of pernicious treaty.’’ mend every one of us to read President came about through Congressional as well as James Wilson, a convention delegate from Ford’s op-ed piece. constitutional mandate. My years in the Pennsylvania, wrote similarly in his 1791 I ask unanimous consent that article White House were devoted to restoring pub- ‘‘Lectures on Law’’: ‘‘In the United States be printed in the RECORD. lic confidence in institutions of popular gov- and in Pennsylvania, impeachments are con- ernance. Now as then, I care more about pre- fined to political characters, to political There being no objection, the article was ordered to be printed in the serving respect for those institutions than I crimes and misdemeanors, and to political do about the fate of any individual tempo- punishments.’’ Another early commentator RECORD, as follows: rarily entrusted with office. went so far as to say that ‘‘the legitimate [From the New York Times, Oct. 4, 1998] This is why I think the time has come to causes of impeachment . . . can have ref- THE PATH BACK TO DIGNITY pause and consider the long-term con- erenced only to public character, and official (By Gerald R. Ford) sequences of removing this President from duty . . . In general, those offenses, which office based on the evidence at hand. The GRAND RAPIDS, MICH.—Almost exactly 25 may be committed equally by a private per- President’s harisplitting legialisms, objec- years have passed since Richard Nixon nomi- son, as a public officer, are not the subjects tionable as they may be, are but the fore- nated me to replace the disgraced Spiro of impeachment.’’ taste of a protracted and increasingly divi- Agnew as Vice President. In the contentious This history casts new light on the famous sive debate over those deliberately imprecise days of autumn 1973, my confirmation was by 1970 statement by Gerald Ford, then a rep- words ‘‘high crimes and misdemeanors.’’ The no means assured. Indeed, a small group of resentative from Michigan, that a high crime Framers, after all, dealt in eternal truths, House Democrats, led by Bella Abzug, risked and misdemeanor ‘‘is whatever a majority of not glossy, deceit. the House of Representatives considers it to a constitutional crisis in order to pursue Moving with dispatch, the House Judiciary be.’’ In a practical sense, of course, Ford was their own agenda. ‘‘We can get control and Committee should be able to conclude a pre- right; no court would review a decision to keep control,’’ Ms. Abzug told the Speaker of liminary inquiry into possible grounds for impeach. But in a constitutional sense, he the House, Carl Albert. The group hoped, impeachment before the end of the year. was quite wrong, the framers were careful to eventually, to replace Nixon himself with Once that process is completed, and barring circumscribe the power of the House of Rep- Mr. Albert. unexpected new revelations, the full House The Speaker, true to form, refused to have resentatives by sharply limiting the cat- might then consider the following resolution anything to do with the scheme. And so on egory of legitimately impeachable offenses. to the crisis. Dec. 6, 1973, the House voted 387 to 35 to con- The Constitution is not always read to Each year it is customary for a President firm my nomination in accordance with the mean what the founders intended it to mean, to journey down Pennsylvania Avenue and 25th Amendment to the Constitution. and Madison’s notes hardly answer every appear before a joint session of Congress to When I succeeded to the Presidency, in Au- question. But under any reasonable theory of deliver his State of the Union address. One of gust 1974, my immediate and overriding pri- constitutional interpretation, the current al- the binding rituals of our democracy, it ority was to draw off the poison that had legations against Clinton fall far short of the takes on added grandeur from its surround- seeped into the nation’s bloodstream during permissible grounds for removing a president ings—there, in that chamber where so much two years of scandal and sometimes ugly from office. Of course, perjury and obstruc- of the American story has been written, and partisanship. Some Americans have yet to tion of justice could be impeachable offenses where the ghosts of Woodrow Wilson, Frank- forgive me for pardoning my predecessor. In if they involved, for example, lies about un- lin Roosevelt and Dwight Eisenhower call the days leading up to the hugely controver- lawful manipulation of elections. It might succeeding generations to account. sial action, I didn’t take a poll for guidance, even be possible to count as impeachable Imagine a very different kind of Presi- but I did say more than a few prayers. In the dential appearance in the closing days of this ‘‘corruption’’ the extraction of sexual favors end I listened to only one voice, that of my year, not at the rostrum familiar to viewers in return for public benefits of some kind. conscience. I didn’t issue the pardon for Nix- from moments of triumph, but in the well of But nothing of this kind has been alleged on’s sake, but for the country’s. the House. Imagine a President receiving not thus far. A decision to impeach President A generation later, Americans once again an ovation from the people’s representatives, Clinton would not and should not be subject confront the specter of impeachment. From but a harshly worded rebuke as rendered by to judicial review. But for those who care the day, last January, when the Monica members of both parties. I emphasize: this about the Constitution’s words, and the judg- Lewinsky story first came to light, I have re- would be a rebuke, not a rebutal by the ment of its authors, there is a good argu- frained publicly from making any sub- President. ment that it would nonetheless be unconsti- stantive comments. I have done so because I On the contrary, by his appearance the tutional. haven’t known enough of the facts—and be- President would accept full responsibility for Mr. LEAHY. Mr. President, I urge all cause I know all too well that a President’s his actions, as well as for his subsequent ef- Members to keep in mind the necessity responsibilities are, at the best of times, on- forts to delay or impede the investigation of to have a strong sense of history in erous. In common with the other former them. No spinning, no semantics, no evasive- whatever position they take on this Presidents, I have had no wish to increase ness or blaming others for his plight. matter. It is not something that is those burdens. Moreover, I resolved to say Let all this be done without partisan ex- nothing unless my words added construc- ploitation or mean-spiritedness. Let it be done for a 30-second spot on an ad, nor tively to the national discussion. dignified, honest and, above all, cleansing. is it something that is done to deter- This much now seems clear: whether or not The result, I believe, would be the first mo- mine the fate of any one of us in an President Clinton has broken any laws, he ment of majesty in an otherwise squalid election whether this year or subse- has broken faith with those who elected him. year. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11651 Anyone who confuses this scenario with a American pilots, and how the use of air The PRESIDING OFFICER. The slap on the wrist, or a censure written in dis- power can prevent further aggression. You clerk will report. appearing ink, underestimates the historic must also define for the public what will con- The bill clerk read as follows: impact of such a pronouncement. Nor should stitute the operation’s success so that Amer- The Senator from Indiana (Mr. COATS) pro- anyone forget the power of television to fos- icans know that air strikes were launched poses an amendment numbered 3695. ter indelible images in the national mem- with a realistic end game in mind. ory—not unlike what happened on the sol- Second, you must convincingly explain to Mr. COATS. Mr. President, I ask emn August noontime in 1974 when I stood in the American people why it is that we should unanimous consent that reading of the the East-Room and declared our long na- be involved in a conflict that to many people amendment be dispensed with. tional nightmare to be over. seems to affect our interests indirectly, and The PRESIDING OFFICER. Without At 85, I have no personal or political agen- that should be resolved exclusively by those objection, it is so ordered. countries most directly threatened by it— da, nor do I have any interest in ‘‘rescuing’’ The amendment is as follows: Bill Clinton. But I do care, passionately, our European allies. As I am sure you appre- about rescuing the country I love from fur- ciate, Congress and the public’s frustration On page 17, between lines 15 and 16, insert ther turmoil or uncertainty. over Europe’s lack of willingness to bear a the following: More than a way out of the current mess, greater share of the burden for maintaining (c) EXCEPTION TO MORATORIUM.— most. Americans want a way up to some- peace in their own backyard is at an all time (1) IN GENERAL.—Subsection (a) shall also thing better. In the midst of a far graver na- high, threatening the nation’s consensus not apply in the case of any person or entity tional crisis, Lincoln observed, ‘‘The occa- that our leadership in NATO should remain a who in interstate or foreign commerce is sion is piled high with difficulty, and we priority interest for the United States. You knowingly engaged in the business of selling must rise with the occasion.’’ We should re- could go a long way toward alleviating that or transferring, by means of the World Wide member those words in the days ahead. Bet- frustration by ensuring that any ground Web, material that is harmful to minors un- ter yet, we should be guided by them. forces that might ultimately be needed to less such person or entity requires the use of a verified credit card, debit account, adult Ms. LANDRIEU. Mr. President, I ask keep the peace in Kosovo will be provided by European countries alone. access code, or adult personal identification unanimous consent to speak in morn- Third, should you order air strikes you number, or such other procedures as the Fed- ing business for the next 20 minutes for must ensure the nation that they will be of eral Communications Commission may pre- the purpose of introducing a piece of sufficient magnitude to achieve their objec- scribe, in order to restrict access to such ma- legislation. tives. I hope you will view the following crit- terial by persons under 17 years of age. The PRESIDING OFFICER. Without icism in the constructive spirit in which it is (2) SCOPE OF EXCEPTION.—For purposes of paragraph (1), a person shall not be consid- objection, it is so ordered. offered. In the past, your administration has too often threatened and then backed down ered to engaged in the business of selling or (The remarks of Ms. LANDRIEU and from the use of force, or authorized cruise transferring material by means of the World Mr. BREAUX pertaining to the introduc- missile strikes that amounted to little more Wide Web to the extent that the person is— tion of S. 2566 are located in today’s than ineffective gestures intended, I suspect, (A) telecommunications carrier engaged in RECORD under ‘‘Statements on Intro- to send a message to our adversaries, but be- the provision of a telecommunications serv- duced Bills and Joint Resolutions.’’) cause of their small scale interpreted by our ice; (B) a person engaged in the business of pro- f adversaries as a lack of resolve on the part of the United States to defend our interests viding an Internet access service; vigorously. Your administration’s failure to (C) a person engaged in the business of pro- CONCERN ABOUT THE viding an Internet information location tool; DEVELOPMENTS IN KOSOVO support UNSCOM inspectors in Iraq has also greatly exacerbated our adversaries’ lack of or Mr. MCCAIN. Mr. President, this is a respect for America’s resolve. (D) similarly engaged in the transmission, letter I sent to the President this Finally, you should explain how you intend storage, retrieval, hosting, formatting, or morning concerning Kosovo. It reads as to find additional resources to fund the oper- translation (or any combination thereof) of a communication made by another person, follows: ation in order to alleviate well-founded Con- gressional anxiety regarding the over-exten- without selection or alteration of the com- DEAR MR. PRESIDENT: I am writing because sion of U.S. military commitments at a time munication. of my serious concern about developments in when spending on national defense is woe- (3) DEFINITIONS.—In this subsection: Kosovo. With a brutality that would be al- fully inadequate. (A) BY MEANS OF THE WORLD WIDE WEB.— most unimaginable were anyone else respon- Mr. President, should you convincingly ad- The term ‘‘by means of the World Wide Web’’ sible for it, Slobodan Milosevic has subjected dress the issues I have raised, which I believe means by placement of material in a com- yet another innocent population to the you can do, I am confident you will have the puter server-based file archive so that it is bloody carnage of ethnic cleansing. The support of Congress and our constituents for publicly accessible, over the Internet, using stark depravity of his actions gravely of- operations against Serbia. You will certainly hypertext transfer protocol, file transfer pro- fends the basic moral values of Western civ- have mine. I believe there exists a clear and tocol, or other similar protocols. ilization. Moreover, the conflict in Kosovo compelling case for such an action that (B) ENGAGED IN THE BUSINESS.—The term threatens the stability of Europe, as the Americans will accept if you avoid the mis- ‘‘engaged in the business’’ means that the prospects are quite real that it may eventu- takes made in the past when your adminis- person who sells or transfers or offers to sell ally embroil other countries in the region in tration has attempted to build public sup- or transfer, by means of the World Wide Web, a larger war. More than once, the United port for the use of force. I urge to give these material that is harmful to minors devotes States has warned Serbia that NATO will not concerns your most serious consideration. time, attention, or labor to such activities, tolerate its continued aggression against f as a regular course of trade or business, with Kosovo. Serbia has ignored our warnings, the objective of earning a profit, although it thereby challenging the credibility of the INTERNET TAX FREEDOM ACT is not necessary that the person make a prof- United States, obliging us and our NATO al- The Senate continued with the con- it or that the selling or transferring or offer- lies to consider using military force to pre- ing to sell or transfer such material be the vent further aggression against our values sideration of the bill. person’s sole or principal business or source and interests in Kosovo. Mr. MCCAIN. Mr. President, I ask of income. Congress has reservations about such a unanimous consent that the pending (C) INTERNET.—The term ‘‘Internet’’ means course of action, however. While I am in- Coats amendment be 20 minutes in the combination of computer facilities and clined to support military action, I under- length, 10 minutes on either side. electromagnetic transmission media, and re- stand the basis for my colleagues’ reserva- The PRESIDING OFFICER. Without lated equipment and software, comprising tions, and I believe it is imperative that objection, it is so ordered. the interconnected worldwide network of prior to ordering any military strike on Ser- Mr. MCCAIN. I yield the floor. computer networks that employ the Trans- bia you take all necessary steps to ensure Mr. COATS addressed the Chair. mission Control Protocol/Internet Protocol, both Congress and the American people that The PRESIDING OFFICER. The Sen- or any predecessor or successor protocol, to the action is necessary, affordable, and de- ator from Indiana. transmit information. signed to achieve clearly defined goals. (D) INTERNET ACCESS SERVICE.—The term First, you must state clearly the American AMENDMENT NO. 3695 ‘‘Internet access service’’ means a service interest in resolving this terrible conflict; (Purpose: To exempt from the moratorium that enables users to access content, infor- describe in detail the facts on the ground; on Internet taxation any persons engaged mation, electronic mail, or other services of- identify all parties responsible for perpetrat- in the business of selling or transferring by fered over the Internet and may also include ing the terrible atrocities committed in means of the World Wide Web material access to proprietary content, information, Kosovo while making clear that Serbia is in- that is harmful to minors who do not re- and other services as part of a package of disputably the primary culprit; explain how strict access to such material by minors) services offered to consumers. Such term our own security is threatened by Serbian Mr. COATS. Mr. President, I send an does not include telecommunications serv- aggression and justifies risking the lives of amendment to the desk. ices. S11652 CONGRESSIONAL RECORD — SENATE October 7, 1998 (E) INTERNET INFORMATION LOCATION without selection or alteration of the com- derlying amendment now as modified TOOL.—The term ‘‘Internet information loca- munication. by the underlying amendment. tion tool’’ means a service that refers or (3) DEFINITIONS.—In this subsection: Mr. President, I also ask for the yeas (A) BY MEANS OF THE WORLD WIDE WEB.— links users to an online location on the and nays on this amendment. World Wide Web. Such term includes direc- The term ‘‘by means of the World Wide Web’’ tories, indices, references, pointers, and means by placement of material in a com- The PRESIDING OFFICER. Is there a hypertext links. puter server-based file archive so that it is sufficient second? (F) MATERIAL THAT IS HARMFUL TO MI- publicly accessible, over the Internet, using There is a sufficient second. NORS.—The term ‘‘material that is harmful hypertext transfer protocol, file transfer pro- The yeas and nays were ordered. to minors’’ means any communication, pic- tocol, or other similar protocols. Mr. COATS. Thank you, Mr. Presi- ture, image, graphic image file, article, re- (B) ENGAGED IN THE BUSINESS.—The term dent. cording, writing, or other matter of any kind ‘‘engaged in the business’’ means that the Mr. DODD addressed the Chair. person who sells or transfers or offers to sell that— The PRESIDING OFFICER. The Sen- (i) taken as a whole and with respect to or transfer, by means of the World Wide Web, minors, appeals to a prurient interest in nu- material that is harmful to minors devotes ator from Connecticut. dity, sex, or excretion; time, attention, or labor to such activities, Mr. DODD. Mr. President, I send an (ii) depicts, describes, or represents, in a as a regular course of trade or business, with amendment in the second degree to the patently offensive way with respect to what the objective of earning a profit, although it desk. is suitable for minors, an actual or simulated is not necessary that the person make a prof- The PRESIDING OFFICER. Is there sexual act or sexual contact, actual or simu- it or that the selling or transferring or offer- objection to the consideration of the lated normal or perverted sexual acts, or a ing to sell or transfer such material be the second-degree amendment? person’s sole or principal business or source lewd exhibition of the genitals; and Without objection, it is so ordered. (iii) taken as a whole, lacks serious lit- of income. erary, artistic, political, or scientific value (C) INTERNET.—The term ‘‘Internet’’ means Mr. MCCAIN. Mr. President, did the for minors. collectively the myriad of computer and Senator from Connecticut need unani- (G) SEXUAL ACT; SEXUAL CONTACT.—The telecommunications facilities, including mous consent in order for this amend- terms ‘‘sexual act’’ and ‘‘sexual contact’’ equipment and operating software, which ment to be considered? have the meanings given such terms in sec- comprise the interconnected world-wide net- The PRESIDING OFFICER. The Sen- tion 2246 of title 18, United States Code. work of networks that employ the Trans- ator may call up a previously filed mission Control Protocol/Internet Protocol, (H) TELECOMMUNICATIONS CARRIER; TELE- amendment. He needs consent to mod- COMMUNICATIONS SERVICE.—The terms ‘‘tele- or any predecessor or successor protocols to communications carrier’’ and ‘‘telecommuni- such protocol, to communicate information ify it. cations service’’ have the meanings given of all kinds by wire or radio. Mr. MCCAIN. Mr. President, I suggest such terms in section 3 of the Communica- (D) INTERNET ACCESS SERVICE.—The term the absence of a quorum. tions Act of 1934 (47 U.S.C. 153). ‘‘Internet access service’’ means a service The PRESIDING OFFICER. The that enables users to access content, infor- Mr. MCCAIN. Mr. President, I ask clerk will call the roll. mation, electronic mail, or other services of- unanimous consent to vitiate the unan- The bill clerk proceeded to call the fered over the Internet and may also include roll. imous consent agreement. access to proprietary content, information, The PRESIDING OFFICER. Without and other services as part of a package of Mr. DODD. Mr. President, I ask unan- objection, it is so ordered. services offered to consumers. Such term imous consent that the order for the AMENDMENT NO. 3695, AS MODIFIED does not include telecommunications serv- quorum call be rescinded. Mr. COATS. Mr. President, I also ices. The PRESIDING OFFICER. Without (E) INTERNET INFORMATION LOCATION objection, it is so ordered. send a modification to this amendment TOOL.—The term ‘‘Internet information loca- to the desk and ask unanimous consent Mr. DODD. Mr. President, I also ask tion tool’’ means a service that refers or unanimous consent that the amend- that my amendment No. 3695 be consid- links users to an online location on the ered as modified. World Wide Web. Such term includes direc- ment be considered as read and, fur- I might just explain the amendment. tories, indices, references, pointers, and ther, that my colleague from Indiana The PRESIDING OFFICER. Is there hypertext links. proceed to speak on his amendment. objection? (F) MATERIAL THAT IS HARMFUL TO MI- Then when he completes his discussion, Without objection, it is so ordered. NORS.—The term ‘‘material that is harmful I will make some comments on the to minors’’ means any communication, pic- amendment that I am offering. The amendment (No. 3695), as modi- ture, image, graphic image file, article, re- AMENDMENT NO. 3780 TO AMENDMENT NO. 3695, AS fied, is as follows: cording, writing, or other matter of any kind On page 17, between lines 15 and 16, insert that— MODIFIED the following: (i) taken as a whole and with respect to (Purpose: To provide an exception to the (c) EXCEPTION TO MORATORIUM.— minors, appeals to a prurient interest in nu- moratorium with respect to Internet ac- (1) IN GENERAL.—Subsection (a) shall also dity, sex, or excretion; cess providers who do not offer customers not apply in the case of any person or entity (ii) depicts, describes, or represents, in a screening software) who in interstate or foreign commerce is patently offensive way with respect to what The PRESIDING OFFICER. The knowingly engaged in the business of selling is suitable for minors, an actual or simulated clerk will report. or transferring, by means of the World Wide sexual act or sexual contact, actual or simu- The bill clerk read as follows: Web, material that is harmful to minors un- lated normal or perverted sexual acts, or a less such person or entity requires the use of lewd exhibition of the genitals; and The Senator from Connecticut (Mr. DODD) a verified credit card, debit account, adult (iii) taken as a whole, lacks serious lit- proposes an amendment numbered 3780 to access code, or adult personal identification erary, artistic, political, or scientific value amendment No. 3695, as modified. number, or such other procedures as the Fed- for minors. Mr. DODD. Mr. President, I ask unan- eral Communications Commission may pre- (G) SEXUAL ACT; SEXUAL CONTACT.—The imous consent that reading of the scribe, in order to restrict access to such ma- terms ‘‘sexual act’’ and ‘‘sexual contact’’ amendment be dispensed with. terial by persons under 17 years of age. have the meanings given such terms in sec- tion 2246 of title 18, United States Code. The PRESIDING OFFICER. Without (2) SCOPE OF EXCEPTION.—For purposes of objection, it is so ordered. paragraph (1), a person shall not be consid- (H) TELECOMMUNICATIONS CARRIER; TELE- ered to engaged in the business of selling or COMMUNICATIONS CARRIER SERVICE.—The The amendment is as follows: transferring material by means of the World terms ‘‘telecommunications carrier’’ and At the end of the amendment, add: Wide Web to the extent that the person is— ‘‘telecommunications service’’ have the (d) ADDITIONAL EXCEPTION TO MORATO- (A) a telecommunications carrier engaged meanings given such terms in Section 3 of RIUM.— in the provision of a telecomunications serv- the Communications Act of 1934 (47 U.S.C. (1) IN GENERAL.—Subsection (a) shall also ice; 153). not apply with respect to an Internet access (B) a person engaged in the business of pro- Mr. COATS. The modification is a provider, unless, at the time of entering into viding an Internet access service; technical amendment. an agreement with a customer for the provi- (C) a person engaged in the business of pro- The underlying Finance Committee sion of Internet access services, such pro- viding an Internet information location tool; substitute was previously modified vider offers such customer (either for a fee or or at no charge) screening software that is de- (D) similarly engaged in the transmission, changing the definition of ‘‘Internet,’’ signed to permit the customer to limit ac- storage, retrieval, hosting, formatting, or and the modification that I am sending cess to material on the Internet that is translation (or any combination thereof) of a to the desk simply brings my definition harmful to minors. communication made by another person, in my amendment in line with the un- (2) DEFINITIONS.—In this subsection: October 7, 1998 CONGRESSIONAL RECORD — SENATE S11653 (A) INTERNET ACCESS PROVIDER.—The term which passed both the House and the ties on the Internet, or giving them a ‘Internet access provider’ means a person en- Senate and was endorsed whole- tax shelter, at least a moratorium for a gaged in the business of providing a com- heartedly by the President and the ad- tax shelter for a period of time, but to puter and communications facility through ministration but did not survive a think that we would give that same tax which a customer may obtain access to the Internet, but does not include a common car- Court challenge for two reasons: break to those who are providing ob- rier to the extent that it provides only tele- One, the Court said that the restric- scene material to minors without re- communications services. tions had to apply only to those en- quiring any good-faith effort on their (B) INTERNET ACCESS SERVICES.—The term gaged in the business; that is, those part to make sure that minors do not ‘Internet access services’ means the provi- commercial providers. have free access to this material is un- sion of computer and communications serv- Second, it said that our standard of thinkable. That is the bottom line. ices through which a customer using a com- indecency as described in the material S. 442, the underlying bill that we are puter and a modem or other communications not suitable for children was not ac- talking about, holds out a massive tax device may obtain access to the Internet, but ceptable, violated first amendment does not include telecommunications serv- shelter to on-line businesses. The ques- ices provided by a common carrier. concerns, and they proscribed then a tion is, Is the Senate going to extend (C) SCREENING SOFTWARE.—The term standard as harmful to minors, or sug- this tax shelter to pornographers who ‘‘screening software’’ means software that is gested that. are making their material available to designed to permit a person to limit access We went back and adjusted that every child in America. to material on the Internet that is harmful Communications Decency Act which People say, well, look, I mean, this is to minors. was passed by the Congress, signed into a proactive thing. Why don’t the par- (3) APPLICABILITY.—Paragraph (1) shall law, but rejected by the Court. We re- ents take control and control what apply to agreements for the provision of vised it to comply with the Court’s their child clicks into and orders up. Internet access services entered into on or concerns, so that now it, we believe, after the date that is 6 months after the date Mr. President, I will not display this of enactment of this Act. will meet the constitutional standard. on the Senate floor because I think it The PRESIDING OFFICER. The Sen- We have applied it strictly to commer- is obscene, and whether or not you ator from Indiana. cial sites. We have adopted the require- agree it is obscene for adults, I think it Mr. COATS. Mr. President, I don’t ments for establishing the types of is absolutely not only obscene but to- believe we will need all 20 minutes. technology that the commercial porn tally inappropriate for minors. This is There may be other Members who want providers and the net can require that material that is available free. This is to speak on this. But I will summarize one will have to comply with and the before you click in and say I want to this in the interest of time, because es- other require, and we have adopted the purchase your material or send me sentially what we are doing here is definition of ‘‘harmful to minors’’ as more. These are the teasers. The teas- something that has already been done outlined in the famous case on this ers are almost beyond description, and in the Senate. It has been passed issue, the Ginsberg, New York Ginsberg it is something we don’t want to talk unanimously by the Senate. But it is case. That defined ‘‘harmful to minors’’ about here. not attached to legislation that has as in a way that means you have to be There is no excuse in saying, well, an much chance of succeeding, or at least, under 17, it has to be patently offensive 11-year-old, if he clicks in to find out if that legislation succeeds, we are not as to what is suitable for minors, taken about a school project and uses the sure what the Senate has passed is as a whole lacking serious literary, ar- wrong word, all it is is a verbal version; going to survive the process. It might tistic, political, and scientific value for he has to take a proactive effort to ob- be dropped from that. minors and appealing to prurient inter- tain the material. That is not true. Let me begin by summarizing this ests. That youngster, that child, whether just to refresh my colleagues’ memory This is a standard that we are all fa- they are in the library, whether they of what we have done before. miliar with. It has been the standard are in their school classroom, whether This amendment exempts from the applied in obscenity cases now for sev- they are at home, is immediately given moratorium which, if this bill passes— eral decades, and it is the generally ac- the most graphic of images and the and I believe it will—will be applied to cepted standard. That is the standard most graphic of language as a teaser any kind of a taxation on the World we have put into this bill. for them to go forward and obtain the Wide Web—my amendment simply ex- So to summarize, what we are doing material. We are saying that there has empts from that moratorium any com- here is attaching to this legislation, to be a provision whereby the provider mercial porn site on the World Wide which provides a tax moratorium for of this material puts in place reason- Web that does not comply with the rea- users of the World Wide Web, we are able restrictions to assure that the per- sonable requirements that are incor- saying that that moratorium does not son asking for the material is someone porated in this amendment to restrict exist, will not be available to those who is 17 years old or older. access by children to sexually explicit who use the World Wide Web for the We have complied with the Court re- material on the site. purpose of providing sexually explicit quirements. This is language that has The amendment establishes specific material to minors and have not put in already been adopted by the Senate, measures that porn site operators— place in terms of their provision to all and I hope my colleagues will see it in commercial porn site operators—must other users restrictions which are tech- that light and support this vote that is take to restrict access. These restric- nically feasible and already used, coming up in the next few moments. tions represent standard technology al- which are economically feasible, but Mr. President, I do not see any other ready on the web, and they reflect the restrictions which allow them to cer- Members on our side who are wishing technology and the requirements ac- tify that the person requesting the ma- to speak at this particular time. And I knowledged by the Court as both tech- terial is, in fact, an adult; that is, 17 am asking how much time is remaining nically and economically feasible. years and older. of the Senator’s time and I would re- In the Reno v. ACLU case—that is, This is exactly the language which serve that time. the Court’s decision that struck down was adopted unanimously by this Sen- The PRESIDING OFFICER. The Sen- the indecency provisions of the Com- ate in this Congress. And so everyone ator has 52 minutes left under cloture. munications Decency Act—the Court here has already read it, understood it, Mr. DODD. Parliamentary inquiry, said there were two problems with that voted for it, supported it. We are sim- Mr. President. act. ply transferring it now over to this There was no unanimous consent That act, by the way, is the one that particular bill and applying it in a time agreement on this amendment? was passed by the Senate in I think a somewhat different way by denying the The PRESIDING OFFICER. That is nearly unanimous vote. It was labeled tax exemption. correct. the Exon-Coats amendment, offered in It is inconceivable that we would Mr. COATS. That is correct. It was the last Congress by the Senator from grant a massive tax perk to commer- asked, agreed to and vitiated. Nebraska, the Democrat Senator from cial porn sites that make their smut The PRESIDING OFFICER. The Sen- Nebraska, Senator Exon, and myself. available to children. We are going to ator is correct. We included in that amendment— give a golden egg to commercial enti- Mr. DODD addressed the Chair. S11654 CONGRESSIONAL RECORD — SENATE October 7, 1998 The PRESIDING OFFICER. The Sen- Every parent worries about strangers Like going to a pharmacy and being ator from Connecticut. approaching their children in their asked if you want to buy a childproof Mr. DODD. I commend my colleague neighborhood or on a playground at lid for prescription medication, my bill from Indiana who is in his closing days school. will require that Internet access pro- in this body, having made the decision And they teach their children how to viders ask parents whether they would not to seek reelection. A lot of Mem- avoid these strangers. But today, these like to obtain screening software to bers, as they wind down, spend their strangers can literally enter our homes protect them from the very kind of last few days winding up work and not via the Internet. They are only a dangers that we see on the 28,000 exist- being actively involved in the legisla- mouse click away from our children. In ing web sites and the 50 new ones that tive process. It is a tribute to Senator our libraries and bookstores, we store are added each day. This is a serious COATS that in his remaining days in reading material that is harmful to mi- problem, and providing this kind of this body, he is still very active and in- nors in areas accessible only to adults. tool to parents is one way we can begin volved in issues he has cared deeply Yet, in cyberspace, these same mate- to combat the problem. about. This is one such issue. I com- rials are as accessible to a child as his At any rate, I hope my colleagues mend him for this amendment. I think or her favorite bedtime story. Porno- will see fit to support this amendment. it is a very creative way to advance graphic images and sexual predators It has been offered once before on the this issue and provide some safety for are now reaching our children, via the floor and passed the Senate overwhelm- young people who are being exposed Internet, in the privacy and safety of ingly and, not unlike the Coats amend- today to an alarming amount of por- their own homes and classrooms. This ment, we need to have it included in nography on the Internet. kind of access to our children is alarm- this bill today. I strongly support his amendment. ing, and this invasion of our children’s Again, I commend my colleague from Now, let me put my amendment in a privacy and innocence is unconscion- Indiana for his fine work on many framework for some people. My amend- able. issues, but once again on this particu- ment is a second degree amendment, Just a few weeks ago, law enforce- lar issue, and hope as well this second- and really complements the Coats ment agents in a sting operation appre- degree amendment will be adopted. amendment. My amendment requires hended 200 members of an Internet por- The PRESIDING OFFICER. The Sen- that Internet access providers either nography ring that possessed and dis- ator from Indiana. provide free of charge, or for a fee, tributed sexually explicit images of Mr. COATS. I am more than happy to accept the amendment offered by the screening software at the time they children. Members of this ring traded Senator from Connecticut. I thank him make sales to customers. Internet ac- inappropriate images of children on the for his tireless work on behalf of chil- cess providers that don’t do this, as Internet. One of the sites raided was in dren. It has been my pleasure to serve with the Coats amendment, would be my own State of Connecticut. As I denied the benefits of the tax breaks in with him on both sides, the majority noted a moment ago, there are 50 new the underlying bill. This amendment and minority, of the Children and the sites a day added to the Web that con- also relies on the Ginsberg definition Families Committee; under his chair- tain pornography, these sites are added that has been used in the Coats amend- manship as ranking member, and now to the 28,000 that already exist. Despite ment. as chairman, with Senator DODD as this successful operation by law en- How big is this problem, people say? ranking member. He has been a tireless Let me just put it in perspective for forcement agents, their raid only rep- advocate of children and addressing the you. According to Wired Magazine, resents the elimination of approxi- particular concerns that children have there are 28,000 web sites worldwide mately four days of new sites. to deal with, the problems they have to We, as a nation, have an obligation that have soft- or hard-core pornog- deal with growing up, and his support to ensure that surfing the web remains raphy on them. And, fifty new web for this legislation and the amendment a safe and viable option for our chil- sites with such material are added to to my amendment, which I think dren. We have a responsibility to make the Internet every single day—50 a day. strengthens what we are attempting to sure that they are able to learn and My colleague from Indiana has some do and is very reasonable, earlier of- grow in an environment free of sexual material he wisely decided not to show fered by Senator MCCAIN, to utilize the on the floor, but suffice to say, most predators and pornographic images. advantages of software that allows for Americans would find it highly offen- Clearly, there is no substitute for pa- blocking. sive, to put it mildly. The idea that rental supervision; yet, I think we can We see this as, certainly, a useful this material is available to children is all agree that many parents know less tool. It is not a totally useful tool be- something that ought to be a cause of about the Internet than their children cause there are a myriad of ways of de- alarm to all of us. Sadly, many of our do. Parents are convinced of the Inter- feating it. As we speak, there are un- children are unwittingly and acciden- net’s educational value, but they also doubtedly computer people far more tally exposed to such sites while surf- feel anxious about their ability to su- savvy than this Senator, looking for ing the web. They type in search terms pervise their children while they use it. ways to bypass this and looking for as innocuous as ‘‘toys’’—pretty innoc- In my view, it is important that we en- ways to defeat it. But it is a helpful uous—only to find graphic images and courage parents and children to use the tool, and it should be available to par- language on their display terminals. Internet together. But clearly, it is dif- ents to help them in their efforts to Mr. President, the Internet is pro- ficult for any adult to monitor children protect their children from material foundly changing the way we learn and on line all the time. that they do not deem appropriate and communicate with people. Today our Therefore, I believe we need to pro- that certainly is not appropriate. children have unprecedented access to vide our parents with tools that will I will be more than happy to accept educational material through the help them to protect and to guide their the amendment. I do not know that we Internet. It provides children with vast children on the Internet. The amend- need a rollcall vote on both. We can opportunities to learn about art and ment I have offered here is a modest combine the two and I think we will culture and history. The possibilities measure. It is not a cure-all by any have a very worthwhile amendment. are endless. It is an incredibly valuable stretch of the imagination. It is a mod- The PRESIDING OFFICER. Is there technology for children all across this est idea and just requires that Internet further debate on the Dodd amend- country and across the globe. access providers make screening soft- ment, No. 3780? The Senator from Mon- But as with any technology, Mr. ware available to customers purchasing tana. President, this advanced technology Internet access services. Mr. BURNS. Mr. President, if my also brings with it a dark side for our The amendment would allow cus- friend from Indiana and my friend from children. Many of these young people tomers to have the opportunity, as I Connecticut will yield, I am not going are browsing the net, often unaccom- said, to either buy or obtain free of to oppose this amendment. I congratu- panied by an adult, and come across charge, as determined by the provider, late both of them, as they have been material that is unsuitable, to put it screening software that permits cus- dedicated to raising the awareness of mildly. It is oftentimes very sexually tomers to limit access to material on the garbage that we have on the Inter- explicit. the Internet that is harmful to minors. net. No technology that we can devise, October 7, 1998 CONGRESSIONAL RECORD — SENATE S11655 that stays in place very long, is going There is great attraction to his argu- believe that we at least ought to make to actually protect our young children ment. There is a fine line in America an effort to provide parents with the from the pitfalls of the stuff that we between the prevention of material tools and institutions with the tools at find on there. The only thing that we which is offensive being forced on our least to filter out some of this garbage, can do, and I think both of them have young people and censorship. So I un- which brings me to the Senator from done this very well, is to raise the derstand the arguments that the Sen- Indiana. awareness of the need for adult super- ator from Montana has made. But let I know of no one who is more in- vision whenever young people go on the me say that it is a huge problem, and volved in the issues of families and Internet. That is the only way. That is the Senator from Montana knows it as morals and decency in America than is the only way we are going to get pro- well as I do. It is a huge problem. Senator COATS. I miss many of my col- tection and also a public awareness and Anyone who operates the Internet leagues when they leave; some of them a public feeling that we are not going today sees this proliferation of incred- I don’t miss. But the fact is, the major- to do business with Internet providers ible trash that occurs, which is ter- ity of them I do. I will miss Senator who offer this stuff. ribly, terribly disturbing to all of us— COATS because I view him as a moral We cannot protect and use this great all of us on both sides of the aisle—be- compass around here. tool called the glass highway and bring cause of the influence that it has on When Senator COATS speaks on these any integrity to it unless, No. 1, we se- young Americans, not to mention older issues, we all listen because he is a liv- cure it when I send a message to you. Americans. ing example of what we want families Of course, that is the encryption issue, We had a hearing in the Commerce in America to be about. Senator COATS and that is an issue we have to fight Committee. There was testimony that has been involved in this particular ef- another day, as far as law enforcement there is a direct relation between fort on this piece of legislation for a surveillance and this type of thing is pedophilia and the Internet. There are long, long time. concerned. But we cannot be lulled or documented cases where pedophiles I believe there may be some question rocked into a position of where we are have corresponded with young people about the bill’s constitutionality. Fine, in a basket of comfort, thinking we on the Internet and enticed them into we will let the courts decide that. I have done the job and protected our meeting. These stories are so terrible have some questions myself. But it is a children from the pedophiles and the and graphic that I am reluctant to dis- sad, but inescapable fact that material garbage that we find on the Internet, cuss them on the floor of the U.S. Sen- harmful to children is pervasive on the because the Internet is going to reflect ate. Internet in America today. It is an in- It is a problem in American society what we have in society. No matter disputable fact. There is no Member of when you look at the growth of the where you go, you will find what you the Senate who is more qualified and Internet in America. All of us, espe- are looking for. It is going to be there, has more credibility to address this cially those of us who serve on the issue than the Senator from Indiana. too, just like it is downtown or any Commerce Committee, are aware of the It is my understanding that the Sen- place in America. incredible potential of the Internet, the So, I am not going to oppose this ator from Montana is not going to seek unbelievable effects it is going to have amendment. I do have some reserva- a recorded vote on the second-degree on the Nation and the world. With the tions about it because, No. 1, I think it amendment of the Senator from Con- wiring of schools and libraries in Amer- is overreaching a little bit into indus- necticut. Fairly shortly, if there is no ica, for the first time, every child in trial policy, as far as what we should other debate on this amendment, we America, no matter whether they come will move to a vote around noon. be doing. But I tell Americans, don’t from the Navajo Reservation and Mr. President, I ask unanimous con- get comfortable in this basket of secu- Chinlee High School or whether they sent that after adoption of the Dodd rity because we have this amendment attend Beverly Hills High School, are second-degree amendment that the or that we have this legislation, that going to have access to knowledge and Senate vote at 12 noon on the Coats we are still going to be susceptible to information like never before. the people who prey on the Internet When you dial in the word ‘‘teen’’ on amendment. with garbage. We will never solve that the Internet, or when you dial in the Mr. COATS. Reserving the right to problem. The only place it will be word ‘‘nurse’’ and the search engine object, I would like to reserve 1 minute solved is through parents and us talk- comes up with a proliferation of por- for summation on the amendment that ing about it and raising the awareness nography and advertisements for it, we is being offered before the vote. Hope- that it is there. Parental supervision, have to try to address this problem. fully, I can do that before 12 o’clock. In supervision in our schools and our li- The Senator from North Dakota has case I can’t, I would like that 1 minute. braries, that is the only way we defeat discussed this issue in committee hear- Mr. MCCAIN. I amend my unanimous this. Because basically we are decent ings, the Senator from Oregon—all of consent request that the Senator from people, that is what will defeat it. That us who are familiar with it. I will tell Indiana have 2 minutes prior to the is what will finally crowd it off of you right now, Mr. President, one of vote. there, and also secure it, so maybe the problems is that a lot of us don’t The PRESIDING OFFICER (Mr. there will not be any room for it. I use the Internet like the now tens of BURNS). Without objection, it is so or- hope that would be the case, also. millions of Americans do, so we are not dered. I congratulate the Senator from Indi- aware of this problem. And, no, none of Mr. DORGAN addressed the Chair. ana. I will miss him and his service in us would support censorship. No one is The PRESIDING OFFICER. The Sen- the next U.S. Senate. But nobody has a in favor of censorship. ator from North Dakota. more stellar record than Senator I will tell you that when we have ac- Mr. DORGAN. Mr. President, I will COATS on these issues of family and de- tual testimony before our committee take 1 minute. I want to use this cency in the public place. I appreciate by detectives who say that they go out unique opportunity to add my com- that. and they find people who entice young ments about the Senator from Indiana. I yield the floor. children through the Internet to meet I have told people that I am enor- The PRESIDING OFFICER. The Sen- with them and then terrible things mously proud to serve in this body. ator from Arizona. ensue, then obviously we have a prob- One of the major reasons for that is the Mr. MCCAIN. Mr. President, first, be- lem. Recently in Phoenix, AZ, a young men and women with whom I serve, fore my friend from Montana leaves boy who was on the Internet viewing both Republicans and Democrats, lib- the floor, I want to tell him how much pornography walked out and molested erals and conservatives, I think are the I appreciate his work as chairman of a 4-year-old child. It is a fact. It is a best men and women I have been asso- the telecommunications subcommittee documented fact. Or parents in the li- ciated with in my entire life. on the Commerce Committee. My brary see pornography as they walk by One of those is the Senator from In- friend from Montana and I have had and their children are in the library diana. We became acquainted in 1981 spirited discussions and debates on this and see this. when we both were elected to the overall issue. I understand his deeply I am not sure I know the answers. I House of Representatives in the same held views, and I appreciate them. don’t know the answers, but I firmly election, and although we perhaps have S11656 CONGRESSIONAL RECORD — SENATE October 7, 1998 agreed and disagreed many times on We passed legislation earlier, the Dorgan Jeffords Reed Durbin Johnson Reid many issues throughout the years, I Communications Decency Act. Even Enzi Kempthorne Robb have deep admiration for Senator though the Congress and the people of Faircloth Kennedy Roberts COATS and his family. America and the President supported Feingold Kerrey Rockefeller When he leaves the Senate, as is the it, the Court did not support it. It Feinstein Kerry Roth Ford Kohl Santorum case with so many of our colleagues, struck it down. We have carefully Frist Kyl Sarbanes the Senate will have lost a very impor- modified and changed this language in Gorton Landrieu Sessions tant contributor on a good many this bill that I offered earlier that the Graham Lautenberg Shelby issues, this one most notable. He has Gramm Levin Smith (NH) Senate passed to comply with those Grams Lieberman Smith (OR) been persistent on this issue and, as Court restrictions. Grassley Lott Snowe the Senator from Arizona just de- We have made sure that it applies to Gregg Lugar Specter scribed, we have had hearings in the minors; that the requirements put in Hagel Mack Stevens Commerce Committee about this issue. Harkin McCain Thomas place meet the Court’s standard; that Hatch McConnell Thompson It desperately needs attention, des- the language harmful to minors meets Helms Mikulski Thurmond perately needs a solution, and the Sen- the Court-ordered test that was given Hollings Moseley-Braun Torricelli ator from Indiana has been a signifi- to us years ago in the Ginsberg case. Hutchinson Moynihan Warner cant contributor in that effort. I did Hutchison Murkowski Wellstone We believe we have something here Inhofe Murray Wyden not want to let this moment pass with- that not only is acceptable to the Inouye Nickles out sharing my respect for Senator American people and to the Congress of NAYS—1 COATS. I yield the floor. the United States and to the adminis- Leahy Mr. COATS addressed the Chair. tration, but hopefully acceptable to the The PRESIDING OFFICER. The Sen- standards imposed by the Supreme NOT VOTING—1 ator from Indiana. Mr. COATS. Mr. President, I appre- Court. So I thank my colleagues for Glenn ciate the kind words from my col- their generous words. I thank them for The amendment (No. 3695), as modi- leagues—the Senator from Connecti- their support. fied, as amended, was agreed to. cut, the Senator from North Dakota The hour of 12 noon having ap- Mr. GRASSLEY. Mr. President, I and the Senator from Arizona. I am proached, if there is any time left, I move to reconsider the vote. also appreciative of their support for yield it back and hope we can go to a Mrs. HUTCHISON. I move to lay that this effort. vote and pass this unanimously and motion on the table. I don’t know if any of us has a perfect send the kind of signal that we need to The motion to lay on the table was answer to this. We do see the Internet, send, and that is that this country and agreed to. the World Wide Web, as one of the most this Congress is not going to stand for Mrs. HUTCHISON. Mr. President, I extraordinary invasions in the history obscene material to be pushed into suggest the absence of a quorum. of mankind. It can provide access to in- children’s minds through the Internet The PRESIDING OFFICER. The formation that can revolutionize our without reasonable restrictions on that clerk will call the roll. world and provide opportunities for material. The assistant legislative clerk pro- people who heretofore have not had Mr. President, I yield the floor. ceeded to call the roll. those opportunities for knowledge and The PRESIDING OFFICER. The Mr. MCCAIN. Mr. President, I ask for learning that are extraordinary. question now occurs on agreeing to the unanimous consent that the order for At the same time, there is a dark Dodd amendment No. 3780 to the Coats the quorum call be rescinded. side to the Internet. As with most new amendment, as modified. The PRESIDING OFFICER. Without technology, it can be used for good; it The amendment (No. 3780) was agreed objection, it is so ordered. can be used for evil. Unfortunately, the to. AMENDMENTS NUMBERED 3734; 3723, AS MODIFIED, Internet is no exception. None of us Mr. DODD. I move to reconsider the 3717, 3713, 3710, 3712, 3735; AND 3721, AS MODIFIED want to put ourselves in the position of vote. Mr. MCCAIN. Mr. President, I under- being a censor. We decry that material. Mr. MCCAIN. I move to lay that mo- stand the following amendments which We don’t think it sends the right kind tion on the table. were filed earlier are acceptable to of moral message. We wish we didn’t The motion to lay on the table was both sides. have it. agreed to. Therefore, I ask unanimous consent that the following amendments be con- Yet, as a country dedicated to the VOTE ON AMENDMENT NO. 3695, AS MODIFIED, AS sidered en bloc, and agreed to: freedom of speech, enshrined in its AMENDED Amendments numbered 3734, 3723, as Constitution, we have to accept certain The PRESIDING OFFICER. The modified, 3717, 3713, 3710, 3712, 3735, and types of material that some of us con- question now occurs on agreeing to the sider offensive, but doesn’t necessarily 3721, as modified. Coats amendment No. 3695, as modified The PRESIDING OFFICER. Is there meet the obscenity test that the Court and as amended. The yeas and nays has laid out, which is a pretty strin- objection? have been ordered. The clerk will call Mr. DORGAN. Mr. President, reserv- gent test. the roll. By the same token, surely—surely— ing the right to object, I shall not ob- The assistant legislative clerk called we as a society can address the issue of ject, the amendments have been the roll. how we protect the innocence of our cleared on our side. We have no objec- Mr. FORD. I announce that the Sen- children and whether we can use rea- tion. ator from Ohio (Mr. GLENN) is nec- sonable means to give parents tools to The PRESIDING OFFICER. Without essarily absent. protect that innocence. That is what objection, it is so ordered. The PRESIDING OFFICER. Are there this amendment is about. The amendments (Nos. 3734; 3723, as Software is an attempt to do that. any other Senators in the Chamber de- modified, 3717, 3713, 3710, 3712, 3735; and We know from documented evidence siring to vote? 3721, as modified) were agreed to, as that software is only a partial solution, The result was announced—yeas 98, follows: nays 1, as follows: that it can be defeated, but I think it AMENDMENT NO. 3734 is helpful and we ought to utilize that [Rollcall Vote No. 303 Leg.] (Purpose: To modify the Commission and encourage it. YEAS—98 membership) Beyond that, however, we need a Abraham Breaux Cochran Beginning on page 18, line 17, strike all sanction, a sanction that imposes some Akaka Brownback Collins through page 19, line 21, and insert: Allard Bryan Conrad (B) Eight representatives from State and requirements—technologically feasible Ashcroft Bumpers Coverdell requirements and economically fea- local governments (1 of whom shall be from Baucus Burns Craig a State or local government that does not Bennett Byrd D’Amato sible requirements—on those who seek impose a sales tax) and 8 representatives of to bypass the effort to put any kind of Biden Campbell Daschle Bingaman Chafee DeWine the electronic commerce industry, tele- restrictions on the availability of this Bond Cleland Dodd communications carriers, local retail busi- material to children. Boxer Coats Domenici nesses, and consumer groups, comprised of— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11657 (i) five representatives appointed by the week by voice vote. Because of time (7) Parent: The term ‘‘parent’’ includes Majority Leader of the Senate; constraints at the end of the session, ‘‘legal guardian.’’ (ii) three representatives appointed by the we have been unable to file a commit- (8) Personal Information: This is an online children’s privacy bill, and its reach is lim- Minority Leader of the Senate; tee report before offering it as an (iii) five representatives appointed by the ited to information collected online from a Speaker of the House of Representatives; and amendment on the Senate floor. Ac- child. (iv) three representatives appointed by the cordingly, I wish to take this oppor- The amendment applies to individually Minority Leader of the House of Representa- tunity to explain the purpose and some identifying information collected online tives. of the important features of the from a child. The definition covers the on- line collection of a first and last name, ad- AMENDMENT NO. 3723, AS MODIFIED amendment. In a matter of only a few months dress including both street and city/town (Purpose: To establish the relationship be- (unless the street address alone is provided tween the bill and certain other provisions since Chairman MCCAIN and I intro- duced this bill last summer, we have in a forum, such as a city-specific site, from of existing law, and to set forth the role of which the city or town is obvious), e-mail ad- the National Commission on Uniform been able to achieve a remarkable con- dress or other online contact information, State Legislation) sensus. This is due in large part to the phone number, Social Security number, and On page 25, between lines 6 and 7, insert recognition by a wide range of con- other information that the website collects the following: stituencies that the issue is an impor- online from a child and combines with one of (3) EFFECT ON THE COMMUNICATIONS ACT OF tant one that requires prompt atten- these identifiers that the website has also 1934.—Nothing in this section shall include tion by Congress. It is due to revisions collected online. Thus, for example, the in- an examination of any fees or charges im- to our original bill that were worked formation ‘‘Andy from Las Vegas’’ would not posed by the Federal Communications Com- fall within the amendment’s definition of mission or States related to— out carefully with the participation of the marketing and online industries, personal information. In addition, the (A) obligations under the Communications amendment authorizes the FTC to determine Act of 1934 (47 U.S.C. 151 et seq.); or the Federal Trade Commission, privacy through rulemaking whether this definition (B) the implementation of the Tele- groups, and first amendment organiza- should include any other identifier that per- communications Act of 1996 (or of amend- tions. mits the physical or online contacting of a ments made by that Act). The goals of this legislation are: (1) specific individual. (h) NATIONAL TAX ASSOCIATION COMMUNICA- to enhance parental involvement in a It is my understanding that ‘‘contact’’ of TIONS AND ELECTRONIC COMMERCE TAX child’s online activities in order to pro- an individual online is not limited to e-mail, PROJECT.—The Commission shall, to the ex- tect the privacy of children in the on- but also includes any other attempts to com- tent possible, ensure that its work does not line environment; (2) to enhance paren- municate directly with a specific, identifi- undermine the efforts of the National Tax able individual. Anonymous, aggregate infor- Association Communications and Electronic tal involvement to help protect the mation—information that cannot be linked Commerce Tax Project. safety of children in online fora such as by the operator to a specific individual—is AMENDMENT NO. 3717 chatrooms, home pages, and pen-pal not covered by this definition. (Purpose: To add a severability provision for services in which children may make (9) Verifiable Parental Consent: The the entire bill) public postings of identifying informa- amendment establishes a general rule that tion; (3) to maintain the security of ‘‘verifiable parental consent’’ is required be- At the end of the bill, add the following: fore a web site or online service may collect SEC. . SEVERABILITY. personally identifiable information of children collected online; and (4) to information online from children, or use or If any provision of this Act, or any amend- disclose information that it has collected on- ment made by this Act, or the application of protect children’s privacy by limiting line from children. The amendment makes that provision to any person or cir- the collection of personal information clear that parental consent need not be ob- cumstance, is held by a court of competent from children without parental con- tained for each instance of information col- jurisdiction to violate any provision of the sent. The legislation accomplishes lection, but may, with proper notice, be ob- Constitution of the United States, then the these goals in a manner that preserves tained by the operator for future informa- other provisions of that section, and the ap- the interactivity of children’s experi- tion collection, use and disclosure. Where pa- plication of that provision to other persons rental consent is required under the amend- and circumstances, shall not be affected. ence on the Internet and preserves chil- dren’s access to information in this ment, it means any reasonable effort, taking AMENDMENT NO. 3713 into consideration available technology, to rich and valuable medium. (Purpose: To correct a reference to ‘‘inter- provide the parent of a child with notice of I ask unanimous consent that a sec- the website’s information practices and to state’’, rather than ‘‘electronic’’ com- tion-by-section summary be printed in merce) ensure that the parent authorizes collection, the RECORD. use and disclosure, as applicable, of the per- On page 22, line 25, strike ‘‘interstate’’ and There being no objection, the mate- sonal information collected from that child. insert ‘‘electronic’’. rial was ordered to be printed in the The FTC will specify through rulemaking AMENDMENT NO. 3710 RECORD, as follows: what is required for the notice and consent (Purpose: To correct a reference to to be considered adequate in light of avail- SECTION-BY-SECTION SUMMARY ‘‘consumers’’ to refer to ‘‘users’’) able technology. The term should be inter- Section 1. Short title On page 28, line 6, strike ‘‘consumers.’’ and preted flexibly, encompassing ‘‘reasonable This Act may be cited as the ‘‘Children’s insert ‘‘users.’’. effort’’ and ‘‘taking into consideration avail- Online Privacy Protection Act of 1998.’’ able technology.’’ Obtaining written paren- AMENDMENT NO. 3712 Section 202. Definitions tal consent is only one type of reasonable ef- (Purpose: To define the term ‘‘Internet’’) (1) Child: The amendment applies to infor- fort authorized by this legislation. ‘‘Avail- On page 27, strike lines 14 through 23, and mation collected from children under the age able technology’’ can encompass other online insert the following: of 13. and electronic methods of obtaining parental (4) INTERNET.—The term ‘‘Internet’’ means (2) Operator: The amendment applies to consent. Reasonable efforts other than ob- collectively the myriad of computer and ‘‘operators.’’ This term is defined as the per- taining written parental consent can satisfy telecommunications facilities, including son or entity who both operates an Internet the standard. For example, digital signatures equipment and operating software, which website or online service and collects infor- hold significant promise for securing consent comprise the interconnected world-wide net- mation on that site either directly or in the future, as does the World Wide Web work of networks that employ the Trans- through a subcontractor. This definition is Consortium’s Platform for Privacy Pref- mission Control Protocol/Internet Protocol, intended to hold responsible the entity that erences. In addition, I understand that the or any predecessor or successor protocols to collects the information, as well as the en- FTC will consider how schools, libraries and such protocol, to communicate information tity on whose behalf the information is col- other public institutions that provide Inter- of all kinds by wire or radio. lected. This definition, however, would not net access to children may accomplish the AMENDMENT NO. 3735 apply to an online service to the extent that goals of this Act. it does not collect or use the information. As the term ‘‘reasonable efforts’’ indicates, (Purpose: To make it clear that the delayed The amendment exempts nonprofit entities this is not a strict liability standard and effective date for the Children’s Online Pri- that would not be subject to the FTC Act. looks to the reasonableness of the efforts vacy Act is keyed to the filing date of the The exception for a non-profit entity set made by the operator to contact the parent. application) forth in Section 202(2)(B) applies only to a (10) Website Directed to Children: This def- In section 208(2) of title II of the bill, as true not-for-profit and would not apply to an inition encompasses a site, or that portion of added by amendment, insert ‘‘filed’’ after entity that operates for its own profit or a site or service, which is targeted to chil- ‘‘application’’ the first place it appears. that operates in substantial part to provide dren under age 13. The subject matter, visual Mr. BRYAN. Mr. President, this bill profits to or enhance the profitability of its content, age of models, language or other was reported out of Committee last members. characteristics of the site or service, as well S11658 CONGRESSIONAL RECORD — SENATE October 7, 1998 as off-line advertising promoting the erators to be liable under another source of collected the parents’ online contact infor- website, are all relevant to this determina- law for disclosures made in a good faith ef- mation in order to obtain parental consent, tion. For example, an online general interest fort to fulfill the disclosure obligation under it must not maintain that information in re- bookstore or compact disc store will not be this subsection. Accordingly, subsection trievable form if the parent does not respond considered to be directed to children, even 203(a)(2) provides that operators are immune in a reasonable period of time. Finally, if the though children visit the site. However, if from liability under either federal or state child’s online contact information will be the operator knows that a particular visitor law for any disclosure made in good faith used, at the child’s request, to contact the from whom it is collecting information is a and following procedures that are reason- child more than once, the site must use rea- child, then it must comply with the provi- able. If the FTC has not issued regulations, sonable means to notify parents and give sions of this amendment. In addition, if that I expect that such procedures would be them the opportunity to opt out. site has a special area for children, then that judged by a court based upon their reason- In addition, subsection (C)(ii) also allows portion of the site will be considered to be ableness. the FTC the flexibility to permit the site to directed to children. Subsection 203(b)(1)(B) also gives that par- recontact the child without notice to the The amendment provides that sites or ent the ability to opt out of the operator’s parents, but only after the FTC takes into services that are not otherwise directed to further use or maintenance in retrievable consideration the benefits to the child of ac- children should not be considered directed to form, or future online collection of informa- cess to online information and services and children solely because they refer or link tion from that child. The opt out of future the risks to the security and privacy of the users to different sites that are directed to collection operates as a revocation of con- child associated with such access. sent that the parent has previously given. It children. Thus a site that is directed to a Paragraph (D) clarifies that websites and does not prohibit the child from seeking to general audience, but that includes online services offering interactive services provide information to the operator in the hyperlinks to different sites that are di- directed to children, such as monitored future, nor the operator from responding to rected to children, would not be included in chatrooms and bulletin boards, that require such a request by seeking (and obtaining) pa- this definition but the child oriented linked registration but do not allow the child to rental consent. In addition, the opt out re- sites would be. By contrast, a site that is a post personally identifiable information, quirement relates only to the online site or child-oriented director would be considered may request and retain the names and online sites for which the information was collected directed to children under this standard. contact information of children participat- and maintained, and does not apply to dif- However, it would be responsible for its own ing in such activities to the extent necessary ferent sites which the operator separately information practices, not those of the sites to protect the safety of the child. However, maintains. or services to which it offers hyperlinks or the company may not use such information references. Subsection 203(b)(3) provides that if a par- ent opts out of use or maintenance in re- except in circumstances where the company (12) Online Contact Information: This term believes that the safety of a child participat- means an e-mail address and other substan- trievable form, or future online collection of personal information, the operator of the ing on that site is threatened, and the com- tially similar identifiers enabling direct on- pany must provide direct parental notifica- line contact with a person. site or service in question may terminate the service provided to that child. tion with the opportunity for the parent to Section 203. Regulation of unfair and deceptive 4. Curbing Inducements to Disclose Per- opt out of retention of the information. For acts and practices sonal Information: Subsection 203(b)(1)(C) example, there have been instances in which This subsection directs the FTC to promul- prohibits operators from inducing a child to children have threatened suicide or discussed gate regulations within one year of the date disclose more personal information than rea- family abuse in such fora. Under these cir- of enactment prohibiting website or online sonably necessary in order to participate in cumstances, an operator may use the name service operators or any person acting on a game, win a prize, or engage in another ac- and online contact information of the child their behalf from violating the prohibitions tivity. in order to be able to get help for the child. of subsection (b). The regulations shall apply 5. Security Procedures: Subsection Throughout this section, the amendment to any operator of a website or online service 203(b)(1)(D) requires that an operator estab- uses the term ‘‘not maintained in retrievable that collects personal information from chil- lish and maintain reasonable procedures to form.’’ It is my intent in using this language dren and is directed to children, or to any protect the confidentiality, security, and in- that information that is ‘‘not maintained in operator where that operator has actual tegrity of personal information collected on- retrievable form’’ be deleted from the opera- knowledge that it is collecting personal in- line from children by that operator. tor’s database. This language simply recog- formation from a child. Exceptions to Parental Consent: Sub- nizes the technical reality that some infor- The regulations shall require that these section 203(b)(2) is intended to ensure that mation that is ‘‘deleted’’ from a database operators adhere to the statutory require- children can obtain information they specifi- may linger there in non-retrievable form. ments set forth in Section 203(b)(1): cally request on the Internet but only if the Enforcement.—Subsection 203(c) provides 1. Notice—Operators must provide notice operator follows certain specified steps to that violations of the FTC’s regulations on their sites of what personal information protect the child’s privacy. This subsection issued under this amendment shall be treat- they are collecting online from children, how permits an operator to collect online contact ed as unfair or deceptive trade practices they are using that information, and their information from a child without prior pa- under the FTC Act. As discussed below, disclosure practices with regard to that in- rental consent in the following cir- State Attorneys General may enforce viola- formation. Such notice should be clear, cumstances: (A) collecting a child’s online tions of the FTC’s rules. Under subsection prominent and understandable. However, contact information to respond on a one- 203(d), state and local governments may not, providing notice on the site alone is not suf- time basis to a specific request of the child; however, impose liability for activities or ac- ficient to comply with the other provisions (B) collecting a parent’s or child’s name and tions covered by the amendment if such re- of Section 202 that require the operator to online contact information to seek parental quirements would be inconsistent with the make reasonable efforts to provide notice in consent or to provide parental notice; (C) requirements under this amendment or Com- obtaining verifiable parental consent, or the collecting online contact information to re- mission regulations implementing this provisions of Section 203 that require reason- spond directly more than once to a specific amendment. able efforts to give parents notice and an op- request of the child (e.g., subscription to an Section 204. Safe harbors portunity to refuse further use or mainte- online magazine), when such information is nance of the personal information collected not used to contact the child beyond the This section requires the FTC to provide from their child. These provisions require scope of that request; (D) the name and on- incentives for industry self-regulation to im- that the operator make reasonable efforts to line contact information of the child to the plement the requirements of Section 203(b). ensure that a parent receives notice, taking extent reasonably necessary to protect the Among these incentives is a safe harbor into consideration available technology. safety of a child participant in the site; and through which operators may satisfy the re- 2. Prior Parental Consent—As a general (E) collection, use, or dissemination of such quirements of Section 203 by complying with rule, operators must obtain verifiable paren- information as necessary to protect the secu- self-regulatory guidelines that are approved tal consent for the collection, use or disclo- rity or integrity of the site or service, to by the Commission under this section. sure of personal information collected online take precautions against liability, to re- This section requires the Commission to from a child. spond to judicial process, or, to the extent make a determination as to whether self-reg- 3. Disclosure and Opt Out for a Parent Who permitted under other provisions of law, to ulatory guidelines submitted to it for ap- Has Provided Consent: Subsection provide information to law enforcement proval meet the requirements of Commission 203(b)(1)(B) creates a mechanism for a par- agencies or for an investigation related to regulations issued under Section 203. The ent, upon supplying proper identification, to public safety. Commission will issue, through rulemaking, obtain: (1) disclosure of the specific types of For each of these exceptions the amend- regulations setting forth procedures for the personal information collected from the ment provides additional protections to en- submission of self-regulatory guidelines for child by the operator; and (2) disclosure sure the privacy of the child. For a one-time Commission approval. The regulations will through a ‘‘means that is reasonable under contact, the online contact information col- require that such guidelines provide the pri- the circumstances’’ of the actual personal in- lected may be used only to respond to the vacy protections set forth in Section 203. The formation the operator has collected from child and then must not be maintained in re- Commission will assess all elements of pro- that child. It would be inappropriate for op- trievable form. In cases where the site has posed self-regulatory guidelines, including October 7, 1998 CONGRESSIONAL RECORD — SENATE S11659 enforcement mechanisms, in light of the cir- date of enactment, or the date on which the Mr. MCCAIN. Mr. President, I ask cumstances attendant to the industry or sec- FTC rules on the first safe harbor applica- unanimous consent that reading of the tor that the guidelines are intended to gov- tion under section 204 if the FTC does not amendment be dispensed with. ern. rule on the first such application filed within The PRESIDING OFFICER. Without The amendment provides that, once guide- one year after the date of enactment, which- lines are approved by the Commission, com- objection, it is so ordered. ever is later. However, in no case shall the The amendment is as follows: pliance with such guidelines shall be deemed effective date be later than 30 months after compliance with Section 203 and the regula- the date of enactment of this Act. On page 23, beginning with line 14, strike tions issued thereunder. through line 2 on page 25 and insert the fol- LIST OF SUPPORTERS OF CHILDREN’S INTERNET The amendment requires the Commission lowing: to act upon requests for approval of guide- PRIVACY LANGUAGE ‘‘(D) an examination of model State legis- lines for safe harbor treatment within 180 The Federal Trade Commission. lation that— days of the filing of such requests, including The Direct Marketing Association (rep- ‘‘(i) would provide uniform definitions of a period for public notice and comment, and resenting 3,500 domestic members). categories of property, goods, service, or in- to set forth its conclusions in writing. If the GeoCities. formation subject to or exempt from sales Commission denies a request for safe harbor Time Warner. and use taxes; and treatment or fails to act on a request within Commercial Internet eXchange Associa- ‘‘(ii) would ensure that Internet access 180 days, the amendment provides that the tion. services, online services, and communica- party that sought Commission approval may Disney. tions and transactions using the Internet, appeal to a United States district court as AOL. Internet access service, or online services Highlights for Children. provided for in the Administrative Procedure would be treated in a tax and technologically American Academy of Pediatrics. Act, 5 U.S.C. § 706. neutral manner relative to other forms of re- American Advertising Federation. mote sales; and’’. Section 205. Actions by States American Association of Advertising Agen- State Attorneys General may file suit on cies. Mr. MCCAIN. Mr. President, this behalf of the citizens of their state in any Center for Democracy & Technology. amendment is simple. It is offered by U.S. district court of jurisdiction with re- Center for Media Education. myself for Senators GREGG and gard to a practice that violates the FTC’s Viacom. LIEBERMAN. The amendment instructs regulations regarding online children’s pri- AMENDMENT NO. 3721, AS MODIFIED the commission created in this bill to vacy practices. Relief may include enjoining (Purpose: To make minor changes in the examine model state legislation and the practice, enforcing compliance, obtain- commission established by the bill) provide definitions of what should be ing compensation on behalf of residents of the state, and other relief that the court On page 17, beginning with line 18, strike subject to or exempt from taxation. considers appropriate. through line 21 on page 19 and insert the fol- Additionally, the Commission would be Before filing such an action, an attorney lowing: instructed to look specifically at Inter- general must provide the FTC with written (a) ESTABLISHMENT OF COMMISSION.—There net transactions. notice of the action and a copy of the com- is established a commission to be known as Some would like to see the scope of plaint. However, if the attorney general de- the Advisory Commission on Electronic the commission expanded. This is not termines that prior notice is not feasible, it Commerce (in this title referred to as the necessary. The Commission may look shall provide notice and a copy of the com- ‘‘Commission’’). The Commission shall— plaint simultaneous to filing the action. In (1) be composed of 19 members appointed in at any form of remote sales, but it is these actions, state attorneys general may accordance with subsection (b), including the not forced to. exercise their power under state law to con- chairperson who shall be selected by the This bill is about the Internet, and duct investigations, take evidence, and com- members of the Commission from among its potential as a new technology—but pel the production of evidence or the appear- themselves; and more importantly, as a medium for ance of witnesses. (2) conduct its business in accordance with electronic commerce. The Internet is After receiving notice, the FTC may inter- the provisions of this title. not like the mail. It is not a monopoly. vene in the action, in which case it has the (b) MEMBERSHIP.— It is unlike anything that we have seen right to be heard and to file an appeal. Indus- (1) IN GENERAL.—The Commissioners shall try associations whose guidelines are relied serve for the life of the Commission. The to date. For that reason we believe upon as a defense by any defendant to the ac- membership of the Commission shall be as that it should be protected from dis- tion may file as amicus curiae in proceedings follows: criminatory taxation. under this section. (A) 3 representatives from the Federal Gov- Mr. President, there will be some If the FTC has filed a pending action for ernment, comprised of the Secretary of Com- who seek to defeat this amendment or violation of a regulation prescribed under merce, the Secretary of the Treasury, and will offer second degree amendments to Section 3, no state attorney general may file the United States Trade Representative (or it regarding remote sales, specifically an action. their respective delegates). mail order sales. We dealt with that Section 206. Administration and applicability (B) 8 representatives from State and local subject specifically the other day. My FTC Enforcement: Except as otherwise governments (one such representative shall provided in the amendment, the FTC shall be from a State or local government that good friend from Arkansas offered an conduct enforcement proceedings. The FTC does not impose a sales tax * * *) and one amendment to overturn the Quill deci- shall have the same jurisdiction and enforce- representative shall be from a state that sion regarding mail order sales. Sen- ment authority with respect to its rules does not impose an income tax. ator GRAHAM of Florida spoke in favor under this amendment as in the case of a (C) 8 representatives of the electronic com- of the amendment. And then the Sen- violation of the Federal Trade Commission merce industry, telecommunications car- ate voted on the matter. The amend- Act, and the amendment shall not be con- riers, local retail businesses, and consumer ment was defeated handily: 65–30. We strued to limit the authority of the Commis- groups, comprised of— don’t need to revisit this issue again. If sion under any other provisions of law. (i) 5 individuals appointed by the Majority Enforcement by Other Agencies: In the Leader of the Senate; we do, I would hope the vote to table case of certain categories of banks, enforce- (ii) 3 individuals appointed by the Minority would be the same. ment shall be carried out by the Office of the Leader of the Senate; We should let this commission do its Controller of the Currency; the Federal Re- (iii) 5 individuals appointed by the Speaker work. We should not prejudge what serve Board, the Board of Directors of the of the House of Representatives; and they will decide or attempt to force Federal Deposit Insurance Corporation, the (iv) 3 individuals appointed by the Minor- them to examine certain subjects or National Credit Union Administration ity Leader of the House of Representatives. come to certain conclusions. That Board, and the Farm Credit Administration. AMENDMENT NO. 3722 would be wrong and would undermine The Secretary of Transportation shall have (Purpose: To direct the Commission to the mission of the Commission. The bi- enforcement authority with regard to any examine model State legislation) domestic or foreign air carrier, and the Sec- partisan amendment before the Senate retary of Agriculture where certain aspects Mr. MCCAIN. Mr. President, I ask gives the commission free reign to de- of the Packers and Stockyards Act apply. unanimous consent that amendment cide what it believes is best and report Section 207. Review numbered 3722 be the pending business. such findings to the Congress. I urge Within 5 years of the effective date for this The PRESIDING OFFICER. The my colleagues to support the McCain/ amendment, the Commission shall conduct a clerk will report. Gregg/Lieberman amendment and de- review of the implementation of this amend- The assistant legislative clerk read feat any second degree amendments ment, and shall report to Congress. as follows: that may be offered. Section 208. Effective date The Senator from Arizona (Mr. MCCAIN), Mr. President, I yield the floor. The enforcement provisions of this amend- for himself, Mr. GREGG, and Mr. LIEBERMAN, Mr. HUTCHINSON addressed the ment shall take effect 18 months after the proposes an amendment numbered 3722. Chair. S11660 CONGRESSIONAL RECORD — SENATE October 7, 1998 The PRESIDING OFFICER. The Sen- State and local governments and which I ask my colleagues to support this ator from Arkansas. is so important to local businesses that second-degree amendment. AMENDMENT NO. 3760 TO AMENDMENT NO. 3722 are trying to survive and who are re- Mr. WYDEN. Mr. President, first, let (Purpose: Relating to the duties of the Advi- mitting those sales taxes. This issue, me say that I strongly support the sory Commission on Electronic Commerce) which is so critical, ought to be, I be- Gregg amendment. Let me say to the Mr. HUTCHINSON. Mr. President, I lieve, examined and studied. For the Senator from Arkansas, I think his call up second-degree amendment 3760. sake of small mom-and-pop businesses amendment is in the wrong place. I The PRESIDING OFFICER. The who find themselves in competition think it is supposed to go at page 25. clerk will report. with Internet entities and other out-of- But if we could work with him, we The assistant legislative clerk read State sellers who do not have to collect want to make sure that there is fair as follows: State sales taxes from out-of-State consideration of his amendment. The Senator from Arkansas (Mr. HUTCH- buyers, we should allow the commis- Mr. President, let me also say that INSON), for himself, Mr. ENZI, and Mr. sion to study the impact that the lack the whole point of the Internet Tax GRAHAM, proposes an amendment numbered of taxation on these transactions has Freedom Act is to focus on electronic 3760 to amendment No. 3722. on small businesses. commerce. We have had, since the be- Mr. HUTCHINSON. Mr. President, I For the sake of out-of-State sellers ginning of this discussion, efforts to ask unanimous consent that reading of who do collect and remit sales taxes bring into this debate a variety of the amendment be dispensed with. while their competitors do not, let’s other kinds of subjects, but it seems to The PRESIDING OFFICER. Without allow the commission to study this me at a time when we have 30,000 tax- objection, it is so ordered. issue. This is, in fact, a commission ing jurisdictions, many of which have The amendment is as follows: study. varied and sundry ideas with respect to At the end of the McCain amendment, add It should be noted that Congress and electronic commerce and the Internet, the following: Congress alone can either accept or what we ought to do is stick to the sub- (F) an examination of the effects of tax- eject the recommendations that the ject at hand, and that is calling a brief ation, including the absence of taxation, on commission might make. The Supreme time-out to look at these issues, a all interstate sales transactions, including Court decided in the case of Quill v. time-out in which the Internet would transactions using the Internet, on local re- North Dakota that States cannot re- tail businesses and on State and local gov- be treated like everything else, by the quire out-of-State sellers to collect and way. ernments, which examination may include a remit sales taxes on goods purchased review of the efforts of State and local gov- At various points in this debate we ernments to collect sales and use taxes owed for use in a particular State, unless have heard about how we are establish- on in-State purchases from out-of-State sell- Congress authorizes them to do so. ing a tax haven for the Internet. That ers. My amendment does not overturn is simply wrong. During the morato- Mr. HUTCHINSON. I ask unanimous Quill. I want to emphasize that. This rium, sales on the Internet would get amendment does not overturn the Quill consent that Senator ENZI be added as treated just like other sales. It is very decision. It simply allows the commis- cosponsor to my amendment. important now, with the extraordinary sion to study the implications, to The PRESIDING OFFICER. Without growth of the Internet, as our col- study the ramifications of Quill on objection, it is so ordered. leagues have noted, that we do this job small businesses and State and local Mr. HUTCHINSON. Mr. President, I right, which requires that we go for- ask unanimous consent that the governments. Electronic commerce is estimated to ward with language such as that of- amendment be modified by deleting the reach $8 billion in 1998. And by the year fered by the Senator from New Hamp- word ‘‘local’’ on line 6 of page 1 of the 2002, electronic commerce is expected shire to ensure that we focus on elec- amendment. to reach $300 billion. tronic commerce. The PRESIDING OFFICER. Without Let me say that the Internet is an in- By doing that, we also increase the objection, it is so ordered. credible tool both for education pur- prospects for making sure that at the The modification is accepted. poses and business promotion. My end of our work we have a policy that Mr. HUTCHINSON. Mr. President, amendment in no way is intended to guarantees technological neutrality. this amendment amends the McCain thwart the growth of the Internet. We don’t have that today in America. first-degree underlying amendment to Again, it merely says that in light of We have parts of the country, for ex- allow the commission to establish by the incredible growth in electronic ample, where you get the newspaper the Internet Tax Freedom Act a study commerce that we have witnessed over through traditional mail, and you pay of the effects of taxation on interstate the last 5 years and that we anticipate no tax on it. But if you read that very sales, or the lack thereof on retail busi- in the next 5 years that this commis- same newspaper on line, you pay a tax. nesses and State and local govern- sion that we are about to create should That is not technologically neutral. ments. have the right to examine its impact That is what our legislation is all I can think of nothing more reason- on businesses serving local markets. about. The Internet should not get a able and nothing more common sense We will have an argument that my preference, nor should the Internet be than saying that the commission that good friend from Arizona has argued— discriminated against. It seems to me we are creating should conduct a study that this Internet Tax Freedom Act that by adopting the Gregg amendment to look at and examine the implica- should focus solely on the Internet. we will ensure that the focus is on elec- tions upon retail businesses and the But I argue that the Internet is a form tronic commerce, No. 1; No. 2, we will implications upon local and State gov- of interstate commerce just like mail have a chance to look at the very com- ernments that this moratorium and order, just like catalog sales. And when plicated and technical questions deal- this bill would have. we talk about the impact of such inter- ing with what is close to 30,000 taxing The Senate rejected an amendment state sales on local businesses, there is jurisdictions, and I urge my colleagues last week which would have imme- no distinction between the three. We to support the original Gregg amend- diately authorized States to require should not address this issue in a vacu- ment. out-of-State sellers to collect sales um. I yield the floor. taxes and remit them to the State in So the commission that is created Mr. GREGG addressed the Chair. which the purchase was made. My col- ought to have the right to examine all The PRESIDING OFFICER. The Sen- league from Arkansas, Senator BUMP- of the implications of what we are ator from New Hampshire. ERS, offered that amendment. I think doing and its impact upon that small Mr. GREGG. Mr. President, I rise in that many of my colleagues who joined businessman, that small business- opposition to the amendment offered me in voting against this amendment woman, that city, that county, that by the Senator from Arkansas as a sec- would agree that this issue warrants State government, and the effect upon ond degree to the amendment offered further study. their revenue stream. by myself, Senator MCCAIN, and Sen- Why not have the commission estab- So the amendment I propose is a ator LIEBERMAN, which is the underly- lish by this bill conduct a study and ex- compromise. It is, I believe, one that is ing amendment here. I think the Sen- amine the issue that is so important to worthy of support. ator from Oregon, who has certainly October 7, 1998 CONGRESSIONAL RECORD — SENATE S11661 been a core player in bringing this new taxes. And yet there is another at- tion, of establishing a moratorium on matter to the Senate, outlined the tempt being made now to do that, this the taxation of one form of commerce issue rather well by pointing out that time through a study. We will hear an- as opposed to all forms of commerce, is the purpose of this moratorium and the other attempt, I suspect, from the Sen- to create or to continue a competitive commission that is created under the ator from Florida who will do that disparity. In this case, it is the com- moratorium should be to review the with his amendment to this bill and parative disparity between the Main electronic commerce under the Inter- this underlying amendment. Street retailer, the person who is sell- net and to pursue a path which will So I guess what it comes down to is ing hardware on Main Street and is le- make that commerce more efficient. that this body has to make a policy de- gally responsible for collecting a sales This bill, this attempt to protect the cision: Does it want to use the Internet tax from those who purchase hammers Internet from arbitrary taxation across bill and the protection of the Internet, and saws, and those who buy the same the country with the 30,000 potential which has been proposed through the hammers and saws over the Internet municipalities that could assess moratorium, which has been energized where they are not subject to the re- against the Internet and thus create in large part by the Senator from Or- quirement to pay, and the seller to col- chaos in what is truly one of the great egon, and obviously the Senator from lect, that same sales tax. That is a engines of prosperity and economic en- Arizona, and which I have strongly level of obvious inequity that we trepreneurship which has occurred supported, does it want to use that ef- would, only under exception cir- within this century, and may be the fort to try to protect the Internet to cumstances, impose. economic engine for the next century— also be an effort to grossly expand the Second, at a time when we are under- this bill, which is an attempt to put a tax laws of this country and the tax scoring our commitment to fundamen- hold on that sort of tax policy which policy of this country and the tax ac- tal activities such as law enforcement might undermine, fundamentally tivity of municipalities and States, or and education, we are about to drive a harm, the expansion of the Internet do we want to stay focused on the sub- major hole in the ability to do so of during this formative period is a good ject at hand, which is how to make the those levels of government which have bill, but it should not be used to boot- Internet an efficient and effective place the primary responsibility for law en- strap other issues onto the question. to do business, how to keep it as a dy- forcement and education, which are What is being attempted here is a namic engine for entrepreneurship and our colleagues at the State and local backdoor bootstrapping of the whole prosperity that it has become through level. I will be giving some current ex- issue of tax policy as it relates to the a moratorium on taxes which might be amples, as recently as today’s news- question of sales at distant points, assessed at the local community level? paper, of the potential that we are whether it happens to be under the Although this amendment is couched about to open up. Internet, cable, catalogs or by tele- in the terms of a study, it really gets So it would only take an extremely phone. And another study in this area, back to that core issue of whether or persuasive argument to convince the which is the proposal that is put for- not we want to have a moratorium Congress of the United States that it ward by the Senator from Arkansas, is which addresses the Internet or wheth- ought to inflict that inequality in the simply an attempt to broaden the er we want to use this moratorium as a marketplace and the threat to the abil- scope of the underlying effort, which is bootstrapping event for purposes of ity to deliver fundamental police, fire, to protect and address the issues that dramatically increasing taxes and the and educational services at the local evolve around the Internet. It is to- tax collection capacity of local com- level as this legislation does. tally inappropriate. There is no reason munities and States across the coun- What is that rationale? The ration- we should go down that road. try. ale: This is a new, rapidly evolving There have been enumerable studies I oppose this study. I think it is mis- technology and we need to have this of this issue already. In fact, I have directed to be attached to this bill, and pause so we can assure that whatever I would say that if you really are inter- two right here, one done by the League tax policies are developed are devel- ested in such a study, here is one you of Cities and the other done by the oped with uniformity, with non- can read. Here is another one you can Center for Budget and Policy Prior- discrimination, with predictability, so read. And the Governors’ Association ities. I also understand there has been as not to interfere with the natural has one you can read. You don’t have one done by the Governors’ Associa- growth and evolution of this very im- to pay for a new one. tion, I believe. The fact is, the issues I yield the floor. portant part of our commerce at the which are being raised by the Senator The PRESIDING OFFICER. Who end of the 20th century that no doubt from Arkansas have been studied and yields time? will play even a larger role as we go studied extensively. Putting another The Senator from Florida. into the 21st. That is the argument for study into this bill is not going to in Mr. GRAHAM. Mr. President, par- the discrimination and threat to State any way change the tenor of the de- liamentary inquiry. Is there a time and local governments for which we are bate. It is simply going to attempt to limit on this amendment? about to be asked to vote. expand the debate into a whole sepa- The PRESIDING OFFICER. No time I will personally support the basic rate arena, which is inappropriate to limit has been agreed to. proposition of a pause. But I will only this moratorium. Mr. GRAHAM. Mr. President, first do so if that pause is for a reasonable The bottom line of this morato- let us come back to what we are fun- period of time, that period of time that rium—and I will come to that after we damentally about. What the Internet we would consider necessary to carry have disposed of the amendment of the Tax Freedom Act says is that there out this review and recommendation as Senator from Arkansas, but the bot- shall be a moratorium, a pause, in the to uniform, nondiscriminatory, pre- tom line issue here is whether or not State and local governments’ exercise dictable tax policy, and, second, that by voting to expand the moratorium of their otherwise legal authority to we have a commission, which is going and to get into areas such as the Sen- impose a tax on access to or trans- to be making this study, which will ator from Arkansas has proposed we actions consummated over the Inter- represent all of the diversity of inter- wish to dramatically expand the taxing net. ests on this matter and will have a authority of States and local jurisdic- That is an unusual action. For the charter broad enough to look at all the tions and basically use this bill to be- Congress of the United States to pre- questions that are relevant to estab- come a huge vehicle for expansion in empt State and local governments lishing proper policy for the Internet. tax policy and expansion of taxes. from their otherwise lawful respon- The argument here is a direct clash I do not think that most Members of sibilities to establish what they feel to between what the Senate Finance Com- this body want to do that, and we al- be appropriate policy for their citizens mittee found and what the authors of ready voted on this issue once with the is an unusual act for the Congress and this amendment support. The language Bumpers amendment. The vote was one which we should only take after which I support is the language which overwhelming. This body said no, it did careful consideration. is in the bill that was reported by the not want to use this vehicle for the Why should we exercise such care? Senate Finance Committee with 19 fa- purposes of creating an explosion in Because the consequences of this ac- vorable votes. S11662 CONGRESSIONAL RECORD — SENATE October 7, 1998 If you will look in the bill that ap- it the same as catalog sales. That It goes on to say: pears on our desk, starting on page 22, would be a result with very serious In addition to the lost revenue to the state, which is the beginning of the issues to long-term implications. the in-state retailer is placed at a distinct be studied, as stated by the Senate Fi- If, on the other hand, we are able to disadvantage. There is, of course, the dif- nance Committee, on page 23, under adopt the language that either was in ferential in the customer’s total cost reflect- paragraph (d), the Finance Committee, the underlying bill or the language ing the sales/use tax. . . . Indeed, many under the leadership of Senator ROTH, that Senator HUTCHINSON has offered, times they serve as the unwilling ‘‘show- who advocated this language, states then the commission is going to look room’’ and sales adviser for the remote sell- that: at the taxation of all forms of remote er, as customers visit their store, discuss a purchase with the sales staff, scribble down .. . there will be an examination of the ef- sales and will be able to come back model numbers and then call the remote sell- forts of State and local governments to col- with a set of policy regulations that er. lect sales and use taxes owed on purchases will in fact meet the test of uniform- That is an example of the kind of in- from interstate sellers, the advantages and ity, nondiscrimination, and predict- disadvantages of authorizing State and local stitutionalization of competitive dis- ability, which is the whole purpose of governments to require such sellers to col- advantage we are about to enact. lect and remit such taxes, particularly with this exercise. I said the issue is one that is as topi- I also ask to have printed imme- respect to electronic commerce, and the diately after my remarks a letter from level of contact sufficient to permit a State cal as today’s paper. I refer you to the or local government to impose such taxes on Washington Post of October 7, on page the Newspaper Association of America such interstate commerce. C–10, which carries a story, ‘‘Publisher, representing 1,700 newspaper members. That is the essence of the language Bookseller Join Forces.’’ This organization has supported the that the McCain-Gregg-Lieberman I will not read the whole article but Internet Tax Freedom Act, but they amendment is going to strike. let me just give you a flavor of what it state: Mr. President, I ask my fellow col- says: . . . I am writing to express support for leagues, is that unreasonable for a Taking direct aim at Amazon.com, pub- your efforts to amend the Internet Tax Free- commission we are going to set up to lishing conglomerate Bertelsmann AG said dom Act to ensure that the advisory com- study the effects of Internet taxation [yesterday] it will spend $200 million to buy mission examines the tax treatment of all on State and local governments and on half of the online book service of Barnes & remote sales. . . . The major thrust behind the Internet Tax Freedom Act is to ensure fairness in the marketplace? Is that Noble. So, what we have is a major book- that the Internet is not subjected to unfair, language unfair? I do not believe it is. discriminatory and inconsistent taxes at the The McCain amendment would strike seller which already has an on-line state and local level. Proponents of the legis- that language. service, where they are selling through lation—including NAA—have argued that Senator HUTCHINSON of Arkansas, the Internet as well as through their business transactions and services should be who has worked very diligently on this Barnes & Noble megabookstores; now treated similarly regardless of whether they issue—and I commend him for his lead- they have sold half of their on-line are offered through electronic means or ership on this matter and his deep un- service to yet another publisher, the through existing channels of commerce. derstanding of the implications of this publisher who has well known book However, if the commission is not directed in houses such as Random House, Double- the legislation to examine all remote sales, a issue—has offered a second-degree discriminatory tax structure could be estab- amendment to the McCain amendment day, and Bantam Publishing. They now lished that treats one form of remote sales— which essentially inserts the same con- together own an on-line bookselling the Internet—differently from other forms of cept of Senator ROTH’s language that firm which is going to try to compete remote sales. Therefore, we believe a com- was in the Finance Committee. His with Amazon.com. prehensive approach works best. Why are they doing this? While still amendment would provide for ‘‘an ex- Mr. President, I ask unanimous con- a tiny segment of the book retailing amination of the effects of taxation, sent that the letter from the National marketplace, on-line sales are explod- including the absence of taxation on all Home Furnishings Association and the ing in popularity. I underscore ‘‘explod- interstate sales transactions, including Newspaper Association of America be ing in popularity.’’ transactions using the Internet, on printed in the RECORD immediately local retail businesses and on State and Seattle-based Amazon.com, founded three after my remarks. years ago, had revenues of $204 million in the local governments, which examination The PRESIDING OFFICER. Without may include a review of the efforts of first six months of 1998. The implications of this to the inde- objection, it is so ordered. State and local governments to collect pendent bookstores in Helena, MT, or (See Exhibit 1.) sales and use taxes owed on in-State in Concord, NH, are obvious. In addi- purchases from out-of-State sellers.’’ Mr. GRAHAM. Mr. President, the That is the amendment that Senator tion to the other benefits of conven- second issue which is directly related ience of the Internet, we are now going HUTCHINSON has offered which I think to the first, the first being the dis- is as eminently reasonable as the lan- to have a situation where, if you buy a crimination against the local Main guage which was offered by Senator copy of your book at the Main Street Street sale, is the impact on the ability independent bookstore, you are going ROTH in the Finance Committee. So I of local governments and State govern- to be paying the State and local sales strongly support Senator HUTCHINSON’s ments to carry out their fundamental very thoughtful and significant amend- tax, but if you buy it over the Internet, educational, health, and other respon- ment and would go on to say that cur- you will not be paying the sales tax, sibilities. I will be a Floridian for a rent events are underscoring the ur- and, thus, we are institutionalizing a moment and cite some of the statistics gency of this look at all forms of re- significant competitive disadvantage. about the potential impact that an Why we would want to adopt the pol- mote sales. out-of-control moratorium leading to One of the purposes of the underlying icy that puts the Main Street seller at permanent exemption from taxation of bill is to eliminate discrimination. a disadvantage to cyberspace is beyond the Internet could have on a State such That raises the question, Discrimina- me. It also happens to be beyond a as mine. tion in relationship to what? If we end number of important organizations, In 1996, the State of Florida collected up with a bill that says that the com- whose letters I will ask unanimous a total of $11.4 billion in general sales mission cannot even look at the tax- consent be printed in the RECORD im- tax revenue. This represented 77.3 per- ation and the effect of that taxation on mediately after my remarks, beginning cent of Florida’s tax revenue generated fairness in the marketplace and on the with the National Home Furnishings from sales and excise taxes, excise ability of State and local governments Association, which states: taxes representing $3.8 billion of that to support their police and fire and The home furnishing industry has strug- total. schools, we are already guaranteeing gled with the issue of whether there is an ob- Florida is not unique in having a ligation for remote sellers to collect and that the commission will give us a re- remit sales/use taxes to the state in which high percentage of its tax revenue gen- port that, in order to be nondiscrim- the purchaser resides on sales of furniture, erated by sales and excise taxes. For inatory, the Internet should not be long before the first sale was made on the instance, Nevada gets 84.3 percent of subject to taxation. That would make Internet. its total revenue from these two October 7, 1998 CONGRESSIONAL RECORD — SENATE S11663 sources; Texas, 81 percent; South Da- the doubts that some of us have that the collection of those taxes. We thought we kota, 78.4 percent; Tennessee, 76.7 per- its real purpose is, not to have a could live with that moratorium, in the be- cent; Washington, 74.3 percent; Mis- thoughtful examination, but rather to lief we would gain more in the long run, if sissippi, 67.3 percent; Hawaii, 61.7 per- have this as the beginning of what will the commission could resolve once and for all, the broader issue of jurisdiction over re- cent; Arizona, 57 percent; North Da- be a permanent bar to State and local mote sellers for all tax purposes including kota, 56.8 percent; and New Mexico, 56.7 governments’ ability to manage their sales and use taxes. It would seem to us, if percent. They are examples of States fiscal affairs and that the principal the manager’s amendment strips the com- which are heavily dependent on sales loser of this will be the shuttered mission of the authority to examine the and excise taxes, the kind of taxes that stores along Main Street of the tradi- nexus issue, we get the worst of both worlds. are generated by Main Street activity. tional seller, like the bookstore unable Currently, mail order nationwide has to compete when he or she has to col- NEWSPAPER ASSOCIATION sales of $100 billion to $120 billion a OF AMERICA, lect the local sales tax but its competi- Vienna, VA, October 6, 1998. year. That is the catalog of remote tor thousands of miles away does not, Hon. ROBERT GRAHAM, selling. This results in an estimated and will also be seen in the diminish- U.S. Senate, $3.5 billion to $4 billion in lost sales ment of vital public services, especially Washington, DC. tax. It is estimated, for instance, in the the education of our children. DEAR SENATOR GRAHAM: On behalf of the State of Florida that that would rep- So, Mr. President, for those reasons, more than 1,700 newspaper members of the resent something in excess of $200 mil- I strongly support the amendment of- Newspaper Association of America (NAA), I lion a year in lost sales. That is, if the fered by the Senator from Arkansas as am writing to express support for your ef- forts to amend the Internet Tax Freedom same sale had taken place at the local eminently reasonable and consistent Act to ensure that the advisory commission shopping mall that took place over the with the stated purpose of this legisla- examines the tax treatment of all remote remote sales catalog process, it would tion, and I urge its adoption. sales. As you are aware, we have supported have been an additional $200 million of EXHIBIT 1 and continue to support enactment of the sales tax collected. NATIONAL HOME Internet Tax Freedom Act. The major thrust behind the Internet Tax Internet sales are expected to grow FURNISHINGS ASSOCIATION, by the year 2004, not to the $100 billion Washington, DC. Freedom Act is to ensure that the Internet is not subjected to unfair, discriminatory and to $120 billion of current catalog sales, NHFA CONCERNS WITH PROPOSED MANAGER’S inconsistent taxes at the state and local AMENDMENT TO S. 442, THE INTERNET TAX but rather to $400 billion to $500 billion. level. Proponents of the legislation—includ- FREEDOM ACT So Internet sales, by the year 2004, are ing NAA—have argued that business trans- expected to be four to five times what The home furnishings industry has strug- actions and services should be treated simi- current catalog sales are. If $100 billion gled with the issue of whether there is an ob- larly regardless of whether they are offered in sales loses $3.5 billion, then the $500 ligation for remote sellers to collect and through electronic means or through exist- billion would represent a loss of $17.5 remit sales/use taxes to the state in which ing channels of commerce. However, if the the purchaser resides on sales of furniture, commission is not directed in the legislation billion. For Florida, this means there long before the first sale was made on the could be an estimated loss of $875 mil- to examine all remote sales, a discrimina- Internet. Sales are frequently made over the tory tax structure could be established that lion in sales tax per year as a result of telephone or through the mails. treats one form of remote sales—the Inter- this removing of the responsibility of In addition to the lost revenue to the state, net—differently from other forms of remote the Internet seller to collect the taxes the in-state retailer is placed at a distinct sales. Therefore, we believe a comprehensive on those transactions. disadvantage. There is, of course, the dif- approach works best. Florida’s Department of Revenue ferential in the customer’s total cost reflect- We believe the Internet Tax Freedom Act states that the cost of exempted Inter- ing the sales/use tax. However, the in-state provides a unique opportunity for a thought- net taxation costs the State $60 million retailer also makes a significant investment ful and deliberative examination of a uni- in the community. Indeed, many times they in sales tax revenue and $18 million for form tax structure for goods and services. By serve as the unwilling ‘‘showroom’’ and sales including all remote sales in the scope of the the gross receipts tax. This gross re- adviser for the remote seller, as customers advisory commission’s work, the Congress is ceipts tax is what is used to fund our visit their store, discuss a purchase with the encouraging the development of tax policies school construction costs. sales staff, scribble down model numbers and that present one set of rules that will be ap- Mr. President, the impact of this on then call a remote seller. plied to all businesses. A uniform approach State and local governments in their NHFA has long sought a consistent, realis- not only promotes fairness and consistency— ability to put an adequate number of tic definition of what constitutes nexus for it’s sound public policy. police on the streets and an adequate the purpose of determining the sales/use tax Sincerely, obligation of a remote seller. fire defense, and particularly an ade- JOHN F. STURM, S. 442 imposes a moratorium on so-called President and CEO. quate number of schools and teachers telecommunication taxes, and establishes a and the other support personnel nec- commission to examine a variety of issues. Mr. WYDEN addressed the Chair. essary for their educational system, Both the Senate Finance and Commerce The PRESIDING OFFICER (Mr. will be extremely vulnerable if this leg- Committees’ versions of the bill, as does the SANTORUM). The Senator from Or- islation gets out of control. House bill, include language authorizing the egon. This is the amendment which I be- commission to examine the issue of the obli- Mr. WYDEN. Thank you, Mr. Presi- lieve begins to break the dam of rea- gation of remote sellers to collect and remit dent. a variety of taxes includes sales and use Mr. President, I urge adoption of the sonability. It is reasonable to have a taxes. For example, the Senate Finance Gregg amendment and the rejection of brief pause to look at all of the impli- Committee bill states: ‘‘an examination of the Hutchinson amendment. First, it is cations of Internet taxation. I support the efforts of State and local governments to quite clear that this legislation is that brief pause. It is also reasonable collect sales and use taxes owed on purchases going to, in fact, study all of the ques- to look at one that is conducted by from interstate sellers, the advantages and tions related to the subject this bill people who represent all the interests disadvantages of authorizing State and local deals with thoroughly. Let me just that will be affected by these decisions governments to require such sellers to col- read into the RECORD exactly what it and that those persons have a charter lect and remit such taxes, particularly with respect to electronic commerce, and the says with respect to what will be stud- broad enough to give us wise, com- level of contracts sufficient to permit a ied. It says: prehensive policy. State or local government to impose such To adopt the McCain-Gregg- The Commission shall conduct a thorough taxes on such interstate commerce.’’ study of Federal, State and local, and inter- Lieberman amendment, which would We have learned that a proposed manager’s national taxation and tariff treatment of essentially say we are going to put a amendment would severely limit the scope of transactions using the Internet and Internet blindfold over our eyes and we will not the commission’s mission and strike the lan- access and other comparable interstate or be able to look at those remote sales guage allowing an examination of the broad- international sales activities. activities which are the most analo- er sales/use tax issue. If a moratorium on telecommunication So it is right there at pages 21 and 22. gous to what the potential for Internet taxes is enacted, even though it does not Mr. HUTCHINSON. Will the Senator sales would be, is, in my opinion, to technically apply to sales/use taxes on the yield? render this legislation ineffective in purchase of the goods themselves, the mora- Mr. WYDEN. In just 1 minute I will terms of its purpose and to strengthen torium will still have a chilling impact on be happy to yield. S11664 CONGRESSIONAL RECORD — SENATE October 7, 1998 It is quite clear, at page 21 and page small Tennessee business that tried to tion, I have made more than 30 sepa- 22, that there will be ‘‘a thorough operate through this thicket of dif- rate changes to this legislation in an study’’ of the issues and that the com- ferent kinds of State and local rules effort to accommodate what I think mission will look at ‘‘comparable and ended up going out of business. are valid concerns which come from interstate or international sales activi- These home-based businesses are sim- States and municipalities and others ties.’’ ply not going to be able to hire the bat- who are advocating the viewpoint of The question, Mr. President, and col- tery of experts and accountants and the Senator from Arkansas. leagues, is whether or not we are going lawyers that some of those who have But what I am not willing to support to focus on yesterday’s concerns, which opposed this legislation are going to is essentially changing the focus of this are the mail-order or catalog issues— mandate on these small businesses. So legislation. If we do that, I believe that and they are important ones—or are we I hope that we can stick to the issue in the 100,000 home-based businesses in going to look at trying to come up front of us. That would mean going for- my State, and the hundreds of thou- with some sensible policies with re- ward with the Gregg amendment and sands across this country, are not spect to tomorrow’s issues which essen- rejecting the amendment of the Sen- going to see their concerns addressed; I tially involve the ground rules for the ator from Arkansas. think we will not be taking advantage digital economy. The Senator from Arkansas did ask of the opportunity to look at the Inter- Somehow, those that want to look at me to yield, and I am happy to do so. net issues objectively, and we will lose mail-order and catalog sales feel that Mr. HUTCHINSON. I thank the Sen- that focus and take it off into another they can resolve all of their concerns ator for yielding. area which is, in my view, likely to not In the early part of your remarks, on this legislation. We feel otherwise. produce consensus with respect to the you emphasized and read from the bill The reason that it is so important to mail-order or catalog issue, nor make that the commission would be author- have the Gregg language is that it does the progress we need to with respect to ized to conduct a thorough study. You put the focus on electronic commerce. the Internet. emphasized the word ‘‘thorough.’’ I I and others believe that if we do look Mr. President, I yield back the time. at electronic commerce, and look at it think you found a couple places where Several Senators addressed the thoughtfully, that it may, in fact, the term is used. It seems you are im- Chair. plying they will look at all issues af- come up with some answers to these The PRESIDING OFFICER. The Sen- fected by this legislation and by Inter- other issues—mail-order and catalog ator from Wyoming. net sales. Mr. ENZI. Mr. President, I rise in questions, which are important—but if My question is, why, if in fact it is to strong support of the amendment of- we change the focus of this bill, which be a thorough study looking at all fered by my friend from Arkansas. This is essentially what the Senator from issues and all the implications and amendment addresses the issue that is Arkansas wants to do, I believe what is ramifications of Internet sales on re- being changed by the Senator from going to happen is, A, we will not get tailers and on government, why then New Hampshire. The second-degree any sensible ground rules for electronic would the Gregg amendment exclude, amendment would change things back commerce, nor will we deal with the in effect, say this is off the table, this to the way that they were. issues with respect to mail orders. is one area of issues you cannot look We have to take a look at the Inter- The fact of the matter is that Main at? When the Finance Committee, by a net sales tax issue for people who Street America overwhelmingly has vote of 19–1, said this should be in- might be using this piece of legislation endorsed this bill. We have entered into cluded, this should be an area that to develop huge loopholes in our cur- the RECORD the list of the groups that should be examined, this should be the rent system. I am not talking about are for it. And the reason that Main purview of the commission, why then, changing the system. I am talking Street has endorsed this legislation is if it is to be a thorough study, would that if you are a small business on a this amendment, the Gregg amend- about preserving for those cities, main street in rural Arkansas or rural ment, exclude this particular area from towns, counties, and States that rely Oregon, or any other part of the coun- study? on sales tax the ability to collect the try that is essentially rural, right now Mr. WYDEN. Reclaiming my time, as tax they are currently getting. you are having a lot of difficulty com- I said, the debate here is over, Do you We are talking about a 2-year mora- peting against the Wal-Marts and the want to focus on the subject of this torium. Do you know how much the economic giants in our country. bill, which is electronic commerce— Internet will change in a 2-year period? The Internet is a great equalizer. By that is what the legislation does; that Right now, with the current tech- having a web page, by having the abil- is what the Gregg amendment seeks to nology in the Internet, there are ways ity to do business on line, that Main do—or are we going to go back and I could eliminate every single bit of re- Street business in rural Oregon or study in this legislation essentially tail sales tax in the United States, rural America, for the first time, has yesterday’s economy? every day, if this bill passes. And I the ability, in an inexpensive way, to We believe that if you put the focus don’t think that is our intent. market and look at lucrative markets on electronic commerce—that is what I don’t care if we have 30 amend- around the world. the Gregg amendment does—we are ments; if it needs 40 amendments, we Picture, if we will, what will happen going to be able to deal with the digital will have to have 40 amendments. The to a home-based business in Wyoming economic issues; and we may well, in number of amendments has nothing to or Arkansas or Oregon if we do noth- fact, come up with some ideas and do with the issue that we are address- ing. There are 100,000 of these home- some innovative approaches that may ing. There are some critical issues here based businesses in my State alone. well resolve the mail-order and catalog that have to be solved to keep the sta- They are the fastest growing part of question as well. bility of State and local government— our economy, and if we do not come up My concern, and the concern of the just the stability of it—not increase with some uniform tax treatment for Senator from New Hampshire, is that sales tax, just protect what is there these home-based businesses, what is essentially this is going to change the right now. going to happen is they will be subject focus of this legislation to put it on the We introduce these amendments be- to scores of different taxes all over mail-order and catalog issues. There cause we don’t think there is adequate America. are Members of the U.S. Senate who protection now. An increase in catalog How is a home-based business in the feel that mail-order and catalog sales sales, I agree, is a topic for another State of Oregon or the State of Arkan- are insufficiently taxed. I am not one time. It is very important we don’t sas going to go out and hire a battery of them. I am one who believes that we build electronic loopholes on the Inter- of accountants and lawyers and experts all ought to work together, on a bipar- net, an ever-changing Internet, one to help them sort this out? They are tisan basis, to deal with tomorrow’s set that is growing by leaps and bounds, not going to be able to do it. And that of economic concerns, which involves one that is finding new technology vir- is why, when we had the hearings on the digital economy. tually every day. What we know as the this legislation in the Senate Com- I tell the Senator from Arkansas that Internet today is not what we will be merce Committee, we heard from a as the original sponsor of this legisla- using by the time this report comes October 7, 1998 CONGRESSIONAL RECORD — SENATE S11665 out. More people are using it every felt by all of your neighbors. They can other State that does not have sales day. look you in the eye. One of the biggest tax and still make the sale local, with It is fascinating to me that one of the problems with local government is the immediate delivery, and avoid all sales biggest areas of increased use of the ‘‘Oh, by the ways.’’ You go to dinner tax through the Internet. That is going Internet is by senior citizens. It prob- and somebody says, ‘‘By the way, I to be a problem. ably has something to do with the have a little problem. Don’t get up and The problem with small business is, quality of entertainment. If they do solve it. Tomorrow morning will be we talk about whether a business is 500 use computers, they are spending an fine.’’ And tomorrow morning they employees or just 150 employees. That average of 6 hours a day on the Inter- know if you solved that problem. is not the kind of small business I am net. Part of that is purchasing; part of Hardly any of those problems is talking about. I am talking about that is learning. solved without money. When you are sweeping the sidewalk, carrying out The stated purpose of this bill is: the mayor of a small town, you are on the trash, filling out the myriad reams To establish a national policy against call 24 hours a day. You are in the of required Federal paperwork. It real- state and local government interference with phone book. People can call you at ly doesn’t have much application to interstate commerce on the Internet or night and tell you that the city sewer your business—probably five employees interactive computer services, and for other is backing up into their house. I was or less. These are the people who spon- purposes. fascinated how they were always sure sor Little League, the basketball Let me repeat that: that it was the city’s sewer that was camps, the yearbooks, and all of the To establish a national policy against doing it. When they call to say that the other things that happen in munici- State and local government inter- power is out, they don’t want a delay palities. They donate the raffle prizes ference. . . . before it is fixed. When they call to tell and uniforms and they support all Mr. President, I recognize this body you a neighbor has stolen a D–8 Cat kinds of community activity. Every has a constitutional responsibility to and is tearing up the street and driving kid in town comes to the local small regulate interstate commerce. Fur- over sports cars and mailboxes and rip- business and asks for help. Fortunately thermore, I understand the desire of ping up sprinkler systems, you have to for America, they donate, and they do- the bill’s sponsors to protect and pro- go to work. Those are exciting things nate gladly. They serve on the parade mote the growth of Internet commerce. that happen from time to time in cit- committees. They serve on the fair Internet commerce is an exciting field. ies. committees. They are the volunteers in It has a lot of growth potential. The The point is that the government the church and in the school and in new business will create millions of that is closest to the people is also on local government. They are not only new jobs in the coming years. the shortest time line to get results. I the neighbors, they are the customers The exciting thing about that for think it is the hardest work. I am very for a small town for any retailer. Wyomingites is that our merchants concerned with any piece of legislation We buy mail-order goods often be- don’t have to go where the people are. that mandates or restricts local gov- cause they are cheaper; there is no For people in my State, that means ernment’s ability to meet the needs of sales tax. That is a part of the pitch their products are no longer confined its citizens. This has the potential to that is used. That is like a 5- to 7- to 9- to a local market. They don’t have to provide electronic loopholes that will percent reduction. rely on expensive catalogs to sell mer- take away all of their revenue. It may Congress is now going to decide to chandise to the big city folks. They not seem like a big restriction, it may prohibit local governments from taxing don’t have to travel all the way to Asia not exceed the $50 million limit that certain businesses—easy businesses to to display their goods. The customer Congress set in the Unfunded Mandates set up, easy businesses to locate in a can come to us on the Internet. It is a Reform Act, but it does establish a na- State that has no sales tax whatever. remarkable development, and it will tional policy against State and local We haven’t seen anything like this be- push more growth for small manufac- government. It does take an affirma- fore in the history of the United turers in rural America, especially in tive step to tie the hands of local gov- States, but we are about to see the big- my State. We are just beginning to see ernment. gest boom in the Internet that we have some of the economic potential in the Congress has to be very careful when ever seen. We need a few amendments Internet. It is a valuable resource be- we pass a law like this. We have to re- to this bill to provide some protection cause it provides access on demand. It alize the effect of all of those people for the current system. I am not talk- brings information to your fingertips living at the local level—not the Fed- ing about expanding, I am talking when you want it and how you want it. eral level. I have not met anybody who about the current system. We should probably take another lives on the Federal level; they all live Are we going to be in the business of look at using it on the Senate floor, at the local level. picking the tax winners and the tax but we need laptops for that; I will save I am also concerned about the bill’s losers? I am talking about the towns that issue for another day. impact on small businesses. My wife where the people of America live. We Having said that, I do have concerns Diana and I owned a shoestore on Main know who the losers will be. It will be about the bill before the Senate today. Street, Gillette, for 28 years. My wife the small retailer in your town, the I come to this debate having been the did most of the managing on that. She one that you rely on to run down and mayor of a small town, Gillette, WY, greeted the people, she sold the shoes, pick up the emergency item. for 8 years. I later served in the State ran the cash register, swept the floor, I do support this amendment. The house for 5 years and the State senate all the things that have to be done by commission should be allowed to study for 5 years. Throughout my public life a small business. all of the issues with the Internet, all I have always worked to reduce taxes, We recognize the advantage of the of the issues related to taxation. They to return more of people’s hard-earned Internet for these small businesses, definitely ought to be able to look at wages to them. these home-based businesses that were those that change with the technology I am not here to argue in favor of mentioned earlier. Yes, we understand so that the current system of collect- taxes. There were times in Gillette the complications of trying to keep ing revenues for those towns and when we had to make tough decisions. track of every kind of sales tax that is States can be preserved. I don’t think I was mayor during the boom time levied across the whole United States we have all the answers, or we wouldn’t when the size of our town doubled in regardless of what kind of jurisdiction be asking for this bill. just a few years. We had to be very cre- it is in. That is current law. That is I don’t think we are going to have all ative to be sure that our revenue current collection, to some degree, par- the answers on the technology that is sources would cover the necessary pub- ticularly if you have a presence in the going to transpire in the next 2 years. lic services—important services like State where the product is being sold. So whatever we do, we have to have sewer, water, curb and gutter, filling in What is a ‘‘presence’’ in the State? some amendments that will preserve potholes, shoveling snow, collecting Internet goes into absolutely every the way that small business and small garbage, mostly water. It is a tough job State. There is now the easy capability towns function at the present time. because the impact of your decision is to set up another corporation in an- This amendment will help Congress to S11666 CONGRESSIONAL RECORD — SENATE October 7, 1998 make a decision in the future. It re- shoestore. I have never shopped in Gil- of the business on Main Street, it is stores language that would be taken lette, WY, and I probably never will not going to retard the business growth out with the Gregg amendment. It is shop there. But the issue he raises is of people who have catalogs and the critical for towns, small businesses, essential to this point. When he and his business opportunities of the people on and you and me. I urge my colleagues wife opened the door in the morning the Internet. to support it. and displayed shoes for sale in that But what is being said in the under- I yield the floor. store, they knew a couple of things: lying amendment is, let’s take a look Mr. DORGAN addressed the Chair. They rented the building, they hired at this only with respect to how it re- The PRESIDING OFFICER. The Sen- the employees, and they bought an in- lates to the Internet, and you must ig- ator from North Dakota is recognized. ventory. They opened their door and nore everything else. My friend, the Mr. DORGAN. Mr. President, I rise in said: We are in business on Main Street Senator from Oregon, says, well, we support of the second-degree amend- in Gillette, WY. They knew that when want to explore everything. But, of ment for all of the reasons previously somebody came through the door and course, this says you cannot, you must stated by the Senator from Wyoming, took their shoes off and got fitted up not; in fact, we are going to fight to the Senator from Arkansas and the and bought a brand new shiny pair of the end here to see that you are unable Senator from Florida. I have, begin- shoes, when they paid for it, they had to explore everything. That doesn’t ning with the origin of this bill in the to apply the local sales tax. That is make any sense to me. That is what Senate Commerce Committee, been what you have to do on Main Street. the second-degree amendment is about. very concerned about exactly what the You are a tax collector for the local The Senate Finance Committee got language in this legislation will mean consumption tax in the State of Wyo- this right. It passed a bill, came to the to this country, to our Main Streets, to ming. I didn’t hear him complain about floor, created a commission and said, our States and local governments. that. That is what they do on Main take a look at all of this. We will have The issue here is a relatively simple Streets all across this country. I be- a commission that evaluates and stud- one, and I don’t need to restate all of lieve 45 States have a sales tax. ies all of this with respect to the tax the reasons that were offered by the Another thing he and his wife knew, neutrality, with respect to the oppor- Senator from Wyoming for being con- I am sure, and he is not here to answer tunities in growth, and the impact of cerned about it. But the genesis of this the question, but I am sure they knew these taxes on a wide range of com- bill was to be concerned about State that if someone three blocks away de- merce—not just Internet commerce, and local governments applying ‘‘puni- cided they were not going to go to but a wide range of commerce. The Senate Finance Committee got tive’’ tax programs against Internet Main Street to buy shoes today, they it right. The underlying amendment commerce. They were worried that this were going to buy them through a now offered by a couple of good legisla- growth of the Internet and the expan- mail-order catalog, in most cases they tors, I think for understandable rea- sion of commerce on the Internet will buy those through the catalog sons, would say that the Finance Com- would be retarded by local govern- without paying a local sales tax or a mittee is wrong; this commission must ments or State governments, seeing State sales tax, which means that his not, cannot, and will not be able to that as a big, juicy target, and apply local business ended up being undersold study the whole range of cir- some kind of new discriminatory or pu- by someone, perhaps by 4 percent, cumstances. The second degree says, nitive tax regime upon it. Therefore, maybe 6, or maybe even 7 or 8 percent, no, we don’t accept that; we want to in- they said, let us at least have a time- because the catalog seller, in most sert language that is effectively the out until we understand how to impose cases, didn’t charge the State sales tax. language coming out of the Senate Fi- some sort of tax system that is fair to Is that discriminatory vis-a-vis the nance Committee. the Internet sellers and that does not Main Street businessperson? I think it I say again, as I did yesterday when discriminate against the Internet sell- is. Of course, it is. Does it mean there the Senator from Florida was on the ers. is not a tax on the transaction? No, floor, and I say it now to the Senator Well, the question here, then, is, if in there is a tax. When they mail that from Arkansas, who along with the this legislation where you have a time- pair of shoes from the mail-order cata- Senator from Florida and the Senator out, or a moratorium, and you create a log house to the person in Gillette, WY, from Wyoming were primary sponsors commission during that moratorium to or Fargo, or Bismarck, ND, the person of the second degree, in my judgment, investigate or evaluate all of these who receives that pair of shoes has a they are dead right. They are abso- issues, why then would you say to that responsibility in most every State to lutely right on target. I hope that the commission that you can take a look pay a use tax. Of course, they don’t Senate, notwithstanding whatever at all of this, you can take a look at know that and they won’t ever pay curves and straightaways we find with what this means with respect to Inter- that, but that is the responsibility. this legislation—I assume this legisla- net commerce, but you cannot look at The net result of all of this is that tion will be worked out in the coming the other issues; you cannot look at the Main Street folks will end up al- hours and days and, perhaps, be passed how it relates, Internet commerce ver- ways being at a disadvantage with re- tomorrow, and I hope it will be passed sus mail-order firms; you cannot look spect to taxation versus those who are in a satisfactory form. at how it relates to Internet commerce doing business elsewhere, those who But one of the ways that this legisla- versus Main Street sellers? What kind have constructed a catalog and haven’t tion will be made a better piece of leg- of logic is that? If you are going to hired the employees, haven’t rented a islation is to pass this second-degree have a commission to try to figure out place to do business, and they haven’t amendment and restore it to the condi- how this piece fits in the puzzle, then hired local folks; they have just oper- tion it was in when it came out of the make sure all the pieces are there. ated through a catalog. Senate Finance Committee. These That is all this second degree says— I happen to think catalog sellers are folks spent a lot of time on tax issues make sure all the pieces are there. very important to this country. Frank- in the Finance Committee. I used to be The people who are here saying we ly, they are wonderful marketers. I on the House Ways and Means Commit- don’t want to solve this puzzle are peo- think it is wonderful for a lot of people tee in the other body for 10 years, and ple who have a vested interest. They in this country to be able to shop that I spent a lot of time on tax issues. I are here, frankly, because of mail-order way. There is no question about that. I think the Senate Finance Committee firms and the Internet. They are saying think when you look at the tax issue got it right. They said, study these we don’t want anybody to look at all of here—whether it is buying it through a issues, evaluate them all, understand this. We want a moratorium for the catalog or going through a computer the consequences of them all, and then, Internet over here, and over here we and getting on the Internet and buying with that knowledge, let’s make some don’t want anybody discussing mail- it through a seller on the Internet or judgments. That is the purpose of the order issues. buying it on Main Street—there ought time-out; that is the purpose of the The Senator from Wyoming said he to be some symmetry here in the tax moratorium. and his wife had a shoestore. I didn’t treatment to make sure the tax treat- I have, as the Senator from Oregon know that. I have never been to their ment is not going to retard the growth stated, spent a fair amount of time October 7, 1998 CONGRESSIONAL RECORD — SENATE S11667 with him, and I think we have made a spected, recognized firm, just released A battle has been waging for more lot of progress on these issues. a survey of industry executives of com- than three decades, and taken right to My expectation is we will pass a panies that sell over the Internet. Fifty the Supreme Court at one point, as to piece of legislation that is an accept- percent of the executives said that the how remote sales by catalog-telephone able piece of legislation that has a current State tax ambiguities and con- sales would be taxed by the 30,000 tax- timeout moratorium. But it must, in flicting tax treatment of electronic ing jurisdictions in the States in the my judgment, include this in order to commerce among the States are inhib- country. In so doing, I think the really give us the assurance that that iting their companies’ involvement in amendment threatens what is and moratorium is used effectively by a electronic commerce. Ninety percent should be the focus of the commission, commission that has divisions to look describe the current State sales tax which is to direct its attention on this at all of these issues. procedures with regard to electronic extraordinary new sector of commerce, I yield the floor. commerce as ‘‘overly burdensome,’’ Internet commerce, and it runs the Mr. LIEBERMAN addressed the and 75 percent expressed their concern risk really of getting the commission Chair. that State and local tax laws will place so tied up in the thicket of remote The PRESIDING OFFICER. The Sen- their companies at a disadvantage. It is sales that it will never really contrib- ator from Connecticut. because the industry is in its infancy. ute what we hope it will to creating Mr. LIEBERMAN. I thank the Chair. A predictable legal environment is some order and predictability in e-com- Mr. President, I rise to oppose the exactly what the President’s Report on merce. amendment offered by the Senator Electronic Commerce recommended Mr. President, the fact is that this from Arkansas and others and to ex- that we promote internationally. In commission that is created by the un- press my support of the underlying fact, the administration has been send- derlying legislation may well—I think amendment offered in the first in- ing out emissaries over the last year to we who are its sponsors hope it will— stance by the Senator from Arizona, persuade international organizations create some language to reach some the chairman of the committee. I am and individual countries to agree to judgments that may in fact offer some proud to be a cosponsor of that one. create a predictable legal environment counsel and help in this ongoing debate I was a cosponsor of the initial legis- for the spread of electronic commerce. about taxation of remote sales, but let lation, one of the pieces of legislation That is not only fair, it is good for that happen naturally—that is my earlier in the session, along with my American business, which happens to hope and prayer—as opposed to forcing colleague from New Hampshire, Sen- have a lead over business in any other it into the second-degree amendment ator GREGG, which had the intention of countries in the effective use of the in a way that would run the risk of de- trying to create some order and pre- Internet. stroying the underlying purpose of the dictability and a little space for this What the underlying bill, the under- proposal, and in that sense doing dam- extraordinary new area of economic ac- lying amendment, is saying is that it is age to Internet commerce and all who tivity, activity which has benefited so time that we create the same sense of both benefit from it as consumers and many people around our country, predictability here in the United benefit from it because they work in which is to say, e-commerce over the States that our Government is urging companies that are using it. I want to mention one other matter Internet. on countries around the world. That is before closing. That is this: There are The aim was to say to the taxing ju- what this commission would do. risdictions, of which there are thou- The commission is asked to draft times when we talk about Main Street sands and thousands and thousands— model State legislation that creates and the effect of Internet commerce on Main Street as if it were, one wins and 30,000, as a matter of fact—potential uniform definitions and categories of one loses. taxing jurisdictions which exist in the commercial transactions on the Inter- The reality is that e-commerce has United States, catch your breath, sit net so that States will be using the the potential to expand the winner’s back, and let this new sector of our same vocabulary when it comes to cat- circle, to make more winners. I want to economy—Internet commerce, e-com- egorizing the tax liabilities of an Inter- cite real cases from Connecticut which merce, which the United States is net company, or transaction—not uni- I learned about in the last 6 months to heading and which has benefited so fying a tax rate among States, but cre- a year, and I think are typical of what many people, which has created so ating a legal environment in which is happening all over the country. many jobs—let it grow out of its in- companies can do business. First, let me say that a recent survey fancy before we begin to put the teeth The National Commission on Uni- in Connecticut found that 38 percent of of the taxman into various parts of its form State Legislation has been work- small- and medium-sized companies anatomy; and let’s let this commission ing for the past 2 years on updating the have a web page—almost two out of begin to grow some ground rules for treatment of Internet transactions ac- five. A little over half of those are the consistent and fair handling of this cording to various State laws. But it using their web page to sell goods and new area of economic activity. has not looked directly at taxes. This services—right now. And 21 percent are The fact is today that an Internet commission that would be created by planning to add a web page next year. service provider, or a merchant selling this legislation would work with the I am sure those numbers are going to goods or services over the Internet, has national commission and other groups grow dramatically in coming years. no way of knowing in advance whether that have already been active in trying The fact is, insofar as some folks who a State decides to tax them. As an ex- to update laws to be certain that Inter- are in taxing jurisdictions and the con- ample, in New Mexico, Internet access net commerce is treated fairly. We cern of this amendment has to do with charges are subject to New Mexico would extend their work through this treatment of direct mail-order sales or gross receipts taxes. In Ohio, their commission in the tax arena. phone sales, if the mail-order catalogs sales are taxed as an electronic infor- I want to stress that the measure in- that I get at my house are any indica- mation service; in Tennessee, it is a troduced by the distinguished chair- tion of what the future is, I am being telecommunications service; in my man of committee, the Senator from truly encouraged, aggressively encour- own State of Connecticut, as a com- Arizona—Senator GREGG, I, and others aged by those catalogs instead of call- puter and data processing services. are proud to be cosponsors—does not ing up, to use the Internet. So I think Texas officials, I gather, have threat- preclude the commission created by more and more of that kind of com- ened to tax transactions that go this legislation from considering the merce will be done by e-commerce. through Internet servers in its State, question of nexus or taxation of remote But let me give you two great exam- even if the buyer and seller, in conven- sales. The danger in this amendment ples from home about the effect that tional terms, are not located in the before us, the second-degree amend- the Internet is having on Main Street. State of Texas. ment, is that it singles these particular A small company in old Broad Brook, The uncertainty of this tax liability questions out as a requirement and CT, beautiful town by the water on is real and is having what you would thereby, I think, puts the commission Long Island Sound, called Stencil Ease, expect—a negative, destabilizing effect in danger of falling into a very dense family-owned, 18 employees, sells sten- on this business. Peat Marwick, a re- thicket. cils for home decorating and crafts. It S11668 CONGRESSIONAL RECORD — SENATE October 7, 1998 started a web page in 1996. They have or Connecticut, you may well face a ing observations of my perspective on been averaging 100 to 200 hits a day. good chunk of the thousands of taxing this second-degree amendment and Their sales increased 10 percent the jurisdictions in our country looking at clarify a few things that I think are first year due to the web site and 20 your business as a cash cow. not representative at all of what this percent the next year. One of our colleagues said the threat second-degree amendment does. Here is a startling story in the sec- here is the World Wide Web would be- May I just say also, being the Sen- ond one—Coastal Tool & Supply. I have come the ‘‘World Wide Wallet’’ if that ator from the State of Arkansas and been there. It is a small, family-run kind of approach went forward. being from the hometown in which hardware store in Hartford, CT, capital So what the Senator was talking Wal-Mart stores are nationally city. It was threatened, interestingly, about with respect to that hardware headquartered, world wide by a location nearby of one of the large store account is why I introduced this headquartered, and Wal-Mart has been chain hardware stores. It was having a legislation early in 1997. That is the disparagingly mentioned several hard time. They decided to go on the very kind of operation that I think we times—— Internet, in a sense to leap over the big ought to be looking to grow in the 21st Mr. WYDEN. Will the Senator yield? Mr. HUTCHINSON. Not at this time. competitor down the street. I think it century. In my office in the Dirksen Building I was Home Depot, but it doesn’t mat- I thank the Senator for yielding me have a hanging portrait of the 5-&-10- ter—a big competitor down the street this time. I heard his account of the cent store where Sam Walton started and in a sense enter the global main hardware store from the Cloakroom, the Wal-Mart stores. There is nothing and I think some have said—in fact, I street and hired a very able young in this amendment that is heard it again today—that this was man, skilled in computer matters, who antientrepreneur. The fact is that Wal- about Amazon.com or someone like put their catalog essentially on the Mart, with their huge advertising that. Those people are not going to be Internet. Sales have grown almost 500 budget, as it was alluded to, started as percent. They are doing more business in need of this kind of approach. This is a little 5-&-10-cent store, as a mom- over the Internet than they are from going to benefit the small entre- and-pop store in Arkansas. That is an people coming into the store. preneurs, the home-based business, the American success story which ought to So this is what the future holds, and kind of person the Senator from Con- be applauded, not disparaged. Every it is a situation, if we do it right, necticut is talking about. I thank him American ought to have that oppor- where not only the big companies, but for yielding me this time. tunity, to have that dream. We ought a lot of mom-and-pop stores and busi- Mr. LIEBERMAN. I thank the Sen- not with legislation undercut that lit- nesses are going to be able to benefit ator from Oregon for his comments. I tle Main Street store that cannot be from Internet sales. thank him for his leadership. Senator replicated, cannot be replaced. No mat- Now, as it grows, it will actually GREGG and I were happy to merge to- ter how great the Internet is, no mat- have an effect on taxing jurisdictions, gether with the work the Senator from ter how great catalogs are, they cannot and we will naturally, in the normal Oregon and the Senator from Arizona replace that store on Main Street giv- order of business, want to create an op- have done. ing to the little league and supporting portunity for equity and to protect I want to end with one story the Sen- the local efforts and local initiatives. State and local jurisdictions that we ator from Oregon has stimulated in my A couple other things. It has been represent. But this is not the time to memory when I visited that hardware implied that somehow this amendment, do it, and this amendment is not the store. It shows how you not only jump this second-degree amendment would place to do it. Let’s let this commis- over the big store down the block but mandate that they focus the study, the sion deal with the unique problems of into the global shopping mall. commission focus their study on inter- e-commerce. One of their favorite stories—and state sales. Nothing could be further Mr. WYDEN. Will the Senator yield? this is not a pure market example be- from the truth. If you look at the bill, Mr. LIEBERMAN. I will be glad to cause the particular customer I am it says, and I quote, ‘‘may include in yield to my friend from Oregon. about to refer to is from a Middle East- the study *under subsection,’’ may in- Mr. WYDEN. I want to say that I ern country—is about a man who hap- clude a study of. It is, in fact, the think the Senator has made an espe- pened to work for his country’s na- Gregg amendment, the McCain-Gregg cially effective approach and tell him tional airlines, so his trip here was amendment that excludes even their that hardware account he gave is es- paid for, but he needed some large, authorization to study the impact, the sentially what this legislation is all heavy tools. He went on the Internet, obvious impact of remote sales includ- about. There has been discussion about found his way to the Coastal Tool & ing catalog, including Internet, all of who benefits here, huge corporations Supply web site, competitively priced, the Internet remote sales, its impact and the like. The people who benefit figured out the advantage, was on a upon small businesses and upon local here are the 100,000 home-based busi- flight to New York as part of his nor- and State government. It simply says nesses in my State, the hardware store mal work, got off the plane, rented a ‘‘may.’’ It is simply authorizing, per- that the Senator from Connecticut is truck, drove up to Hartford, bought the missive language. It is, in fact, the talking about. tools that he needed, drove back, put House bill that mandated that they The reason why that is the case is them on the plane, and went back to study this area and its impact, because that the Internet is a great equalizer the Middle East, all smart shopping it is so obvious the impact that it for those small businesses. The small and good for business. could potentially have, and that any businesses now that we are seeing in So I hope that our colleagues will re- study that should be done, if it is in the State of the Senator from Con- sist the allures of this second-degree fact to be a thorough study, must in- necticut and rural Oregon are having amendment and will not disrupt the clude this area. great difficulty today competing noble and, I think, very necessary in- It is the proponents of the Gregg against the Wal-Marts of the world. tention of the underlying bill. We can amendment who would say what the They do not have huge advertising come back some other day, hopefully, Finance Committee did by a vote of 19 budgets like Wal-Mart. They don’t informed by the work of the commis- to 1 should be overturned. The Finance have batteries of lawyers and account- sion created herein to deal with the Committee, led by Senator ROTH, in- ants. These are small, entrepreneurial border problems that I know concern cluded a study of these issues—and operations that now look at the Inter- the Senator from Arkansas and the they should be included. They should net as a tool that can trampoline them other cosponsors of the amendment. be studied. The language in the bill into extraordinary economic opportu- I yield the floor. says ‘‘thorough study.’’ How can you nities they have never had. Mr. HUTCHINSON addressed the have a thorough study and then delete Without this legislation and the good Chair. the area of interstate sales? It puzzles work that has been done by the Sen- The PRESIDING OFFICER. The Sen- me. How can anyone object to having a ator from Connecticut and the Senator ator from Arkansas. broader study that would include all of from New Hampshire, if you are a Mr. HUTCHINSON. I thank the the various issues involved in a very small, home-based business in Oregon Chair. I just want to make a few clos- complex subject? October 7, 1998 CONGRESSIONAL RECORD — SENATE S11669

It has been implied that somehow examined, ought to be looked at, then Mr. MCCAIN. Mr. President, I ask for this second-degree amendment, which I think my colleagues will realize that the yeas and nays. would say this issue ought to be stud- in fact it does make good sense and The PRESIDING OFFICER. Is there a ied, is protax. My goodness, anybody they will support it. I ask for their sup- sufficient second? who has ever looked at TIM HUTCH- port. There is a sufficient second. INSON’s record in the statehouse in Ar- I yield the floor. The yeas and nays were ordered. kansas, the U.S. House of Representa- The PRESIDING OFFICER (Mr. SES- The PRESIDING OFFICER. The tives, and the U.S. Senate, would have SIONS). The Senator from Arizona. question is on agreeing to the motion a hard time believing this amendment Mr. MCCAIN. Mr. President, the of the Senator from Arizona. The yeas I am offering is protax or somehow a amendment does not say anything and nays have been ordered. roadmap to higher taxes. Nothing about what to do or not to do. What we The clerk will call the roll. could be further from the truth. We are are talking about here is whether the The legislative clerk called the roll. not prejudging any kind of conclusions commission should say we should over- Mr. FORD. I announce that the Sen- or any kind of recommendations that turn the Quill decision. That is what ator from Ohio (Mr. GLENN) and the this commission might make. And, I we get down to, if we want to get Senator from South Carolina (Mr. HOL- remind my colleagues, it requires a through all the rhetoric and language LINGS) are necessarily absent. two-thirds vote of the members of the about this. We don’t think the Quill de- The PRESIDING OFFICER (Mr. commission to make any recommenda- cision should be overturned. Obviously, GRAMS). Are there any other Senators tion, and that is all they can make, is the proponents of the amendment do, in the Chamber who desire to vote? a recommendation. The final say re- and that really is, to a significant de- The result was announced—yeas 30, mains with the Congress. gree, what this amendment is all nays 68, as follows: How in the world can you say this about. [Rollcall Vote No. 304 Leg.] somehow is going to lead to higher Mr. President, I move to table the YEAS—30 taxes or somehow thwart the growth of amendment and ask for the yeas and Boxer Gregg Moseley-Braun the Internet? And that, may I say, has nays. Burns Hagel Murray been another mischaracterization of Mr. BUMPERS. Mr. President, will Campbell Kempthorne Shelby the Senator withhold for about 2 min- Coats Kerry Smith (NH) this amendment—that it is somehow Collins Kohl Smith (OR) not only protax but anti-Internet. utes? Craig Kyl Snowe We have applauded, and I applaud, Mr. MCCAIN. I will be glad to with- Dodd Lautenberg Stevens the growth of the Internet. I quoted hold for 2 minutes before I make the Faircloth Lieberman Thompson motion to table. Frist McCain Torricelli the statistics, from $8 billion in 1998 to Grams McConnell Wyden the estimated $300 billion in sales in Mr. BUMPERS. I thank the distin- the year 2002; that is a good thing. But guished manager very much. NAYS—68 while it is a good thing, we should not Mr. President, this is really a strange Abraham Dorgan Levin scenario for me. I have fought for years Akaka Durbin Lott be so blind as to think it is not going Allard Enzi Lugar to have serious consequences, serious to allow States to do exactly what the Ashcroft Feingold Mack impacts, that ought to be examined in Supreme Court, in the Quill decision, Baucus Feinstein Mikulski advance. said we had the right to do, and that Bennett Ford Moynihan Biden Gorton Murkowski I support the bill. I support the time- was to allow States to make mail order Bingaman Graham Nickles out. I support the pause. I support the houses collect sales taxes on merchan- Bond Gramm Reed moratorium. But I also believe, if we dise being shipped into our respective Breaux Grassley Reid are going to have a study, it ought to States. That is what the Supreme Brownback Harkin Robb Bryan Hatch Roberts truly be a thorough study. It ought not Court said. We would not be overturn- Bumpers Helms Rockefeller say look at everything but don’t look ing the Quill decision. We would simply Byrd Hutchinson Roth at the impact upon business, don’t look be taking advantage of what the Su- Chafee Hutchison Santorum Cleland Inhofe Sarbanes at the impact upon the city govern- preme Court said we had a right to do: Cochran Inouye Sessions ment or the State government. It Remove the interstate commerce Conrad Jeffords Specter ought to truly be a thorough study. clause as a burden and allow the Coverdell Johnson Thomas You cannot deal with these issues in a States, 45 of whom have sales taxes on D’Amato Kennedy Thurmond Daschle Kerrey Warner vacuum. They are interrelated, all of merchandise from out of State—allow DeWine Landrieu Wellstone these, and they need to be, in fact, those States who have passed those Domenici Leahy thoroughly studied. laws to implement them. They cannot NOT VOTING—2 Let me just conclude by saying I be implemented. We are saying we do Glenn Hollings thought Senator ENZI’s comments were not care what kind of laws you pass at moving. I, like Senator DORGAN, did the State level, we are not going to The motion to lay on the table the not realize that he and his wife oper- allow you to implement them. amendment (No. 3760), as modified, was ated a little Main Street shoestore for Last week we once again killed my rejected. over 20 years in Gillette, WY. I did not amendment to allow states to mandate Mr. MCCAIN. Mr. President, the Sen- know that. I had a great appreciation that remote sellers collect the taxes ate has spoken. I move that we adopt for Senator ENZI. I have a greater ap- they ought to. Yesterday, the Senate the underlying amendment and the preciation now. But I think also that, decided that we cannot even make pending amendment. as he paid those sales taxes day in and Internet sellers alert consumers to the The PRESIDING OFFICER. The day out, as he made the struggles that fact that there is a sales tax in the question is on the second-degree any small business person makes in State. We cannot even tell them to amendment. order to stay in existence, as he con- alert people to the fact that somebody Without objection, the amendment is tributed to the Little League, as he may knock on their door from their agreed to. contributed to the United Way, as he state revenue department and try to The amendment (No. 3760), as modi- did everything that only a physical en- collect the unpaid use tax. Think about fied, was agreed to. tity actually being right there in the that. Mr. President, 45 States have a Mr. MCCAIN. Mr. President, I move community can do—irreplaceable— sales tax and we voted yesterday not to to reconsider the vote. that we need to consider them, we need even require Internet sellers to tell Mr. DORGAN. I move to lay that mo- to think about them, as we pass this consumers there may be a tax on their tion on the table. needed legislation. purchases. The motion to lay on the table was I believe if they will simply look at Now we come here today saying we agreed to. the language of the second-degree cannot even study it. My God, how far AMENDMENT NO. 3722, AS AMENDED amendment restoring what the Finance are we going to go? The PRESIDING OFFICER. The Committee did by a 19-to-1 vote and The PRESIDING OFFICER. The 2 question is on the first-degree amend- saying this is an area that ought to be minutes has expired. ment. S11670 CONGRESSIONAL RECORD — SENATE October 7, 1998 The amendment (No. 3722), as amend- we will make the final progress nec- Mr. LOTT. I will do that. ed, was agreed to. essary on this piece of legislation. Let me just say again that I hope we Mr. MCCAIN. Mr. President, I move I yield the floor. can get this cleared because it looks to reconsider the vote. Mr. LOTT addressed the Chair. like, after a lot of hard and good work Mr. DORGAN. I move to lay that mo- The PRESIDING OFFICER. The ma- by a number of Senators—Senator tion on the table. jority leader is recognized. HATCH worked very hard on this—that The motion to lay on the table was Mr. LOTT. Mr. President, we are we are now in the position of being able agreed to. working on a unanimous consent to move the music licensing issue, the AMENDMENTS NOS. 3732 AND 3733, EN BLOC agreement now that we hope we can copyright bill, the international prop- Mr. MCCAIN. Mr. President, I send get approved, which would allow us to erty issue, the international treaty; two amendments to the desk, en bloc, get to a conclusion and a final vote on those are three major achievements and ask for their immediate consider- the Internet tax freedom bill. I com- that I thought a week ago we probably ation. mend all who have been involved, in- could not get done. They are all inter- The PRESIDING OFFICER. The cluding Senators MCCAIN, DORGAN and related, actually. I hope we can get clerk will report. WYDEN. I believe we can actually get to clearance to move forward on these The legislative clerk read as follows: a conclusion. There has been the possi- issues. This is a reasonable request, The Senator from Arizona [Mr. MCCAIN] bility that it would be tangled up in and I withhold the unanimous consent proposes amendments numbered 3732 and other matters, but I think maybe we request at this time. 3733, en bloc. have an agreement that will allow us Mr. LEAHY. Mr. President, will the Mr. MCCAIN. Mr. President, I ask to complete that. Senator from Mississippi yield to me unanimous consent that reading of the f for a moment on this? amendments be dispensed with. UNANIMOUS CONSENT REQUEST— Mr. LOTT. I yield to the Senator The PRESIDING OFFICER. Without S.J. RES. 40 from Vermont. objection, it is so ordered. Mr. LEAHY. The Senator from Mis- The amendments are as follows: Mr. LOTT. Mr. President, I ask unan- sissippi is right. He has been working imous consent that the majority lead- AMENDMENT NO. 3732 very hard with both sides of the aisle er, after consultation with the Demo- to clear the items he has mentioned. (Purpose: To modify the duties of the cratic leader, may proceed to the con- Commission) As he knows, we have been working sideration of S.J. Res. 40, proposing an On page 22, line 2, strike ‘‘interstate’’ and very hard, as well. These are extraor- insert ‘‘instrastate, interstate’’. amendment to the Constitution of the dinarily complex pieces of legislation. United States prohibiting the physical AMENDMENT NO. 3733 Unfortunately, the more complex they desecration of the flag; further, that are, the more like a Rubik’s Cube they (Purpose: To modify the report of the there be 2 hours of debate equally di- Commission) are. I think we are extremely close, vided on the resolution, with no On page 25, line 12, insert ‘‘Any rec- and we will continue to work with him. amendments or motions in order, and ommendation agreed to by the Commission I compliment him on his efforts to help shall be tax and technologically neutral and at the conclusion or yielding back of work these out. apply to all forms of remote commerce.’’ time, the Senate proceed to vote on Mr. LOTT. Again, I say that I appre- after ‘‘this title.’’. passage of the resolution. ciate the help from Senator LEAHY, and The PRESIDING OFFICER. Is there Mr. MCCAIN. These have been ac- I also urge that we do this as soon as objection? cepted by both sides. I know of no fur- we can, because, as you know, at this Mr. KERREY. Mr. President, I ob- ther debate. late stage of the game, sometimes peo- The PRESIDING OFFICER. If there ject. The PRESIDING OFFICER. Objec- ple come in with unrelated issues that is no further debate, without objection, tion is heard. start causing problems. Let’s do it as the amendments are agreed to. quickly as we can. f The amendments (No. 3732 and No. I yield the floor. 3733), en bloc, were agreed to. UNANIMOUS CONSENT REQUEST— f Mr. MCCAIN. Mr. President, we are S. 505 now down to basically two issues about OBJECTION TO 2–HOUR TIME Mr. LOTT. Mr. President, I ask unan- AGREEMENT ON S.J. RES. 40 which the Senator from Wyoming, the imous consent that the Judiciary Com- Senator from North Dakota, and the mittee be discharged from further con- Mr. LEAHY addressed the Chair. Senator from Oregon are deeply con- sideration of S. 505, and that the Sen- The PRESIDING OFFICER. The Sen- cerned. We are negotiating those. We ate then proceed to its immediate con- ator from Vermont. hope we can get an agreement on those sideration. Mr. LEAHY. Mr. President, I will be so that we can finish up on this legisla- The PRESIDING OFFICER. Is there very brief on this. There was another tion. If not, we will probably have objection? unanimous consent request just now to votes on those two issues. But we have Mr. DODD. Mr. President, reserving which the distinguished senior Senator resolved the remaining amendments, the right to object, is this the copy- from Nebraska objected. I join in that except for those two. There is more right bill? objection. The Senator from Nebraska than one amendment associated with Mr. LOTT. Yes. is a distinguished veteran. In fact, he is those two issues. But if we can get that Mr. DODD. I don’t want to object, the only person I have ever served with agreement within the next half hour or but I have been asked about clearing in either body that has been awarded so, I think we can move to final pas- this. Maybe a couple of us have ques- the Congressional Medal of Honor. He sage. I thank the Senator from North tions about this. If the majority leader is a servant of his country in every Dakota for his cooperation with this will withhold for about 15 minutes so sense of the word. difficult issue. we might be able to clear it up, we Mr. President, the reason we were ob- I yield the floor. would appreciate it. jecting is not that people would hesi- Mr. DORGAN. Mr. President, it is Mr. LOTT. That is a reasonable re- tate to vote on this, but a 2-hour pro- also my hope that in a relatively short quest. I will withhold on that. I had be- posal is not realistic. We are dealing period of time we will be able to re- lieved that we cleared it with both here with a proposal to amend the Con- solve the remaining issues. We have sides of the aisle, but some Members stitution of the United States. That is made a lot of progress on the bill. I will may not have had a chance to check on something that, as Madison put it, say again that the Senator from Ari- it. should be reserved for ‘‘certain great zona has done an excellent job, and the Mr. LEAHY. Mr. President, I take and extraordinary occasions.’’ Senator from Oregon and others have the blame for that. I assumed it had This is a serious issue—one deserving pushed very hard to get us to this been cleared. The Senator from Con- of our full attention, our most point. There are other significant necticut said he had an issue, so if the thoughtful consideration, and our most issues, but I expect to get them re- majority leader will give us a few min- serious debate. Instead, we are asked to solved in relatively short order. I hope utes to see if we can work it out. consider this at the most hectic time of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11671 the entire legislative calendar—at the dane of bills, because the Senate is in a most solemn oath to uphold that end of a session when the attention of very much concentrated on getting the Constitution, that somehow the Con- Senators quite properly is focused on appropriations bills passed so that we stitution will pull us through. passing the necessary appropriations can fund the Government.’’ He went on Mr. President, having said that, I be- bills so that we will not once again to note: ‘‘We understood that for some- lieve that no matter how much politics shut down the Federal Government. thing as important as amending the may or may not get played, that in the This is inappropriate timing. I might Constitution we want to do it right. end the American people will be justi- say that it is entirely unnecessary. The last thing Senator FEINSTEIN and I fied in relying on us and the Constitu- This amendment was reported by the would ever do is hurry an amendment tion. But we do not give them hopes in Judiciary Committee on June 24, over 3 to the U.S. Constitution to try to push that if we in turn trivialize the Con- months ago. The committee report was this through without an adequate de- stitution. sent to the Senate on September 1, bate without giving everyone an oppor- At one time this year, I am told, over a month ago. This amendment tunity to have their say.’’ there were over 100 amendments filed could have been brought up at any The last thing we would ever do, as in the Congress to the Constitution— time. these two distinguished Senators said, over 100 amendments. Somehow some I ask, why is it being proposed to be is to hurry an amendment to the U.S. feel that Congress should be consider- brought up now? It would be nothing Constitution. Frankly, that should be ing over 100 amendments and asking less than irresponsible for us to con- the last thing any U.S. Senator should this great country to consider 100 sider it in the short, hectic time line do—Republican or Democrat. But to amendments to its Constitution. that is available. As if this matter ask to consider an amendment to the Mr. President, the genius of our Con- could be made worse, we are asked to Constitution that would for the first stitution and the reason why this de- consider it not only during 2 hours of time in our history cut back on the mocracy has been able to survive is debate, but also when one of our most First Amendment and to propose that that we have been very careful about distinguished colleagues, also a distin- the Senate do so under a 2-hour time amending it—extremely careful about guished veteran of World War II and of agreement would be just that. It comes amending it, because we like the integ- the Korean conflict, Senator GLENN, across as just politics. rity of it, the consistency of it, and in necessarily is absent on a dangerous The sponsor of this amendment, the some ways the comfort of a Constitu- and important project on behalf of the distinguished senior Senator from tion that we know so well. Nation. Utah, told reporters last Friday that he So we should never hurry through an Frankly—I don’t want to interrupt did not have the votes to win it, that amendment to the U.S. Constitution. the conversation going on to the right this amendment was not going to pass. We should never try to push one of me, Mr. President. So I will withhold If it is not going to pass, why are we through without an adequate debate. for a moment. even being asked to bring it up as a We should never try to do it without The PRESIDING OFFICER. May we constitutional amendment in these giving everyone an opportunity to have please have order on the Senate floor? waning days? It is because it is not a their say. Especially today, Mr. Presi- The Senator from Vermont. question of passing this amendment dent, with the crisis the country faces, Mr. LEAHY. I thank the Chair. that the request is being made. It is to we of all people—the Members of the No one has fought harder for the flag get some material for a campaign com- U.S. Senate—should make it very clear than JOHN GLENN. No one has fought mercial. It is for a sound bite, for 30- to the country that we revere the Con- harder than he to protect the Bill of second attack ads, politics at its worst. stitution, and that, whatever else we Rights. It shocks and really offends me It has less to do with passing an may get involved in with regard to pol- that the proponents of this amendment amendment than with avoiding things itics, the Constitution will not be part would take advantage of his absence to that we should be doing, like HMO re- of that. debate this proposal as he embarks form, or protecting the Social Security There are over a quarter billion once again in harm’s way in the service system, or protecting veterans’ health Americans—over a quarter of a billion of the United States. care. Americans. Only 100 of us get the op- I am astounded to have something as In the closing days of a session, portunity to serve in this Chamber at important as an amendment to the where Congress has not passed a budg- any time. The seat I now hold, in the Constitution of the United States et, which was required to be passed by last 58 years only two Vermonters have called up at this late date in the ses- April 15, where both sides flirt with the held this seat. I am one of the two in 58 sion. We are less than a week away idea of what might happen with an- years. It is a great privilege. Frankly, from adjournment. We have important other Government shutdown, we should it is one that humbles me every day work to do—work that cannot wait. be completing the matters that must when I come to work. I still feel the And to call this up seems even less re- be completed this week. same thrill coming up this Hill and sponsible when you consider the re- Obviously, there will be amendments coming into this Chamber as I felt straint of some of our other Members. that may come up from all sides for po- when I was a day away from being a 34- This is not the only constitutional litical points. But the one place that year-old prosecutor in Vermont and amendment pending before the Con- should be off limits for such political was the junior-most Member of the gress. The Senator from Arizona, Mr. points is the Constitution of the United U.S. Senate. KYL, and the Senator from California, States—this short and powerful docu- Part of that thrill is to know that it Mrs. FEINSTEIN, have worked long and ment that holds the greatest democ- is a rare opportunity, a rare privilege, hard on an amendment to the Constitu- racy history has ever known together. an honor that I have never been abso- tion to deal with the rights of victims We should not trivialize it by talking lutely sure I deserve, but one I cherish, of crime. While I have not supported about a 2-hour debate to amend it. given to me by the people of Vermont that amendment and very much am for Mr. President, even as we speak here to represent them and to speak as one a statutory approach to that important today, this Congress is facing a major of the 100 voices for this country, in issue, I know that it was propounded in test of our Constitution just down the full knowledge that there will be some- a responsible fashion. Both Senator hall in the other body. This is a test body else outstanding at this seat who KYL and Senator FEINSTEIN came to that no matter how one looks at it, no will also represent my State of Ver- the floor just a few days ago, on Sep- matter what position one takes, wheth- mont and the United States. But I hope tember 28, to acknowledge that as er that of special prosecutor Starr, that they will carry with them the much as they support the amendment, that of the President, or that of any- same reverence for the Constitution there simply is not time left in the ses- body else, the American people, no that I feel I carry. There will be times sion to consider it properly. matter how they feel about this, have to amend the Constitution. We did it The Senator from Arizona made this some sense that the bedrock of our after the tragic death of President Ken- point: ‘‘It has been very difficult in the country is our Constitution, and some- nedy to allow for the succession of a waning days of the session to get floor how the Constitution, if upheld by 535 Vice President. Time showed the neces- time to take up even the most mun- people, men and women who are sworn sity for it and the American public S11672 CONGRESSIONAL RECORD — SENATE October 7, 1998 came together and knew the need for the interested parties, but they have The bill clerk read as follows: it. been responsible, they have agreed, and The Senator from Mississippi [Mr. LOTT], But let us make it very clear how we I want to commend and thank all of for Mr. HATCH, proposes an amendment num- feel about the Constitution and the Bill those who worked with us and helped bered 3782. of Rights, as the 100 who hold this re- us reach agreement with music licens- Mr. LOTT. Madam President, I ask sponsibility, so that the American peo- ing, including the Restaurant Associa- unanimous consent that reading of the ple know that if we are going to change tion, the National Federation of Inde- amendment be dispensed with. our Constitution, we will do it with pendent Businesses, and the writers The PRESIDING OFFICER. Without real debate and real consideration, and who have been involved in this music objection, it is so ordered. all 100 of us will be able to stand up on issue, including BMI and ASCAP and (The text of the amendment is print- this floor and vote. others. They have all given more than ed in today’s RECORD under ‘‘Amend- Now, the entire Senate has known— they wanted to, but I think we have ments Submitted.’’) in fact, the Nation has known—for come to a reasonable agreement. And Mr. LEAHY. Madam President, I am weeks that Senator GLENN would be then also, it is connected to the treaty delighted that the Senate is finally unavailable this week, and certainly with regard to intellectual property. considering the Copyright Term Exten- that alone would be a reason not to So I will withhold at this time, but I sion Act. bring this up now. Senator GLENN is hope Senators will not begin putting a Copyright has been the engine that one of the most distinguished Ameri- hold on this very important legislation has traditionally converted the energy cans of all time. He obviously should because of unrelated issues that we of artistic creativity into publicly have a chance to vote on this. So I am probably are going to get resolved in available art and entertainment. His- glad the Senator from Nebraska has the next 2 days anyway. torically, government’s role has been lodged the objection he did. I concur Mr. LEAHY. Madam President, I say to encourage creativity and innovation with it. I have voted on this proposed to my friend from Mississippi, I have by protecting rights that create incen- constitutional amendment before. I am worked on each one of these pieces of tives for such activity through copy- not afraid to do so again. But the First legislation so much. There are times right. Amendment, the Constitution, the Bill when I have attempted to pull out On July 1, 1995, the European Union of Rights deserve more than cursory what little bit of hair I have left, and, issued a directive to its member coun- attention. frankly, I hope we can move this. I will tries mandating a copyright term of 20 Let us all make it clear to the people personally go to anybody who is lodg- years longer than the term in the U.S. of this country that the Constitution ing objection to see what I can do to As a result, the E.U. will not have to stands first and foremost. We serve clear it up, because I absolutely concur guard American works beyond the here only for the time our States allow with the Senator from Mississippi and American term limit, whereas Euro- us to serve. The Constitution predated the Senator from South Dakota, the pean works will have 20 years more se- us and will be here after us. Democratic leader, that this is some- curity and revenues in the market- I see the distinguished majority lead- thing which should be moved forward; place. er once again in the Chamber, and so I we want to move it forward. I hope I The songwriter Carlos Santana put it will yield the floor. can tell the distinguished majority eloquently in his statement submitted f leader within a few minutes we do have to the Senate Judiciary Committee it cleared. three years ago on this subject, ‘‘As an UNANIMOUS CONSENT REQUEST— Mr. LOTT. I yield the floor, Madam American songwriter whose works are S. 505 President. performed throughout the world, I find The PRESIDING OFFICER (Ms. COL- I suggest the absence of a quorum. it unacceptable that I am accorded in- LINS). The majority leader is recog- The PRESIDING OFFICER. The ferior copyright protection in the nized. clerk will call the roll. world marketplace.’’ Mr. LOTT. I thank the Chair. I thank The bill clerk proceeded to call the His reasons are as relevant today as Senator LEAHY for completing his re- roll. the day he made that statement. The marks so we could proceed with this Mr. LOTT. Madam President, I ask 1998 Report on Copyright Industries in unanimous consent agreement. unanimous consent that the order for the U.S. Economy issued by the Inter- This is with regard to S. 505, the the quorum call be rescinded. national Intellectual Property Alliance copyright bill. I ask unanimous con- The PRESIDING OFFICER. Without indicates just how important the U.S. sent that the Judiciary Committee be objection, it is so ordered. copyright industries are today to discharged from further consideration f American jobs and the economy and, of S. 505 and the Senate then proceed therefore, how important it is for the to its immediate consideration. COPYRIGHT TERM EXTENSION ACT U.S. to give its copyright industries at The PRESIDING OFFICER. Without OF 1997 least the level of protection that is en- objection—— Mr. LOTT. I renew my unanimous joyed by European Union industries. Mr. LEAHY addressed the Chair. consent request that the Judiciary The Report indicates that from the The PRESIDING OFFICER. The Sen- Committee be discharged from further years 1977 through 1996, the U.S. copy- ator from Vermont. consideration of S. 505, and that the right industries’ share of the gross na- Mr. LEAHY. Madam President, I am Senate proceed to its immediate con- tional product grew more than twice as told there is one other Senator who sideration. fast as the remainder of the economy. still has a question on this, and I would The PRESIDING OFFICER. Is there During those same 20 years, job growth tell my friend from Mississippi that as objection? in core copyright industries was nearly a result of that, while I have no objec- Without objection, it is so ordered. three times the employment growth in tion to this unanimous consent agree- The clerk will report. the economy as a whole. These statis- ment, and I will be supporting the bill The bill clerk read as follows: tics underscore why it is so important and have worked hard on the bill, there A bill (S. 505) to amend the provisions of that we finally pass this legislation is an objection over here and I will title 17, United States Code, with respect to today. have to lodge an objection. the duration of copyright, and for other pur- I cosponsored the original Senate Mr. LOTT. I will withhold the unani- poses. copyright term legislation, the Copy- mous consent request, but I would once There being no objection, the Senate right Term Extension Act of 1995, S. again like to urge my colleagues to proceeded to consider the bill. 483. The Senate Judiciary Committee agree to this. This is a very important AMENDMENT NO. 3782 held a hearing on that bill on Septem- bill that work has been done on for a Mr. LOTT. Senator HATCH has a sub- ber 20, 1995. At that hearing, we heard period of months, and it also is con- stitute amendment at the desk. I ask the testimony of Marybeth Peters, nected to the music licensing issue for its consideration. Register of Copyrights, and Bruce Leh- which has been worked out. It has been The PRESIDING OFFICER. The man, Assistant Secretary of Commerce extremely tedious, working with all clerk will report the amendment. and Commissioner of the Patent and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11673 Trademark Office. We also heard testi- licensing issue that has prevented The bill (S. 505), as amended, was mony of Jack Valenti, President and adoption of copyright term legislation passed, as follows: CEO of the Motion Picture Association until now. I am pleased that agreement Be it enacted by the Senate and House of Rep- of America, Alan Menken, a composer has been reached between the business resentatives of the United States of America in and lyricist, Patrick Alger, President and the music licensing communities Congress assembled, of the Nashville Songwriters Associa- so that musical authors and composers TITLE I—COPYRIGHT TERM EXTENSION tion International, and Peter Jaszi, can enjoy an appropriate return from SEC. 101. SHORT TITLE. Professor at American University, their creative achievements. This title may be referred to as the ‘‘Sonny Washington, College of Law. That bill Finally, the bill also includes an im- Bono Copyright Term Extension Act’’. was favorably reported to the Senate, portant reference to the current nego- SEC. 102. DURATION OF COPYRIGHT PROVISIONS. and the Committee filed its report, tiations between the film industry and (a) PREEMPTION WITH RESPECT TO OTHER LAWS.—Section 301(c) of title 17, United Senate Report No. 104–315, on May 23, its guilds. It is gratifying that negotia- States Code, is amended by striking ‘‘Feb- 1996. tions will be taking place on the appro- ruary 15, 2047’’ each place it appears and in- Alert to the possibility that copy- priate division of residuals from the serting ‘‘February 15, 2067’’. right term extension could impose un- earliest films, and I hope that the ne- (b) DURATION OF COPYRIGHT: WORKS CRE- intended costs, I, along with Senators gotiations will be resolved to the satis- ATED ON OR AFTER JANUARY 1, 1978.—Section KENNEDY, DODD, Brown and Simpson, faction of both sides on this important 302 of title 17, United States Code, is amend- asked Marybeth Peters, Register of issue of fairness. ed— Copyrights, and Daniel Mulhollan, Di- Overall, I commend the bipartisan (1) in subsection (a) by striking ‘‘fifty’’ and rector of Congressional Research Serv- cooperation that has produced this inserting ‘‘70’’; (2) in subsection (b) by striking ‘‘fifty’’ and ice, to conduct a study and issue a re- worthwhile legislation. Our cultural inserting ‘‘70’’; port to Congress on the financial impli- heritage will be strengthened by this (3) in subsection (c) in the first sentence— cations of copyright term extension. measure, and I urge the Senate to ap- (A) by striking ‘‘seventy-five’’ and insert- The Congressional Research Service prove it. ing ‘‘95’’; and issued its report on February 17, 1998, Mr. THURMOND. Madam President, I (B) by striking ‘‘one hundred’’ and insert- and the Copyright Office issued its re- wish to express my support for S. 505, ing ‘‘120’’; and port February 23, 1998. the Copyright Term Extension Act, as (4) in subsection (e) in the first sentence— This Congress, I introduced the Copy- amended. I wish to thank the Majority (A) by striking ‘‘seventy-five’’ and insert- ing ‘‘95’’; right Term Extension Act, S. 505, on Leader, Senator HATCH, and others in March 20, 1997, along with Senators (B) by striking ‘‘one hundred’’ and insert- the Senate for their commitment to ing ‘‘120’’; and HATCH, D’AMATO, THOMPSON, ABRAHAM this important issue. I also wish to (C) by striking ‘‘fifty’’ each place it ap- and FEINSTEIN. Despite the merits of thank Speaker GINGRICH, Congressman pears and inserting ‘‘70’’. passing copyright term extension legis- SENSENBRENNER, and others in the (c) DURATION OF COPYRIGHT: WORKS CRE- lation, the bill has been held hostage to House for their hard work in this re- ATED BUT NOT PUBLISHED OR COPYRIGHTED other matters far too long. In the glob- gard. BEFORE JANUARY 1, 1978.—Section 303 of title al world of the next century, competi- This bill will greatly benefit the 17, United States Code, is amended in the tion in the realm of intellectual prop- American copyright community by second sentence by striking ‘‘December 31, erty will reach a ferocity even more making our copyright term protections 2027’’ and inserting ‘‘December 31, 2047’’. (d) DURATION OF COPYRIGHT: SUBSISTING ruthless than it is today. Congress consistent with Europe. At the same COPYRIGHTS.— should equip American creators with a time, it provides meaningful relief to (1) IN GENERAL.—Section 304 of title 17, full measure of protection for their small businesses, including res- United States Code, is amended— copyrighted works, else U.S. intellec- taurants, hair salons, and many other (A) in subsection (a)— tual property owners are reduced in establishments, regarding licensing (i) in paragraph (1)— their reach and their effectiveness. I fees for broadcast music. It exempts (I) in subparagraph (B) by striking ‘‘47’’ am therefore pleased that the Senate is eating and drinking establishments to and inserting ‘‘67’’; and finally considering the Copyright Term a certain square footage and other es- (II) in subparagraph (C) by striking ‘‘47’’ and inserting ‘‘67’’; Extension Act, and I urge its passage. tablishments to a certain square foot- (ii) in paragraph (2)— Mr. KENNEDY. Madam President, I age of a lesser degree. It also creates a (I) in subparagraph (A) by striking ‘‘47’’ am pleased that the Senate is enacting fairer venue for rate dispute resolution and inserting ‘‘67’’; and this legislation to extend the period of through the circuit court venue. (II) in subparagraph (B) by striking ‘‘47’’ copyright protection for an additional It is also my understanding that and inserting ‘‘67’’; and twenty years. This extension is needed nothing in Section 512(4) of the Copy- (iii) in paragraph (3)— to coordinate the term of copyright for right Act, as amended by the bill, is in- (I) in subparagraph (A)(i) by striking ‘‘47’’ our creative authors and artists with tended to change the burden of proof and inserting ‘‘67’’; and their European counterparts. with respect to rates or fees under ap- (II) in subparagraph (B) by striking ‘‘47’’ The principles of copyright are estab- plicable consent decrees, which places and inserting ‘‘67’’; (B) by amending subsection (b) to read as lished in the Constitution. They reflect the burden of showing a reasonable follows: our enduring belief that our nation rate or fee on the performing rights so- ‘‘(b) COPYRIGHTS IN THEIR RENEWAL TERM prospers when it advances knowledge, ciety. AT THE TIME OF THE EFFECTIVE DATE OF THE understanding and the arts. As Presi- The agreement is not nearly as ex- SONNY BONO COPYRIGHT TERM EXTENSION dent Kennedy said, ‘‘There is a connec- tensive as S. 28, the Fairness in Musi- ACT.—Any copyright still in its renewal term tion, hard to explain logically but easy cal Licensing Act, which I introduced at the time that the Sonny Bono Copyright to feel, between achievement in public at the start of this Congress. However, Term Extension Act becomes effective shall life and progress in the arts. The age of this legislation represents a fair com- have a copyright term of 95 years from the Pericles was also the age of Phidias. promise to this important and complex date copyright was originally secured.’’; (C) in subsection (c)(4)(A) in the first sen- The age of Lorenzo de Medici was also issue of National significance. I am tence by inserting ‘‘or, in the case of a ter- the age of Leonardo da Vinci. The age pleased that we have reached this reso- mination under subsection (d), within the of Elizabeth was also the age of Shake- lution. five-year period specified by subsection speare.’’ Mr. LOTT. I ask unanimous consent (d)(2),’’ after ‘‘specified by clause (3) of this Effective copyright protection is an that the amendment be agreed to, the subsection,’’; and important national priority. If the bill be read a third time and passed, as (D) by adding at the end the following new United States is to continue its leader- amended, the motion to lay on the subsection: ship in world of ideas and creativity, table be agreed to, and any statements ‘‘(d) TERMINATION RIGHTS PROVIDED IN SUB- SECTION (c) WHICH HAVE EXPIRED ON OR BE- we must continue to provide a climate relating to the bill be printed in the FORE THE EFFECTIVE DATE OF THE SONNY that encourages America’s authors, RECORD. BONO COPYRIGHT TERM EXTENSION ACT.—In artists, inventors and composers and The PRESIDING OFFICER. Without the case of any copyright other than a work the important work that they do. objection, it is so ordered. made for hire, subsisting in its renewal term The pending legislation also includes The amendment (No. 3782) was agreed on the effective date of the Sonny Bono an important compromise on the music to. Copyright Term Extension Act for which the S11674 CONGRESSIONAL RECORD — SENATE October 7, 1998 termination right provided in subsection (c) ‘‘(3) The exemption provided in this sub- ‘‘(I) if the performance is by audio means has expired by such date, where the author section does not apply to any subsequent only, the performance is communicated by or owner of the termination right has not uses by users other than such library or ar- means of a total of not more than 6 loud- previously exercised such termination right, chives.’’. speakers, of which not more than 4 loud- the exclusive or nonexclusive grant of a SEC. 105. VOLUNTARY NEGOTIATION REGARDING speakers are located in any 1 room or adjoin- transfer or license of the renewal copyright DIVISION OF ROYALTIES. ing outdoor space; or or any right under it, executed before Janu- It is the sense of the Congress that copy- ‘‘(II) if the performance or display is by ary 1, 1978, by any of the persons designated right owners of audiovisual works for which audiovisual means, any visual portion of the in subsection (a)(1)(C) of this section, other the term of copyright protection is extended performance or display is communicated by than by will, is subject to termination under by the amendments made by this title, and means of a total of not more than 4 audio- the following conditions: the screenwriters, directors, and performers visual devices, of which not more than one ‘‘(1) The conditions specified in subsection of those audiovisual works, should negotiate audiovisual device is located in any 1 room, (c)(1), (2), (4), (5), and (6) of this section apply in good faith in an effort to reach a vol- and no such audiovisual device has a diago- to terminations of the last 20 years of copy- untary agreement or voluntary agreements nal screen size greater than 55 inches, and right term as provided by the amendments with respect to the establishment of a fund any audio portion of the performance or dis- made by the Sonny Bono Copyright Term or other mechanism for the amount of remu- play is communicated by means of a total of Extension Act. neration to be divided among the parties for not more than 6 loudspeakers, of which not ‘‘(2) Termination of the grant may be ef- the exploitation of those audiovisual works. more than 4 loudspeakers are located in any fected at any time during a period of 5 years SEC. 106. EFFECTIVE DATE. 1 room or adjoining outdoor space; beginning at the end of 75 years from the This title and the amendments made by ‘‘(iii) no direct charge is made to see or date copyright was originally secured.’’. this title shall take effect on the date of the hear the transmission or retransmission; (2) COPYRIGHT AMENDMENTS ACT OF 1992.— enactment of this Act. ‘‘(iv) the transmission or retransmission is Section 102 of the Copyright Amendments not further transmitted beyond the estab- Act of 1992 (Public Law 102–307; 106 Stat. 266; TITLE II—MUSIC LICENSING EXEMPTION lishment where it is received; and 17 U.S.C. 304 note) is amended— FOR FOOD SERVICE OR DRINKING ES- ‘‘(v) the transmission or retransmission is (A) in subsection (c)— TABLISHMENTS licensed by the copyright owner of the work (i) by striking ‘‘47’’ and inserting ‘‘67’’; SEC. 201. SHORT TITLE. so publicly performed or displayed;’’; and (ii) by striking ‘‘(as amended by subsection This title may be cited as the ‘‘Fairness In (2) by adding after paragraph (10) the fol- (a) of this section)’’; and Music Licensing Act of 1998.’’ lowing: (iii) by striking ‘‘effective date of this sec- SEC. 202. EXEMPTIONS. ‘‘The exemptions provided under paragraph tion’’ each place it appears and inserting ‘‘ef- (a) EXEMPTIONS FOR CERTAIN ESTABLISH- (5) shall not be taken into account in any ad- fective date of the Sonny Bono Copyright MENTS.—Section 110 of title 17, United States ministrative, judicial, or other governmental Term Extension Act’’; and Code is amended— proceeding to set or adjust the royalties pay- (B) in subsection (g)(2) in the second sen- (1) in paragraph (5)— able to copyright owners for the public per- tence by inserting before the period the fol- (A) by striking ‘‘(5)’’ and inserting ‘‘(5)(A) formance or display of their works. Royal- lowing: ‘‘, except each reference to forty- except as provided in subparagraph (B),’’; ties payable to copyright owners for any seven years in such provisions shall be and public performance or display of their works deemed to be 67 years’’. (B) by adding at the end the following: other than such performances or displays as SEC. 103. TERMINATION OF TRANSFERS AND LI- ‘‘(B) communication by an establishment are exempted under paragraph (5) shall not CENSES COVERING EXTENDED RE- of a transmission or retransmission embody- be diminished in any respect as a result of NEWAL TERM. such exemption’’. Sections 203(a)(2) and 304(c)(2) of title 17, ing a performance or display of a nondra- matic musical work intended to be received (b) EXEMPTION RELATING TO PROMOTION.— United States Code, are each amended— Section 110(7) of title 17, United States Code, (1) by striking ‘‘by his widow or her wid- by the general public, originated by a radio or television broadcast station licensed as is amended by inserting ‘‘or of the audio- ower and his or her children or grand- visual or other devices utilized in such per- children’’; and such by the Federal Communications Com- mission, or, if an audiovisual transmission, formance,’’ after ‘‘phonorecords of the (2) by inserting after subparagraph (C) the work,’’. following: by a cable system or satellite carrier, if— SEC. 203. LICENSING BY PERFORMING RIGHTS ‘‘(D) In the event that the author’s widow ‘‘(i) in the case of an establishment other than a food service or drinking establish- SOCIETIES. or widower, children, and grandchildren are (a) IN GENERAL.—Chapter 5 of title 17, not living, the author’s executor, adminis- ment, either the establishment in which the communication occurs has less than 2000 United States Code, is amended by adding at trator, personal representative, or trustee the end the following: shall own the author’s entire termination in- gross square feet of space (excluding space ‘‘§ 512. Determination of reasonable license terest.’’. used for customer parking and for no other purpose), or the establishment in which the fees for individual proprietors SEC. 104. REPRODUCTION BY LIBRARIES AND AR- CHIVES. communication occurs has 2000 or more gross ‘‘In the case of any performing rights soci- Section 108 of title 17, United States Code, square feet of space (excluding space used for ety subject to a consent decree which pro- is amended— customer parking and for no other purpose) vides for the determination of reasonable li- (1) by redesignating subsection (h) as sub- and— cense rates or fees to be charged by the per- section (i); and ‘‘(I) if the performance is by audio means forming rights society, notwithstanding the (2) by inserting after subsection (g) the fol- only, the performance is communicated by provisions of that consent decree, an individ- lowing: means of a total of not more than 6 loud- ual proprietor who owns or operates fewer ‘‘(h)(1) For purposes of this section, during speakers, of which not more than 4 loud- than 7 non-publicly traded establishments in the last 20 years of any term of copyright of speakers are located in any 1 room or adjoin- which nondramatic musical works are per- a published work, a library or archives, in- ing outdoor space; or formed publicly and who claims that any li- cluding a nonprofit educational institution ‘‘(II) if the performance or display is by cense agreement offered by that performing that functions as such, may reproduce, dis- audiovisual means, any visual portion of the rights society is unreasonable in its license tribute, display, or perform in facsimile or performance or display is communicated by rate or fee as to that individual proprietor, digital form a copy or phonorecord of such means of a total of not more than 4 audio- shall be entitled to determination of a rea- work, or portions thereof, for purposes of visual devices, of which not more than one sonable license rate or fee as follows: preservation, scholarship, or research, if audiovisual device is located in any 1 room, ‘‘(1) The individual proprietor may com- such library or archives has first determined, and no such audiovisual device has a diago- mence such proceeding for determination of on the basis of a reasonable investigation, nal screen size greater than 55 inches, and a reasonable license rate or fee by filing an that none of the conditions set forth in sub- any audio portion of the performance or dis- application in the applicable district court paragraphs (A), (B), and (C) of paragraph (2) play is communicated by means of a total of under paragraph (2) that a rate disagreement apply. not more than 6 loudspeakers, of which not exists and by serving a copy of the applica- ‘‘(2) No reproduction, distribution, display, more than 4 loudspeakers are located in any tion on the performing rights society. Such or performance is authorized under this sub- 1 room or adjoining outdoor space; proceeding shall commence in the applicable section if— ‘‘(ii) in the case of a food service or drink- district court within 90 days after the service ‘‘(A) the work is subject to normal com- ing establishment, either the establishment of such copy, except that such 90-day re- mercial exploitation; in which the communication occurs has less quirement shall be subject to the adminis- ‘‘(B) a copy or phonorecord of the work can than 3750 gross square feet of space (exclud- trative requirements of the court. be obtained at a reasonable price; or ing space used for customer parking and for ‘‘(2) The proceeding under paragraph (1) ‘‘(C) the copyright owner or its agent pro- no other purpose), or the establishment in shall be held, at the individual proprietor’s vides notice pursuant to regulations promul- which the communication occurs has 3750 election, in the judicial district of the dis- gated by the Register of Copyrights that ei- gross square feet of space or more (excluding trict court with jurisdiction over the appli- ther of the conditions set forth in subpara- space used for customer parking and for no cable consent decree or in that place of hold- graphs (A) and (B) applies. other purpose) and— ing court of a district court that is the seat October 7, 1998 CONGRESSIONAL RECORD — SENATE S11675 of the Federal circuit (other than the Court two times the amount of the license fee that I yield the floor. of Appeals for the Federal Circuit) in which the proprietor of the establishment con- Mr. LEAHY. Madam President, I the proprietor’s establishment is located. cerned should have paid the plaintiff for such thank the Senator from Mississippi. I ‘‘(3) Such proceeding shall be held before use during the preceding period of up to 3 think we are clearing a lot of things. the judge of the court with jurisdiction over years.’’. I suggest the absence of a quorum. the consent decree governing the performing SEC. 205. DEFINITIONS. The PRESIDING OFFICER. The rights society. At the discretion of the court, Section 101 of title 17, United States Code, the proceeding shall be held before a special is amended— clerk will call the roll. master or magistrate judge appointed by (1) by inserting after the definition of ‘‘dis- The bill clerk proceeded to call the such judge. Should that consent decree pro- play’’ the following: roll. vide for the appointment of an advisor or ad- ‘‘An ‘establishment’ is a store, shop, or any Mr. MCCAIN. Madam President, I ask visors to the court for any purpose, any such similar place of business open to the general unanimous consent that the order for advisor shall be the special master so named public for the primary purpose of selling the quorum call be rescinded. by the court. goods or services in which the majority of The PRESIDING OFFICER (Ms. COL- ‘‘(4) In any such proceeding, the industry the gross square feet of space that is nonresi- LINS). Without objection, it is so or- rate shall be presumed to have been reason- dential is used for that purpose, and in which dered. able at the time it was agreed to or deter- nondramatic musical works are performed mined by the court. Such presumption shall publicly. f in no way affect a determination of whether ‘‘A ‘food service or drinking establishment’ INTERNET TAX FREEDOM ACT the rate is being correctly applied to the in- is a restaurant, inn, bar, tavern, or any other dividual proprietor. similar place of business in which the public The Senate continued with consider- ‘‘(5) Pending the completion of such pro- or patrons assemble for the primary purpose ation of the bill. ceeding, the individual proprietor shall have of being served food or drink, in which the AMENDMENT NO. 3719, AS MODIFIED the right to perform publicly the copy- majority of the gross square feet of space AMENDMENT NO. 3779, AS MODIFIED TO righted musical compositions in the rep- that is nonresidential is used for that pur- AMENDMENT NO. 3719 ertoire of the performing rights society by pose, and in which nondramatic musical paying an interim license rate or fee into an works are performed publicly.’’; Mr. MCCAIN. I ask unanimous con- interest bearing escrow account with the (2) by inserting after the definition of sent that amendment No. 3719, as modi- clerk of the court, subject to retroactive ad- ‘‘fixed’’ the following: fied, be the pending business; that Sen- justment when a final rate or fee has been ‘‘The ‘gross square feet of space’ of an es- ator DORGAN be recognized to offer a determined, in an amount equal to the indus- tablishment means the entire interior space second-degree amendment, as modified, try rate, or, in the absence of an industry of that establishment, and any adjoining that will be adopted; and it be in order rate, the amount of the most recent license outdoor space used to serve patrons, whether for me to offer a nonfiled second-degree rate or fee agreed to by the parties. on a seasonal basis or otherwise.’’; ‘‘(6) Any decision rendered in such proceed- amendment. (3) by inserting after the definition of ‘‘per- The PRESIDING OFFICER. Without ing by a special master or magistrate judge form’’ the following: named under paragraph (3) shall be reviewed ‘‘A ‘performing rights society’ is an asso- objection, it is so ordered. by the judge of the court with jurisdiction ciation, corporation, or other entity that li- Mr. MCCAIN. Madam President, let over the consent decree governing the per- censes the public performance of nondra- me comment on what is going on here forming rights society. Such proceeding, in- matic musical works on behalf of copyright for the benefit of my colleagues. We cluding such review, shall be concluded with- owners of such works, such as the American have agreed on the language concern- in 6 months after its commencement. Society of Composers, Authors and Publish- ing the grandfathering of this legisla- ‘‘(7) Any such final determination shall be ers (ASCAP), Broadcast Music, Inc. (BMI), tion, which was important. binding only as to the individual proprietor and SESAC, Inc.’’; and Now we have resolved all matters commencing the proceeding, and shall not be (4) by inserting after the definition of ‘‘pic- applicable to any other proprietor or any torial, graphic and sculptural works’’ the fol- with the exception of whether the mor- other performing rights society, and the per- lowing: atorium should last for 3 or 4 years. My forming rights society shall be relieved of ‘‘A ‘proprietor’ is an individual, corpora- amendment, after we accept the grand- any obligation of nondiscrimination among tion, partnership, or other entity, as the case father language from the Senator from similarly situated music users that may be may be, that owns an establishment or a North Dakota, will be to have the mor- imposed by the consent decree governing its food service or drinking establishment, ex- atorium expire at the end of 4 years, operations. cept that no owner or operator of a radio or for which there will probably be a re- ‘‘(8) An individual proprietor may not television station licensed by the Federal corded vote, after which it is most like- bring more than one proceeding provided for Communications Commission, cable system in this section for the determination of a or satellite carrier, cable or satellite carrier ly—although we have to check with reasonable license rate or fee under any li- service or programmer, provider of online both sides about further debate—we cense agreement with respect to any one per- services or network access or the operator of will have completed the amending forming rights society. facilities therefor, telecommunications com- process of the germane amendments ‘‘(9) For purposes of this section, the term pany, or any other such audio or audiovisual that were on the bill and we will be ‘industry rate’ means the license fee a per- service or programmer now known or as may very close to final passage of the legis- forming rights society has agreed to with, or be developed in the future, commercial sub- lation. which has been determined by the court for, scription music service, or owner or operator The PRESIDING OFFICER. The a significant segment of the music user in- of any other transmission service, shall dustry to which the individual proprietor be- under any circumstances be deemed to be a clerk will report. longs.’’. proprietor.’’. The assistant legislative clerk read (b) TECHNICAL AND CONFORMING AMEND- SEC. 206. CONSTRUCTION OF TITLE. as follows: MENT.—The table of sections for chapter 5 of Except as otherwise provided in this title, The Senator from Arizona [Mr. MCCAIN], title 17, United States Code, is amended by nothing in this title shall be construed to re- for himself and Mr. WYDEN, proposes an adding after the item relating to section 511 lieve any performing rights society of any amendment numbered 3719, as modified. the following: obligation under any State or local statute, The Senator from North Dakota [Mr. DOR- ‘‘512. Determination of reasonable license ordinance, or law, or consent decree or other GAN] proposes an amendment numbered 3779, fees for individual propri- court order governing its operation, as such as modified, to amendment No. 3719. etors.’’. statute, ordinance, law, decree, or order is in The amendments (No. 3719, as modi- SEC. 204. PENALTIES. effect on the date of the enactment of this fied, and No. 3779, as modified) are as Section 504 of title 17, United States Code, Act, as it may be amended after such date, follows: is amended by adding at the end the follow- or as it may be issued or agreed to after such AMENDMENT NO. 3719, AS MODIFIED ing: date. ‘‘(d) ADDITIONAL DAMAGES IN CERTAIN SEC. 207. EFFECTIVE DATE. (Purpose: To make minor and technical CASES.—In any case in which the court finds This title and the amendments made by changes in the moratorium provision) that a defendant proprietor of an establish- this title shall take effect 90 days after the On page 16, beginning with line 23, strike ment who claims as a defense that its activi- date of the enactment of this Act. through line 15 on page 17, and insert the fol- ties were exempt under section 110(5) did not Mr. LOTT. Again, Madam President, lowing: have reasonable grounds to believe that its (a) MORATORIUM.—No State or political use of a copyrighted work was exempt under I thank the Senator from Vermont for subdivision thereof shall impose any of the such section, the plaintiff shall be entitled his cooperation and his allowing us to following taxes during the period beginning to, in addition to any award of damages go ahead and proceed quickly on this on October 1, 1998, and ending 3 years after under this section, an additional award of very important matter. the date of the enactment of this Act: S11676 CONGRESSIONAL RECORD — SENATE October 7, 1998 (1) Taxes on Internet access, unless such The motion to lay on the table was Cohen Act of 1996 (divisions D and E of Pub- tax was generally imposed and actually en- agreed to. lic Law 104–106) and the amendments made forced prior to October 1, 1998; and by that Act, and the provisions of this title, AMENDMENT NO. 3783 TO AMENDMENT NO. 3719, AS (2) Multiple or discriminatory taxes on the Director of the Office of Management electronic commerce. MODIFIED, AS AMENDED and Budget shall, not later than 18 months (b) PRESERVATION OF STATE AND LOCAL Mr. MCCAIN. Madam President, I after the date of enactment of this Act, de- TAXING AUTHORITY.—Except as provided in have a second-degree amendment at velop procedures for the use and acceptance this section, nothing in this Act shall be con- the desk, and I ask for its immediate of electronic signatures by Executive agen- strued to modify, impair, or supersede, or au- consideration. cies. thorize the modification, impairment, or su- The PRESIDING OFFICER. The (b) REQUIREMENTS FOR PROCEDURES.—(1) perseding of, any State or local law pertain- The procedures developed under subsection ing to taxation that is otherwise permissible clerk will report. (a)— by or under the Constitution of the United The assistant legislative clerk read (A) shall be compatible with standards and States or other Federal law and in effect on as follows: technology for electronic signatures that are the date of enactment of this Act. The Senator from Arizona [Mr. MCCAIN] generally used in commerce and industry (c) LIABILITIES AND PENDING CASES.—Noth- proposes an amendment numbered 3783 to and by State governments; ing in this Act affects liability for taxes ac- amendment No. 3719, as modified and amend- (B) may not inappropriately favor one in- crued and enforced before the date of enact- ed. dustry or technology; ment of this Act, nor does this Act affect on- (C) shall ensure that electronic signatures Mr. MCCAIN. I ask unanimous con- going litigation relating to such taxes. are as reliable as is appropriate for the pur- sent reading of the amendment be dis- AMENDMENT NO. 3779, AS MODIFIED pose in question and keep intact the infor- On page 2, after line 14, add the following: pensed with. mation submitted; (d) DEFINITION OF GENERALLY IMPOSED AND The PRESIDING OFFICER. Without (D) shall provide for the electronic ac- ACTUALLY ENFORCED.—For purposes of this objection, it is so ordered. knowledgment of electronic forms that are section, a tax has been generally imposed The amendment is as follows: successfully submitted; and and actually enforced prior to October 1, On line 5, strike ‘‘3’’ and insert ‘‘4’’. (E) shall, to the extent feasible and appro- 1998, if, before that date, the tax was author- priate, require an Executive agency that an- ized by statute and either— Mr. MCCAIN. As I explained earlier, ticipates receipt by electronic means of (1) a provider of Internet access services this will be a simple vote on whether 50,000 or more submittals of a particular had a reasonable opportunity to know by vir- the moratorium should last for 3 years form to take all steps necessary to ensure tue of a rule or other public proclamation or 4 years. I am sorry we have to have that multiple methods of electronic signa- made by the appropriate administrative a recorded vote on it since we were able tures are available for the submittal of such agency of the State or political subdivision to reach agreement on far more con- form. thereof, that such agency has interpreted tentious issues surrounding this legis- (2) The Director shall ensure the compat- and applied such tax to Internet access serv- ibility of the procedures under paragraph ices; or lation. There will be some debate and (1)(A) in consultation with appropriate pri- (2) a State or political subdivision thereof discussion on this amendment. vate bodies and State government entities generally collected such tax on charges for In the meantime, I suggest the ab- that set standards for the use and acceptance Internet access. sence of a quorum. of electronic signatures. Mr. MCCAIN. Madam President, I The PRESIDING OFFICER. The SEC. ll04. DEADLINE FOR IMPLEMENTATION BY don’t know if there is any debate on clerk will call the roll. EXECUTIVE AGENCIES OF PROCE- DURES FOR USE AND ACCEPTANCE the Dorgan second-degree amendment. The assistant legislative clerk pro- OF ELECTRONIC SIGNATURES. Mr. DORGAN. Madam President, the ceeded to call the roll. In order to fulfill the responsibility to ad- second-degree amendment to the first- Mr. MCCAIN. I ask unanimous con- minister the functions assigned under chap- degree amendment that was offered by sent that the order for the quorum call ter 35 of title 44, United States Code, the pro- the Senator from Arizona is an amend- be rescinded. visions of the Clinger-Cohen Act of 1996 (divi- ment that has been worked out over a The PRESIDING OFFICER. Without sions D and E of Public Law 104–106) and the period of several days dealing with the amendments made by that Act, and the pro- objection, it is so ordered. visions of this title, the Director of the Of- grandfather clause. It is something AMENDMENT NO. 3678, AS MODIFIED fice of Management and Budget shall ensure that I think represents a workable so- Mr. MCCAIN. Madam President, the that, commencing not later than five years lution which improves the legislation. other day the Senate adopted amend- after the date of enactment of this Act, Ex- It would be my hope that the Senate ment No. 3678, which had technical and ecutive agencies provide— would approve it. drafting errors. I ask unanimous con- (1) for the option of the electronic mainte- nance, submission, or disclosure of informa- I do want to point out that the sent that the modification of the amendment that was referred to by tion, when practicable as a substitute for amendment be adopted. paper; and Senator MCCAIN would be an amend- The PRESIDING OFFICER. The (2) for the use and acceptance of electronic ment dealing with the length of the amendment will be so modified. signatures, when practicable. moratorium. My understanding is that The amendment (No. 3678), as modi- SEC. ll05. ELECTRONIC STORAGE AND FILING the passage of the first-degree and sec- fied, is as follows: OF EMPLOYMENT FORMS. ond-degree amendments would leave in In order to fulfill the responsibility to ad- At the end of the bill add the following new minister the functions assigned under chap- place a 3-year moratorium with respect title: to this legislation. The Senator from ter 35 of title 44, United States Code, the pro- SEC. ll01. SHORT TITLE. visions of the Clinger-Cohen Act of 1996 (divi- Arizona would then offer an amend- This title may be cited as the ‘‘Govern- sions D and E of Public Law 104–106) and the ment, and I believe there would be a re- ment Paperwork Elimination Act’’. amendments made by that Act, and the pro- corded vote after some debate on that SEC. ll02. AUTHORITY OF OMB TO PROVIDE visions of this title, the Director of the Of- amendment, that would propose that FOR ACQUISITION AND USE OF AL- fice of Management and Budget shall, not the 3-year moratorium be extended to 4 TERNATIVE INFORMATION TECH- later than 18 months after the date of enact- NOLOGIES BY EXECUTIVE AGEN- ment of this Act, develop procedures to per- years, and the Senate then would make CIES. a judgment on that question. mit private employers to store and file elec- Section 3504(a)(1)(B)(vi) of title 44, United tronically with Executive agencies forms I offer that by way of explanation of States Code, is amended to read as follows: containing information pertaining to the what is happening here. I hope the Sen- ‘‘(vi) the acquisition and use of informa- employees of such employers. ate will approve by voice vote the first- tion technology, including alternative infor- SEC. ll06. STUDY ON USE OF ELECTRONIC SIG- and second-degree amendments. mation technologies that provide for elec- NATURES. The PRESIDING OFFICER. The tronic submission, maintenance, or disclo- (a) ONGOING STUDY REQUIRED.—In order to question is on agreeing to the amend- sure of information as a substitute for paper fulfill the responsibility to administer the ments. and for the use and acceptance of electronic functions assigned under chapter 35 of title The amendments (No. 3779, as modi- signatures.’’. 44, United States Code, the provisions of the fied, and No. 3719, as modified, as SEC. ll03. PROCEDURES FOR USE AND ACCEPT- Clinger-Cohen Act of 1996 (divisions D and E ANCE OF ELECTRONIC SIGNATURES of Public Law 104–106) and the amendments amended) were agreed to. BY EXECUTIVE AGENCIES. made by that Act, and the provisions of this Mr. MCCAIN. I move to reconsider (a) IN GENERAL.—In order to fulfill the re- title, the Director of the Office of Manage- the vote. sponsibility to administer the functions as- ment and Budget shall conduct an ongoing Mr. DORGAN. I move to lay that mo- signed under chapter 35 of title 44, United study of the use of electronic signatures tion on the table. States Code, the provisions of the Clinger- under this title on— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11677 (1) paperwork reduction and electronic (b) MEMBERSHIP.— The reason the McCain amendment commerce; (1) IN GENERAL.—The Commissioners shall with respect to the length of the mora- (2) individual privacy; and serve for the life of the Commission. The torium is important is not just because (3) the security and authenticity of trans- membership of the Commission shall be as follows: it is a compromise—4 years—between actions. the Commerce Committee bill and the (b) REPORTS.—The Director shall submit to (A) 3 representatives from the Federal Gov- Congress on a periodic basis a report describ- ernment, comprised of the Secretary of Com- Finance Committee bill, but I think it ing the results of the study carried out under merce, the Secretary of the Treasury, and is going to take that long in order to subsection (a). the United States Trade Representative (or deal with these issues in a thoughtful SEC. ll07. ENFORCEABILITY AND LEGAL EF- their respective delegates). way. They are complicated questions. (B) 8 representatives from State and local FECT OF ELECTRONIC RECORDS. It is very clear that if, for example, Electronic records submitted or main- governments (one such representative shall someone orders fruit from Harry and be from a State or local government that tained in accordance with procedures devel- David’s in Medford, OR, uses America oped under this title, or electronic signa- does not impose a sales tax). (C) 8 representatives of the electronic com- Online in Virginia to make the order, tures or other forms of electronic authen- merce industry (including small business), pays for it with a bank card in Califor- tication used in accordance with such proce- telecommunications carriers, local retail nia, and ships it to a cousin in Boston, dures, shall not be denied legal effect, valid- businesses, and consumer groups, comprised this transaction could affect scores and ity, or enforceability because such records of— are in electronic form. scores of local jurisdictions, as well as (i) 5 individuals appointed by the Majority a number of States. So we do want suf- SEC. ll08. DISCLOSURE OF INFORMATION. Leader of the Senate; Except as provided by law, information (ii) 3 individuals appointed by the Minority ficient time to sort out these issues. collected in the provision of electronic signa- Leader of the Senate; Under the amendment that will be ture services for communications with an ex- (iii) 5 individuals appointed by the Speaker first offered by Senator MCCAIN and ecutive agency, as provided by this title, of the House of Representatives; and myself, there would be a two-step proc- shall only be used or disclosed by persons (iv) 3 individuals appointed by the Minor- ess. First, the commission studies the who obtain, collect, or maintain such infor- ity Leader of the House of Representatives. issues and makes its recommendations mation as a business or government practice, Mr. MCCAIN. I suggest the absence of to the Congress. Second, the rec- for the purpose of facilitating such commu- a quorum. ommendation must be implemented. nications, or with the prior affirmative con- The PRESIDING OFFICER. The sent of the person about whom the informa- Our concern is that a number of State clerk will call the roll. legislatures do not meet every year; tion pertains. The assistant legislative clerk pro- SEC. ll09. APPLICATION WITH INTERNAL REVE- mine is one. You are going to need the ceeded to call the roll. McCain-Wyden amendment with re- NUE LAWS. Mr. WYDEN. Madam President, I ask spect to the moratorium in order to No provision of this title shall apply to the unanimous consent that the order for Department of the Treasury or the Internal make sure that you have sufficient the quorum call be rescinded. Revenue Service to the extent that such pro- time for both the study of these issues vision— The PRESIDING OFFICER. Without objection, it is so ordered. and recommendations to the Congress, (1) involves the administration of the in- as well as an adequate amount of time AMENDMENT NO. 3783 ternal revenue laws; or for legislative bodies to consider them. (2) conflicts with any provision of the In- Mr. WYDEN. Madam President, let So we felt that the amendment we ternal Revenue Service Restructuring and me try to describe briefly for the Sen- were offering not only was a fair com- Reform Act of 1998 or the Internal Revenue ate where we are with respect to the Code of 1986. promise between what was passed in important issue coming up now on the the Senate Commerce Committee over- SEC. ll10. DEFINITIONS. length of the moratorium. As Chair- For purposes of this title: whelmingly and what was passed in the man MCCAIN and my colleague, Sen- (1) ELECTRONIC SIGNATURE.—The term Senate Finance Committee, but in ator DORGAN, noted, the two issues we ‘‘electronic signature’’ means a method of terms of the actual logistics of State signing an electronic message that— have been trying to deal with, the legislative sessions, we believe the (A) identifies and authenticates a particu- question of grandfathering in existing amendment that we will be offering lar person as the source of the electronic States and localities and the length of with respect to the length of the mora- message; and the moratorium are linked, and we torium is a critical one. (B) indicates such person’s approval of the think we have a fair process in place The fact of the matter is, when you information contained in the electronic mes- now for resolving the two important have in the vicinity of 30,000 taxing ju- sage. issues. (2) EXECUTIVE AGENCY.—The term ‘‘Execu- risdictions—and that is the number in I would like to tell my colleagues our country—you have the prospect of tive agency’’ has the meaning given that why I think it is important that we go term in section 105 of title 5, United States different taxing jurisdictions in States Code. with the McCain amendment on the and localities that all see the Internet length of the moratorium. The legisla- AMENDMENT NO. 3721, AS MODIFIED as the golden goose; you have the real tion, when I introduced it in March of Mr. MCCAIN. There was a technical prospect that policies could be adopted 1997, did not specify how long the mor- error in amendment No. 3721. There- that would cause great damage to the atorium should last. When we consid- fore, I send a modification to the desk Internet’s development and cause that ered it in the Senate Commerce Com- and ask it be accepted on the proviso golden goose to lay far fewer eggs. mittee, after a very lengthy debate we will try to hire more efficient staff What we are trying to do in this leg- and, in effect, taking a break for 5 or 6 so these kinds of things are not re- islation is to restore a balance with re- months after the hearings were held to quired in the future. spect to the moratorium. We think it is try to work with Senators on both The PRESIDING OFFICER. The a fair compromise between what the sides of the aisle, the Senate Com- amendment will be so modified. two committees dealt with here in the merce Committee voted out legislation The amendment (No. 3721), as modi- U.S. Senate, and at the same time we that set in place a 6-year moratorium. fied, is as follows: think it is an approach that will give As Senators know, the Finance Com- adequate time for the States and local- On page 17, beginning with line 18, strike mittee then went forward with its leg- through line 21 on page 19 and insert the fol- ities to deal with the recommendations lowing: islation and imposed a 2-year morato- that are made while making sure that (a) ESTABLISHMENT OF COMMISSION.—There rium. In a sense, this moratorium isn’t businesses aren’t confused and, in a is established a commission to be known as even the most accurate way to describe number of instances, paralyzed by dis- the Advisory Commission on Electronic it because even during this period criminatory and multiple taxation Commerce (in this title referred to as the Internet transactions were treated ex- about which they are already express- ‘‘Commission’’). The Commission shall— actly like any other transaction. We ing concerns. (1) be composed of 19 members appointed in have heard discussion of how, in some I think we have made a considerable accordance with subsection (b), including the way, the legislation would create some amount of headway. As I have said in a chairperson who shall be selected by the members of the Commission from among sort of special tax haven for the Inter- couple of instances when I came to the themselves; and net, and that is simply not the case. floor, if you look at the legislation (2) conduct its business in accordance with Internet transactions would be treated that the Presiding Officer heard dis- the provisions of this title. just like any other. cussed in the Commerce Committee S11678 CONGRESSIONAL RECORD — SENATE October 7, 1998 early in 1997 and the legislation that is ommendations implemented by the lo- except to say that I hope we can mini- before the Senate now, it is clear that calities and the States. There are a mize the debate. But I say to those who there have been many, many changes, number of States that do not meet are the 3-year advocates to come over over 30. Those are changes that were every year, for example, with their leg- and make their case, because as soon made specifically to try to deal with islatures. They would not have ade- as Senator DORGAN comes back we the legitimate concerns of States and quate time under the shorter version of would like to move on that amend- localities that are concerned about the moratorium. ment, because I believe that, following their revenue prospects with respect to Madam President, and colleagues, we Senator MURKOWSKI’s motion on the the digital economy. will have those votes before too long. I underlying amendment, we can move We have tried to be fair. We had a thank the various Senators who have to final passage on this bill. number of votes on the floor of the weighed in with myself and Chairman I know the Senator from Oregon Senate. There were several which I MCCAIN, both today and over the last would like to dispense of this legisla- thought would have done great damage few days. This has been a good debate. tion but not nearly so much as I would. to the philosophy of what we are trying And it is only the beginning of our dis- Mr. WYDEN. Will the chairman to do in this legislation. There were cussions on the ground rules for the yield? others raised with respect to ensuring digital economy. Mr. MCCAIN. I am glad to yield to the fair analysis of a variety of issues This presents a whole new set of my friend from Oregon. and participation on the commission questions for the U.S. Senate. When we Mr. WYDEN. I thank the chairman where, clearly, Senators have tried look at traditional commerce, even for all of his patience. very hard to work together. with the Senate Commerce Committee I think it would be helpful, and per- The issue that is coming up now with of 40 or 50 years ago, we were talking haps the chairman would lay it out, to respect to the length of the morato- about moving goods from point A to know that through this discussion rium is critical. When I introduced this point B. There was a role for tradi- there has been an effort to link the legislation last year, there was no end tional business. There was a role for grandfather provision effort to make date on the moratorium. The reason labor unions and various other key eco- sure that States and localities that al- there was not is that it was our view nomic sectors such as the transpor- ready have laws on the books are pro- that if ever there was something that tation sector. That has changed now in tected and to link that to the morato- ought to be treated as interstate com- many respects, because information— rium so that there would be an effort merce, it was the Internet. The Inter- in effect, goods and services—can move to be fair to both sides. I think the net is global; it knows no boundaries. on the Internet in a flash of light. So Senator has been very fair, and perhaps It is not something that ought to be we need sensible policies. the Senator could elaborate a little bit balkanized in the 21st century into I urge my colleagues to support that on some of the challenges with respect kind of a toll-riddled freeway where it first amendment that Chairman to that grandfather debate. will be very hard to tap the potential MCCAIN and I are offering with respect Mr. MCCAIN. Will the Senator repeat of the Internet. to the length of the moratorium. It his question? We should make no mistake about it. will ensure that States and localities Mr. WYDEN. I am sorry. The fact is The great potential for the Internet is have an adequate amount of time to the grandfathering provision and the for those individuals, such as those in act after the recommendations of the moratorium really are linked, and I rural America and inner cities, senior commission to go forward. It is a true think that the Senator has been very citizens, handicapped individuals, compromise. The Senate Commerce fair to both sides with respect to this many of them operating home-based Committee passed legislation that discussion, and to the extent that there businesses, who with sensible govern- called for a moratorium of 6 years after are greater protections for mental policies will be able to, in my my original bill with Chairman grandfathering and more jurisdiction view, make a very decent living in the MCCAIN, which had no end date at all. protected that obviously affects the global economy. But the prerequisite of The Senate Finance Committee bill discussion about the length of the mor- having those kinds of opportunities was 2 years. We are going forward with atorium. I think the Senator struck a will be policies that allow the Internet 4. That would give the States an oppor- fair balance, and I think it would be to flourish. Those policies should nei- tunity to act in a thoughtful way. helpful if the Senator could take the ther be discriminatory against the I hope on that first vote the Senate Senate through those discussions a bit. Internet nor should they be pref- will support the McCain-Wyden amend- I thank the Senator for yielding me erential. ment with respect to the length of the some time. I have heard various Senators say moratorium. Mr. MCCAIN. I thank the Senator over the last few days that in some Madam President, I yield the floor. from Oregon. way this legislation would ensure pref- Mr. MCCAIN addressed the Chair. The reality is that the original legis- erential treatment for the Internet. It The PRESIDING OFFICER (Mr. GOR- lation as proposed by the Senator from would do nothing of the sort. It would TON). The Senator from Arizona. Oregon had no grandfathering. It had say very specifically that Internet Mr. MCCAIN. Mr. President, I urge no time limit. This legislation received sales ought to be treated just like ev- the advocates of the 3-year moratorium overwhelming support both in the com- erything else. If you pay a specific tax to come to the floor and help us ex- mittee and, very frankly, throughout by buying the goods in a jurisdiction in plore this very complex issue as to the country, and gradually, interest- the traditional way, by walking into a whether we are going to have a 3-year ingly enough, many Governors who retail store, under this legislation, or a 4-year moratorium. I know it is a would experience, in the view of some, even with the moratorium, you pay ex- subject that is complex in detail. How- a loss of revenue came on board this actly the same tax if you order those ever, we would like to complete the de- legislation—the Governor of California, goods over the Internet—exactly the bate on this very complicated issue the Governor of Texas, the Governor of same tax. There is nothing pref- that we were unable to resolve with New York, and many other Governors, erential, nothing discriminatory. our friends on the other side of this but practically every Governor of every In a little bit we will have that first issue. major State. vote on the amendment that Chairman Again, I find it remarkable that we Along those lines, Mr. President, I MCCAIN and I offered together with re- were able to work out grandfather lan- ask unanimous consent that a letter spect to the length of the moratorium. guage, and about 15 other amendments. from the distinguished Governor of It will ensure that we have enough But somehow this one is worthy of a Virginia, Mr. Gilmore, be printed in time to study the various issues with vote as to whether a moratorium is 3 the RECORD. respect to electronic commerce and or 4 years. There being no objection, the letter make recommendations, and it will I can’t add a lot to what the distin- was ordered to be printed in the give adequate time to have those rec- guished Senator from Oregon just said, RECORD, as follows: October 7, 1998 CONGRESSIONAL RECORD — SENATE S11679 COMMONWEALTH OF VIRGINIA we could have vigorous debate on that On page 29, beginning with line 20, strike Richmond, VA, September 25, 1998. issue and a vote sometime around 4:45, through line 19 on page 30 and insert the fol- Hon. JOHN MCCAIN, with the agreement of the majority lowing: (8) TAX.— Chairman, Committee on Commerce, Science, leader. and Transportation, U.S. Senate, Washing- (A) IN GENERAL.—The term ‘‘tax’’ means— ton, DC. AMENDMENT NO. 3727 (i) any charge imposed by any govern- DEAR SENATOR MCCAIN: I am very pleased (Purpose: To include legislative rec- mental entity for the purpose of generating the Senate will soon vote on the Internet ommendations in the commission’s report.) revenues for governmental purposes, and is Tax Freedom Act (S. 442). Mr. McCAIN. Mr. President, I know not a fee imposed for a specific privilege, service, or benefit conferred; or Since its introduction last year, I have of no opposition to the amendment 3727 been—and continue to be—in strong support (ii) the imposition on a seller of an obliga- by Senator ENZI, and I therefore call up of the Internet Tax Freedom Act. Your work tion to collect and to remit to a govern- on this important legislation goes hand in the amendment and ask that it be mental entity any sales or use tax imposed hand with the compromise agreement adopted. on a buyer by a governmental entity. reached by the Commerce and Judiciary The PRESIDING OFFICER. Is the (B) EXCEPTION.—Such term does not in- Committees in the House of Representatives. Senator asking that the pending clude any franchise fee or similar fee im- Both Committees as well as the full House amendment be laid aside? posed by a State or local franchising author- ity, pursuant to section 622 or 653 of the passed the bill unanimously after well rea- Mr. McCAIN. I ask unanimous con- soned compromise from all those concerned. Communications Act of 1934 (47 U.S.C. 542, sent that the pending amendment be 573), or any other fee related to obligations As you know, the Internet is one of our laid aside for the Enzi amendment 3727. most valuable and fastest-growing resources, or telecommunications carriers under the presenting enormous potential to revolution- The PRESIDING OFFICER. Without Communications Act of 1934 (47 U.S.C. 151 et ize both global and domestic commerce. But objection, it is so ordered. seq.). (9) TELECOMMUNICATIONS SERVICE.—The this incredible tool currently faces some sig- The clerk will report the Enzi amend- term ‘‘telecommunications service’’ has the nificant obstacles with respect to state and ment. meaning given such term in section 3(46) of local taxation. With more than 30,000 state The assistant legislative clerk read the Communications Act of 1934 (47 U.S.C. and local taxing jurisdictions in the United as follows: 153(56)) and includes communications serv- States, Internet development is in danger of The Senator from Arizona [Mr. MCCAIN], ices (as defined in section 4251 of the Internal being stifled by a maze of inconsistent, un- for Mr. ENZI, proposes an amendment num- Revenue Code of 1986). fair, and burdensome taxing regimes. bered 3727. (10) TAX ON INTERNET ACCESS.—The term There are currently thousands of Internet ‘‘tax on Internet access’’ means a tax on companies, which can be found in every state Mr. McCAIN. Mr. President, I ask Internet access, including the enforcement in the nation. They are small but important unanimous consent that reading of the or application of any new or preexisting tax vehicles of economic development and are amendment be dispensed with. on the sale or use of Internet services. unfairly assessed taxes based on interpreta- The PRESIDING OFFICER. Without tions of existing tax law written well before objection, it is so ordered. Mr. MCCAIN. Mr. President, I urge the establishment of the Internet. Because of The amendment is as follows: adoption of the amendment. the importance of these businesses, the sub- On page 25, beginning on line 10, strike ‘‘a The PRESIDING OFFICER. The Sen- stance of the act should do what its title report reflecting the results’’ and insert the ator has sent up a different version. suggests. following: ‘‘for its consideration a report re- Did the Senator want to modify it? The Internet Tax Freedom Act is impor- flecting the results, including such legisla- Mr. MCCAIN. As modified, 3718 as tant to our state economies, to online con- tive recommendations as required to address modified. I sent up a modified version. sumers, and to the future success of elec- the findings’’. The PRESIDING OFFICER. Without tronic commerce. This legislation places a objection, the amendment is modified. temporary moratorium on certain taxes so Mr. MCCAIN. Mr. President, I urge that an appropriate, non-discriminatory adoption of the amendment. Is there further debate on the amend- Internet tax policy can be developed and im- The PRESIDING OFFICER. Is there ment? If not, the amendment is agreed plemented by policymakers at all levels. further debate on the amendment? If to. For these reasons, I urge the enactment of not, the question is on agreeing to the The amendment (No. 3718), as modi- the Internet Tax Freedom Act this year and amendment. fied, was agreed to. look forward to working with you and the The amendment (No. 3727) was agreed Mr. MCCAIN. Mr. President, while he Congress to ensure our nation remains the to. is on the floor, I thank the Senator undisputed leader in cutting edge technology from Wyoming for his involvement in industries. Mr. MCCAIN. Mr. President, I move to reconsider the vote. this issue. He won a significant vic- Very truly yours, tory. I believe that his knowledge of JAMES S. GILMORE III, Mr. ENZI. I move to lay that motion Governor of Virginia. on the table. this issue and this technology is very helpful not only on this issue, but we Mr. McCAIN. Mr. Gilmore says: The motion to lay on the table was agreed to. will be addressing numerous other I am very pleased the Senate will soon vote issues regarding these emerging tech- on the Internet Tax Reform Act, S. 442. Mr. MCCAIN. I congratulate the Sen- ator from Wyoming for his amendment. nologies in the future and I appreciate Not as pleased as I am. He says in his his participation. We look forward to AMENDMENT NO. 3718, AS MODIFIED concluding paragraph: working with him. For these reasons, I urge the enactment of (Purpose: To revise the definitions of the Mr. President, I yield the floor. the Internet Tax Freedom Act this year and terms ‘‘tax,’’ ‘‘telecommunications serv- Mr. ENZI. Mr. President, I also thank look forward to working with you and the ice,’’ and ‘‘tax on internet access,’’ as used in the bill) the Senator from Arizona and the Sen- Congress to ensure our Nation remains the ator from Oregon for their cooperation undisputed leader in cutting edge technology Mr. MCCAIN. Mr. President, on be- and the careful work they have done on industries. half of myself, I send an amendment to the bill with the acceptance of the the desk, No. 3718, as modified, and ask So another Governor and a very im- amendments that I and a number of for its immediate consideration. portant one, the Governor of Virginia, other people worked on. I appreciate The PRESIDING OFFICER. The has weighed in in favor of this legisla- that. I yield the floor. pending amendment is set aside and tion. Mr. President, I suggest the absence the clerk will report the amendment of I believe the fact that we were will- of a quorum. ing to agree to certain grandfathering the Senator from Arizona. The PRESIDING OFFICER. The provisions was very helpful in moving The legislative clerk read as follows: clerk will call the roll. this process forward, but I also think The Senator from Arizona, [Mr. MCCAIN], The legislative clerk proceeded to that it made an argument for a 4-year for himself and Mr. WYDEN proposes an call the roll. moratorium. Again, when it came out amendment numbered 3718, as modified. Mr. BIDEN. Mr. President, I ask of the committee, it was 6 years origi- Mr. MCCAIN. Mr. President, I ask unanimous consent that the order for nally and now the Finance Committee unanimous consent that reading of the the quorum call be rescinded. reduced it to 2. We think that 4 years amendment be dispensed with. The PRESIDING OFFICER. Without is obviously a reasonable compromise. The PRESIDING OFFICER. Without objection, it is so ordered. So again I urge the 3-year morato- objection, it is so ordered. Mr. BIDEN. Mr. President, I ask rium advocates to come to the floor so The amendment is as follows: unanimous consent that I be able to S11680 CONGRESSIONAL RECORD — SENATE October 7, 1998 proceed for 7 minutes as in morning colleagues—and the first thing you will ing to a Senator as being able to stand business. hear from both our representatives and on the floor and say, ‘‘I told you so.’’ The PRESIDING OFFICER. Without their counterparts from around the When I first came here, I had read a objection, it is so ordered. world is the complaint that the U.S. story in some science magazine about f Congress is holding up one of the key two young physicists at the University elements they need to construct a re- of California at Irvine who had devel- NEED FOR IMF FUNDING sponse to the current crisis: the funds oped a theory that chlorofluoro- Mr. BIDEN. Mr. President, I want to to protect vulnerable economies from carbons—a gas, normally found in talk very briefly about the Inter- financial collapse. aerosols and freon, which we use in our national Monetary Fund and the meet- Every State in the Union—from air conditioners and refrigerators— ing that took place in Washington yes- States as far away as Washington and that these chlorofluorocarbons that we terday and today and will be taking Delaware—every State in the Union sprayed on our hair in the morning place this week. has been hit by the decline in our agri- were wafting up into the stratosphere The eyes of the world are on Wash- cultural and manufacturing exports be- over a period of 12 to 15 years and de- ington this week where the major cause of the collapse of major markets stroying the ozone layer. international financial institutions for American goods around the world. Before I came to the Senate, I search for answers to the most serious In my own State of Delaware, exports thought ‘‘ozone’’ was a town in John- international economic crisis in years. to Asia are down 20 percent compared son County, AR, which indeed it is. As As the world’s most successful econ- to last year. That translates into a matter of fact I spoke at the high omy at the moment, the United States jobs—Delaware jobs. The crisis that school graduation at Ozone last year. bears, in my view, an unavoidable re- began last year in Asia has spiraled Nevertheless, this theory about some- sponsibility, and that responsibility is around the planet to Russia, a nuclear thing we were doing rather mindlessly to lead—lead in a search for answers to power facing economic and political that had almost cataclysmic con- this crisis. collapse, and on to our closest trading But as last year’s Asian financial sequences for the future intrigued me. partners in Latin America. I had been put on the Space Commit- turmoil has evolved into a global finan- Mr. President, I do not believe it is tee when I came here. I did not ask for cial crisis, to my great disappointment, an exaggeration to say that without the Space Committee—it was a spacey the House of Representatives persists the resources to support Brazil and in what I must say—and I realize it is committee. We abolished it a couple other countries threatened by the wild years after I came here, but I asked the a strong word—in its irresponsible re- swings of international capital flows, fusal to approve funding for the Inter- chairman, Senator Moss of Utah, if I countries as important to us as Mexico, could hold some hearings on this the- national Monetary Fund. our third largest trading partner, could Twice this year the U.S. Senate has ory and invite some atmospheric sci- be the next to fall. And yet, in my entists to come in and testify. And he overwhelmingly supported the so- view—and I realize some may disagree, called U.S. quota, our share of a larger said, ‘‘I have no objection to that.’’ even those who voted with me on fund- Just ad hoc hearings. I certainly was capital reserve for the IMF to pull ing of IMF in the Senate—in my view, threatened countries back from the not chairman of the subcommittee or the House continues to play politics anything else. I had just gotten here. brink of economic collapse. And twice with our obligation to the only inter- this year, the House of Representatives He said, ‘‘I don’t mind you doing that, national institution in the position to but you need to get a Republican to sit has refused to provide the resources— attempt to control the spread of eco- at no cost to the American taxpayer— with you in these hearings.’’ So I re- nomic meltdown. cruited my good friend, Senator that the IMF needs to contain this wid- Once again, I urge my colleagues in DOMENICI, from New Mexico. ening crisis. the House to come to their senses, to Senator DOMENICI and I held nine As President Clinton, Secretary match the Senate in action and provide hearings over a period of about 6 Rubin, and our representatives to the the U.S. share for the IMF quota in- months. We had the best atmospheric international financial institutions in crease. Time is running out, Mr. Presi- scientists in the United States coming Washington this week urge their coun- dent. I hope what I read in the papers— in and testifying—Dr. Rowland and Dr. terparts from the rest of the world to what we all read in the papers—that Molina. join us in controlling the crisis, the re- the leadership in the House is about to sponse that we are hearing is: ‘‘Show In those hearings, we probably had release this money, about to vote for an average of 15 people in the audience. us the money.’’ it, is true, because time is running out There was a movie out that won an We had a television camera show up and there will be a price to pay for in- Academy Award, and in that movie, only once. When we finished, Senator action. they said, ‘‘Show me the money.’’ We DOMENICI did not feel quite as strongly I thank my colleagues. I yield the have our Secretary of the Treasury and as I did about abolishing the manufac- floor and suggest the absence of a our President constituting an Amer- turing of CFCs immediately, and so quorum. ican plea for the rest of the world to Mr. BUMPERS. Will the Senator Senator Packwood and I took it on and act responsibly, and they are being withhold? brought it to the floor of the Senate to told, ‘‘Show us the money.’’ I want to Mr. BIDEN. I withhold the request abolish the manufacturing of CFCs. point out that even if these other coun- suggesting the absence of a quorum. The chemical lobbyists in that lobby, tries ante up their share, the IMF can- Mr. BUMPERS. Mr. President, I ask through that door, were so thick I not take any action, absent us putting unanimous consent that I be permitted could hardly get to the floor to vote. in our share, because you need an 85- to speak as in morning business for 5 And as I recall, we got a whopping 33 percent vote. minutes. votes. I was arguing that if we were to Try as they might, how can we ex- The PRESIDING OFFICER. Without cut off all manufacturing of CFCs right pect our leadership to lead the rest of objection, it is so ordered. now, we still had 12 to 15 years of dam- the world with the albatross of the f age coming because that is how long it House’s irresponsibility hung squarely took from the time you sprayed your around their necks? By failing to pro- OZONE LAYER hair the morning we voted for it to get vide full funding of our participation in Mr. BUMPERS. Mr. President, my there and start destroying ozone. the IMF, we undercut our credibility time left in the Senate is very brief. I You know all the arguments: This is and our authority, the credibility and have—I don’t know—3, 4, at the most 5 untested; unproved; and we need to the authority of the world’s indispen- days left of active duty on the Senate ‘‘study’’ it. That is the way you kill sable economic leader, in the most se- floor. I read a story in the paper this things around here—study it. And so rious international economic crisis, at morning that gives me some satisfac- that is the end of the story in 1975. least of my generation and the Presid- tion at least about some of the things In 1985, the National Academy of ing Officer’s. I have done since I came here. Sciences, who we had assigned to do Go down to these meetings, Mr. As I have said on the floor many the study—10 years later—discovered President—and I suggest this to all my times, there isn’t anything as gratify- that there was a developing hole in the October 7, 1998 CONGRESSIONAL RECORD — SENATE S11681 ozone layer over Antarctica. And al- PRESCRIPTION CONTRACEPTION this to Federal health care plans. most every year since then that ozone EQUITY AMENDMENT There are 374 different health care hole has grown bigger and bigger and Mr. REID. Mr. President, one of the plans under the Federal system that bigger. We have phased out the manu- distinct honors I have had is joining would cover these pills or the other facturing of CFCs—we do not use it with the senior Senator from Maine in four devices. It would save money. anymore to spray our hair with; and we legislation that passed unanimously in It was killed in conference based have substitutes for air-conditioning this body and passed by an overwhelm- upon some illusion that it had some- and refrigeration. Nevertheless, if you ing margin in the House. It was an thing to do with abortion. It has noth- saw the Post this morning, the current amendment we placed in the Treasury- ing to do with abortion. In fact, it estimates are that the ozone hole is Postal Service bill. It was a bill that would cut down on abortions. We are deeper and wider than it has ever been, we had introduced on the floor. not forcing anyone to use contracep- and has been growing almost every On this occasion, we decided to limit tives if they don’t want to. We think year since 1975 when we first discovered it just to Federal employees, which we they should be made available. it. did. We were elated that we were able I was on a talk show. A woman called The good news is, while scientists to make great strides on this issue in and said, ‘‘I’m pregnant with our were shocked by the size of the ozone about which we felt so strongly. And third child. I’m a diabetic. I would pre- hole in their current study, they still we were contemplating the day when fer I were not pregnant. I’m going to believe that it can be stabilized by the this bill would be signed and become carry the baby to term but it could en- year 2050. Well, let’s hope so, because if law, because certainly it should. It danger my health. I hope the baby is it isn’t, we can anticipate 300,000 addi- passed over here unanimously; passed healthy. My husband’s insurance com- tional cases of skin cancer. the House by an overwhelming margin. pany does not cover contraceptives, I ask unanimous consent for 1 addi- I cannot speak for my colleague from and as a result of that, I’m pregnant tional minute. Maine, but I am sure she feels just as because the stuff we used doesn’t work The PRESIDING OFFICER. Without disappointed as I am that this bill was very well.’’ There are a multitude of objection, it is so ordered. stripped during the conference of the stories just like this. Remember, there Mr. BUMPERS. The ozone layer pro- Treasury-Postal Service bill for really are 3.6 million unintended pregnancies tects us from the ultraviolet rays of no reason. There was no debate among in our country every year. Not every 10 the Sun. The hole that we have already the conferees. It was just taken from years—every year. caused is going to cause thousands and the bill. I am embarrassed this was stripped thousands of cases of skin cancer be- It would be easy for me to be par- from the bill for some reason that is fore we even begin to stabilize the tisan here and say this is some cabal not justifiable. The Federal Govern- ozone layer. by the Republicans. The fact of the ment serves as a role model for other Mr. President, I tell that little story matter is, Mr. President, this bill had employers across the Nation. This with some satisfaction, because I dare- bipartisan support. It was not a Demo- would have been a great start. It has say there are not many Senators who cratic bill; it was not a Democratic received support from the American fought as many losing battles in the amendment. It was not a Republican College of Obstetricians and Gyne- U.S. Senate as I have. So the only rea- bill, a Republican amendment. cologists. We have received little static son I tell that story is to let people So I am here to complain about the from the insurance companies. Why? It know that sometimes when you cast process. This should not have hap- creates an even playing field. If they unpopular votes you will be proven pened. I am not going to point fingers all have to do the same thing, it right. A lot of Senators get beat before as to why it happened, but it happened. doesn’t hurt anyone. In the long run, they ever get a chance to be proven I am tremendously disappointed. people in the plans would save money. right. What am I talking about? I am talk- Individuals who led the effort to strip I voted against more constitutional ing about a bill that the senior Senator this historic amendment from this amendments than any Senator in the from Maine and I have been working on Treasury-Postal Service bill are ignor- U.S. Senate. I am proud of every one of for over a year, a bill that has 35 co- ing the will of both the House and the them. Rest assured, if they bring the sponsors in the Senate. It is a bill that Senate. The House voted in favor of flag desecration amendment up again, I recognizes that each year in this coun- this amendment in July; the Senate ac- will be happy to vote against that, too, try there are 3.6 million unintended cepted our amendment in July, also. I for reasons I will not belabor now. pregnancies. Forty-four percent of don’t think it is fair. I think these in- I see my good friend from Nevada those pregnancies wind up with abor- dividuals who feel they have the au- wanting to speak. And I want to follow tion. We find that insurance compa- thority to ignore the decision already him on the matter pending before the nies’ health care providers routinely made in both Houses should consider Senate. pay for abortions, vasectomies, tubal why they did this. They had no good I yield the floor. ligations, but they don’t pay for the reason to do it. It has nothing to do Mr. REID addressed the Chair. simple contraceptives that are ap- with abortion, which is supposedly the The PRESIDING OFFICER. The Sen- proved by the Food and Drug Adminis- reason it was done. ator from Nevada. tration. There are only five. They don’t Politics aside, the real losers in this Mr. REID. I ask unanimous consent pay for them. battle are the 1.2 million women cov- to speak as in morning business. We are saying it should be done. ered under the FEHBP system who will The PRESIDING OFFICER. Without Women pay almost 70 percent more for continue to be denied the quality in objection, it is so ordered. health care than men. It seems unusual health care coverage they deserve. Peo- Mr. REID. I say to my friend from that when Viagra came out there was a ple who fought behind closed doors to Arkansas, the mere fact that you lose mad rush to make sure that there was strip this amendment from the bill are the vote on the floor does not mean insurance coverage and every other using the anti-abortion statement as a that you lose the issue. And I say to kind of coverage for Viagra. We said at defense. That is wrong. They shouldn’t my friend, I have been on the floor on that time, the Senator from Maine and do that. This argument is unfounded. the Senator’s side, joining him on a I, shouldn’t we recognize the fact that As I said, this bill would lead to number of causes which we have won women pay more, that insurance com- healthier mothers, healthier babies, and which we have lost; and I have panies and health maintenance agen- and lower health care costs for all been his adversary on a number of cies do not pay for contraceptives and Americans. This legislation doesn’t re- issues. I only wish that everyone had they should? We would save huge quire any woman to use contracep- the Senator’s demeanor, his ability and amounts of money. We would have tives, but it gives them a choice. his sense of fairness. We would be a healthier mothers and healthier babies. I see my colleague on the floor. It has much better Senate, a much better But it doesn’t appear we are going to been an honor for me to work with her country. have it this year. on this legislation. She has been the Mr. BUMPERS. I thank the Senator Our bill, called the Prescription Con- driving force in getting this legislation for his comments. traceptive Fairness Act, would apply to the point we thought we were. S11682 CONGRESSIONAL RECORD — SENATE October 7, 1998 I will yield the floor. ing the IRS. The bill to which the two know that the tax exists. Of course, f amendments presently pending are of- they don’t pay it. Literally millions of fered, is a bill that provides a 2-year dollars of goods come into my State INTERNET TAX FREEDOM ACT moratorium. Two years is enough. To every year on which not one cent of tax The Senate continued with consider- allow any more time would do nothing is collected, even though it is owed. ation of the bill. but prove that the U.S. Senate is But it is owed by the person who The PRESIDING OFFICER. The Sen- knuckling under to the Internet indus- bought the merchandise, and he or she ator from Nebraska. try. doesn’t even know the tax exists. AMENDMENT NO. 3783 I see my good friend from Florida on When we try to say to the States— Mr. KERREY. Mr. President, what is the floor. He and I were both Gov- Senator GRAHAM, Senator DORGAN and the order of business? ernors. The Governors signed off on 2 myself—that we are going to help you, The PRESIDING OFFICER. The years and now here is a letter saying we want to honor what you are trying pending business is the McCain amend- they hope we will compromise on 3 to do, they have all championed my ment No. 3783 to amendment No. 3719. years. ‘‘Do not adopt,’’ they say, ‘‘the 4 bill. They haven’t been very effective, Mr. KERREY. Mr. President, I rise to year moratorium. Accept the com- but the Governors and mayors have all speak against the McCain second-de- promise of 3 years.’’ championed my legislation every year gree amendment which would extend I can tell you, Senator, if I were still I have offered it. But the U.S. Senators the moratorium on States taxing Inter- Governor of my State, I would be sit up here, with all their arrogance, net transactions from 3 years to 4. The squealing like a pig under a gate. Here and say to their legislatures, Gov- Finance Committee had knocked it a significant percentage of the State’s ernors and mayors: We don’t care what back to 2 years. We thought that was a entire tax base is being eroded, lit- you want, we will decide what you get. reasonable length of time, given that erally destroyed, by remote sellers, and For 7 years, so far, and much longer we allowed 15 months to restructure the Internet industry and the Gov- than that, we have said you get noth- the IRS; 18 months in getting the Medi- ernors say let’s compromise at 3 years. ing. We are not going to let you tax care Commission to do its work. We be- We are willing not to tax the Internet mail-order sales. So quit talking about lieved that 2 years was a reasonable pe- for a 3-year period. Think about that. it. You might as well quit talking riod of time. I was willing to go along In 3 years’ time the estimates are that about it. I think 30 or 35 votes is my with an extension of that from 2 years sales over the Internet will be $300 bil- high-water mark in trying to address to 3. To go to 4 years is just much too lion. We know that catalog sales right what I consider a terrible problem. long a time. now are in excess of $100 billion. The Presiding Officer heard me talk This is an issue where the Federal The States are saying they are will- a while ago about how the first thing I Government is intervening, saying the ing to forgo their right to tax the did when I came here was to try to stop States can’t raise taxes in a certain Internet for 3 years. If there were no the manufacturing of CFCs that are de- way. This is, in my judgment, without catalog sales, if there were no Internet, stroying our ozone. We all know the precedent. $400 billion worth of goods would be ozone is being systematically de- I am willing to support this piece of sold by Main Street merchants in stroyed, but back then we had to study legislation. I am willing to provide this America on which they would pay a 4, it. It was just a theory. As I said, the moratorium so we can reach an under- 5, 6, or 7 percent sales tax to support best way to kill something in the U.S. standing of how we will tax these their community schools, their fire de- Senate is to say let’s study it. If you transactions. But to allow 4 years— partments, their police departments, want to never hear of something again, when we allow approximately 15 their landfills, paving their streets and get an amendment adopted that says, months in getting a commission to re- everything else that cities have to do. no, you can’t do that anymore, you structure the IRS, and 18 months in Yes, if I were still Governor, trying have to study it. getting Medicare, Mr. President—is an to raise teachers’ salaries, trying to That is what we are doing here. We unreasonable length of time. making better schools, trying to in- are saying to the mayors and Gov- I hope my colleagues will vote crease the size of the police depart- ernors and legislatures of our respec- against the McCain amendment. We ment and reduce crime in my commu- tive States—45 of the 50 States already have been contacted by our Governors nity, if I were charged with the respon- have a tax, but it is on the consumer who are actually asking us to go along sibility as mayor or Governor and had and nobody knows it, and they are des- with the Finance Committee, which the responsibility of our children, our perate. The reason I mention that was 2 years. As I said, I’m willing to environment, all of those things, I again is because I will be sitting down support a compromise to 3 years, but 4 would never sit still. I would never sit in Arkansas, or someplace, a few years years, given the amount of time we still for allowing these people to escape from now and this thing will crescendo have allowed for some things that are taxation. It has been a mystery to me and will reach a level where the Senate more complicated than this, it is un- for 7 years, as I have fought to try to won’t have any choice but to deal with reasonable and too lengthy a period of give the States the right—not the man- it and to give the States that right, be- time. date, but the right—to make remote cause if they don’t their schools are The PRESIDING OFFICER. The Sen- sellers collect sales taxes. There are going to start crumbling, their police ator from Arkansas. only 7,500 of them. The bill I offered departments are going to go to pot, as Mr. BUMPERS. Mr. President, I would only affect 675 of them. We ex- are their fire departments. agree mostly with what the Senator empted everybody that did less than $3 Did you see in the paper this morning from Nebraska said. I prefer a 2-year million in business a year. I have been where Amazon.com’s stock is selling moratorium. soundly defeated each time I have tried for over $100 a share, and they haven’t As the Senator from Nebraska stat- to correct this problem. And as I leave made a nickel profit yet? It is esti- ed, earlier this year, we passed a bill to the U.S. Senate after 24 years, it is a mated they are selling two-thirds of all reform the Internal Revenue Service. mystery to me. Why do people vote to the books sold over the Internet, and That legislation arose from the IRS allow the tax bases in their States to their sales are growing exponentially. I Commission, which had a mere 15 stat- be eroded when their Governors and have a lot of friends that never buy a utory months to take a top to bottom their mayors and local officials are book from a local bookstore anymore. look at, and make recommendations scrounging for money to improve They buy it over the Internet. Not only on, how to restructure the IRS. The en- schools and everything else? do they get a little discount, they pay tire commission process plus the legis- My State has a sales and use tax on no sales tax on it. So this morning’s lating process resulted in a bill the all mail-order sales coming into my paper says Amazon.com has become so President signed in just a shade over State. Do you know how much we col- terrific and so powerful that a publish- two years. lect on it? Zero. Do you know why? Be- ing house is buying Barnes & Noble’s The point I am trying to make is cause the tax is on the purchaser. I on-line system. They have a third and this: Fair taxation of the Internet is promise you there is not 1 in 10,000 peo- Amazon.com has two-thirds. The pub- not more complicated than restructur- ple in the State of Arkansas that even lishing house knows that they are October 7, 1998 CONGRESSIONAL RECORD — SENATE S11683 going to be put out of business if they nance Committee said let’s have a mor- years. I think that would be a good don’t get with the program, because atorium for 2 years. The underlying public service. Amazon.com is going to be selling all bill will now say 3 years. The amend- Mr. BUMPERS. Mr. President, the the books in the country. So they are ment we are going to vote on says no, distinguished Senator from North Da- buying Barnes & Noble’s on-line book that is not enough; we need a 4-year kota, my good friend, has been a stead- service. moratorium. The Senator from Arkan- fast ally with me in this battle for That is good for the consumers, but sas will be fishing in Arkansas, and at many, many years, because the State it is terrible for State and local govern- the end of 4 years we will have folks— of North Dakota took this case to the ment. Yesterday afternoon, I offered an I guarantee it—who will stand here on Supreme Court. And the Supreme amendment to say at least make the the floor of the Senate, and they will Court said we are reversing ourselves Internet state that the merchandise say, ‘‘We have got to have an extender. in previous decisions. If the Congress you buy may be subject to local tax- We have to extend this moratorium.’’ wants to give the right to the States to ation. You think about that. Senator How long? Another 4 years. How about collect this tax, they can now do it. DORGAN voted with me, Senator permanently? Make it a permanent ex- But Congress has to do it. Congress has GRAHAM voted with me, and we got 27 tender. That is exactly what is going to steadfastly refused to do what the Su- votes. They don’t even want the people happen. preme Court told them they had the to know that there is a sales tax on We ought to decide as a Senate 3 authority to do. which the purchaser is liable. years—no more. And at the end of 3 I will be sitting down in Arkansas Then, this morning, we finally won a years we are done. If we can’t figure it fishing 3 years from now, and I assume little battle. There was an amendment out by the end of 3 years, there is that is probably the number of years here that I could not believe that said something wrong with us. we are going to adopt in a few minutes. you can’t study this issue. Think of I ask the Senator from Arkansas. I am not going to vote for it. I am not that. Normally you use studies to kill Does he agree that this ought not be a going to vote for 4 years. I am not things. This morning, we get an circumstance where we create a tax going to vote for the bill either. It has amendment saying you can’t even system that says, ‘‘Oh, by the way. We a 2-year moratorium. As far as I am study it. I am telling you, I don’t know will favor folks doing this over a com- concerned, that is enough. what the Internet and these mail-order puter,’’ which means we will penalize But having said that, I will be down catalog houses have on the Senate, but the folks that hire the folks on Main there fishing. I will be watching C– it must be something. Larry Flynt Street who rent the building, put the SPAN. I will smile to myself when ought to be offering a million dollars inventory in, open their door early in somebody gets up as though it is the to find out the answer to that one. So the morning, and hold themselves open most original idea that was ever cre- here we are standing around debating for business. And we say to them that ated, and says, ‘‘Mr. President, I send an issue, the merits of which are not we will penalize them because the an amendment to the desk that would even in question. Everybody knows other folks don’t have to comply with create a commission to study taxation that we ought not to be giving a free the tax laws when they come in and of the Internet. We have had 3 years to ride to the to people who are selling compete with them. study it, but we are really not quite merchandise by the hundreds of bil- That is what this fight is about. The finished and we don’t know what havoc lions of dollars over the Internet and amendment here is going to be 4 years this is going to create. We need to get eroding the tax base of almost every or 3 years. There will be a lot of folks the National Academy of Sciences, the State in the Nation. I am for comput- who come to the well of the Senate and Council of Economic Advisers, or the ers; I am for technology, but I am not say, ‘‘What is the issue?’’ The issue is GAO. We need somebody to study this for allowing them to destroy the tax that for every, I assume, 4 years, or for a while longer.’’ They will buy it again. base of the states. every 3 years. But what does good I can tell you that 3 years from now Mr. DORGAN. Will the Senator yield sense tell us ought to be the case here? the makeup of this place will not for a question? Three years maximum, and then no change that much. They will buy it Mr. BUMPERS. Yes, I am happy to. more. Then let’s have a tax system again, and we will extend it again. But Mr. DORGAN. Mr. President, I have that is fair to everybody regardless of just like the ozone layer, the time will listened to the Senator from Arkansas, how they are selling—off the Internet, come when everybody knows that you and I am reminded again why we are catalogs, or Main Street. Let’s be fair can’t do it anymore, because the States going to miss him when he is gone. He with respect to this tax system of ours. and the cities can’t afford to let this go fights hard for the things he feels Let me conclude by saying I worked any longer. They are barely making strongly about, and this has been one on this issue when I was in the House ends meet the way it is. That is the of them for many years. of Representatives on the Ways and way it goes. If you do not learn any- This vote coming up, probably in 20 Means Committee for 10 years. I know thing in 24 years here, you will learn minutes, is a very simple vote. This what the problem is. You start talking the way the game is played. issue started with the notion that peo- about this issue, and the first thing Mr. President, I am pleased to be able ple said, gee, we must do something you know you have a million friends— to take a firm stand on an issue that I here to provide a shield so that nobody not friends. You get a million post- felt strongly about for so many years. would impose punitive taxes on the cards, because everybody who buys As I say, I don’t intend to vote for a Internet and retard the growth of the from a catalog seller is told to send a second-degree amendment which would Internet. Lord, have you ever seen any- postcard to this person, or that person, take it to 4 years. I don’t intend to thing grow like the Internet and Inter- and they are told that person is trying vote for the second-degree amendment net commerce? That is mushrooming to increase your tax. Of course, that is that will take us to 3 years. The bill, as so fast you can’t get your arms around not true. Nobody is talking about any it came out of committee and came to it. And they are saying we have to be additional taxes. There is no increase this floor provided for a 2-year study. sure that we protect them. in tax. This is a different issue—the That is too long. They don’t need 2 Well, in the matter of protecting moratorium. So you get a million cards years. I am going to vote for the bill them, they have created a moratorium out there, or 10 million cards that af- because 2 years is much too long any- on the ability of State and local gov- fects all of the interests that are vot- way. ernments to impose taxes. The vote ing. I don’t believe there ought to be a that we are going to have in a moment Mr. President, again, let me say to tax exemption for anybody who is com- is regarding how long that moratorium the Senator from Arkansas that his peting with Main Street merchants. is going to last. The committee on dedication to this issue is important, Let me add one further thing. The which I serve reported a bill out that and he will leave a long and lasting im- Senator from North Dakota piqued my said let’s have a moratorium for 6 pact on the Senate. I think the most memory on this. Outside of being the years. I didn’t vote for that. The House immediate impact and the most imme- entire Charleston South Franklin of Representatives said let’s have a diate presentation now is a good vote County Bar Association, I was also a moratorium for 3 years. The Senate Fi- so we can at least turn back the 10 Main Street merchant. I can tell you S11684 CONGRESSIONAL RECORD — SENATE October 7, 1998 even then, 40 years ago, my biggest and multiple local jurisdictions that unanimous consent to call for a vote at competitor was the catalog. I detested their legal authority to establish what 5:30, but I felt that we ought to allow it. I was a Main Street merchant hav- is the appropriate fiscal policy for enough time for the proponents of the ing to organize the Christmas parade, their citizens is going to be preempted. 4 years to make the strongest case be president of the Chamber of Com- We are telling them for this purpose they could to overcome what I think merce, and trying to attract industry that they will be precluded from exer- should be the very strong presumption into town so we could create a few jobs. cising a judgment that they might oth- against making this moratorium exces- I paid sales tax on every dime I sold, erwise feel is in the interest of their sive, against lengthening by an unnec- all of which went for the schools of our residents and citizens. essary day, week, month or year the State and our city, which went to the We are doing this in order to provide time in which we will allow this unfair- police department, which went to the a pause, a time-out, a brief period in ness in the marketplace and this threat fire department, which went to help us which to sort out the application of to the ability of State and local gov- pave our streets, take care of our land- public policy, particularly as it relates ernments to carry out their fundamen- fill, dispose of our garbage. to tax policy, and the new technology tal functions to remain in existence. Those are the things that Main of the Internet. Let’s talk about what had been some Street merchants do in this country. I think that we ought to accept the appropriate times for major tasks. We are saying to them and the Na- fact that the presumption should be Well, we find in Genesis, chapter 1 and tional Federation of Independent Busi- that that preemption of our brethren chapter 2, that God created Heaven and nesses—NFIB. I don’t want to get at the State and local level should be Earth in 7 days: ‘‘In the beginning, God started on them. As far as I am con- respectfully as brief as possible. We created the Heaven and the Earth, and cerned, they represent big business, should not easily or excessively indulge the Earth was without form and void and not small business. But I think in this kind of behavior, particularly and darkness was upon the face of the they are for this bill. It is the most when the consequences of this behavior deep, and the spirit of God moved upon damaging thing to Main Street mer- are so obvious and perverse. the face of the waters.’’ And 6 days chants I can imagine. I know. I used to I have used the analogy, and I will later Earth, the oceans, the mountains, be one. use it again, of what we are doing to the valleys, the streams, all of the I yield the floor. that Main Street merchant, as if to say fishes, the animals, and finally man Mr. MCCAIN. Mr. President, I ask that Main Street had a north side and and woman themselves had been cre- unanimous consent that the time until a south side. On the north side, all the ated by God—in 7 days, according to 5:30 be equally divided for debate on people who come to buy their hard- Genesis, chapter 1 and 2. And yet it is the pending McCain-Wyden amend- ware, their clothes, their shoes would going to take us 48 months to figure ment, and at the conclusion of the de- be responsible for paying the legislated out what the appropriate tax policy bate the Senate proceed to vote on or State and local sales tax, and they should be for bits and bytes and all of in relationship to the amendment. would be responsible for collecting it the terminology of the Internet. I further ask that no second-degree and then remitting it back to the ap- We have some more recent examples amendments be in order prior to the propriate tax collection authorities. that have already been cited. Senator vote. That is not adding a new tax; that is KERREY said the commission which was Mr. GRAHAM. Mr. President, is there the administration of a tax which the responsible for looking at the Internal currently a limitation on debate on democratic processes in Little Rock or Revenue Service, clearly one of the this amendment? Tallahassee or Salem or any other most complex agencies administering The PRESIDING OFFICER. There is State capital have prescribed as a one of the most complex set of laws not. means of funding the essential respon- that man has ever known, was able to Mr. GRAHAM. I object to the unani- sibilities of local and State govern- conduct its work in 15 months—3 mous consent. ment. We are saying that on the north months less than its original charter, The PRESIDING OFFICER. Objec- side that collection has to take place. and its work was so good that it formed tion is heard. But on the south side, which is a vir- the basis of the Congress this year en- The Senator from Arizona controls tual south side because it doesn’t real- acting the most significant reform of the floor. ly exist other than in cyberspace, be- the Internal Revenue Service since it Mr. MCCAIN. Mr. President, I ask the cause it is reached through the Inter- was created. So the fact that they had Senator from Florida what he wants. net, there is not such a responsibility an 18-month charter to accomplish this Mr. GRAHAM. I want just—Mr. to collect on exactly the same hard- very complicated task did not degrade President, I would also settle—— ware, shoes and clothing that we now the quality of the ultimate rec- The PRESIDING OFFICER. The ask the north side merchant to collect. ommendations and the receptivity of Chair did not hear the Senator from That is a fundamentally unfair prop- Congress to those recommendations. Florida. osition. We would be shocked and ap- We have currently at work a commis- Mr. MCCAIN. I ask unanimous con- palled if someone were to suggest that sion studying Medicare. That commis- sent to engage in a colloquy with the as a de novo proposition. But that is sion, which was created by this Con- Senator from Florida. what we are doing with this Internet gress in 1997, was given 18 months to do The PRESIDING OFFICER. Without Tax Freedom Act. its work. Medicare is one of the largest objection, it is so ordered. The second consequence that we are and most complex programs that this Mr. MCCAIN. What time agreement accepting as a result of this legislation Congress has ever created. It serves to will the Senator from Florida agree to? is that we are about to drive a major finance the health care of over 35 mil- Mr. GRAHAM. I would like to com- hole into the ability of local govern- lion Americans. It is a significant part plete my remarks, and then we will ments and States to finance their most of a health care industry which rep- consider what will be an appropriate basic responsibility—police who secure resents approximately one-seventh of time limitation. our neighborhoods, fire officials who our gross domestic product. We decided Mr. MCCAIN. Mr. President, I yield protect us in times of emergency, and that 18 months was the appropriate the floor. most specifically our schools. I will time to study the complex Medicare The PRESIDING OFFICER. The Sen- talk in a moment about what has hap- system, and yet it is going to take us ator from Florida is recognized. pened to education during this 105th 4 years, according to this amendment, Mr. GRAHAM. Thank you, Mr. Presi- Congress, but I suggest that of all the to decide what should be the appro- dent. things we have done or we have not priate way for the State of North Caro- Mr. President, I go back to the same done, the most important education lina to levy taxes on Internet activities point that I have made on two or three bill that we are going to consider in that affect the citizens of the State of occasions in the debate of this legisla- 1998 is the one that is before us today. North Carolina. tion. That is to remind us what we are Now, the question that I ask, and I The almost absurdity of this 4-year doing. We are doing quite an excep- hope that we receive a response, is why period leads one to suspect—and we are tional thing. We are telling to 50 States 4 years? I was reticent to object to the not by nature a suspicious, certainly October 7, 1998 CONGRESSIONAL RECORD — SENATE S11685 not a cynical people, but to suspect— I don’t know whether this is a good rooms that would be required to sig- that there are motivations here other idea or bad idea, for Arkansas to be nificantly reduce class size, particu- than allowing a sufficient amount of suggesting this. Apparently the Gov- larly in the primary grades. We did not time, the amount of time that we nor- ernor and a lot of other folks think it pass that bill either. mally anticipate would be required to is a bad idea. But I think we might So, now on the 7th of October, with get a undergraduate degree from one of agree, whether the idea is good or bad, some 2, 3, or 4 days left in this session, our great colleges or universities, why that it ought to be an Arkansas idea, we are coming to the most important it would take 4 years in order to study as to how Arkansas wants to organize education bill we are going to pass. this issue. its State and local taxation. We are What is it going to do? Is it going to Let me suggest what I think some of about to say in this bill that we are help States and local school districts the motivations might be. One is that going to make it more difficult for carry out their most important respon- it is going to provide an extended pe- States to have that range of choice. As sibility? No. What it is going to do is to riod of freedom from taxation during we erode the base upon which the sales undercut their existing revenue and which there will be new technological tax is applied, the opportunity for make it even more difficult to even applications of the Internet which will States to do what Arkansas is consid- keep class sizes down to the 38-to-1 have the effect of further widening the ering, substituting sales for property level in the kindergarten of Miami, gap between Main Street and cyber- tax, is going to be much more difficult Dade County, FL. space and further exposing local and because there will be less to substitute So, I believe there is absolutely no State government to an erosion of with. justification for making this morato- their tax base. So we are embarked along a path rium a day longer than is required to I spoke yesterday about the new which is not just a temporary one but carry out what is a fairly straight- technology of Internet telephony, has the potential of driving a perma- forward task. This certainly is no rea- using the Internet as the means of nent wedge between the Federal Gov- son to argue it is going to take 4 years, making long distance telephone calls ernment and States as we rather cas- but I look forward to the argumenta- rather than the traditional line system ually preempt their traditional politi- tion that maybe will persuade me as to that we use today. The effect of that is cal choices of how to organize their tax why 4 years are required for this task going to be that that Internet teleph- base. when God created Heaven and Earth in ony will now escape both Federal as But those consequences, I think, pale 7 days and we reformed the IRS in 15 well as State taxation for the period of in terms of the final one to which I months. this moratorium. have already alluded. That is that this Mr. President, I want to vote for this I read a statement yesterday by a re- is the most important education bill of bill because I believe that there is a search group which estimated that by 1998. persuasive argument that a brief mora- early in the next century potentially 10 Mr. President, 1998 started with a lot torium, with the time used by an intel- percent or more of long distance tele- of enthusiasm for education. The Presi- ligent group of people who represent all phone calls would be made through dent in his State of the Union talked the interests involved, and against a Internet telephony. about reducing class size, particularly charter which allows them to look at A second reason for the 4 years might in the primary grades, so that children all the relevant improvements, could be to develop a political coalition. would not have to go to excessively play a useful purpose. But I could not There are going to be a lot of folks who overcrowded classrooms. That was an support a 4-year moratorium, with all are going to find it is awfully nice and issue that struck home directly to me. the pernicious effects it would have, convenient to not collect this tax. It is My third daughter, Suzanne Gibson, without any contribution to a greater awfully nice to have your sales ex- was a wonderful kindergarten teacher. understanding of the issues involved in plode, as it was stated that Ama- The last year she taught kindergarten Internet taxation. zon.com’s book sales are exploding. at a new elementary school in Miami, So, I urge defeat of this amendment. They surely ought to explode. They Dade County, FL, there were 38 stu- I urge adoption of the position taken, have a 6- or 7-percent market advan- dents in her class—38 students in a kin- thoughtfully, by the Senate Finance tage over that independent bookseller dergarten class. My daughter is a won- Committee, which was for a 2-year in Fayetteville, AR. They ought to derful teacher. She now is the mother study. If that is the provision, I will beat the pants off the bookseller. And of triplets, so she is getting to apply support this legislation. Otherwise, I now we have the situation where the what she learned with those 38 students fear for the consequences. publishers, not going through any in her class, but I defy anyone to edu- The PRESIDING OFFICER. The Sen- intermediary, are going to be selling cate thirty-eight 5-year-olds. You may ator from Arizona. directly on line. That is great for the provide custodial services but you do Mr. MCCAIN. Mr. President, I ask American consumer. They are going to not educate thirty-eight 5-year-olds. unanimous consent that there be re- have access to a lot of literature and So we started this year in Washing- maining 10 minutes equally divided be- other books at a very attractive price, ton with a hope and some expectation tween the Senator from Florida and but the price that society is going to that the Federal Government might the Senator from Oregon, and that fol- pay is imbalance in the commercial reach out in a hand of friendship and lowing that there be a vote on the marketplace and a degradation of our partnership to States and school dis- MCCAIN amendment. police, fire and educational services. tricts and millions of young boys and The PRESIDING OFFICER. Without We, also, as a consequence of this, girls, and help them with their edu- objection, it is so ordered. are going to frustrate local choice. I cational needs. We did not pass the bill The Senator from Oregon. said this morning that the morning that would have allocated an addi- Mr. WYDEN. Mr. President, the newspaper was filled with articles tional 100,000 teachers with Federal as- McCain-Wyden amendment is, of which are relevant to this debate. This sistance in order to reduce class size at course, a compromise. The bill that is one that might be of particular in- the primary grades. Although we had a came out of the Senate Commerce terest to our good friend from Arkan- good experience with a similar action Committee was a 6-year bill. The bill sas, Senator BUMPERS, in which there with community police, where we are that came out of the Finance Commit- is, apparently in Arkansas today, an ef- helping to finance 100,000 community tee was a 2-year bill. So there was an fort being made—and, by the polls, a police in a very positive contribution effort to bring the parties together pretty effective effort—to repeal the to enhance law enforcement, we did not around 4 years. But that is not what is property tax in Arkansas and to sub- do that as it relates to primary edu- really important. What is really impor- stitute for the property tax a signifi- cation. tant is the timetable that is going to cant increase in the sales tax. It ap- Then the President had another pro- be essential to do this job right. pears on page A–3 of the Washington posal for the Congress to assist in help- Mr. President, 18 months after the Post of October 7 under the headline, ing school districts be able to build date of enactment, the commission is ‘‘Grass-roots Group Takes Aim At Ar- enough schools and maintain the old going to make its recommendations— kansas Property Tax.’’ schools so that we could have the class- May of 2000. The moratorium under the S11686 CONGRESSIONAL RECORD — SENATE October 7, 1998 finance bill ends in October of 2000. in California, and ships it to their cous- you had a current policy with respect That means that there is less than 6 in in New York, we are talking about a to sales tax. But if it applies to other months to act on the recommendation completely different kind of commerce States, if other States have a particu- before the timeout would end. Some than we have seen in the past. Let us lar tax policy, if they do business in- States, a number, have legislatures take the time to do it right. Without volving the Internet, we apply exactly that are not meeting in the year 2000. I the amendment that the Senator from the same rule. am sure my friend and colleague, Sen- Arizona and I are offering— Mr. GRAHAM. If a person in Florida ator GRAHAM, would be interested in Mr. GRAHAM addressed the Chair. has a sales and use tax, could it require knowing that Arkansas, Maine, Min- Mr. WYDEN. I believe I have the Amazon.com to collect from a Florida nesota, Montana, Nevada, North Caro- floor. resident, who ordered a book in Se- lina, Oregon, Texas, North Dakota, and The PRESIDING OFFICER (Mr. attle, the Florida sales tax? Vermont all have legislatures that do ABRAHAM). The Senator has the floor Mr. WYDEN. I am not up on Florida’s not meet every year. So we are going and has approximately 35 seconds re- policy, but we do not do anything dif- to have a situation, it seems to me, maining. ferent with respect to the Internet where there will be essentially no time Mr. WYDEN. Thank you, Mr. Presi- than we do in any other area. The hear- ing record in the Commerce Commit- in order for a legislature to thought- dent. tee—I will be glad to share it because I fully look at these issues. Without the amendment that the The Senator from Florida says that Senator from Arizona and I are offer- cited many of those examples—and the Finance Committee makes it very Chairman MCCAIN and I are ramming ing, all of those legislatures that I clear that the Internet gets no pref- this bill through the U.S. Senate. We mentioned specifically, which we erence, the Internet suffers no dis- have worked on it, now, for 18 months. talked about initially more than an crimination, and that is the point of We have made more than 30 separate hour ago, are going to have to act im- the bill. changes in an effort to try to address mediately in order to carry out the Mr. GRAHAM. The answer is no, that the concerns of the Senator from Flor- spirit of this commission. I can’t be- the discrimination is the fact, that cur- ida. There has been discussion about lieve that is what the Senate wants, rently the local Main Street merchant how this would create a tax haven on and I am very hopeful that the Sen- is required to collect the tax, but the the Internet. Let us be very clear about ators will join groups like the National distant remote Internet seller is not, what happens during the moratorium. Retail Federation, the Information In- and we are about to make that a 4-year If a person walks into a store and pur- dustry Association, the Home Business institutionalized— chases a sweater in a jurisdiction Association, and scores of other small Mr. WYDEN. Will the Senator yield? where there is a 5 percent sales tax, if business groups supporting the amend- The PRESIDING OFFICER. The 2 they order that sweater over the Inter- ment. minutes have expired. net, they pay exactly the same tax, ex- The PRESIDING OFFICER. The Sen- Mr. WYDEN. I ask unanimous con- actly the same fee—technological neu- ator’s time has expired. sent that the Senator have 1 additional trality. The Senator from Florida. minute. I want to engage him in a The Senator from Florida says that Mr. GRAHAM. Will the Senator yield question. the apocalypse is at hand because there for a question? The PRESIDING OFFICER. The Sen- is going to be a huge reduction in reve- Mr. WYDEN. I will be happy to. ator from Florida has 5 minutes. nue at the State level. When we began Mr. GRAHAM. Mr. President, I ask Mr. GRAHAM. I yield another this bill with legislation that was unanimous consent for 2 minutes for minute for the question. much more encompassing than the one the purpose of a colloquy. Mr. WYDEN. I say to my friend from we are considering now, the Congres- The PRESIDING OFFICER. The Sen- Florida, what you described is your de- sional Budget Office could not even ini- ator from Florida has 5 minutes allot- sire—and I know it is sincere—to over- tially score it. It then came back with ted to him. Does he wish to have the turn the Quill decision. What we are a projection of less than $30 million. additional 2 minutes allocated to the saying in this bill is that we are trying Nothing is being preempted here. The Senator from Oregon to be used for to deal with a different set of economic States and localities are allowed to questions? issues, and if we don’t deal with these treat the Internet just as they would Mr. GRAHAM. I do. questions of Internet policy now, I and the Senator from Arizona submit that treat anything else. The PRESIDING OFFICER. Is there At the end of the day, the kinds of objection? we will be dealing, just as we are now people who will benefit from this are Without objection, it is so ordered. with the mail-order questions, with the senior citizens in Florida, for ex- The Senator from Oregon has 2 min- these issues with respect to the Inter- net. Let us try to get out in front of ample, the home-based businesses in utes for the purpose of a question. these issues facing the digital economy Oregon, people who are trying to use Mr. GRAHAM. Mr. President, I say to rather than duplicating the mistakes the Internet as a way to advance the the Senator from Oregon, in the effort we made with respect to mail-order and chance to build a small business and to describe the equality of treatment, catalog sales. particularly see the Internet as a great he used the example that if a person I thank the Senator for the time. equalizer. went into a local bookstore and bought Mr. GRAHAM. In answer to the ques- They are not going to be in a posi- a book, they would pay and the book- tion, the Quill opinion gave to the Con- tion, those home-based businesses, to store seller would be responsible for gress the responsibility to authorize compete with the corporate giants. But collecting and remitting the appro- the States to require the distant seller if we create across this country a crazy priate State and local sales tax. to collect and remit the tax. Thus far, quilt of State and local taxes where Mr. WYDEN. If the Senator will yield as Senator BUMPERS’ long, valiant, but each jurisdiction goes off and does its for an answer, if that is current policy thus far unsuccessful attempts illus- own thing, it is going to be very dif- in that State. I know that the Senator trate, Congress has been unwilling to ficult for those entrepreneurs, senior from Florida is very anxious to resolve do so. I suggest that indicates what is citizens, handicapped and disabled peo- mail-order and catalog sales tax ques- the likely political result of this new ple to go out and hire the accountants tions. The bill does not resolve that. issue of how we are going to tax the and lawyers that would be necessary to Mr. GRAHAM. The answer to that Internet. carry out the vision of the Senator question is yes, the merchant would be The PRESIDING OFFICER. Under from Florida of the Internet. What we responsible for collecting and remit- the previous order, the Senator from need to do is come up with some sen- ting the sales tax. Florida has an additional 3 minutes 20 sible policies, and it is going to take If the same sale were made on Ama- seconds if he wishes to use that at this some time. zon.com, would Amazon.com be respon- time. Is the Senator prepared to yield If somebody from Florida, for exam- sible for collecting and remitting the back his time? ple, orders Harry and David’s fruit in sales tax? The Senator from Florida has 2 min- Medford, OR, using America Online in Mr. WYDEN. Certainly that would be utes remaining. Does he wish to yield Virginia, pays for it with a bank card the case if it was done instate where back his time? October 7, 1998 CONGRESSIONAL RECORD — SENATE S11687 Mr. GRAHAM. Mr. President, I have NAYS—52 generally used in commerce and industry no extended remarks. I still don’t Biden Ford Levin and by State governments; think we have heard the answer to the Bingaman Frist Mikulski (B) may not inappropriately favor one in- question of why does it take 4 years to Bond Gorton Moseley-Braun dustry or technology; Breaux Graham Moynihan (C) shall ensure that electronic signatures do this study. The fact is that when Brownback Gramm Reed are as reliable as is appropriate for the pur- this report is available, whatever time, Bryan Grassley Reid pose in question and keep intact the infor- the principal recipient of that report Bumpers Harkin Roberts Byrd Helms Rockefeller mation submitted; will not be the individual 50 State leg- Chafee Hutchinson Roth (D) shall provide for the electronic ac- islatures, it is going to be us, because Cleland Hutchison Sarbanes knowledgment of electronic forms that are in order to implement the rec- Collins Inhofe Sessions successfully submitted; and Conrad Jeffords Snowe (E) shall, to the extent feasible and appro- ommendations that would allow States Daschle Johnson Thomas to hold the distant seller responsible priate, require an Executive agency that an- Dorgan Kempthorne Thompson ticipates receipt by electronic means of Durbin Kennedy Thurmond for collection, we know it is going to 50,000 or more submittals of a particular require action by the U.S. Congress. Enzi Kerrey Wellstone Feingold Kohl form to take all steps necessary to ensure We are in session just about all the Feinstein Landrieu that multiple methods of electronic signa- time. So whatever date we set for this tures are available for the submittal of such NOT VOTING—3 report to be submitted, we will likely form. be here, or close to being here, to re- Glenn Hollings Specter (2) The Director shall ensure the compat- ceive it and to commence the process The amendment (No. 3783) was re- ibility of the procedures under paragraph to deal with it. jected. (1)(A) in consultation with appropriate pri- I still have not heard any rationale Mr. FORD. Mr. President, I move to vate bodies and State government entities that set standards for the use and acceptance as to why we should continue beyond reconsider the vote. of electronic signatures. the minimal time necessary for the in- Mr. DORGAN. I move to lay that mo- SEC. ll04. DEADLINE FOR IMPLEMENTATION BY equity of the Main Street merchant tion on the table. EXECUTIVE AGENCIES OF PROCE- and the vulnerability of State and local The motion to lay on the table was DURES FOR USE AND ACCEPTANCE governments’ capacity to finance their agreed to. OF ELECTRONIC SIGNATURES. police, fire, and schools that an ex- Mr. MCCAIN addressed the Chair. In order to fulfill the responsibility to ad- tended moratorium implies. The PRESIDING OFFICER. The Sen- minister the functions assigned under chap- Thank you. ator from Arizona is recognized. ter 35 of title 44, United States Code, the pro- visions of the Clinger-Cohen Act of 1996 (divi- The PRESIDING OFFICER. The Sen- AMENDMENT NO. 3678, AS MODIFIED sions D and E of Public Law 104–106) and the ator from Florida still has 1 minute 30 Mr. MCCAIN. Mr. President, I ask amendments made by that Act, and the pro- seconds. unanimous consent that amendment visions of this title, the Director of the Of- Mr. GRAHAM. I yield back the re- No. 3678, the Abraham amendment, be fice of Management and Budget shall ensure mainder of my time. modified, and I send the modification that, commencing not later than five years The PRESIDING OFFICER. The re- to the desk. after the date of enactment of this Act, Ex- mainder of time has been yielded back The PRESIDING OFFICER. Without ecutive agencies provide— or used on both sides. objection, it is so ordered. The amend- (1) for the option of the electronic mainte- nance, submission, or disclosure of informa- Mr. McCAIN. I ask for the yeas and ment will be so modified. tion, when practicable as a substitute for nays. The amendment (No. 3678), as modi- paper; and The PRESIDING OFFICER. Is there a fied, is as follows: (2) for the use and acceptance of electronic sufficient second? At the end of the bill add the following new signatures, when practicable. There appears to be a sufficient sec- title: SEC. ll05. ELECTRONIC STORAGE AND FILING ond. SEC. ll01. SHORT TITLE. OF EMPLOYMENT FORMS. The yeas and nays were ordered. This title may be cited as the ‘‘Govern- In order to fulfill the responsibility to ad- The PRESIDING OFFICER. The ment Paperwork Elimination Act’’. minister the functions assigned under chap- question is on agreeing to the McCain SEC. ll02. AUTHORITY OF OMB TO PROVIDE ter 35 of title 44, United States Code, the pro- amendment No. 3783. The yeas and nays FOR ACQUISITION AND USE OF AL- visions of the Clinger-Cohen Act of 1996 (divi- TERNATIVE INFORMATION TECH- sions D and E of Public Law 104–106) and the have been ordered. The clerk will call NOLOGIES BY EXECUTIVE AGEN- amendments made by that Act, and the pro- CIES. the roll. visions of this title, the Director of the Of- The assistant legislative clerk called Section 3504(a)(1)(B)(vi) of title 44, United fice of Management and Budget shall, not the roll. States Code, is amended to read as follows: later than 18 months after the date of enact- Mr. NICKLES. I announce that the ‘‘(vi) the acquisition and use of informa- ment of this Act, develop procedures to per- tion technology, including alternative infor- Senator from Pennsylvania (Mr. SPEC- mit private employers to store and file elec- mation technologies that provide for elec- tronically with Executive agencies forms TER) is necessarily absent. tronic submission, maintenance, or disclo- Mr. FORD. I announce that the Sen- containing information pertaining to the sure of information as a substitute for paper employees of such employers. ator from Ohio (Mr. GLENN) and the and for the use and acceptance of electronic SEC. ll06. STUDY ON USE OF ELECTRONIC SIG- Senator from South Carolina (Mr. HOL- signatures.’’. NATURES. LINGS) are necessarily absent. SEC. ll03. PROCEDURES FOR USE AND ACCEPT- (a) ONGOING STUDY REQUIRED.—In order to The PRESIDING OFFICER (Mr. ANCE OF ELECTRONIC SIGNATURES BY EXECUTIVE AGENCIES. fulfill the responsibility to administer the FAIRCLOTH). Are there any other Sen- (a) IN GENERAL.—In order to fulfill the re- functions assigned under chapter 35 of title ators in the Chamber desiring to vote? sponsibility to administer the functions as- 44, United States Code, the provisions of the The result was announced—yeas 45, signed under chapter 35 of title 44, United Clinger-Cohen Act of 1996 (divisions D and E nays 52, as follows: States Code, the provisions of the Clinger- of Public Law 104–106) and the amendments [Rollcall Vote No. 305 Leg.] Cohen Act of 1996 (divisions D and E of Pub- made by that Act, and the provisions of this lic Law 104–106) and the amendments made title, the Director of the Office of Manage- YEAS—45 by that Act, and the provisions of this title, ment and Budget shall, in cooperation with Abraham Dodd Mack the Director of the Office of Management the National Telecommunications and Infor- Akaka Domenici McCain and Budget shall, in consultation with the mation Administration, conduct an ongoing Allard Faircloth McConnell study of the use of electronic signatures Ashcroft Grams Murkowski National Telecommunications and Informa- Baucus Gregg Murray tion Administration and not later than 18 under this title on— Bennett Hagel Nickles months after the date of enactment of this (1) paperwork reduction and electronic Boxer Hatch Robb Act, develop procedures for the use and ac- commerce; Burns Inouye Santorum ceptance of electronic signatures by Execu- (2) individual privacy; and Campbell Kerry Shelby tive agencies. (3) the security and authenticity of trans- Coats Kyl Smith (NH) (b) REQUIREMENTS FOR PROCEDURES.—(1) actions. Cochran Lautenberg Smith (OR) Coverdell Leahy Stevens The procedures developed under subsection (b) REPORTS.—The Director shall submit to Craig Lieberman Torricelli (a)— Congress on a periodic basis a report describ- D’Amato Lott Warner (A) shall be compatible with standards and ing the results of the study carried out under DeWine Lugar Wyden technology for electronic signatures that are subsection (a). S11688 CONGRESSIONAL RECORD — SENATE October 7, 1998 SEC. ll07. ENFORCEABILITY AND LEGAL EF- resentative shall be from a state that does jurisdictions would not be under the FECT OF ELECTRONIC RECORDS. not impose an income tax). exact same moratorium. It rewards Electronic records submitted or main- (C) 8 representatives of the electronic com- tained in accordance with procedures devel- those states and municipalities that merce industry (including small business), raced to set up discriminatory taxes on oped under this title, or electronic signa- telecommunications carriers, local retail tures or other forms of electronic authen- businesses, and consumer groups, comprised Internet services and places them in a tication used in accordance with such proce- of— better position to raise revenue than dures, shall not be denied legal effect, valid- (i) 5 individuals appointed by the Majority those states that have chosen not to ity, or enforceability because such records Leader of the Senate; act. are in electronic form. (ii) 3 individuals appointed by the Minority More importantly, it sets the prece- SEC. ll08. DISCLOSURE OF INFORMATION. Leader of the Senate; dent that some states, but not all Except as provided by law, information (iii) 5 individuals appointed by the Speaker states, can levy taxes that harm inter- collected in the provision of electronic signa- of the House of Representatives; and state commerce. This amendment ture services for communications with an ex- (iv) 3 individuals appointed by the Minor- ecutive agency, as provided by this title, ity Leader of the House of Representatives. makes the Internet Tax Moratorium a piece-meal moratorium, not a real shall only be used or disclosed by persons f who obtain, collect, or maintain such infor- moratorium. mation as a business or government practice, UNANIMOUS-CONSENT I ask my colleagues to consider why for the purpose of facilitating such commu- AGREEMENT—H.R. 10 we are considering this Internet tax nications, or with the prior affirmative con- moratorium. As all of us recognize, the Mr. MCCAIN. Mr. President, I ask sent of the person about whom the informa- Internet is a massive global network unanimous consent that the Senate re- tion pertains. that spans not only every state in the sume consideration of H.R. 10 at 5 p.m., SEC. ll09. APPLICATION WITH INTERNAL REVE- Union, but international borders. As NUE LAWS. Thursday, October 8. the Commerce committee found, Inter- No provision of this title shall apply to the The PRESIDING OFFICER. Without net access services are inherently a Department of the Treasury or the Internal objection, it is so ordered. Revenue Service to the extent that such pro- matter of interstate and foreign com- f vision— merce within the jurisdiction of the (1) involves the administration of the in- INTERNET TAX FREEDOM ACT United States Congress. In fact, it has ternal revenue laws; or been estimated that if the Congress The Senate continued with the con- (2) conflicts with any provision of the In- does not make a policy decision regard- sideration of the bill. ternal Revenue Service Restructuring and ing taxation of Internet services, more Reform Act of 1998 or the Internal Revenue AMENDMENT NO. 3719, AS MODIFIED, AS AMENDED Code of 1986. than 30,000 separate taxing jurisdic- Mr. MCCAIN. Mr. President, I ask tions within the United States could SEC. ll10. DEFINITIONS. unanimous consent that there be 15 establish their own taxes on Internet For purposes of this title: minutes, with 10 minutes on this side, (1) ELECTRONIC SIGNATURE.—The term transactions. ‘‘electronic signature’’ means a method of controlled by the Senator from Alaska, Because of the chaos that would signing an electronic message that— and 5 minutes controlled by the Sen- ensue, we have decided to place a halt (A) identifies and authenticates a particu- ator from North Dakota, that no sec- on Internet taxes and allow a commis- lar person as the source of the electronic ond-degree amendments be in order, sion to study this issue and make rec- message; and and immediately following that, there ommendations to the Congress. Yet the (B) indicates such person’s approval of the be a vote on the Murkowski tabling amendment that the Senator from Or- information contained in the electronic mes- motion. egon proposes would reward those ju- sage. The PRESIDING OFFICER. The (2) EXECUTIVE AGENCY.—The term ‘‘Execu- risdictions that have already decided tive agency’’ has the meaning given that question will first come on the first-de- to tax Internet services. Why should we term in section 105 of title 5, United States gree amendment. grandfather those jurisdictions? Code. Mr. MCCAIN. Mr. President, I believe If it is appropriate for states and lo- AMENDMENT NO. 3721, AS MODIFIED Senator MURKOWSKI will be seeking to calities to impose taxes on Internet Mr. MCCAIN. Mr. President, I send to table the underlying amendment. services than all states should be per- the desk a modification to amendment Mr. MURKOWSKI addressed the mitted to adopt such taxes. Alaska No. 3721. Chair. should be given that opportunity just The PRESIDING OFFICER. The The PRESIDING OFFICER. The Sen- as much as North Dakota and South amendment will be so modified. ator from Alaska is recognized. Dakota. But under the Internet Tax The amendment (No. 3721), as modi- Mr. MCCAIN. Mr. President, I repeat Moratorium legislation, my state does fied, is as follows: the request. not have that option but the Dakotas On page 17, beginning with line 18, strike The PRESIDING OFFICER. Is there can continue their taxes because they through line 21 on page 19 and insert the fol- objection? adopted those taxes prior to this mora- lowing: Mr. GRAMM. Mr. President, I didn’t torium. (a) ESTABLISHMENT OF COMMISSION.—There hear the request. Can I hear it again? And if it is not appropriate for states is established a commission to be known as Mr. MCCAIN. It is that there be 15 and localities to impose taxes on Inter- the Advisory Commission on Electronic minutes on a Murkowski tabling mo- net services, than not states nor local- Commerce (in this title referred to as the tion, with 10 minutes under the control ities should be permitted to adopt ‘‘Commission’’). The Commission shall— (1) be composed of 19 members appointed in of the Senator from Alaska, 5 minutes these taxes. accordance with subsection (b), including the under the control of the Senator from I believe this amendment is not only chairperson who shall be selected by the North Dakota, with no intervening sec- discriminatory but undermines the members of the Commission from among ond-degree amendments, immediately fundamental idea underlying this bill. themselves; and followed by a vote. As I noted earlier, the Internet is in- (2) conduct its business in accordance with Mr. GRAMM. No objection. herently about Interstate Commerce the provisions of this title. The PRESIDING OFFICER. Without and we in Congress are about to make (b) MEMBERSHIP.— objection, it is so ordered. a decision that no local taxes should be (1) IN GENERAL.—The Commissioners shall serve for the life of the Commission. The Mr. MURKOWSKI addressed the imposed on Internet services until Con- membership of the Commission shall be as Chair. gress receives the Commission’s rec- follows: The PRESIDING OFFICER. The Sen- ommendations. I believe we should (A) 3 representatives from the Federal Gov- ator from Alaska is recognized. make this moratorium uniform, not ernment, comprised of the Secretary of Com- Mr. MURKOWSKI. Mr. President I piece-meal as the Senator from Oregon merce, the Secretary of the Treasury, and rise in opposition to the amendment proposes. the United States Trade Representative (or being offered to grandfather existing Otherwise, we are encouraging every their respective delegates). (B) 8 representatives from State and local taxes on Internet services. state in the union to rush to the state governments (one such representative shall This amendment undermines the fun- legislature every time a new tech- be from a State or local government that damental integrity of the underlying nology comes along and adopt a taxing does not impose a sales tax and one rep- bill because all state and local taxing scheme on the new technology, secure October 7, 1998 CONGRESSIONAL RECORD — SENATE S11689 in the knowledge that should Congress strictions on the sale of beer and other some states to tax the Internet but not decide to impose a moratorium on such malt beverages, which included dis- others. The moratorium on Internet a new tax, that state’s taxes will be criminatory charges on imports of taxation must be uniform, applying grandfathered. competing products from the United equally to all states and all local tax- Moreover, there is no rational basis States. ing jurisdictions without exception. to grandfather these state and local Mr. President, the Internet as a Congress is taking an extraordinary, taxes on what everyone agrees is inter- means of communication and com- though not unprecedented, step in pre- state commerce. We have asked a Com- merce is in its infancy. Commerce on empting a taxing power of the states. mission of experts to make rec- the Internet is projected to grow by The people of the United States, ommendations regarding Internet several thousand percent in the next through the Constitution, charge Con- taxes. Although I cannot pre-judge five years. And who stands to benefit gress with the responsibility of ensur- what the Commission will recommend, the most from that growth? Companies ing that states do not interfere with it is probable that the Commission will based in the United States will be the interstate commerce. This power is make three recommendations. It will largest beneficiaries. I think there can rarely exercised in the context of tax- make a decision that state and local be no doubt about that. ation, and is a power that we take very taxation of Internet services are appro- We in the United States invented the seriously. priate or inappropriate. It may decide Internet. We have been the first coun- Use of this extraordinary power is re- that some taxes, such as taxes on try to begin to exploit its benefits. We quired to prevent the heavy hands of ‘‘pipeline’’ services like Erols or value- are leading the world in Internet com- government from stifling the economic added online services like America On- merce and the world is watching every- growth potential of Internet com- line are appropriate but that taxes on thing we do and trying to figure out merce. We have now just a glimpse of interstate product sales on the Inter- how to prevent American domination the future of commerce, and a com- net are inappropriate. of this new medium. plete revolution in the way people What is certain is that the Commis- One way to slow American domina- transact business is within sight. We sion will not recommend that the only tion of the Internet is for foreign coun- are on the threshold of exciting times, Internet taxes that are appropriate are tries to begin to establish taxing re- in which information about products those that are levied by the states that gimes on products and information will move quicker and farther than are proposed to be grandfathered. That generated from the United States. It is ever imagined, in which the elderly, would make no sense and would prob- not hard to imagine our foreign trading the handicapped, and people living in ably be unconstitutional. For that rea- partners developing taxing schemes de- remote rural areas can participate in son alone, we should not permit this signed to protect their domestic manu- world markets without ever leaving grandfather. facturers from competition from more their homes. A moratorium is nec- Mr. President, one of the most impor- efficient American competitors selling essary to prevent the taxing authori- tant reasons I believe we should not in their country via the Internet. Nor ties of 50 states, over 6,000 localities, grandfather any of the Internet taxes is it difficult to imagine that some of and the federal government from tak- the more repressive regimes in the is because a decision we make on ing near-sighted actions that jeopard- world might want to come up with pu- grandfathering will send a signal to our ize this future of commerce. trading partners that if they adopt nitive access taxes that functionally A threat to interstate commerce so taxes on Internet commerce today, prevent their citizens from reading severe as to require a national morato- those taxes will likely be grand- American on-line newspapers and mag- rium cannot be tolerated in any state. azines. In the name of ‘‘cultural sov- fathered if and when an international If Congress were to grandfather those ereignty,’’ I can imagine that some agreement on taxation of Internet states that have already imposed Inter- countries will adopt special taxing re- commerce is reached in the future. net taxes, we would be setting a ter- gimes to restrict access to Internet Why shouldn’t Brazil or Germany or rible precedent. This ‘‘Early Bird Spe- web pages that are in English. Canada establish taxes today on Inter- cial’’ exception gives states the incen- Mr. President, the precedent we set net commerce and then claim that by grandfathering Internet taxes cur- tive to rush to impose new taxes on since these taxes were adopted prior to rently in place will be closely watched new technologies. This is not the kind an international agreement, they by our trading partners. They will fol- of race we want to encourage. should be grandfathered just like the And if Congress can impose a morato- low our model because the United rium on some states but not others, United States grandfathered similar States has established all of the stand- will future Congresses attempt to dis- taxes? ards and protocols for the Internet. Mr. President, there is ample prece- We should send a message to our advantage individual states in this dent for such a scenario. Many of the trading partners that we will not manner? The defenders of a grand- tariff and non-tariff barriers that the grandfather any taxes on Internet com- father clause cast their argument as United States has confronted in the merce. Unless we do that, I fear that one of states’ rights. But establishing past 50 years have covered practices when our negotiators sit down and at- the principle that a moratorium must that were insulated by the original tempt to negotiate away discrimina- apply equally to all states protect GATT grandfathering rules that were tory foreign taxes on Internet services, states from unwarranted infringements adopted more than 50 years ago. In our foreign trading partners will use upon their power, by preventing the fact, there have been a number of in- the grandfather model in this bill as a federal government from isolating a stances where our foreign trading part- reason their taxing regime should be minority of states for adverse treat- ners have used the GATT grandfather maintained in place. That is surely not ment. And I should also point out that clause to defend measures that would the precedent we want to set. states do not have the right to inter- otherwise violate our GATT rights. A Finally, Mr. President, if we table fere with interstate commerce—the number of those involved foreign tax this amendment we will ultimately not power to regulate interstate commerce regimes. be voting on whether the moratorium was delegated to the national govern- For example, the European Union re- should be three years or four years. ment, not retained by the states. lied on the GATT grandfather clause to The Senate has already spoken on this The United States should set a strong defend their system of territorial tax- issue and if the grandfathering amend- example and preempt all Internet taxes ation and income shifting rules that ment is tabled, the Chairman of the until a rational, national approach to clearly constituted an illegal export Committee will certainly offer another Internet taxation is developed. If we subsidy. Similarly, Brazil used the amendment that we can accept that fail to do so, we undermine attempts to grandfather clause to defend internal will extend the moratorium for four persuade our trading partners that bar- taxes of general application (i.e., sales years. riers to global electronic commerce taxes) that discriminated against goods I move to table the amendment on should be removed. We have the oppor- imported from other GATT members. grandfathering state Internet taxes. tunity to lead the world in the area of And Canada relied on the grandfather Mr. MACK. Mr. President, I oppose Internet commerce, and we should clause to defend its interprovincial re- this amendment which would allow make our cause the cause of freedom. S11690 CONGRESSIONAL RECORD — SENATE October 7, 1998 Mr. President, I urge my colleagues Mr. DORGAN. Mr. President, I make The PRESIDING OFFICER. All time to reject this amendment. a point of order that a quorum is not has expired. Mr. DORGAN addressed the Chair. present. Mr. MURKOWSKI. I move to table The PRESIDING OFFICER. The The PRESIDING OFFICER. The the amendment and ask for the yeas Chair recognizes the Senator from clerk will call the roll. and nays. North Dakota. The legislative clerk proceeded to The PRESIDING OFFICER. Is there a Mr. DORGAN. Mr. President, I rise in call the roll. sufficient second? opposition to the efforts by the Sen- Mr. MCCAIN. Mr. President, I ask There is a sufficient second. ator from Alaska. My understanding is unanimous consent that the order for The yeas and nays were ordered. that he is seeking to table the underly- the quorum call be rescinded. The PRESIDING OFFICER. The ing first-degree amendment, the Mr. DORGAN. I object. question is on agreeing to the motion McCain amendment. The McCain The PRESIDING OFFICER. Objec- to lay on the table amendment No. amendment includes the grandfather tion is heard. 3719, as modified, as amended. The yeas provision which preserves the existing The legislative clerk continued with and nays have been ordered. The clerk Internet access taxes. In my judgment, the call of the roll. will call the roll. this makes the moratorium a forward- Mr. MCCAIN. For the convenience of The bill clerk called the roll. looking moratorium, and will not pre- Senators who have plans this evening Mr. NICKLES. I announce that the empt existing taxes. and were told that we would have a Senator from Pennsylvania (Mr. SPEC- It also deals with State and local tax- vote, I would ask unanimous consent TER) is necessarily absent. ing authorities by including a State that further proceedings under the Mr. FORD. I announce that the Sen- and local tax savings provision, which quorum call be rescinded. ator from Ohio (Mr. GLENN) and the The PRESIDING OFFICER. Is there makes it clear that no other State or Senator from South Carolina (Mr. HOL- objection? local tax will be affected. In other LINGS) are necessarily absent. Mr. DORGAN. I object. words, it protects against the unin- The result was announced—yeas 28, The PRESIDING OFFICER. There is tended consequences that may well nays 69, as follows: objection. occur unless we have that savings The legislative clerk continued with [Rollcall Vote No. 306 Leg.] clause. the call of the roll. YEAS—28 I really think that it is important Mr. MCCAIN. Mr. President, I ask Ashcroft Gregg Nickles that we not support the motion offered unanimous consent that the order for Campbell Hagel Roth by the Senator from Alaska. the quorum call be rescinded. Cochran Helms Santorum The third provision I want to men- Collins Hutchinson Shelby The PRESIDING OFFICER. Without Coverdell Hutchison Smith (NH) tion in the first-degree amendment objection, it is so ordered. D’Amato Jeffords Stevens that he is attempting to table is a pro- Mr. MCCAIN. Mr. President, I ask to Faircloth Lott Thomas vision ensuring that this moratorium be recognized. Gramm Mack Torricelli will not affect any pending or existing Grams McConnell The PRESIDING OFFICER. The Sen- Grassley Murkowski liabilities. Currently there are compa- ator from Arizona. NAYS—69 nies that may have failed to pay some Mr. MCCAIN. Mr. President, we obvi- taxes that would have a current liabil- ously have a problem. The Senator Abraham Domenici Leahy ity under current valid existing laws, Akaka Dorgan Levin from Florida is insisting on a point of Allard Durbin Lieberman and we would not want this morato- order that will basically gut this legis- Baucus Enzi Lugar rium to have the unintended con- lation. I want to go ahead and vote on Bennett Feingold McCain sequence of interrupting those liabil- Biden Feinstein Mikulski the Murkowski amendment. If the Sen- Bingaman Ford Moseley-Braun ities either. ator from Florida wants to destroy this Bond Frist Moynihan As I understand it, we have a first-de- bill, which is supported by literally ev- Boxer Gorton Murray gree amendment, and now a motion to eryone except him, he is free to do Breaux Graham Reed table that. I hope that the motion to Brownback Harkin Reid that. Bryan Hatch Robb table will not prevail. I will vote Mr. President, how much time re- Bumpers Inhofe Roberts against it. I will be, by that vote, sup- mains? Burns Inouye Rockefeller porting the underlying first-degree The PRESIDING OFFICER. All time Byrd Johnson Sarbanes Chafee Kempthorne Sessions McCain amendment. has expired. Cleland Kennedy Smith (OR) Mr. McCAIN addressed the Chair. Mr. GRAHAM addressed the Chair. Coats Kerrey Snowe The PRESIDING OFFICER. The Sen- Mr. MCCAIN. All time has expired? Conrad Kerry Thompson ator from Arizona is recognized. Mr. GRAHAM. Point of personal Craig Kohl Thurmond Daschle Kyl Warner Mr. MCCAIN. Mr. President, I suggest privilege. DeWine Landrieu Wellstone the absence of a quorum. The PRESIDING OFFICER. The Sen- Dodd Lautenberg Wyden the PRESIDING OFFICER. The clerk ator from Florida. NOT VOTING—3 will call the roll. Mr. GRAHAM. Mr. President, I am The legislative clerk proceeded to sorry, my good friend from Arizona has Glenn Hollings Specter call the roll. on several previous occasions made The motion to lay on the table the Mr. MCCAIN. Mr. President, I ask statements that have become, I think, amendment (No. 3719), as modified, as unanimous consent that the order for excessively personal and not factually amended, was rejected. the quorum call be rescinded. correct. Mr. MCCAIN addressed the Chair. The PRESIDING OFFICER. Without I am prepared to vote on this bill The PRESIDING OFFICER (Mr. objection, it is so ordered. right now, and I will vote for the bill in BROWNBACK). The Senator from Ari- Mr. MCCAIN. Has all time expired? its current form. What the issue is, is zona. The PRESIDING OFFICER. It has offering an amendment that I question Mr. McCAIN. Mr. President, first of not expired. as to its germanity to this bill and that all, let me say for my colleagues where Mr. MURKOWSKI. Mr. President, I I might raise a point of order on that we are on this bill. yield all time back that’s remaining on germanity. I don’t consider that to be We believe that we had an agreement our side. It would be my intention an inappropriate or even a particularly that there would be this vote on the when all time is yielded to ask for the hostile act. That is a matter of the Murkowski amendment to table, and yeas and nays. Excuse me, Mr. Presi- rules of the Senate. It either is or is then we would proceed to adopt a pre- dent. It would be my intention to move not germane in this postcloture envi- viously agreed to amendment that had to table the pending amendment when ronment. been agreed to by the Senator from all time is expired. I do not accept the characterization North Dakota who has been managing The PRESIDING OFFICER. Does the that I am, in some malicious way, the bill and others that have been in- Senator from North Dakota yield back standing in the way of the bill. I am volved in the legislation. Apparently, his time? perfectly prepared to vote at this time. that was not agreed to by the Senator October 7, 1998 CONGRESSIONAL RECORD — SENATE S11691 from Florida who intends to at least at The PRESIDING OFFICER. Without tronic transfer of information unless it this time challenge on the issue of ger- objection, it is so ordered. has the prior consent of the individual. maneness the amendment that the GOVERNMENT PAPERWORK ELIMINATION ACT Also included is a provision estab- Senator from North Dakota, the Sen- Mr. ABRAHAM. Mr. President, I rise lishing legal standing for electroni- ator from Oregon, I, the Senator from today to speak about S. 2107, the Gov- cally submitted documents. Such legal Wyoming, and others had agreed to, ernment Paperwork Elimination Act, a authority is necessary to attach the which has to do with the definition of bill I introduced in April along with same importance to electronically what are discriminatory taxes. Senators WYDEN, MCCAIN and REED. signed documents as is attached to This, obviously, germane point of This bill has been added as an amend- physically signed documents. Without order would carry, or there is a likeli- ment to the Internet Tax Freedom Act this provision, electronic submission of hood that it would. That would reduce and I want to thank Senators MCCAIN sensitive documents would be impos- the effectiveness or the impact of this and HOLLINGS and Senator THOMPSON, sible. bill to the point where it would be for taking the time and effort to work Finally, Mr. President the Govern- nearly meaningless. with me in advancing this legislation. ment Paperwork Elimination Act re- The Senator from Florida has told Without their active support and par- quires that Federal agencies send indi- me that he will work overnight with us ticipation, this bill would not have pro- viduals an electronic acknowledgement and with others to try to craft some gressed as far as it has. of their submission when it is received. agreement or relook at the entire This bill amends the Paperwork Re- Such acknowledgements are standard issue. I hope that he will do so. duction Act of 1980 to allow for the use when conducting commerce online. A After the vote at 11 tomorrow on VA- of electronic submission of Federal similar acknowledgement by Federal HUD, I will then propose amendment forms to the Federal government with agencies will provide piece-of-mind for No. 3711. At that time, if the Senator the use of an electronic signature with- individuals which conduct electronic from Florida still wishes to, obviously in five years from the date of enact- business with the government. he can challenge the amendment on ment. It is intended to bring the fed- As much as individuals will benefit point of order concerning whether the eral government into the electronic from this legislation, so too will Amer- amendment is germane or not. age, in the process saving American in- ican businesses. By providing compa- Mr. President, I think everybody re- dividuals and companies millions of nies with the option of electronic filing alizes how important this legislation dollars and hundreds of hours currently and storage, this bill will reduce the is. I would very much hate to see it de- wasted on government paperwork. paperwork burden imposed by govern- railed at this point in time. The bill also includes provisions to ment on commerce and the American But the amendment, 3711, is vital to protect the private sector and ensure a economy. It will allow businesses to this legislation. Some may ask why we level playing field for companies com- move from printed forms they must fill didn’t propose it earlier. That is be- peting in the development of electronic out using typewriters or handwriting cause it was part of a package of nego- signature technologies. It mandates to digitally-based forms that can be tiation that we were in with the Sen- that regulations promulgated by the filled out using a word processor. The ator from North Dakota, and others. Office of Management and Budget and savings in time, storage and postage I respect the right of the Senator the National Telecommunications and will be enormous. One company, com- from Florida to object on germaneness Information Administration be com- puter maker Hewlett-Packard, esti- grounds. That is his right as a Senator. patible with standards and tech- mates that the section of this bill per- I do not challenge that. nologies used commercially. This will mitting companies to download copies Mr. WYDEN. Will the Senator yield? ensure that no one industry or tech- of regulatory forms to be filed and Mr. MCCAIN. I ask unanimous con- stored digitally rather than physically sent to yield to the Senator from Or- nology receives favorable consider- will, by itself, save that company $1–2 egon without losing my right to the ation. The bill also requires Federal agen- billion per year. floor. Efficiency in the federal government The PRESIDING OFFICER. Without cies to accept multiple methods of itself will also be enhanced by this leg- objection, it is so ordered. electronic submission if the agency ex- Mr. WYDEN. I will be very brief, I pects to receive 50,000 or more elec- islation. By forcing Government bu- say to the chairman and colleagues. tronic submittals of a particular form. reaucracies to enter the digital infor- The hour is late. This requirement will ensure that no mation age we will force them to All we seek to do is to have techno- single electronic signature technology streamline their procedures and en- logical neutrality. We are not going to is permitted to unfairly dominate the hance their ability to maintain accu- tax catalogs. We also don’t want to tax market. rate, accessible records. This should re- web sites. That is all this is about— This legislation also takes several sult in significant cost savings for the preventing that kind of discriminatory steps to help the public feel more se- federal government as well as in- tax. cure in the use of electronic signatures. creased efficiency and enhanced cus- I thank the chairman for yielding. If people are going to send money or tomer service. Mr. MCCAIN. Mr. President, these share private information with the Each and every year, Mr. President, things happen as we consider legisla- government, they must be secure in Americans spend 6.6 billion hours sim- tion. There are very strongly held the knowledge that their information ply filling out, documenting and han- views on this issue, especially by the and finances are adequately protected. dling government paperwork. This Senator from Florida who, as a former For this reason, my bill requires that huge loss of time and money con- Governor, understands the impact of electronic signatures be as reliable as stitutes a significant drain on our these issues on his State. I understand necessary for any given transaction. If economy and we must bring it under that and appreciate that. But I want to a person is requesting information of a control. The easier and more conven- be clear that my interpretation and public nature, a secure electronic sig- ient we make it for American busi- that of the Senator from Oregon and nature will not be necessary. If, how- nesses to comply with paperwork and the proponents of this legislation are ever, an individual is submitting forms reporting requirements, the better job that if we do not allow the amendment which contain personal, medical or fi- they will do of meeting these require- 3711, then the legislation itself would nancial information, adequate security ments, and the better job they will do be rendered largely meaningless. is imperative and will be available. of creating jobs and wealth for our f This is not the only provision provid- country. That is why we need this leg- ing for personal security, however. islation. MORNING BUSINESS Senator LEAHY joined me to help estab- The information age is no longer Mr. MCCAIN. Mr. President, I ask lish a threshold for privacy protection new, Mr. President. We are in the unanimous consent that there now be a in this bill. The language developed by midst of a revolution in the way people period of morning business with Sen- Senator LEAHY and I will ensure that do business and maintain records. This ators permitted to speak for up to 5 information submitted by an individual legislation will force Washington to minutes each. can only be used to facilitate the elec- catch up with these developments, and S11692 CONGRESSIONAL RECORD — SENATE October 7, 1998 release our businesses from the drag of the tools and seeds necessary to plant One third of the family farmers in an obsolete bureaucracy as they pursue crops. this country may go out of business in further innovations. The result will be This year has been particularly dif- the next several years, with net farm a nation and a people that is more ficult in a variety of places. Most re- income projected to decrease by $7.5 prosperous, more free and more able to cently, hurricane Georges has ravaged billion in 1998. We have the food. All we spend time on more rewarding pur- the Caribbean. Nations such as Haiti, are lacking is strong markets to buy suits. where the population is barely able to what we are producing. I want to thank my colleagues in the feed itself, and the Dominican Republic Common sense tells us that it is time Senate for their support and urge the have been heavily damaged by the to bring together our oversupply of do- House to support this important legis- storm’s onslaught. mestic agricultural products and the lation. Countries in Eastern Europe are ex- growing international need for food f periencing food shortages. Winter is aid. One way to do that is to increase coming to Kosovo, where the Serbian shipments of U.S. agricultural products COMMERCIAL SPACE ACT OF 1998 Special Police and Yugoslavian army to countries in need. Mr. KYL. Mr. President, I would like continue a terrorist policy that has de- In July of this year, the President to engage the Chairman in a colloquy stroyed more that three hundred vil- took steps to do just that, creating the regarding a provision of the Commer- lages, and driven more than 300,000 eth- Food Aid Initiative. This initiative di- cial Space Act of 1998. It is my under- nic Albanians from their homes, with rects the Department of Agriculture to standing that Section 202(b)(6) of the an estimated 50,000 forced into forests purchase 80 million bushels of grain for Land Remote Sensing Policy Act of and mountains. With good reason, distribution to poor countries overseas. 1992, which requires any company re- these people are afraid to return to the The Secretary of Agriculture an- ceiving a license to operate a remote villages which have been destroyed and nounced the first disbursement of sensing system to ‘‘notify the Sec- vandalized by the Serbian army. They wheat and wheat flour under the Initia- retary [of Commerce] of any agreement have left the only means they have of tive to the World Food Program on the licensee intends to enter with a for- supporting themselves behind. As a re- September 15th. I applaud the Adminis- eign nation,’’ is amended by the Com- sult, if we in the international commu- tration’s creation of this Initiative. mercial Space Act of 1998 by inserting nity do not help them, they will not be The potential of this program in com- the words ‘‘significant or substantial’’ able to feed themselves. bination with other U.S. food assist- after ‘‘Secretary of any.’’ This is in- Russia faces a sharp decrease in agri- ance programs to provide relief to hun- tended to limit the agreements which cultural production, due to drought gry people is great, and I support the are reported to the Department of and other poor weather conditions. Ap- President’s efforts. Commerce. As you know, the Congress proximately twenty-five percent of However, we can and should do more. has acted in the past to limit imagery farmland was damaged. Consequently, To begin with, the list of countries of Israel. I would like to clarify that this year’s harvest will be Russia’s that the administration has targeted any agreement or contract permitting worst in four decades. Collective farms through the Initiative should be ex- any imaging of Israel using commer- have harvested only a little over half panded. Last week I wrote to Secretary cially available, satellite-based remote the amount of grain in this year’s har- of State Madeleine Albright, Secretary sensing technology would fall under vest as they did in 1997. The potato of Agriculture Dan Glickman and the definition of ‘‘significant or sub- crop, one of Russia’s staples, is down Brian Atwood, the Administrator of stantial.’’ Is this the Chairman’s un- significantly due to potato blight. the Agency of International Develop- derstanding? The Asian economic crisis is having a ment. In those letters, I indicated Mr. MCCAIN. I thank the Senator. It significant impact on the ability of among other things, that threatened is certainly my intention that any those states to feed themselves. Indo- food shortages in Kosovo and Russia agreement permitting the imaging of nesia, with its current financial tur- must not go unaddressed. Israel using commercially available, moil is in need of food. Asian countries Not only must we be sure that more satellite-based remote sensing tech- which normally import American com- countries are being given much needed nology will continue to be reported to modities are unable to do so this year, food, we must be assured that those the United States government for re- exacerbating our farmers’ woes. who are hungry are actually receiving view. The Congress has indicated that The situation in North Korea re- the food. Unfortunately, in some in- it viewed imaging of Israel to be a sig- mains grave. Floods, droughts and stances, access to food donations is nificant matter, and the intent of this other natural disasters in the past four prevented by people in needy nations legislation is to make sure that any years have left many without the abil- who either want the food themselves, agreement that could lead to imaging ity to feed themselves. Malnutrition wish to profit from victims of famine Israel will be reported. and related diseases are common or wish to control the needy population Mr. KYL. I thank the Senator. throughout the land. One million peo- by denying them life’s most basic ne- f ple have died in North Korea over the cessities. past two years. In addition to donating to more ALLEVIATING INTERNATIONAL Due to climactic conditions and po- countries, we should donate more food. FAMINE WITH AMERICAN SUR- litical unrest, there are many in need According to the United States Depart- PLUS in Africa. In Sudan alone, experts have ment of Agriculture, in the United Mr. BIDEN. Mr. President. Today I indicated that as many as 2.6 million States today there is a surplus of 6.3 address an issue of extreme importance people may go hungry. Mozambique is million metric tons or 233 million bush- to both citizens of the United States, facing a food crisis which will affect els of wheat. There are several pro- and people around the globe. 300,000 people until April of next year. grams through which we can help solve It is not often that we have the op- In the northern portions of Sierra both our domestic and our inter- portunity to help those in other coun- Leone, thousands of internally dis- national problems. tries and Americans at the same time. placed people will face hunger, if not The first is the Agricultural Trade I believe that one of these occasions starvation, unless they are provided Development and Assistance Act of presents itself now. with aid. 1954, commonly referred to as P.L. 480, In every area of the world, there are Here in the United States we face a Food for Peace. This legislation con- men, women and children in desperate challenge of a different sort. Far from tains three food aid titles. Title One’s need of food. Some of them are refu- suffering from a lack of food, American objective is to make it easier for lesser gees from wars and other forms of po- farmers are producing an abundance. developed countries to buy American litical violence. Some of them are dis- Unfortunately, U.S. agricultural ex- commodities. To this end, commodities placed because droughts or floods have ports are expected to decline 4.6 per- are sold to certain countries for US interfered with their ability to grow cent from projected 1998 levels, mainly dollars on concessional credit terms. food and destroyed their homes. Others because of the collapse of global mar- Title Two is the Emergency and Pri- are simply too poor to be able to afford kets. vate Assistance Programs. This is October 7, 1998 CONGRESSIONAL RECORD — SENATE S11693 where the bulk of our humanitarian do- lege in Winooski Park, Colchester, VT, material they were studying, ‘‘something nations in the form of food aid come profiled Professor Edward Pfeifer. Dr. that was their own comment that reflected from. This year Title Two was funded Pfeifer is referred to as ‘‘Historian Ed their own evaluation.’’ But the magic of at the level that the president re- Pfeifer, ’43.’’ I have always thought of Pfeifer as a teacher resides in the method and manner he brought to the classroom to quested. Unfortunately, given the num- Ed Pfeifer as the special mentor I had get the students engaged, to elicit their re- ber of humanitarian disasters that we in college and the man who did so sponse. are currently facing, this may not be much to shape my thinking and my life To Fran MacDonnell, a teacher who earned enough. It is my hope that the Presi- after college. his master’s in history at Marquette and his dent will ask for more money for this He was the kind of professor who not Ph.D. at Harvard, ‘‘Dr. Pfeifer is in the hand- program. only helped you learn, but taught you ful of teachers that you admire and like to Title Three is the Food for Develop- to want to learn. He would find stu- imitate and that you owe a lot to. ‘‘He had ment Program, under which govern- dents he could mentor and introduce three, one-year appointments teaching his- tory at Yale University, and now he and his ment to government grants are pro- them to the joys of learning. Fortu- vided to support the long-term develop- wife live in Lexington, Va., where she teach- nately, I was one of those students and es and he finishes his second book—a study ment efforts of those countries that are I have benefited from his help every of white southerners who fought in the attempting improve their economic day since. Union Army during the Civil War. (His first outlooks. Ed and his wife, Joan, are now re- book is titled Insidious Foes: The Axis Fifth The second program through which tired in Vermont. One of the great Column and the American Home Front.) ‘‘I we can help address the domestic and pleasures Marcelle and I have is when can think of no greater legacy than the one overseas challenges we are facing is we end up in the same place with them, Ed Pfeifer gave his students—I mean Profes- Section 416(b) of the Agricultural Act sor Pfeifer taught my dad’’ (Dr. Kenneth ranging from events at St. Michael’s, MacDonnell ’57 a Boston physician), of 1949. Through Section 416(b), com- to meeting in the grocery store near modities held by the Commodities MacDonnell said. He gave his students the our own home in Vermont. drive to think independently, and confidence Credit Corporation can be donated Mr. President, I ask unanimous con- in expressing their thoughts. overseas. This is the program through sent that the article from St. Michael’s Pfeifer was a master Socratic teacher, which the President ordered the pur- Founders Hall, September 1998, be which meant using the Q & A method to chase of $250 million of wheat in July. printed in the RECORD. guide the student, leaving room for different The Food for Progress Act of 1985 is There being no objection, the article opinions and approaches and calling for con- clusions from the student. ‘‘That is the hard- the third program the United States was ordered to be printed in the can utilize to address both the Amer- est kind of teaching, yet the one with the RECORD, as follows: ican farm crises and dire international most rewards for the student,’’ MacDonnell need. Food for Progress provides com- [From St. Michael’s Founders Hall, Sept., said, who aspires to Pfeifer’s method. 1998] Joe Constance concurs, ‘‘Dr. Pfeifer was modities either purchased with funds HISTORIAN ED PFEIFER ’43 probably the finest practitioner of the So- from the Commodity Credit Corpora- (By Buff Lindau) cratic method that you’ll ever find as a tion, or through P.L. 480 or Section teacher—getting the student to arrive at the Nine-year old Eileen Gadue had to write an 416(b), as donations to countries that answer,’’ and encouraging you as you pro- essay explaining why she needed a new trunk are committing to the increase of free gressed. Constance says Pfeifer also inspired to take her sneakers, swim suit, tennis rack- him to pursue the intellectual life; he earned enterprise practices in their agricul- et, and other belongings to summer camp. a master’s in history at UVM and a library tural sectors. She didn’t know it, but she had Ed Pfeifer to degree at SUNY Albany. Constance is now li- I strongly support an aggressive thank. brary director and political science professor funding of these programs, and have Eileen’s parents, Mark and Marjorie Gadue at St. Anselm College, and is pursuing his urged the administration to be aggres- ’79, of Colchester, Vt., were both students of Ph.D. in political science at Boston Univer- SMC Emeritus Professor of History Edward sive in its requests to the Congress as sity. Pfeifer ’43 in the 1970’s. They have shaped it evaluates the increasing needs over- ‘‘I asked Dr. Pfeifer a question in class one their lives and their children’s lives on seas and the opportunity to assist our morning about a trade agreement between Pfeifer’s patient insistence on developing farmers here at home. If we diligently Peru and Bolivia and he didn’t know the an- ideas, supporting those ideas, researching to pursue all of our options through cur- swer,’’ Constance related. ‘‘That afternoon I back them, and working carefully with lan- found a note in my mailbox from him with rent law, I believe that we can help al- guage to clarify and defend the ideas. the answer to the question—I’ve never been leviate two very significant and press- After the fifth draft of her essay and re- so impressed with a teacher before or after.’’ ing problems. The overabundance of ag- peated discussions with Dad, Eileen got the Pfeifer’s students all describe him as ex- new trunk. ricultural commodities plaguing Amer- tremely kind and concerned about them as ‘‘He taught us life skills and we teach our ican farmers, and the lack of food for individuals. They suggest that his influence kids as we learned from him,’’ said Marjorie. starving millions abroad. creeps up on you quietly and takes strong ‘‘He was someone who made a real dif- I urge my colleagues in Congress con- hold, rather than hammering you. He was a ference.’’ All his students say that Dr. sider the full range of resources and model teacher and scholar, one student said; Pfeifer taught reading, thinking, debating, programs at our disposal to help end fairness, balance, objectivity characterized clear defending of ideas, and taught with a him. But there was humor—droll, quiet, the dilemma facing the farmers of our hard to define skill that included quiet pa- dry—but a key element in his make-up that nation. Implementing a solution to tience, kindness, and intellectual rigor. emerged unexpectedly. this problem will require that we use Mark Gadue graduated as a history major In 1986 Edward Pfeifer retired with his wife all of the creativity and energy that we from Saint Michael’s in 1979 and almost Joan Sheehey Pfeifer to Cabot, Vt. He says headed to get his Ph.D., but entered the fam- have. Every day brings us closer to real he now has time to keep up with his four ily dry cleaning business instead. crises not only in our farm economy, children, chase after his grandchildren and Pfeifer students Gary Kulik ’67, Joseph but also in countries important to our mow lots of grass. Because his teaching Constance ’76, Francis MacDonnell ’81, Gayle touched many who have gone on to become national interest. Brunelle ’81, and Jonathan Bean ’84 were in- teachers, Dr. Pfeifer’s legacy multiplies be- Such aid is not only clearly in our in- spired to aim for the professorial ranks as a yond his own classroom into the lives of stu- terest. It would reflect our highest val- result of their experience in Pfeifer’s class- dents in university classrooms from New ues by preventing the widespread hun- room. ‘‘I took a number of years off after Hampshire to Illinois to California. Ed’s son ger and suffering of men, women and college, but he influenced me to go back to and daughter are graduates: John ’85 and graduate school and I am ultimately follow- children who had no hand in the trage- Justine ’84 who is married to Frank Landry ing in his footsteps,’’ said Bean, who was dies that have befallen their countries. ’82. His brother, Charles ’43 is deceased. Again, I urge my colleagues to give unanimously voted in May to receive early this issue prompt and serious atten- tenure as a history professor at Southern Il- EDWARD PFEIFER PROFILE tion. I thank the chair and yield the linois University. Bean, who took at least 10 Pfeifer graduated from Saint Michael’s in courses with Pfeifer, models his teaching on 1943 with a degree in English, and served in floor. Pfeifer’s style of methodically eliciting stu- WWII in the U.S. Navy, 1943–46. He earned a f dent response. Bean is the author of Beyond master’s in American civilization from EDWARD PFEIFER the Broker State: Federal Policies Toward Brown University in 1948 and then joined the Small Business, 1936–1961. SMC English department. He served in the Mr. LEAHY. Mr. President, recently Pfeifer says it was his goal to get a re- Navy during the Korean War, 1951–53, and re- a publication from St. Michael’s Col- sponse from students about the historical turned to Brown in 1954, where he earned a S11694 CONGRESSIONAL RECORD — SENATE October 7, 1998 Ph.D. in American Studies in 1957. Focusing He was a veteran of World War II and a Ten years ago, October 6, 1988, the on the history of science he wrote a disserta- member of Sheridan Council 421 Knights of federal debt stood at $2,622,288,000,000 tion titled. The Reception of Darwinism in Columbus. He also served on the board of di- (Two trillion, six hundred twenty-two the U.S.. 1859–1880. He rejoined the SMC his- rectors of NEKCA and Vermont State Coun- billion, two hundred eighty-eight mil- tory department in 1956, and created the cil on Alcoholism. interdisciplinary American studies major. He is survived by five children, Patricia lion). Pfeifer was vice president for academic af- Ann Salomonson of Manchester, N.H., James Fifteen years ago, October 6, 1983, the fairs and dean of the College from 1969 to Lanctot and wife Kathy of Lyndonville, Ju- federal debt stood at $1,385,380,000,000 1974, and was awarded the first SMC faculty dith Syx of Hartland, Richard Lanctot of (One trillion, three hundred eighty-five appreciation award ever given, in 1966. He re- Burlington, and Elaine Robinson and hus- billion, three hundred eighty million) ceived the award again in 1967 and 1982. band Thomas of Waterford; 14 grandchildren which reflects a debt increase of more Pfeifer retired in 1986 and the SMC yearbook and 10 great-grandchildren; a daughter-in- than $4 trillion—$4,150,837,307,823.51 law, Judy Woods Lanctot of Jamaica Plain, was dedicated in his name, yearbook editor, (Four trillion, one hundred fifty bil- Linda Robitaille ’86 said, ‘‘He was kind to his Mass.; several nieces and nephews and a mul- students, he awed us, he was remarkably titude of friends. He was predeceased by lion, eight hundred thirty-seven mil- concerned with helping us learn.’’ brothers Lester, Philip and William, and a lion, three hundred seven thousand, f sister Agnes. eight hundred twenty-three dollars and A funeral Mass will be celebrated Wednes- fifty-one cents) during the past 15 ROBERT LANCTOT day at 11 a.m. at St. John’s Church. Burial years. will be at the convenience of the family at f Mr. LEAHY. Mr. President, my very Peacham Cemetery. Visiting hours will be good friend, Robert Lanctot, died after held at the funeral home Tuesday from 6–8 NRA’S ‘‘REFUSE TO BE A VICTIM’’ a courageous bout with cancer. Bob, p.m. IS A VALUABLE, SENSIBLE PRO- and his wife Betty, were two very spe- Memorial contributions, marked for hos- GRAM cial friends of my wife and I. pice, may be directed to Caledonia Home When I first ran for the Senate in Health & Hospice, P.O. Box 383, St. Mr. HELMS. Mr. President, the De- 1974, Bob helped me in an area of the Johnsbury, VT 05819. partment of Justice confirms that in Arrangements are by Sayles Funeral the United States there was a rape for state where no Democrat could ever ex- Home, 68 Summer St., St. Johnsbury. pect to get votes. Everybody told him I every 270 women, a robbery for every f couldn’t win, but he persevered and not 240 women and an assault for every 29 only did I win, but went on in subse- U.S. FOREIGN OIL CONSUMPTION women in 1994. (In the three year pe- quent elections to carry the area sig- FOR WEEK ENDING OCTOBER 2 riod from 1992–94, the number of violent crimes committed against our wives, nificantly. I have always felt that a Mr. HELMS. Mr. President, the Amer- large part of that was do to Bob ican Petroleum Institute reports that sisters, mothers, and daughters totaled Lanctot. for the week ending October 2 the U.S. nearly 14 million.) Notwithstanding our close friendship, imported 7,925,000 barrels of oil each In response to statistics like these, Bob never requested anything for him- day, 1,567,000 barrels a day less than the women of the National Rifle Asso- self or his family from me. He did, how- the 9,492,000 imported during the same ciation created the ‘‘Refuse to be a Vic- ever, continuously speak out for those week a year ago. tim’’ program five years ago. The basic people who did not have a strong voice While this is one of the rare weeks premise of the program can be summed in Washington. He truly believed in when Americans imported slightly less up by an old saying—an ounce of pre- helping working families and those foreign oil than the same week a year vention is worth a pound of cure. The who have always made our state and ago, Americans still relied on foreign course teaches women not to live in our country strong. We have lost a spe- oil for 55.7 percent of their needs last fear of threats, but rather, to respect cial Vermonter, and I ask unanimous week. There are no signs that the up- likely threats and prepare to avoid or consent that the obituary from the ward spiral will abate. Before the Per- effectively respond to them. Caledonia’ Record be printed in the sian Gulf War, the United States im- The centerpiece of the ‘‘Refuse to be RECORD. ported about 45 percent of its oil supply a Victim’’ program is a three-hour pub- There being no objection, the article from foreign countries. During the lic service safety seminar designed by, was ordered to be printed in the Arab oil embargo in the 1970s, foreign taught by, and presented to women in RECORD, as follows: oil accounted for only 35 percent of order to help them protect themselves. [From the Caledonian-Record, Sept. 21, 1998] America s oil supply. Since its inception, this common sense safety and self-defense program has LANCTOT: Robert ‘‘Bob’’ L. Sr., 77, formerly All Americans should ponder the eco- of Peacham and St. Johnsbury, died at his nomic calamity certain to occur in the been presented in 35 states and the Dis- daughter and son-in-law’s home in Waterford U.S. if and when foreign producers shut trict of Columbia. More than 600 in- Sunday morning, Sept. 20, 1998. off our supply—or double the already structors, including 9 in North Caro- He was born in St. Johnsbury Feb. 28, 1921, enormous cost of imported oil flowing lina, have trained and empowered thou- the last surviving child of Archie and Ann into the U.S.: now 7,925,000 barrels a sands of women to protect themselves (Brunelle) Lanctot. He married Betty L. and their families. Farnham; together they raised six children. day at a cost of approximately $110,870,750 a day. Mr. President, the course equips Betty predeceased him, Sept. 12, 1996, and women with the tools they need to de- the oldest son Robert predeceased his mother f in January of 1996. sign their own personal safety strat- Bob was a great believer in the rights of THE VERY BAD DEBT BOXSCORE egy. By increasing awareness of dan- the common worker. He was president of the Mr. HELMS. Mr. President, at the gerous situations and providing knowl- Northeast Kingdom Labor Council for a close of business yesterday, Tuesday, edge of self-protection techniques and number of years, served as vice president of October 6, 1998, the federal debt stood crime-fighting and personal safety re- the state labor council, and was a very ac- at $5,536,217,307,823.51 (Five trillion, sources, the program maximizes its tive member of local 5518. He was the dele- five hundred thirty-six billion, two participants ability to successfully gate to the state labor convention for the avoid or, in the worst case, survive an last 25 years and was recognized by the Ver- hundred seventeen million, three hun- mont State labor council AFL–CIO for his dred seven thousand, eight hundred attack. significant contributions to that organiza- twenty-three dollars and fifty-one The program features practical but tion, the labor movement and Vermont cents). frequently overlooked advice on home working families. Bob was a working Ver- One year ago, October 6, 1997, the fed- security such as the installation of ef- monter, retiring from Vermont America in eral debt stood at $5,413,433,000,000 fective lock and security systems, 1982. (Five trillion, four hundred thirteen planting ‘‘defensive’’ shrubbery around Bob was a strong Democrat. He was an ac- billion, four hundred thirty-three mil- windows, and keeping a cellular phone tive and valuable member of the Caledonia by the bedside in case an intruder dis- County Democratic committee. He held lion). many positions over the years with the Ver- Five years ago, October 6, 1993, the ables your home phone. It also provides mont State Democratic Party, including the federal debt stood at $4,404,063,000,000 information on how to avoid being a platform committee, and most recently (Four trillion, four hundred four bil- victim of a car-jacker as well as the served on the state executive board. lion, sixty-three million). proper and safe use of personal safety October 7, 1998 CONGRESSIONAL RECORD — SENATE S11695 devices such as alarms, sprays, stun ment policies and procedures, and for other entitled ‘‘Classification of Certain Trans- guns and firearms. purposes. actions Involving Computer Programs’’ For those unable to attend a seminar The message also announced that the (RIN1545–AU70) received on October 2, 1998; to the Committee on Finance. personally, the program has distrib- House agrees to the report of the com- EC–7300. A communication from the In- uted more than 200,000 of the inform- mittee of conference on the disagreeing terim District of Columbia Auditor, trans- ative ‘‘42 Strategies for Personal Safe- votes of the two votes of the two mitting, pursuant to law, a report entitled ty’’ brochures nationwide. Houses on the amendment of the Sen- ‘‘Statutory Audit of the District’s Deposi- Mr. President, the women of the NRA ate to the bill (H.R. 3694) to authorize tory Activities for Fiscal Years 1996 and are to be commended for the develop- appropriations for fiscal year 1999 for 1997’’; to the Committee on Governmental ment of this important program. The intelligence and intelligence-related Affairs. activities of the United States Govern- EC–7301. A communication from the Chair- contributions of the ‘‘Refuse to be a man of the District of Columbia Financial Victim’’ program are indeed impres- ment, the Community Management Ac- Responsibility and Management Assistance sive. This program is a fine example of count, and the Central Intelligence Authority, transmitting, pursuant to law, a the type of pro-active safety and secu- Agency Retirement and Disability Sys- report entitled ‘‘Fiscal Year 1999 Perform- rity training that the National Rifle tem, and for other purposes. ance Accountability Plan for the District of Association has long provided to our ENROLLED BILLS SIGNED Columbia’’; to the Committee on Govern- citizens. I hope that women in every The House further announced that mental Affairs. part of our great nation will consider EC–7302. A communication from the Dep- the Speaker has signed the following uty Associate Administrator for Acquisition participating in this outstanding pro- enrolled bills: Policy, General Services Administration, gram and, in so doing, join the more S. 314. An act to provide a process for iden- transmitting, pursuant to law, the report of than ten thousand women who have al- tifying the functions of the Federal Govern- a rule entitled ‘‘Federal Acquisition Regula- ready benefited from it. ment that are not inherently governmental tion; Reform of Affirmative Action in Fed- f functions, and for other purposes. eral Procurement’’ (RIN9000–AH59) received H.R. 449. An act to provide for the orderly on October 2, 1998; to the Committee on Gov- MESSAGES FROM THE PRESIDENT disposal of certain Federal lands in Clark ernmental Affairs. County, Nevada, and to provide for the ac- EC–7303. A communication from the Acting Messages from the President of the quisition of environmentally sensitive lands Director of the Office of Sustainable Fish- United States were communicated to in the State of Nevada. eries, National Oceanic and Atmospheric Ad- the Senate by Mr. Williams, one of his H.R. 930. An act to require Federal employ- ministration, Department of Commerce, secretaries. ees to use Federal travel charge cards for all transmitting, pursuant to law, the report of EXECUTIVE MESSAGE REFERRED payments of expenses of official Government a rule entitled ‘‘Fisheries of the Exclusive travel, to amend title 31, United States Code, Economic Zone Off Alaska; Pollock by Trawl As in executive session the Presiding to establish requirements for prepayment Vessels Using Nonpelagic Trawl Gear in the Officer laid before the Senate messages audits of Federal agency transportation ex- Bering Sea and Aleutian Islands’’ (I.D. from the President of the United penses, to authorize reimbursement of Fed- 092898A) received on October 2, 1998; to the States submitting sundry nominations eral agency employees for taxes incurred on Committee on Commerce, Science, and which were referred to the appropriate travel or transportation reimbursements, Transportation. committees. and to authorize test programs for the pay- EC–7304. A communication from the Acting (The nominations received today are ment of Federal employee travel expenses Director of the Office of Sustainable Fish- eries, National Oceanic and Atmospheric Ad- printed at the end of the Senate pro- and relocation expenses. H.R. 1481. An act to amend the Great Lakes ministration, Department of Commerce, ceedings.) Fish and Wildlife Restoration Act of 1990 to transmitting, pursuant to law, the report of f provide for implementation of recommenda- a rule entitled ‘‘Fisheries of the Exclusive tions of the United States Fish and Wildlife Economic Zone Off Alaska; Pollock by Trawl MESSAGES FROM THE HOUSE Service contained in the Great Lakes Fish- Vessels Using Nonpelagic Trawl Gear in By- At 9:48 a.m., the message from the ery Resources Restoration Study. catch Limitation Zone 1 of the Bering Sea House of Representatives, delivered by H.R. 1836. An act to amend chapter 89 of and Aleutian Islands’’ (I.D. 092898E) received title 5, United States Code, to improve ad- on October 2, 1998; to the Committee on Com- Mr. Hays, one of its reading clerks, an- ministrative sanctions against unfit health merce, Science, and Transportation. nounced that the House disagrees to care providers under the Federal Employees EC–7305. A communication from the Acting the amendment to the Senate to the Health Benefits Program, and for other pur- Director of the Office of Sustainable Fish- bill (H.R. 4276) making appropriations poses. eries, National Oceanic and Atmospheric Ad- for the Departments of Commerce, Jus- The enrolled bills were signed subse- ministration, Department of Commerce, transmitting, pursuant to law, the report of tice, and State, the Judiciary, and re- quently by the President pro tempore lated agencies for the fiscal year end- a rule entitled ‘‘Fisheries of the Exclusive (Mr. THURMOND). Economic Zone Off Alaska; Pacific Cod in ing September 30, 1999, and for other f the Western Regulatory Area of the Gulf of purposes, and agrees to the conference EXECUTIVE AND OTHER Alaska’’ (I.D. 092298B) received on October 2, asked by the Senate on the disagreeing 1998; to the Committee on Commerce, votes of the two Houses thereon; and COMMUNICATIONS Science, and Transportation. appoints Mr. ROGERS, Mr. KOLBE, Mr. The following communications were EC–7306. A communication from the Acting TAYLOR of North Carolina, Mr. REGULA, laid before the Senate, together with Deputy Director of the National Institutes of Standards and Technology, Department of Mr. LATHAM, Mr. LIVINGSTON, Mr. accompanying papers, reports, and doc- Commerce, transmitting, pursuant to law, YOUNG of Florida, Mr. MOLLOHAN, Mr. uments, which were referred as indi- the report of a rule entitled ‘‘Upgrading of SKAGGS, Mr. DIXON, and Mr. OBEY as cated: the American Society of Crime Laboratory the managers of the conference on the EC–7297. A communication from the Chair- Directors/Laboratory Accreditation Board part of the House. man of the Board of Governors of the Federal (ASCLD/LAB) Accreditation Manual’’ Reserve System and the Chairman of the (RIN0693–ZA21) received on October 2, 1998; At 4:04 p.m., a message from the U.S. Securities and Exchange Commission, to the Committee on Commerce, Science, House of Representatives, delivered by transmitting, pursuant to law, a report enti- and Transportation. Mr. Hanrahan, one of its reading tled ‘‘Markets for Small Business and Com- EC–7307. A communication from the Gen- clerks, announced that the House has mercial Mortgage Related Securities’’; to eral Counsel of the Department of Transpor- the Committee on Banking, Housing, and tation, transmitting, pursuant to law, the re- passed the following bills, in which it Urban Affairs. port of a rule entitled ‘‘Transportation Eq- requests the concurrence of the Senate EC–7298. A communication from the Sec- uity Act for the 21st Century; Implementa- H.R. 1794. An act for the relief of Mai Hoa retary of Health and Human Services, trans- tion for Participation in the Value Pricing ‘‘Jasmin’’ Salehi. mitting, pursuant to law, the report of a rule Pilot Program’’ (Docket 98–4300) received on H.R. 1834. An act for the relief of Mercedes entitled ‘‘Medicare Program; Hospice Wage October 2, 1998; to the Committee on Com- Del Carmen Quiroz Martinez Cruz. Index’’ (RIN0938–AI87) received on October 2, merce, Science, and Transportation. H.R. 4259. An act to allow Haskell Indian 1998; to the Committee on Finance. EC–7308. A communication from the Gen- Nations University and the Southwestern In- EC–7299. A communication from the Chief eral Counsel of the Department of Transpor- dian Polytechnic Institute each to conduct a of the Regulations Unit, Internal Revenue tation, transmitting, pursuant to law, the re- demonstration project to test the feasibility Service, Department of the Treasury, trans- port of a rule entitled ‘‘Occupant Protection and desirability of new personnel manage- mitting, pursuant to law, the report of a rule Incentive Grants’’ (Docket 98–4496) received S11696 CONGRESSIONAL RECORD — SENATE October 7, 1998 on October 2, 1998; to the Committee on Com- tation, transmitting, pursuant to law, the re- port of a rule entitled ‘‘Airworthiness Direc- merce, Science, and Transportation. port of a rule entitled ‘‘Airworthiness Direc- tives; Boeing Model 737–100, –200, –300, –400, EC–7309. A communication from the Gen- tives; Raytheon Aircraft Company 200 Series and –500 Series Airplanes’’ (Docket 98–NM– eral Counsel of the Department of Transpor- Airplanes’’ (Docket 98–CE–17–AD) received on 254–AD) received on October 2, 1998; to the tation, transmitting, pursuant to law, the re- October 2, 1998; to the Committee on Com- Committee on Commerce, Science, and port of a rule entitled ‘‘Regulated Naviga- merce, Science, and Transportation. Transportation. tion Area; Strait of Juan de Fuca and Adja- EC–7320. A communication from the Gen- EC–7331. A communication from the Assist- cent Coastal Waters of Washington; Makah eral Counsel of the Department of Transpor- ant Secretary for Fish and Wildlife and Whale Hunting’’ (RIN2115–AE84) received on tation, transmitting, pursuant to law, the re- Parks, Department of the Interior, transmit- October 2, 1998; to the Committee on Com- port of a rule entitled ‘‘Amendment to Class ting, pursuant to law, the report of a rule en- merce, Science, and Transportation. E Airspace; Trenton, MO’’ (Docket 98–ACE– titled ‘‘Migratory Bird Hunting; Temporary EC–7310. A communication from the Gen- 38) received on October 2, 1998; to the Com- Approval of Tungsten-polymer Shot as eral Counsel of the Department of Transpor- mittee on Commerce, Science, and Transpor- Nontoxic for the 1998–99 Season’’ (RIN1018– tation, transmitting, pursuant to law, the re- tation. AE66) received on October 2, 1998; to the port of a rule entitled ‘‘Special Local Regu- EC–7321. A communication from the Gen- Committee on Environment and Public lations; Columbus Day Regatta Sailboat eral Counsel of the Department of Transpor- Works. Race, Miami, Florida’’ (RIN2115–AE46) re- tation, transmitting, pursuant to law, the re- EC–7332. A communication from the Assist- ceived on October 2, 1998; to the Committee port of a rule entitled ‘‘Amendment to Class ant Secretary for Fish and Wildlife and on Commerce, Science, and Transportation. E Airspace; Wellington, KS’’ (Docket 98– Parks, Department of the Interior, transmit- EC–7311. A communication from the Gen- ACE–42) received on October 2, 1998; to the ting, pursuant to law, the report of a rule en- eral Counsel of the Department of Transpor- Committee on Commerce, Science, and titled ‘‘Migratory Bird Hunting; Extension of tation, transmitting, pursuant to law, the re- Transportation. Temporary Approval of Tungsten-Iron Shot port of a rule entitled ‘‘Safety Zone; Gulf of EC–7322. A communication from the Gen- as Nontoxic for the 1998–99 Season’’ (RIN1018– Alaska; Southeast of Narrow Cape, Kodiak eral Counsel of the Department of Transpor- AE35) received on October 2, 1998; to the Island, Alaska’’ (RIN2115–AE97) received on tation, transmitting, pursuant to law, the re- Committee on Environment and Public October 2, 1998; to the Committee on Com- port of a rule entitled ‘‘Amendment to Class Works. merce, Science, and Transportation. E Airspace; Ulysses, KS’’ (Docket 98–ACE–41) EC–7333. A communication from the Direc- EC–7312. A communication from the Gen- received on October 2, 1998; to the Committee tor of the Fish and Wildlife Service, Depart- eral Counsel of the Department of Transpor- on Commerce, Science, and Transportation. ment of the Interior, transmitting, pursuant tation, transmitting, pursuant to law, the re- EC–7323. A communication from the Gen- to law, the report of a rule entitled ‘‘Endan- port of a rule entitled ‘‘Lifesaving Equip- eral Counsel of the Department of Transpor- gered and Threatened Wildlife and Plants; ment’’ (RIN2115–AB72) received on October 2, tation, transmitting, pursuant to law, the re- Determination of Endangered or Threatened 1998; to the Committee on Commerce, port of a rule entitled ‘‘Amendment to Class Status for Four Southwestern California Science, and Transportation. E Airspace; Pittsburg, KS’’ (Docket 98–ACE– Plants from Vernal Wetlands and Clay Soils’’ EC–7313. A communication from the Gen- 40) received on October 2, 1998; to the Com- (RIN1018–AL88) received on October 2, 1998; eral Counsel of the Department of Transpor- mittee on Commerce, Science, and Transpor- tation, transmitting, pursuant to law, the re- to the Committee on Environment and Pub- tation. port of a rule entitled ‘‘Security for Pas- lic Works. EC–7324. A communication from the Gen- EC–7334. A communication from the Direc- senger Vessels and Passenger Terminals’’ eral Counsel of the Department of Transpor- tor of the Fish and Wildlife Service, Depart- (RIN2115–AD75) received on October 2, 1998; tation, transmitting, pursuant to law, the re- ment of the Interior, transmitting, pursuant to the Committee on Commerce, Science, port of a rule entitled ‘‘Amendment to Class to law, the report of a rule entitled ‘‘Endan- and Transportation. EC–7314. A communication from the Gen- E Airspace; Great Bend, KS’’ (Docket 98– gered and Threatened Wildlife and Plants; eral Counsel of the Department of Transpor- ACE–39) received on October 2, 1998; to the Determination of Endangered or Threatened tation, transmitting, pursuant to law, the re- Committee on Commerce, Science, and Status for Five Desert Milk-vetch Taxa from port of a rule entitled ‘‘Airworthiness Direc- Transportation. California’’ (RIN1018–AB75) received on Octo- tives; Rolls-Royce Limited, Aero Division— EC–7325. A communication from the Gen- ber 2, 1998; to the Committee on Environ- Bristol/S.N.E.C.M.A. Olympus 593 Series Tur- eral Counsel of the Department of Transpor- ment and Public Works. bojet Engines’’ (Docket 98–ANE–07–AD) re- tation, transmitting, pursuant to law, the re- EC–7335. A communication from the Direc- ceived on October 2, 1998; to the Committee port of a rule entitled ‘‘Amendment to Class tor of the Fish and Wildlife Service, Depart- on Commerce, Science, and Transportation. E Airspace; West Plains, MO’’ (Docket 98– ment of the Interior, transmitting, pursuant EC–7315. A communication from the Gen- ACE–37) received on October 2, 1998; to the to law, the report of a rule entitled ‘‘Endan- eral Counsel of the Department of Transpor- Committee on Commerce, Science, and gered and Threatened Wildlife and Plants; tation, transmitting, pursuant to law, the re- Transportation. Endangered or Threatened Status for Three port of a rule entitled ‘‘Airworthiness Direc- EC–7326. A communication from the Gen- Plants from the Chaparral and Scrub of tives; Rain and Hail Ingestion Standards; eral Counsel of the Department of Transpor- Southwestern California’’ (RIN1018–AD60) re- Correction’’ (Docket 28652) received on Octo- tation, transmitting, pursuant to law, the re- ceived on October 2, 1998; to the Committee ber 2, 1998; to the Committee on Commerce, port of a rule entitled ‘‘Amendment to Class on Environment and Public Works. Science, and Transportation. E Airspace; Wichita Mid-Continent Airport, EC–7336. A communication from the Direc- EC–7316. A communication from the Gen- KS’’ (Docket 98–ACE–36) received on October tor of the Fish and Wildlife Service, Depart- eral Counsel of the Department of Transpor- 2, 1998; to the Committee on Commerce, ment of the Interior, transmitting, pursuant tation, transmitting, pursuant to law, the re- Science, and Transportation. to law, the report of a rule entitled ‘‘Endan- port of a rule regarding airworthiness direc- EC–7327. A communication from the Gen- gered and Threatened Wildlife and Plants; tives on various Twin Commander Aircraft eral Counsel of the Department of Transpor- Determination of Endangered or Threatened Corporation model airplanes (Docket 97–CE– tation, transmitting, pursuant to law, the re- Status for Four Plants from Southwestern 57–AD) received on October 2, 1998; to the port of a rule entitled ‘‘Establishment of California and Baja California, Mexico’’ Committee on Commerce, Science, and Class E Airspace; Villa Rica, GA’’ (Docket (RIN1018–AD38) received on October 2, 1998; Transportation. 98–ASO–9) received on October 2, 1998; to the to the Committee on Environment and Pub- EC–7317. A communication from the Gen- Committee on Commerce, Science, and lic Works. eral Counsel of the Department of Transpor- Transportation. EC–7337. A communication from the Direc- tation, transmitting, pursuant to law, the re- EC–7328. A communication from the Gen- tor of the Office of Regulatory Management port of a rule entitled ‘‘Airworthiness Direc- eral Counsel of the Department of Transpor- and Information, Environmental Protection tives; Maule Aerospace Technology Corp. M– tation, transmitting, pursuant to law, the re- Agency, transmitting, pursuant to law, the 4, M–5, M–6, M–7, MX–7, and MXT–7 Series port of a rule entitled ‘‘Standard Instrument report of a major rule regarding petroleum Airplanes and Models MT–7–235 and M–8–235 Approach Procedures; Miscellaneous Amend- refining process wastes previously submitted Airplanes; Correction’’ (Docket 98–CE–01–AD) ments—No. 1892’’ (Docket 29344) received on as a minor rule (FRL6172–3) received on Oc- received on October 2, 1998; to the Committee October 2, 1998; to the Committee on Com- tober 2, 1998; to the Committee on Environ- on Commerce, Science, and Transportation. merce, Science, and Transportation. ment and Public Works. EC–7318. A communication from the Gen- EC–7329. A communication from the Gen- EC–7338. A communication from the Direc- eral Counsel of the Department of Transpor- eral Counsel of the Department of Transpor- tor of the Office of Regulatory Management tation, transmitting, pursuant to law, the re- tation, transmitting, pursuant to law, the re- and Information, Environmental Protection port of a rule entitled ‘‘Airworthiness Direc- port of a rule entitled ‘‘Standard Instrument Agency, transmitting, pursuant to law, the tives; Israel Aircraft Industries (IAI), Ltd., Approach Procedures; Miscellaneous Amend- report of a rule entitled ‘‘Avermectin; Exten- Model 1121, 1121A, 1121B, 1123, 1124, and 1124A ments—No. 1891’’ (Docket 29343) received on sion of Tolerance for Emergency Exemp- Series Airplanes’’ (Docket 98–NM–108–AD) re- October 2, 1998; to the Committee on Com- tions’’ (FRL6033–7) received on October 2, ceived on October 2, 1998; to the Committee merce, Science, and Transportation. 1998; to the Committee on Environment and on Commerce, Science, and Transportation. EC–7330. A communication from the Gen- Public Works. EC–7319. A communication from the Gen- eral Counsel of the Department of Transpor- EC–7339. A communication from the Direc- eral Counsel of the Department of Transpor- tation, transmitting, pursuant to law, the re- tor of the Office of Regulatory Management October 7, 1998 CONGRESSIONAL RECORD — SENATE S11697 and Information, Environmental Protection change Commission, transmitting, pursuant Plant Health Inspection Service, Department Agency, transmitting, pursuant to law, the to law, the report of a rule entitled ‘‘Invest- of Agriculture, transmitting, pursuant to report of a rule entitled ‘‘Befenthrin; Exten- ment Adviser Year 2000 Reports’’ (RIN3235– law, the report of a rule entitled ‘‘Brucellosis sion of Tolerance for Emergency Exemp- AH45) received on October 2, 1998; to the in Cattle; State and Area Classifications; tions’’ (FRL6034–9) received on October 2, Committee on Banking, Housing, and Urban Mississippi’’ (Docket 98–097–1) received on 1998; to the Committee on Environment and Affairs. October 5, 1998; to the Committee on Agri- Public Works. EC–7351. A communication from the Chair- culture, Nutrition, and Forestry. EC–7340. A communication from the Direc- man of the Board of Governors of the Federal EC–7362. A communication from the Con- tor of the Office of Regulatory Management Reserve System, transmitting, pursuant to gressional Review Coordinator, Animal and and Information, Environmental Protection law, the Board’s report entitled ‘‘The Profit- Plant Health Inspection Service, Department Agency, transmitting, pursuant to law, the ability of Credit Card Operations of Deposi- of Agriculture, transmitting, pursuant to report of a rule entitled ‘‘Cyproconazole; tory Institutions’’ for calendar year 1997; to law, the report of a rule entitled ‘‘Validated Pesticide Tolerance’’ (FRL6036–9) received on the Committee on Banking, Housing, and Brucellosis-Free States; South Carolina’’ October 2, 1998; to the Committee on Envi- Urban Affairs. (Docket 98–101–1) received on October 5, 1998; ronment and Public Works. EC–7352. A communication from the Acting to the Committee on Agriculture, Nutrition, EC–7341. A communication from the Direc- Deputy Assistant Administrator for Fish- and Forestry. eries, National Oceanic and Atmospheric Ad- tor of the Office of Regulatory Management f and Information, Environmental Protection ministration, Department of Commerce, Agency, transmitting, pursuant to law, the transmitting, pursuant to law, the report of REPORTS OF COMMITTEE a rule entitled ‘‘Fisheries of the Exclusive report of a rule entitled ‘‘Fludioxonil; Pes- The following reports of committees ticide Tolerances’’ (FRL6036–8) received on Economic Zone Off Alaska; License Limita- October 2, 1998; to the Committee on Envi- tion Program’’ (I.D. 060997A3) received on Oc- were submitted: ronment and Public Works. tober 2, 1998; to the Committee on Com- By Mr. STEVENS, from the Committee on EC–7342. A communication from the Direc- merce, Science, and Transportation. appropriations: tor of the Office of Regulatory Management EC–7353. A communication from the Acting Special Report entitled ‘‘Further Revised and Information, Environmental Protection Director of the Office of Sustainable Fish- Allocation to Subcommittees of Budget To- Agency, transmitting, pursuant to law, the eries, National Oceanic and Atmospheric Ad- tals for Fiscal Year 1999’’ (Rept. No. 105–373). report of a rule entitled ‘‘Glyphosate; Pes- ministration, Department of Commerce, By Mr. MURKOWSKI, from the Committee ticide Tolerance’’ (FRL6036–1) received on transmitting, pursuant to law, the report of on Energy and Natural Resources: October 2, 1998; to the Committee on Envi- a rule entitled ‘‘Atlantic Tuna Fisheries; At- Report to accompany the bill (S. 2041) to ronment and Public Works. lantic Bluefin Tuna’’ (I.D. 091198C) received amend the Reclamation Wastewater and EC–7343. A communication from the Direc- on October 5, 1998; to the Committee on Com- Groundwater Study and Facilities Act to au- tor of the Office of Regulatory Management merce, Science, and Transportation. thorize the Secretary of the Interior to par- EC–7354. A communication from the Assist- and Information, Environmental Protection ticipate in the design, planning, and con- ant Secretary for Legislative Affairs, De- Agency, transmitting, pursuant to law, the struction of the Willow Lake Natural Treat- partment of State, transmitting, pursuant to report of a rule entitled ‘‘Imidacloprid; Ex- ment System Project for the reclamation law, notice of a proposed license for the ex- tension of Tolerance for Emergency Exemp- and reuse of water, and for other purposes port of M88A2 Tracked Armor Recovery Ve- tions’’ (FRL6037–2) received on October 2, (Rept. No. 105–374). hicles to Thailand (DTC 99–98); to the Com- 1998; to the Committee on Environment and By Mr. MURKOWSKI, from the Committee mittee on Foreign Relations. Public Works. on Energy and Natural Resources: EC–7355. A communication from the Assist- Report to accompanying the bill (S. 2140) EC–7344. A communication from the Direc- ant Secretary for Legislative Affairs, De- to amend the Reclamation Projects Author- tor of the Office of Regulatory Management partment of State, transmitting, pursuant to ization and Adjustment Act of 1992 to au- and Information, Environmental Protection law, notice of a proposed license for the ex- thorize the Secretary of the Interior to par- Agency, transmitting, pursuant to law, the port of MK 45 gun mounts to Australia (DTC ticipate in the design planning, and con- report of a rule entitled ‘‘Pyridate; Pesticide 113–98); to the Committee on Foreign Rela- struction of the Denver Water Reuse project Tolerance’’ (FRL6036–2) received on October tions. 2, 1998; to the Committee on Environment EC–7356. A communication from the Assist- (Rept. No. 105–375). and Public Works. ant Secretary for Legislative Affairs, De- By Mr. MURKOWSKI, from the Committee EC–7345. A communication from the Direc- partment of State, transmitting, pursuant to on Energy and Natural Resources: tor of the Office of Regulatory Management law, notice of a proposed license for the ex- Report to accompany the bill (S. 2142) to and Information, Environmental Protection port of TOW 2A, TOW 2B, and TOW Practice authorize the Secretary of the Interior to Agency, transmitting, pursuant to law, the Missiles to Italy (DTC128–98); to the Commit- convey the facilities of the Pine River report of a rule entitled ‘‘Sethoxydim; Pes- tee on Foreign Relations. Project, to allow jurisdictional transfer of ticide Tolerances’’ (FRL6034–1) received on EC–7357. A communication from the Assist- lands between the Department of Agri- October 2, 1998; to the Committee on Envi- ant Secretary for Legislative Affairs, De- culture, Forest Service, and the Department ronment and Public Works. partment of State, transmitting, pursuant to of the Interior Bureau of Reclamation, and EC–7346. A communication from the Acting law, notice of a proposed license for the ex- the Bureau of Indian Affairs, and for other Assistant Attorney General, Office of Legis- port of defense articles and services relative purposes (Rept. No. 105–376). lative Affairs, Department of Justice, trans- to the manufacture of military vehicle wir- By Mr. MURKOWSKI, from the Committee mitting, a draft of proposed legislation enti- ing harnesses in Mexico (DTC 133–98) re- on Energy and Natural Resources: tled ‘‘The Body Armor Penalty Enhancement ceived on October 5, 1998; to the Committee Report to accompany the bill (H.R. 2402) to Act’’; to the Committee on the Judiciary. on Foreign Relations. make technical and clarifying amendments EC–7347. A communication from the Chief EC–7358. A communication from the Assist- to improve management of water-related fa- of the Programs and Legislation Division, ant Secretary for Legislative Affairs, De- cilities in the Western United States (Rept. Office of Legislative Liaison, Department of partment of State, transmitting, pursuant to No. 105–377). the Air Force, transmitting, pursuant to law, law, notice of a proposed license for the ex- By Mr. MURKOWSKI, from the Committee notice of a cost comparison of the base oper- port of CH–47D helicopters to Australia (DTC on Energy and Natural Resources: ating support functions at Hill Air Force 140–98) received on October 5, 1998; to the Report to accompany the bill (H.R. 4079) to Base, Utah; to the Committee on Armed Committee on Foreign Relations. authorize the construction of temperature Services. EC–7359. A communication from the Con- control devices at Folsom Dam in California EC–7348. A communication from the Acting gressional Review Coordinator, Animal and (Rept. No. 105–378). Comptroller General of the United States, Plant Health Inspection Service, Department By Mr. CAMPBELL, from the Committee transmitting, pursuant to law, a list of Gen- of Agriculture, transmitting, pursuant to on Indian Affairs, with an amendment in the eral Accounting Office reports issued or re- law, the report of a rule entitled ‘‘Veterinary nature of a substitute: leased in August 1998; to the Committee on Diagnostic Services User Fees’’ (Docket 94– S. 391: A bill to provide for the disposition Governmental Affairs. 115–2) received on October 5, 1998; to the of certain funds appropriated to pay judg- EC–7349. A communication from the Chair- Committee on Agriculture, Nutrition, and ment in favor of the Mississippi Sioux Indi- man of the United States International Forestry. ans, and for other purposes (Rept. No. 105– Trade Commission, transmitting, pursuant EC–7360. A communication from the Con- 379). to law, the Commission’s combined annual gressional Review Coordinator, Animal and By Mr. JEFFORDS, from the Committee reports entitled ‘‘Caribbean Basin Economic Plant Health Inspection Service, Department on Labor and Human Resources, without Recovery Act (CBERA)—Impact on the of Agriculture, transmitting, pursuant to amendment: United States’’ and ‘‘Andean Trade Pref- law, the report of a rule entitled ‘‘Importa- H.R. 1023: A bill to provide for compas- erence Act (ATPA)—Impact on the United tion of Horses’’ (Docket 95–054–3) received on sionate payments with regard to individuals States’’ for calendar year 1997; to the Com- October 5, 1998; to the Committee on Agri- with blood-clotting disorders, such as hemo- mittee on Finance. culture, Nutrition, and Forestry. philia, who contracted human immuno- EC–7350. A communication from the Dep- EC–7361. A communication from the Con- deficiency virus due to contaminated blood uty Secretary of the Securities and Ex- gressional Review Coordinator, Animal and products, and for other purposes. S11698 CONGRESSIONAL RECORD — SENATE October 7, 1998 By Mr. JEFFORDS, from the Committee not conduct certain business with United S. Res. 291. A resolution to authorize rep- on Labor and Human Resources, without States persons, and for other purposes; to the resentation by Senate Legal Counsel; consid- amendment: Committee on Finance. ered and agreed to. S. 2564: An original bill to provide for com- By Mr. JEFFORDS (for himself and f passionate payments with regard to individ- Mr. DODD): uals with blood-clotting disorders, such as S. 2568. A bill to amend the Internal Reve- STATEMENTS ON INTRODUCED hemophilia, who contracted human immuno- nue Code of 1986 to provide that the exclu- BILLS AND JOINT RESOLUTIONS deficiency virus due to contaminated blood sion from gross income for foster care pay- By Mr. ROBERTS (for himself products, and for other purposes. ments shall also apply to payments by quali- and Mr. MCCAIN): f fying placement agencies, and for other pur- poses; to the Committee on Finance. S. 2563. A bill to amend title 10, EXECUTIVE REPORTS OF By Mr. GORTON (for himself, Mr. United States Code, to restore military COMMITTEE SMITH of Oregon, and Mr. KEMP- retirement benefits that were reduced THORNE): by the Military Retirement Reform The following executive reports of S. 2569. A bill to amend the Pacific North- committee was submitted on October 6, Act of 1986; to the Committee on west Electric Power Planning and Conserva- Armed Services. 1998: tion Act to provide for expanding the scope By Mr. MURKOWSKI, from the Committee of the Independent Scientific Review Panel; MILITARY RETIREMENT READINESS on Energy and Natural Resources: to the Committee on Energy and Natural Re- ENHANCEMENT ACT OF 1998 Eljay B. Bowron, of Michigan, to be Inspec- sources. Mr. ROBERTS. Mr. President, a few tor General, Department of the Interior. By Mr. KOHL (for himself, Mr. REID, weeks ago I called the Senate’s atten- and Mrs. FEINSTEIN): tion to several issues in the military (The above nomination was reported S. 2570. A bill entitled the ‘‘Long-Term with the recommendation that he be that are contributing to problems in Care Patient Protection Act of 1998’’; to the recruiting and retention of key, confirmed, subject to the nominee’s Committee on Finance. commitment to respond to requests to By Mr. LIEBERMAN: midcareer military personnel. Briefly, appear and testify before any duly con- S. 2571. A bill to reduce errors and increase those issues were as follows: stituted committee of the Senate.) accuracy and efficiency in the administra- We are asking the military, signifi- tion of Federal benefit programs, and for cantly smaller than it was during the f other purposes; to the Committee on Govern- cold war, to operate and deploy much INTRODUCTION OF BILLS AND mental Affairs. more frequently. JOINT RESOLUTIONS By Mr. SARBANES: We are asking the military to deploy S. 2572. A bill to amend the International The following bills and joint resolu- Maritime Satellite Telecommunications Act on missions that may not be in the tions were introduced, read the first to ensure the continuing provision of certain vital national interest of this Nation. and second time by unanimous con- global satellite safety services after the pri- We are not paying servicemen and sent, and referred as indicated: vatization of the business operations of the women a salary that is comparable to International Mobile Satellite Organization, the pay they could get outside the By Mr. ROBERTS (for himself and Mr. and for other purposes; to the Committee on MCCAIN): military for the same skills. Commerce, Science, and Transportation. S. 2563. A bill to amend title 10, United We are not providing quality health By Mr. LAUTENBERG: care for the families of the military, States Code, to restore military retirement S. 2573. A bill to make spending reductions benefits that were reduced by the Military to save taxpayers money; to the Committee and we have not provided the promised Retirement Reform Act of 1986; to the Com- on Armed Services. health care for the retired members of mittee on Armed Services. By Mr. JOHNSON (for himself and Mr. the military. By Mr. JEFFORDS: DASCHLE): We are not providing quality housing S. 2564. An original bill to provide for com- S. 2574. A bill for the relief of Frances to all military families. passionate payments with regard to individ- Schochenmaier; to the Committee on the Ju- uals with blood-clotting disorders, such as And we are not providing a retire- diciary. ment program that is adequate to jus- hemophilia, who contracted human immuno- By Mr. CHAFEE (for himself and Mr. tify a career commitment to the ardu- deficiency virus due to contaminated blood MOYNIHAN): products, and for other purposes; from the S. 2575. A bill to expand authority for pro- ous lifestyle and the difficult family Committee on Labor and Human Resources; grams to encourage Federal employees to separations that are necessary in mili- placed on the calendar. commute by means other than single-occu- tary life. By Mr. DURBIN (for himself, Mr. WAR- pancy motor vehicles to include an option to Mr. President, I rise today to offer NER, Ms. MIKULSKI, Mr. HUTCHINSON, pay cash for agency-provided parking spaces, legislation to address military retire- Mr. ROBB, Mr. KENNEDY, and Mr. and for other purposes; to the Committee on DEWINE): ment. The bill that I am introducing Governmental Affairs. repeals the Military Reform Retire- S. 2565. A bill to amend the Federal Food, By Ms. SNOWE (for herself, Ms. MIKUL- Drug, and Cosmetic Act to clarify the cir- SKI, Ms. COLLINS, Mrs. HUTCHISON, ment Act of 1986, also known as cumstances in which a substance is consid- Ms. MOSELEY-BRAUN, Mrs. MURRAY, REDUX. This experiment in the mili- ered to be a pesticide chemical for purposes Mrs. BOXER, Mr. DODD, Mr. JEFFORDS, tary retirement system was introduced of such Act, and for other purposes; to the Mr. REID, Mr. D’AMATO, Mr. ROCKE- in 1986 with the intended purpose—and Committee on Agriculture, Nutrition, and FELLER, Mr. KERREY, Mr. LIEBERMAN, it was a good one—of encouraging Forestry. Mr. TORRICELLI, Mr. DURBIN, Mr. members of the military to stay longer By Ms. LANDRIEU (for herself, Mr. SARBANES, Mr. KERRY, Mr. LAUTEN- than the popular career of 20 years. MURKOWSKI, Mr. LOTT, Mr. BREAUX, BERG, Mr. INOUYE, and Mr. LEAHY): Mr. D’AMATO, Mr. CLELAND, Mr. S. 2576. A bill to create a National Museum The service chiefs now say that re- JOHNSON, Mr. COCHRAN, Ms. MIKUL- of Women’s History Advisory Committee; to tirement is one of the top reasons that SKI, and Mr. SESSIONS): the Committee on Rules and Administration. our men and women are leaving the S. 2566. A bill to provide Coastal Impact f service. The Chairman of the Joint Assistance to State and local governments, Chiefs of Staff, General Shelton, listed to amend the Outer Continental Shelf Lands SUBMISSION OF CONCURRENT AND it among the most pressing problems Act Amendments of 1978, the Land and Water SENATE RESOLUTIONS facing the military in retaining key Conservation Fund Act of 1965, the Urban Park and Recreation Recovery Act, and the The following concurrent resolutions people. The Secretary of Defense has Federal Aid in Wildlife Restoration Act and Senate resolutions were read, and voiced very similar concerns. (commonly referred to as the Pittman-Rob- referred (or acted upon), as indicated: Pay is being addressed slowly, includ- ertson Act) to establish a fund to meet the By Mr. MCCONNELL: ing a 3.6 percent pay raise in this de- outdoor conservation and recreation needs of S. Res. 289. A resolution authorizing the fense appropriations bill. the American people, and for other purposes; printing of the ‘‘Testimony from the Hear- The Department of Defense is work- to the Committee on Energy and Natural Re- ings of the Task Force on Economic ing on housing issues that may solve ″ sources. Sanctions ; considered and agreed to. the problems. Problems with the By Mr. WELLSTONE: By Mr. LOTT (for himself and Mr. health care programs are very complex S. 2567. A bill to ensure that any entity DASCHLE): owned, operated, or controlled by the peo- S. Res. 290. A resolution to authorize rep- and multilayered and requires detailed ple’s Liberation Army or the People’s Armed resentation by Senate Legal Counsel; consid- study to solve. The issue of the high Police of the People’s Republic of China does ered and agreed to. rate of deployments and the quality of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11699 missions rests at the feet of the admin- 1409 is amended by striking out paragraph that Senator ROBERTS introduced ear- istration and this Congress and are now (2). lier today that reinstates the 50 per- the subject of policy debate. (b) CONFORMING AMENDMENTS.—(1) Para- cent retirement ‘‘earned benefit’’ plan graph (1) of such subsection is amended by for men and women in the military Congress must address, however, the striking out ‘‘paragraphs (2) and (3)’’ and in- issue of retirement. We must show the serting in lieu thereof ‘‘paragraph (2)’’. who retire with 20 years of military men and women of our armed services (2) Paragraph (3) of such subsection is re- service. I also implore the Senate lead- that we are listening to their concerns designated as paragraph (2). ership to act quickly on this legisla- and that we deeply care about them, SEC. 3. ADJUSTMENTS OF RETIRED AND RE- tion and move for its swift passage be- their families and the commitment TAINER PAY TO REFLECT CHANGES fore the 105th Congress adjourns for the they make to the defense of this Na- IN THE CONSUMER PRICE INDEX. year. (a) REPEAL OF REDUCED COLA RATE.—Sub- tion. Times have changed since 1986. Our section (b) of section 1401a is amended— economy has prospered, producing his- While the purpose of this bill is to re- (1) by striking out paragraphs (1), (2), (3), peal the 1986 retirement program, I torically high levels of employment and (4), and inserting in lieu thereof the fol- and resulting in the emergence of a want to emphasize it is not the final lowing: very difficult recruiting and retention solution to the military’s retirement ‘‘(1) GENERAL RULE.—Effective on Decem- problem. I urge the Department of De- ber 1 of each year, the Secretary of Defense environment for the armed services. fense to start a comprehensive study— shall increase the retired pay of each mem- Maintaining a top-quality force re- quires a military personnel system I think they are—and to examine all ber and former member of an armed force by the percent (adjusted to the nearest one- that has the flexibility to react quickly creative options to solve the recruit- tenth of 1 percent) by which— to the dynamics of the civilian market, ment and retention problems that now ‘‘(A) the price index for the base quarter of and the leadership and confidence to face the military. that year, exceeds follow through with critical personnel The repeal of REDUX is only but one ‘‘(B) the base index.’’; and decisions rather than neglecting them option. There may be others. I know (2) by redesignating paragraph (5) as para- out of fiscal opportunism. Regrettably, that private industry has many cre- graph (2). (b) FIRST COLA ADJUSTMENT.—Subsections this year, first, second, and third-term ative retirement programs that may enlisted retention, pilot and mid-grade serve as part of a final solution. The ci- (c)(3) and (d) of such section are amended by striking out ‘‘who first became a member of officer retention, and recruiting are all vilian sector of the Federal Govern- a uniformed service before August 1, 1986, short of the goal for each of the serv- ment has long experience in retirement and’’. ices. programs. Whatever course we end up (c) REPEAL OF SPECIAL RULE ON PRO RAT- Recruiting and retaining quality in- taking, the bottom line must be a re- ING INITIAL ADJUSTMENT FOR POST-1986 RE- dividuals requires pay scales that ad- tirement program that is perceived as FORM RETIREES.—Subsection (e) of such sec- just to meet prevailing rates rather fair and adequate by our service men tion is repealed. than fall 14 percent behind comparable and women. (d) CONFORMING AMENDMENTS.—Sub- sections (f), (g), and (h) of such section are civilian pay. It requires adequate fund- The fundamental job of the Federal redesignated as subsections (e), (f), and (g), ing for recruiting. It requires proper Government is to provide for the secu- respectively. promotion rates—not promotion boards rity of the Nation. That security be- SEC. 4. RESTORAL OF FULL RETIREMENT that take five months to process re- gins and ends with people. It is clear AMOUNT AT AGE 62. ports of promotion boards, as is the that they are sending a strong message (a) REPEAL.—Section 1410 is repealed. case with the Navy. It requires proper that we are letting them down. We are (b) CLERICAL AMENDMENT.—The table of living conditions and morale, welfare not providing adequately for their wel- sections at the beginning of chapter 71 is and recreation services. It also requires fare and their postmilitary life. amended by striking out the item relating to reasonable tours of duty, a higher qual- So providing better benefits for mem- section 1410. ity of civilian leadership, and ‘‘role SEC. 5. CONFORMING AMENDMENTS FOR SUR- models’’ within the leadership who are bers of the military will pay dividends VIVOR BENEFIT PLAN. seen to take service members’ quality- for national security. And, Mr. Presi- (a) UNREDUCED RETIRED PAY AS BASIS FOR dent, it is the right thing to do. We owe ANNUITY.—Section 1447(6)(A) is amended by of-life concerns to heart. it to our military men and women who striking out ‘‘(determined without regard to Reinstatement of the 50 percent re- are making the personal and family any reduction under section 1409(b)(2) of this tirement plan for career military men sacrifices to do such an important job. title)’’. and women would serve as an impor- They do an outstanding job under the (b) COST-OF-LIVING ADJUSTMENTS AND RE- tant signal of resolve to our service most difficult of circumstances. It is COMPUTATIONS.—Section 1451 is amended by members that the United States Con- striking out subsections (h) and (i) and in- gress is aware of the shortfall in bene- not too much to ask that we provide serting in lieu thereof the following: adequate support for them and their fits for those who wear the uniform of ‘‘(h) ADJUSTMENTS TO BASE AMOUNT FOR their country and is acting to improve families. COST-OF-LIVING.— those benefits. Last week, the Senate Mr. President, I ask unanimous con- ‘‘(1) INCREASES IN BASE AMOUNT WHEN RE- sent that the text of the bill be printed TIRED PAY INCREASED.—Whenever retired pay Armed Services Committee heard di- rectly from the Joint Chiefs that re- in the RECORD. is increased under section 1401a of this title There being no objection, the bill was (or any other provision of law), the base storing retirement benefits is a re- amount applicable to each participant in the quirement for recruiting and retaining ordered to be printed in the RECORD, as Plan shall be increased at the same time. follows: the qualified individuals we rely on to ‘‘(2) PERCENTAGE OF INCREASE.—The in- defend this nation. S. 2563 crease shall be by the same percent as the General Hugh Shelton, Chairman of Be it enacted by the Senate and House of Rep- percent by which the retired pay of the par- the Joint Chiefs of Staff, stated clearly ticipant is so increased.’’. resentatives of the United States of America in that fixing the military retirement Congress assembled, (c) REDUCTION IN RETIRED PAY.—(1) Section 1452 is amended— system is a top recommendation for re- SECTION 1. SHORT TITLE; REFERENCES TO TITLE storing the readiness of our armed 10, UNITED STATES CODE. (A) in subsection (c), by striking out para- forces. Army Chief of Staff General (a) SHORT TITLE.—This Act may be cited as graph (4); and the ‘‘Military Retirement Readiness En- (B) by striking out subsection (i). Reimer has written to me that hancement Act of 1998’’. (2) Section 1460(d) is amended by striking .. .the retirement package we have offered out ‘‘or recomputed under section 1452(i) of (b) REFERENCES TO TITLE 10.—Except as our soldiers entering the Army since 1986 is otherwise expressly provided, whenever in this title’’, or recomputed, as the case may inadequate. Having lost 25 percent of its life- this Act an amendment or repeal is ex- be,’’ and ‘‘or recomputation’’. time value as a result of the 1980’s reforms, pressed in terms of an amendment to, or re- SEC. 6. EFFECTIVE DATE. military retirement is no longer our number peal of, a section or other provision, the ref- This Act and the amendments made by one retention tool. Our soldiers and families erence shall be considered to be made to a this Act shall take effect on October 1, 1999, deserve better. We need to send them a section or other provision of title 10, United and shall apply with respect to retired or re- strong signal that we haven’t forgotten States Code. tainer pay accruing for months beginning on them. SEC. 2. RETIRED PAY MULTIPLIER. or after that date. The military medical health care (a) REPEAL OF REDUCTION FOR LESS THAN 30 Mr. MCCAIN. Mr. President, I rise to system, particularly the TRICARE pro- YEARS OF SERVICE.—Subsection (b) of section support and cosponsor the legislation gram, has been described by Service S11700 CONGRESSIONAL RECORD — SENATE October 7, 1998

Chiefs as falling far short of what is JOHNSON, Senator COCHRAN, Senator It will distribute funds to all coastal warranted and needed. We cannot ig- SESSIONS and Senator MIKULSKI as co- States, whether they have drilling or nore the erosion of retirement and sponsors of this measure, and also not. health care benefits, and the resultant thank the many leaders on the House As I said, there are no incentives; impact on retention and readiness. side that are today introducing this there are no disincentives. It is a reve- General Reimer writes, bill on the House side. nue-sharing bill to all the coastal ‘‘The loss in medical benefits when a re- Surely, with the time so short, we States. These revenues are collected tiree turns 65 is particularly bothersome to will not be considering this bill in this from a nonrenewable resource. One day our soldiers who are making career deci- session, but we plan for a very lively these oil and gas wells will be dried up. sions.’’ debate as the 106th Congress meets in It might be 10 years from now or 20 From the Service Chiefs’ answers, it January on this very important piece years from now, but some day they will is highly questionable whether we are of environmental legislation for our be dried up, and we want to make sure meeting any of these requirements. On country. that a portion of this money is rein- the contrary, it is clear that there is I will take a few minutes to outline vested back into our States for envi- much work to be done. in a highlighted form what this bill ronmental infrastructure and wetland Finally, it is demoralizing to the men will attempt to do, something that we conservation so that we have some- and women we send into harm’s way, have worked on, a group of us, ear- thing to show for it. and is incomprehensible to the Amer- nestly and very excitedly for the last The second part of this bill amends ican people, who expect a well-trained year. Then my colleague from Louisi- the Land and Water Conservation Act and well-equipped force, to witness as ana, Senator BREAUX, will say a few in an attempt to restore this fund, or many as 25,000 military personnel and words about the bill. to more fully fund it. I will ask unani- their families on food stamps. One tax This is the Reinvestment and Envi- mous consent to have printed in the provision that I have tried to reverse ronmental Restoration Act of 1998. It is RECORD an excerpt from an editorial this year excludes uniformed men and going to attempt to take 50 percent of from the New York Times on this sub- women in the military from beneficial the moneys that are now flowing into ject. tax treatment on the profits resulting the Federal Treasury from offshore oil I will read the first short paragraph from the sale of their homes. We order and gas revenues—which have been of this editorial. servicemembers to move from place to very significant; $120 billion since More than 30 years ago, Congress passed a place, but we do not afford them the 1955—and redistribute those revenues quiet little environmental program that of- fered great promise to future generations of same tax treatment as other U.S. citi- in a smarter way, in a better way, and Americans. Conceived under Dwight Eisen- zens. Should this issue have been per- in a way that our country can be proud hower, proposed by John F. Kennedy and mitted to exist for so many years? of. signed into law by Lyndon Johnson, the Fed- Mr. President, we cannot afford to We are going to ask that 27 percent eral Land and Water Conservation Fund was neglect this array of personnel con- of those revenues be distributed to designed to provide a steady revenue stream cerns. Let us begin by acting imme- coastal States for coastal conservation to preserve ‘‘irreplaceable lands of natural diately to restore the higher earned impact assistance, 16 percent to fund beauty and unique recreational value.’’ Roy- more fully the Land and Water Con- alties from offshore oil and gas leases would benefit plan for retired service mem- provide the money, giving the program an bers. Senator ROBERTS has offered crit- servation Fund, and 7 percent to fund interesting symmetry. Dollars raised from ical legislation to help reverse the di- the Wildlife Conservation and Restora- depleting one natural resource would be used minishing retention rates that cripple tion Act. These are the major titles of to protect another. our Armed Services and ultimately di- this bill. Let me very briefly hit on The problem is, this promise was minish their ability to execute our Na- each one. never fulfilled. That is what the second tional Military Strategy. On behalf of I am from Louisiana, a State that title of this bill will do. It seeks to all men and women who have honor- has supported, proudly supported, oil make this promise real for our fami- ably dedicated their careers to serving and gas drilling and exploration. It has lies, for our children, and for the next this country in uniform, I urge my col- created many jobs in our State. We try generation. It will take, as I said, 16 leagues to join me in support of this to do it in a more environmentally sen- percent of these revenues to almost legislation. sitive way each and every year, and fully fund the State side and the Fed- every decade we make tremendous eral side of the Land and Water Con- By Ms. LANDRIEU (for herself, progress. Other States like Texas, Mis- servation Fund. It will provide a reli- Mr. MURKOWSKI, Mr. LOTT, Mr. sissippi, and to a certain degree, Ala- able and steady stream of revenue to BREAUX, Mr. D’AMATO, Mr. bama, although not as much, and Alas- do just that. CLELAND, Mr. JOHNSON, Mr. ka, join in that effort. Let me share with you that on the COCHRAN, Ms. MIKULSKI, and There are many States that do not Federal side in only 6 out of the last 33 Mr. SESSIONS): have drilling and many States that years have we really lived up to the S. 2566. A bill to provide Coastal Im- have a moratorium on drilling. This promise that we made to the land and pact Assistance to State and local gov- bill is not a pro-drilling bill or anti- water conservation side. On the State ernments, to amend the Outer Con- drilling bill. The purpose is to say that side, the funding record has been even tinental Shelf Lands Act Amendments the production of those resources off more dismal. Only 1 year out of 33 of 1978, the Land and Water Conserva- the shores of our States, although they years since this Land and Water Con- tion Fund Act of 1965, the Urban Park are offshore, have tremendous impact— servation Fund was enacted did we live and Recreation Recovery Act, and the both positive and negative—on the up to that promise. So title II happens Federal Aid in Wildlife Restoration Act States that host drilling. to fully restore funding so that we can (commonly referred to as the Pittman- Louisiana has contributed since the plan and count on these moneys to help Robertson Act) to establish a fund to 1950s over 90 percent of these revenues expand our parks and our recreation meet the outdoor conservation and that I spoke about, the $120 billion, and for our children and families in rural recreation needs of the American peo- we have gotten less than 1 percent and urban areas around this great ple, and for other purposes; to the Com- back. It is time to correct that in- country. mittee on Energy and Natural Re- equity. That is what the first title of Finally, title III is a new title, a new sources. this bill does. It says to Louisiana, chapter, but an attempt to sort of REINVESTMENT AND ENVIRONMENTAL thank you for your commitment to our weave together some of the attempts RESTORATION ACT OF 1998 energy security and for the way that by my colleague, Senator BREAUX, and Ms. LANDRIEU. Mr. President, I you have contributed to this oil and others to improve the Wildlife Con- begin by thanking my colleague from gas drilling. We believe that some of servation and Restoration Act. I be- Louisiana Senator BREAUX, a cosponsor this money should go back to help your lieve it makes little sense to spend all on this measure, as well as Senator State and the coastal areas to shore up of our money in this area on the back MURKOWSKI, Senator LOTT, Senator our wetlands and to reinvest in our en- end, after species have become endan- D’AMATO, Senator CLELAND, Senator vironment. That is Title I of this bill. gered. Then we have problems not only October 7, 1998 CONGRESSIONAL RECORD — SENATE S11701 with the species in question but with side of LWCF will provide funds to and consideration of additional issues. property rights. We have questions state and local governments for land I would like to work with proponents with economies that can be very nega- acquisition, urban conservation and of historic preservation over the course tively affected when industries have to recreation projects, all under the dis- of the year to see their needs addressed move out or can’t proceed because of cretion of state and local authorities. in the future. This would include simi- this. Since its enactment in 1965, the LWCF lar consideration for Historic Battle- So we believe it is time to start in- state grant program has funded more field Preservation, which is important vesting some money on the front end. than 37,000 park and recreation to other members in this body. I also That is what this title does—helping projects throughout the nation, includ- wish to work with other groups to ad- species, helping States to give edu- ing in Louisiana the Joe Brown Park dress their concerns about other provi- cational and technical assistance to Development in New Orleans, the sions in the bill having to do with for- stop these species from becoming en- Baton Rouge Animal Exhibit, the Vet- mulas. Indeed, this is a measure that dangered, and therefore saving the tax- erans Memorial Park in Point Barre should enjoy broad support, and I want payers a lot of money and local econo- and the Northwestern State University to continue to work with groups to mies a lot of anguish, and to give some Recreation Complex in Natchitoches. that end. much-needed revenue to our State The Urban Parks program would en- Mr. President, all three portions of wildlife agencies around this country. able cities and towns to focus on the the bill will effectively free up State So those are generally the titles of needs of its populations within our resources which in turn may then be the bill. more densely inhabited areas with used for other pressing local needs. The I just want to say that it is high time fewer greenspaces, playgrounds and Reinvestment and Environmental Res- that we live up to the promise made 30 soccer fields for our youth. Stable toration Act is a perfect opportunity to years ago, and we can do that by more funding, not subject to appropriations, reinvest in our nation’s renewable re- wisely spending this money. It makes will provide greater revenue certainty sources for the benefit of our children’s no sense to take 100 percent of these to state and local planning authorities. future and our grandchildren’s future. revenues and spend them on Federal A stable baseline will be established It is an idea whose time has come. I operating expenses that have nothing for Federal land acquisition through urge my colleagues to carefully con- to do with our environment, or with the LWCF at a level higher than the sider this proposal. this promise that was made, or with historical average over the past decade. Mr. President, I thank Chairman our investments in future generations. Federal LWCF will receive just under MURKOWSKI, and I thank the majority It is time not just for Louisiana, Texas, half of the amount in this title of the leader, Senator LOTT, for all of their Alaska, and Mississippi, who have con- bill. And, nothing in this bill will pre- help in making this legislation pos- tributed so much to this industry, but clude additional Federal LWCF funds sible. also it is high time for all of our States to be sought through the annual appro- I ask unanimous consent that the bill to benefit in a more direct way than priations process. Some very worthy and New York Times editorial be print- they are currently. This is a wiser fis- national projects that have received ed in the RECORD. cal policy, it is a much wiser environ- funding in the past include the There being no objection, the mate- mental policy, and it most certainly is Atchafalaya National Wildlife Refuge rial was ordered to be printed in the an idea whose time has come. in Louisiana, the Mississippi Sandhill RECORD, as follows: To reiterate, the Reinvestment and Crane Wildlife Refuge, the Cape Cod [The bill was not available for print- Environmental Restoration Act of 1998 National Seashore, Voyageurs National ing. It will appear in a future issue of will go farther than any legislation to Park in Minnesota and the Sterling the RECORD] date to make good on promises that Forest in New Jersey. Federal LWCF [From the New York Times, June 16, 1997] were made to the people of this coun- dollars will be used for land acquisition REVIVE THE CONSERVATION FUND try decades ago. In addition, it will in areas which have been and will be More than 30 years ago, Congress passed a begin to right a wrong endured by oil authorized by Congress. The bill will quiet little environmental program that of- and gas producing states for over 50 restore Congressional intent with re- fered great promise to future generations of years, particularly for the states along spect to the LWCF, the goal of which is Americans. Conceived under Dwight Eisen- the Gulf of Mexico, and my state of to share a significant portion of reve- hower, proposed by John F. Kennedy and Louisiana. nues from offshore development with signed into law by Lyndon Johnson, the Fed- The Reinvestment and Environ- eral Land and Water Conservation Fund was the states to provide for protection and designed to provide a steady revenue stream mental Restoration Act first provides a public use of the natural environment. to preserve ‘‘irreplaceable lands of natural guaranteed source of funding equal to Finally, the wildlife conservation and beauty and unique recreational value.’’ Roy- twenty-seven percent of all Outer Con- restoration provision includes guaran- alties from offshore oil and gas leases would tinental Shelf revenues for Coastal Im- teed funding of seven percent of annual provide the money, giving the program an pact Assistance to states to offset the OCS revenues for wildlife habitat pro- interesting symmetry. Dollars raised from impacts of offshore oil and gas activ- tection, conservation education and de- depleting one natural resource would be used ity, as well as to non-producing states listing of endangered species. More- to protect another. for environmental purposes. This fund- over, this funding may be used by Since its inception, the fund has helped ac- quire seven million acres of national and ing goes directly to States and local states for habitat preservation and state parkland and develop 37,000 recreation governments for improvements in air land acquisition of wintering habitat projects. Its notable triumphs include the and water quality, fish and wildlife for important species, therefore pre- Cape Cod National Seashore, the New Jersey habitat, wetlands, or other coastal re- venting listings under the Endangered Pinelands National Reserve and Voyageurs sources, including shoreline protection Species Act. National Park in Minnesota. But the pro- and coastal restoration. These reve- While we are proud of the accom- gram fell apart during the Reagan Adminis- nues to coastal states will help offset a plishment represented by the introduc- tration and has yet to recover. Of the $900 range of costs unique to maintaining a tion of this bill, I feel compelled to million that has flowed to the fund from oil and gas royalties each year since 1980, Con- coastal zone. The formula is based on mention other interests that are not gress has seen fit to appropriate only a third, population, coastline and proximity to included in the legislation, but for and in some years far less. The rest has sim- production. which I maintain a strong level of sup- ply disappeared into the Treasury, allocated Second, the bill provides a permanent port and commitment. The National for deficit reduction. stream of revenue for the State and Historic Preservation Fund is an im- The biggest losers have been the states. Federal sides of the Land and Water portant authorized use for Outer Con- Over time, appropriations have been split Conservation Fund, as well as for the tinental Shelf revenues. In fact, I in- about evenly between Federal and state con- Urban Parks and Recreation Recovery troduced legislation earlier this year to servation projects. But for two years run- ning, not a dime has gone to the states— Program. Under the bill, funding to the reauthorize the fund for its continued again for budgetary reasons. This has been LWCF becomes automatic at sixteen viability and vitality. We see the Rein- hard on New York, which needs Federal help percent of annual revenues. Receiving vestment and Environmental Restora- to buy valuable open space threatened by de- just under half this amount, the state tion Act as a starting point for debate velopment in the Adirondacks and elsewhere. S11702 CONGRESSIONAL RECORD — SENATE October 7, 1998 Now, quite suddenly, this legislative step- revenue. Coastal States, however, get States, even if no OCS production oc- child has acquired a bunch of new friends. As nothing. That is clearly not fair. Off- curs off their coasts. part of the recent budget deal, Republican shore mineral development operations Coastal States and communities can leaders agreed to add $700 million to the $166 have a major impact on coastal Louisi- use OCS Impact Assistance funds on million that President Clinton has requested everything from environmental pro- for the new fiscal year. The Republicans had ana. These operations impact our been getting heat from governors back home roads, bridges and other infrastructure, grams, to coastal and marine conserva- and saw a chance to polish their environ- our freshwater supply, our housing and tion efforts, to new infrastructure re- mental image. For his part, Mr. Clinton other vital public resources. It is only quirements. needed about $315 million to complete two fair that there be a reasonable sharing In Alaska, local communities could important Federal purchases, both strongly of those revenues with states that bear use OCS funds to participate in the en- supported by this page—$65 million to de- these kinds of burdens. The impact vironmental planning process required velop on his pledge to buy the New World coastal states suffer is a burden borne by Federal laws before OCS develop- Mine on the edge of Yellowstone National for the good of the whole country and, ment occurs. Park, the rest to acquire the Headwaters Other rural coastal communities in Redwood Grove in California from a private without it, the whole country would lumber company. suffer. Alaska will use the money for sanita- That would still leave several hundred mil- Therefore, to share in a true partner- tion improvements. While still others, lion dollars for other Federal projects and ship with the coastal States is cer- like Unalakleet, will use the money to for the states—but only if the House and tainly something that this Congress construct sea walls and breakwaters or Senate appropriations committees honor the should favorably consider, and I think beach rehabilitation—efforts which outlines of the budget deal and commit to that we will because of what the Sen- will combat the impacts of coastal ero- sizable share of the money to state projects. sion. State officials have been descending upon ator has been able to do in a bipartisan fashion. So while it is late this year, it This is money that will be used, day- Washington in recent days to plead their in and day-out, to improve the quality cased. Gov. George Pataki has written every is early for next year. The work that member of Congress and, last week, the New she has done this year will pay off next of life on coastal State residents— York State Parks Commissioner, Bernadette year. money which comes from oil and gas Castro, testified at hearings convened by Mr. MURKOWSKI. Mr. President, I production. Senator Frank Murkowski of Alaska. rise today, along with Senators Further, as the Federal OCS program Mr. BREAUX. Mr. President, I thank LANDRIEU and LOTT, to introduce the expands in Alaska, this legislation will the Senator from Louisiana and con- Reinvestment and Environmental Res- mean even more revenues to the State, gratulate her for all the effort she has toration Act of 1998. boroughs and local communities. put forth in bringing this legislation to This important piece of legislation This is a true investment in the fu- this point. remedies a tremendous inequity in the ture. As Chairman of the Energy and Natu- I have been in Congress for a long distribution of revenues generated by ral Resources Committee, I know all time—something like 26 years now, in offshore oil and gas production by di- too well that offshore oil and gas pro- the House and in this body—and I have recting that a portion of those moneys duction is a lightning rod for environ- never really seen a first-term Member be allocated to coastal States and com- mental groups who will go to great who has been so dedicated to a major munities who shoulder the responsibil- lengths to disparage an activity that is legislative effort as has the Senator ity for energy development activity off vital to the long-term energy and eco- from Louisiana, Ms. LANDRIEU, in their coastlines. It also provides a se- bringing this legislation to the floor of nomic security of this country. cure funding source for state recre- These groups will likely say that this the U.S. Senate. Many Members, on ation and wildlife conservation pro- bill creates incentives for offshore oil their first day, have come in and intro- grams. and gas production because a factor in duced a bill, issued a press release, and The OCS Impact Assistance portion the distribution formula is a State’s then forgotten about it. This has been of this bill is similar to legislation I proximity to OCS production. an effort by the Senator from Louisi- have introduced in prior Congresses Let us remember, this is an impact ana, Senator LANDRIEU, of very care- and is an issue I have worked on for my assistance bill—revenue sharing, if you fully prodding and very carefully entire Senate career. will. studying and working with Members on Title 1 of the bill directs that a por- States only will have impacts if they both sides of the aisle to put together tion of the revenues generated from oil have production. The States with pro- a bipartisan coalition to bring this leg- and natural gas production on the duction, obviously, have greater needs islation to the floor of the Senate. Outer Continental Shelf—or OCS—be and are most deserving of a larger While this is brought to the floor of returned to coastal States and commu- share of OCS revenues. the Senate in the last days of this ses- nities that share the burdens of explo- Mr. President, let me also remind ev- sion, we all know that there will be an- ration and production off their coast- eryone, that OCS production only oc- other day. The groundwork that she lines. curs off the coasts of 6 States—yet the has laid in putting this package and Offshore oil and gas production gen- bill shares OCS revenues with 34 this coalition together is going to be erates $3 to $4 billion in revenues annu- States. here in the next Congress. So in the ally for the U.S. Treasury. Yet, unlike There are 28 coastal States that will next Congress we will start not from mineral receipts from onshore Federal get a share of OCS revenues which have scratch but from the groundwork that lands, OCS oil and gas revenues are not no OCS production. In fact, in all areas she has laid in bringing this legislation directly returned to the States in except the Gulf of Mexico and Alaska to the point it is today. which production occurs. there is a moratorium prohibiting any I congratulate her for the way she This legislation remedies this dispar- new OCS production. has done it. It is something that I have ity. States and communities that bear It is in the long-term best interest of not seen by a new Member of the Con- the responsibilities for offshore oil and this country to support responsible and gress in all of the years that I have gas production will share in its bene- sustainable development of nonrenew- been here. It is a major accomplish- fits. able resources. ment on her part. I am very pleased to This legislation would, for the first We now import more than 50 percent participate in it. time, share revenues generated by OCS of our domestic petroleum require- Just a brief word on the legislation. I oil and gas activities with counties, ments and the Department of Energy’s think it is a fair thing to do. Many parishes and boroughs—the local gov- Information Administration predicts, non-coastal States have Federal prop- ernmental entities most directly af- in ten years, America will be at least 64 erty, owned 100 percent by the Federal fected—and State governments. percent dependent on foreign oil. Government, within their borders. The bill also acknowledges that all OCS development will play an impor- When minerals are extracted or oil and coastal States, including those States tant role in offsetting even greater de- gas are found on those Federal lands, bordering the Great Lakes, have pendence on foreign energy. the State in which those lands are lo- unique needs and directs that a portion The OCS accounts for 24 percent of cated gets as much as 50 percent of the of OCS revenues be shared with these this Nation’s natural gas production October 7, 1998 CONGRESSIONAL RECORD — SENATE S11703 and 14 percent of its oil production. We States with a leadership role in the Treasury where they are used to pay need to ensure that the OCS continues provision of recreation opportunities. for various federal programs and to re- to meet our future domestic energy Through the 1995 fiscal year, over 3.2 duce the deficit. While funding pro- needs. billion in Federal dollars have been le- grams and reducing the deficit are cer- I firmly believe that the Federal veraged to fund over 37,000 State and tainly important, I believe that some Government needs to do all it can to local park and recreation projects. percentage of the revenues should be pursue and encourage further techno- Yet, despite these successes, the reinvested in that which makes them logical advances in OCS exploration President had not requested any money possible. and production. for the state-side program for the last Our bill does that. The Reinvestment These technological achievements 4 years. and Environmental Restoration Act di- have and will continue to result in new This is a program supported by this verts one-half of the OCS revenues OCS production having an unparalleled Nation’s mayors, Governors, and the from the Federal Treasury to coastal record of excellence on environmental recreation community. states and communities for a mul- and safety issues. The state-side matching grant should titude of programs: air and water qual- Additional technological advances not have to justify annually its exist- ity monitoring, wetlands protection, with appropriate incentives will fur- ence with congressional appropriators. coastal restoration and shoreline pro- ther improve new resource recovery Title II makes this program self-suf- tection, land acquisition, infrastruc- and therefore increase revenues to the ficient and provides secure funding ture, public service needs, state park Treasury for the benefit of all Ameri- from OCS revenues. and recreation programs and wildlife cans who enjoy programs funded by Title III of this bill provides funding conservation. OCS money. for State fish and wildlife conservation This bill allows states and commu- I will do all I can to ensure a healthy programs. nities to use these funds in whatever OCS program, including new OCS de- In Alaska, with its unparalleled nat- manner they deem appropriate. In velopment in the Arctic. ural beauty, fishing and hunting are Pascagoula, for example, authorities A number of challenges face new de- two of the most popular forms of out- might choose to restore and secure the velopments in this area—I am con- door recreation. shoreline where years of sea traffic The bill directs that a portion of OCS fident that we can work through them have taken their toll. Further north in revenues should go to the States for all. Vancleave, they may choose instead to wildlife purposes. History has shown us that in the Arc- refurbish the roads and bridges that The money would be distributed tic, and in other OCS areas, develop- carry the heavy machinery coming and through the Pittman-Robertson pro- ment and the environmental protection going from the coast. This bill provides gram administered by the United are compatible. a framework within which these local- States Fish and Wildlife Services. This bill also takes a portion of the With the inclusion of OCS revenues, ities can make the right decisions for revenues received by the Federal Gov- the amount of money available for their citizens and environment. ernment from OCS development and in- Mr. President, I have been working State fish and game programs would vests it in conservation and wildlife on this issue for many, many years. As nearly double. programs. This is a no-tax alternative to the a coast dweller myself, I know the im- Thus, Titles II and III of the bill Teaming with Wildlife proposal. pact that the oil and gas industry can share OCS revenues with all States for States will be able to use these mon- have on communities and the impor- such purposes. ies to increase fish and wildlife popu- tance of reinvestment in these areas. Title II of this bill provides a secure lations and improve fish and wildlife This is not to say that the industry source of funding for the Land and habitat. mistreats the states; on the contrary, Water Conservation Fund. The LWCF States also could use the money for they work very hard to comply with was established over three decades ago wildlife education programs. stringent environmental regulations to provide Federal money for State and I am proud of this proposal which is and to take care of the community as Federal land acquisition and help meet a win-win for the oil and gas industry, best they can. The OCS Policy Com- Americans’ recreation needs. the States, environmental and con- mittee said in 1993 that, despite the oil Over thirty years ago, Congress had servation groups, and all Americans. industry’s best efforts, ‘‘OCS develop- the foresight to recognize the ever This bill will ensure not only that ment still can affect community infra- growing need of the American public Coastal States have money to address structure, social services and the envi- for parks and recreation facilities with the effects of OCS-activities but that ronment in ways that cause concerns the passage of the Land and Water Con- all States have funds necessary to pro- among residents of the coastal states servation Fund Act. vide outdoor recreation and conserva- and communities.’’ That landmark piece of legislation tion resources for all of us today to I know that there is no way to to- was premised on the belief that reve- enjoy. tally eliminate this impact on coastal nues earned from the depletion of a As we end the 105th Congress, I can communities. I also know that, while nonrenewable resource need to be rein- pledge, as Chairman of the Energy and the benefits of a healthy OCS program vested in a renewable resource for the Natural Resources Committee, that the are felt nationally, the infrastructure, benefit of future generations. enactment of this bill will be one of my environmental and social costs are felt This rationale is as valid today as it highest priorities next year. locally. Our bill would put money back was in the mid-1960’s. Mr. LOTT. Mr. President, it is with into the communities that need it To accomplish this goal, the Land great pleasure that I join my col- most. and Water Conservation Fund Act di- leagues, Senators LANDRIEU and MUR- It would also put money back into rects that revenues earned from off- KOWSKI, in introducing the Reinvest- the environmental resources of the shore oil and gas production should be ment and Environmental Restoration area. Exploration for non-renewable re- spent on the acquisition of Federal Act. sources and stewardship of coastal re- recreation lands by the land manage- Mr. President, since the inception of sources are not mutually exclusive, but ment agencies. the oil and gas program on the Outer must be carefully balanced for both to The act also creates a state-side Continental Shelf (OCS), states and be sustained. It is important that our matching grant program. coastal communities have sought a wetlands, fisheries and water resources The state-side matching grant pro- greater share of the benefits from de- are taken into consideration and af- gram provides 50–50 matching grants to velopment. And why shouldn’t they? forded adequate protection. States and local communities for the These communities provide the infra- In addition to propping up the states acquisition and construction of park structure, public services, manpower and coastal communities, our bill also and recreation facilities. and support industries necessary to provides funding for the Land and The state-side program has a truly sustain this development. Water Conservation Fund (LWCF). unique legacy in the history of Amer- Currently, the majority of OCS reve- Over 30 years ago, Congress set up this ican conservation by providing the nues are funneled into the Federal fund to address the American public’s S11704 CONGRESSIONAL RECORD — SENATE October 7, 1998 desire for more parks and recreational nies linked to Chinese military and se- pany. Poly is run by China’s facilities. This bill makes the program curity forces in the United States. For princelings, family members of top self-sufficient, providing secure fund- example, a Rand study last year esti- Chinese civilian and military leaders. ing from the OCS revenues. This is an mated that there are ‘‘between 20–30 Poly’s president is the late Deng investment in our future—our land, our PLA-affiliated companies operating in Xiaoping’s son-in-law and a retired resources and our recreational enjoy- the United States, although there are PLA Major General. The Chairman of ment. certainly more that have not yet been Poly is the son of the late Wang Zhen, Mr. President, our bill makes yet an- identified.’’ It added that one of the who was China’s vice-president and a other investment with these OCS reve- major obstacles to identifying these retired General. While China experts nues—an investment in fish and wild- companies is that they ‘‘often con- doubt there was high-level collusion in life programs. With the inclusion of sciously disguise their military back- the smuggling of AK–47’s, a federal law OCS revenues, the amount of money ground by using offshore holding com- enforcement officer noted that those available for state programs would panies and unfamiliar names.’’ involved were ‘‘in a position to deliver nearly double. This is money that can Nevertheless, while there is much we substantial arms and are not low-level be used to increase populations and im- don’t know, there is some hard data flunkies.’’ prove habitat for fish and wildlife. It available on PLA and People’s Armed Mr. President, I now want to turn to could even be used for wildlife edu- Police business dealings with the the key question of why I decided to in- cation programs. United States. In June, 1997 the AFL– troduce this bill. Why is there a need Mr. President, this bill was carefully CIO’s Food and Allied Services Trades for such legislation? Because compa- crafted to strike a balance between the Department issued a report providing a nies owned by the PLA—the Chinese needs and interests of the oil and gas wealth of detailed information on these Government’s main and indispensable industry, the states, and the environ- business dealings. The report, based on instrument of repression—are per- mental and conservation groups. It’s a extensive research, found twelve com- mitted to operate in the United States. good package that will benefit all panies incorporated in the United Because the American people are un- Americans, not just those who live and States owned by the People’s Armed wittingly purchasing products exported work in coastal areas. It will benefit Police and various elements of the to the United States by companies hunters and anglers. It will benefit bird PLA, including the General Staff De- owned by the PLA and the People’s watchers and campers. It will benefit partment and the Navy. In addition, Armed Police. Because the American all Americans who take solace in the the report cited seven PLA companies people would be outraged—as deeply fact that the oil industry is taking care that had been dissolved after their offi- outraged as I am—if they knew they of the communities that support it. cials had been accused of smuggling were subsidizing those responsible for I appreciate the hard work of my col- AK–47’s into the United States in 1996— massacring students, workers, and leagues and look forward to advancing an episode I will discuss later. For each other demonstrators for democracy in this important legislation in the 106th company, the report provided addresses Tiananmen Square on June 4, 1989, Congress. and dates of incorporation, and for those who have occupied Tibet for al- some companies the names of reg- most 50 years, brutally oppressing its By Mr. WELLSTONE: istered agents, officers, and directors. people and seeking to erase their S. 2567. A bill to ensure that any en- The AFL–CIO report also provided unique, cultural, linguistic, and reli- tity owned, operated, or controlled by detailed data on the exports to the gious heritage. And because they would the People’s Liberation Army or the United States of twenty-five People’s be outraged—as deeply outraged as I People’s Armed Police of the People’s Armed Police and PLA companies dur- am, that their government is not only Republic of China does not conduct cer- ing 1996. The companies included not doing nothing to stop this, but is op- tain business with United States per- only major PLA components such as posing efforts to end PLA and People’s sons, and for other purposes; to the the General Staff and General Logis- Armed Police profit-making in the Committee on Finance. tics Departments, but also some owned United States. TRADING WITH THE PEOPLE’S REPUBLIC OF by various PLA military regions. All Mr. President, you may well ask CHINA MILITARY ACT OF 1998 told, these companies exported 34 mil- what is the People’s Armed Police. The ∑ Mr. WELLSTONE. Mr. President, lion pounds of products to the United People’s Armed Police, who are under today I’m introducing a bill that would States, including furniture, chemicals, the operational control of the PLA, are bar firms owned by China’s People’s rain gear, toys, sport rifles, aircraft en- an internal security force of over 1 mil- Liberation Army and People’s Armed gines, and fish. According to an AFL– lion troops, one of whose main pur- Police from operating in the United CIO official, PLA companies were the poses is to suppress the legitimate pro- States and prohibit the import into the largest exporters of fish for U.S. fast- tests of the Chinese people. For exam- United States of products made by food restaurants. Finally, the report ple, the People’s Armed Police is often these firms or the export of products to contained a listing of U.S. companies used to quash the peaceful protests of these firms. It would also prohibit ex- that had purchased these products. In Chinese workers. tension of credit to or ownership inter- testimony before the Senate Foreign Last year the People’s Armed Police est in Chinese military companies. The Relations Committee last November, was used to brutally break up protests bill contains an exemption for humani- an AFL–CIO official pointed out that by thousands of laid-off state enter- tarian aid, waiving these prohibitions several well-known U.S. concerns had prise workers in Sichuan province. if the President determines that a purchased products directly from PLA Hundreds of these workers, who took transaction involves items intended to companies. to the streets because company offi- relieve human suffering such as food, While it is not illegal for the People’s cials embezzled their unemployment medicine or emergency supplies. Armed Police and PLA companies to compensation, were reportedly beaten My bill is based in part on H.R. 4433 operate in the United States, on at by the People’s Armed Police and sev- introduced in the House on August 6, least one occasion a major PLA com- eral ‘‘instigators’’ were arrested. Chi- 1998 by Representatives GEPHARDT, pany participated in a clearly illegal nese officials were said to have ordered BONIOR, and PELOSI, who I want to activity. In May, 1996, federal law en- hospitals not to treat wounded dem- commend for taking this bold and im- forcement agencies carried out a sting onstrators, comparing them to portant human rights initiative. operation connected with seizure of ‘‘counterrevolutionary thugs’’ who ‘‘ri- Before I get into the key question of 2,000 fully automatic AK–47 weapons oted’’ at Tiananmen in June 1989. What why I’m introducing this bill, I would from China. Since 1994 Chinese gun ex- were the laid-off workers seeking that like to touch on the question of the ex- ports to the United States have been il- provoked such a vicious crackdown by tent of PLA and People’s Armed Police legal and this was the largest seizure of the People’s Armed Police? Just that commercial relations with the United fully automatic weapons in U.S. his- the government provide them with the States. To begin with, I should stress tory. One of the two Chinese companies subsistence they are entitled to and that there is uncertainty about the ex- involved, Poly Technologies, is the that corrupt company officials be pun- tent and nature of activities of compa- most successful PLA-controlled com- ished. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11705 How can we continue to subsidize the Be this as it may, the fact remains (2) The People’s Liberation Army is re- thugs who repress Chinese workers? that it is now Chinese government pol- sponsible for occupying Tibet since 1950 and The People’s Armed Police also man icy to end the commercial activities of implementing the official policy of the Peo- the guard towers of the Laogai, China’s the PLA and the People’s Armed Po- ple’s Republic of China to eliminate the massive forced labor camp system—the unique cultural, linguistic, and religious her- lice. I believe that the Senate should itage of the Tibetan people. largest in the world. The Laogai is Chi- do all we can to help Beijing by passing (3) The People’s Liberation Army has oper- na’s version of the Soviet gulag. The my bill, which seeks to cut U.S. com- ational control of the People’s Armed Police, Laogai is comprised of more than 1,100 mercial ties with the PLA and the Peo- an internal security force of over 1,000,000 forced labor camps, with an estimated ple’s Armed Police and to end their troops, whose primary purpose is to suppress population of 6 to 8 million prisoners. business activities in the United the legitimate protests of the Chinese peo- Prisoners are overworked, denied medi- States. Since we would be cooperating ple. cal treatment and tortured. with Jiang’s policies, the Administra- (4) The People’s Liberation Army is en- How can we continue to subsidize tion can no longer point to alleged gaged in a massive effort to modernize its those who guard slave laborers? military capabilities. harmful effects on our military-to- (5) The People’s Liberation Army owns and The People’s Armed Police and the military dialog or Chinese retaliation PLA are the key agents of repression operates hundreds of companies and thou- against U.S. exporters. Moreover, we sands of factories the profits from which in in Tibet. The People’s Armed Police would have reason to expect that the some measure are used to support military have been filmed in Lhasa, the capital ability of U.S. law enforcement agen- activities. of Tibet, beating monks and nuns cies to implement the sanctions con- (6) Companies owned by the People’s Lib- peacefully demonstrating for their tained in this bill would be enhanced eration Army and the People’s Armed Police rights. This past May, the People’s since PLA and People’s Armed Police export to the United States such products as Armed Police and PLA soldiers report- business activities would be illegal toys, clothing, frozen fish, lighting fixtures, edly fired on 150 Tibetan political pris- garlic, glassware, yarn, footwear, chemicals, both in China and the United States. machinery, metal products, furniture, deco- oners who staged a demonstration in Jiang Zemin presumably would have Tibet’s main prison and the police later rations, gloves, tents, and tools. incentives to end or at least cir- (7) Companies owned by the People’s Lib- stormed the prison and arrested the cumscribe Chinese military and police eration Army and the People’s Armed Police demonstrators. Chinese officials were business dealings with and in the regularly solicit investment in joint ven- apparently offended when the political United States and, perhaps, even co- tures with United States companies. prisoners flew a Tibetan national flag operate with U.S. law enforcement (8) The People’s Liberation Army and the during the demonstration. agencies. People’s Armed Police have established at How can we continue to subsidize While no one can predict how suc- least 23 different companies in the United those who deny Tibetans fundamental cessful Jiang will be in eliminating or States over the past decade. (9) The people of the United States are un- freedoms, beat and torture them, and even in cutting back China’s military- seek to destroy their unique culture aware that certain products they purchase in business complex, we must act to end retail stores are produced by companies and religion? U.S. subsidies to those who beat, tor- owned and operated by the People’s Libera- Mr. President, this is shameful and it ture, and imprison those who bravely tion Army or the People’s Armed Police. must be stopped. Would we have al- fight for freedom and democracy. By (10) The purchase of these products by lowed Stalin’s NKVD or Hitler’s SS to contributing to PLA and People’s United States consumers places them in the subsidize their heinous activities by Armed Police coffers we act in com- position of unwittingly subsidizing the oper- running profit-making entities in the plicity with those who repress workers, ations of the People’s Liberation Army and United States and exporting goods to run slave labor camps, crush religious the People’s Armed Police. us and buying goods from us? Of course (11) The Government of the People’s Re- freedom, quash Tibetans and other mi- public of China, with the assistance of the not. Why then do we allow the likes of norities seeking to preserve their iden- the PLA and the People’s Armed Police People’s Liberation Army and the People’s tity culture and religion. We betray Armed Police, continues to deny its citizens to profit from commercial relations those who laid down their lives at basic human rights enumerated in the Uni- with us and why does the Administra- Tiananmen Square, inspired by Amer- versal Declaration of Human Rights, per- tion oppose efforts to put an end to ican principles of democracy and indi- secutes those who seek to freely practice this? vidual rights and we betray those brave their religion, and denies workers the right Mr. President, the Administration in dissidents who rot in Chinese jails or to establish free and independent trade the past has justified the unjustifiable unions. toil in forced labor camps, whose only by arguing that imposing sanctions on (b) POLICY.—It is the policy of the United crime was to fight for the ideals all PLA and People’s Armed Police compa- States to prohibit any entity owned, oper- Americans hold dear. It is time to end nies would be an ‘‘impossible task’’ for ated, or controlled by the People’s Libera- U.S. law enforcement agencies, risk re- this complicity, end these betrayals of tion Army or the People’s Armed Police from operating in the United States or from taliation against major U.S. exporters, our friends. I urge my colleagues to support this conducting certain business with persons and harm our efforts to develop a mili- bill. subject to the jurisdiction of the United tary-to-military dialog and relation- Mr. President, I ask unanimous con- States. ship with China. sent that the text of the bill be printed SEC. 3. COMPILATION AND PUBLICATION OF LIST While I believe these arguments don’t in the RECORD. OF PEOPLE’S REPUBLIC OF CHINA hold water, they have been overtaken There being no objection, the bill was MILITARY COMPANIES. by events. In July, President Jiang (a) COMPILATION AND PUBLICATION.— ordered to be printed in the RECORD, as Zemin ordered the PLA and the Peo- (1) IN GENERAL.—Not later than 90 days follows: ple’s Armed Police to end the ‘‘com- after the date of enactment of this Act, the S. 2567 mercial activities’’ of their subordinate Secretary of Defense, in consultation with units. There are some questions about Be it enacted by the Senate and House of Rep- the Secretary of the Treasury, the Attorney resentatives of the United States of America in the extent to which Jiang’s orders will General, the Director of Central Intelligence, Congress assembled, and the Director of the Federal Bureau of In- be carried out and over what time- SECTION 1. SHORT TITLE. vestigation, shall— frame. Tai Ming Cheung, a noted ex- This Act may be cited as the ‘‘Trading (A) compile a list of persons who are Peo- pert on China’s military, foresees some With the People’s Republic of China Military ple’s Republic of China military companies shrinkage of the military-business Act of 1998’’. and who are operating directly or indirectly complex, but predicts that it will ‘‘re- SEC. 2. FINDINGS AND POLICY. in the United States or any of its territories main powerful and more focused.’’ (a) FINDINGS.—Congress makes the follow- and possessions; and Some China experts estimate that as ing findings: (B) publish the list of such persons in the much as one-third of total defense (1) The People’s Liberation Army is the Federal Register. principal instrument of repression within the (2) PERIODIC UPDATES.—Every 6 months spending derive from profits from PLA People’s Republic of China and is responsible after the date of the publication of the list businesses and it would obviously be for massacring an unknown number of stu- under paragraph (1), the Secretary of De- difficult for the government to com- dents, workers, and other demonstrators for fense, in consultation with the officials re- pensate the military for loss of this democracy in Tiananmen Square on June 4, ferred to in that paragraph, shall make such funding stream. 1989. additions to or deletions from the list as the S11706 CONGRESSIONAL RECORD — SENATE October 7, 1998 Secretary considers appropriate based on the SEC. 7. DEFINITIONS. permits providers to exclude foster latest information available. For purposes of this Act: care payments only when a State (or (b) PEOPLE’S REPUBLIC OF CHINA MILITARY (1) PEOPLE’S ARMED POLICE.—The term one of its political subdivisions) places COMPANY.—For purposes of making the de- ‘‘People’s Armed Police’’ means the para- the individual and makes the pay- termination required by subsection (a), the military service of the People’s Republic of term ‘‘People’s Republic of China military China, whether or not such service is subject ments. company’’— to the control of the People’s Liberation This bill will simplify these anachro- (1) means a person that is— Army, the Public Security Bureau of that nistic tax rules by expanding the tax (A) engaged in providing commercial serv- government, or any other governmental en- code’s exclusion to include foster care ices, manufacturing, producing, or exporting; tity of the People’s Republic of China. payments for all persons in foster care, and (2) PEOPLE’S LIBERATION ARMY.—The term regardless of age, even if the foster (B) owned, operated, or controlled by the ‘‘People’s Liberation Army’’ means the land, care placement is made by a foster care People’s Liberation Army or the People’s naval, and air military services and the mili- placement agency and even if foster Armed Police; and tary intelligence services of the People’s Re- care payments are received through a (2) includes any person identified in De- public of China, and any member of any such foster care placement agency, rather fense Intelligence Agency publication num- service.∑ than directly from a State (or one of bered VP–1920–271–90, dated September 1990, or PC–1921–57–95, dated October 1995, or any By Mr. JEFFORDS (for himself its political subdivisions). To ensure updates of such publications under sub- and Mr. DODD): appropriate oversight, the bill requires section (c). S. 2568. A bill to amend the Internal that the placement agency be either li- (c) UPDATING OF PUBLICATIONS.—Not later Revenue Code of 1986 to provide that censed by, or under contract with, a than 90 days after the date of enactment of the exclusion from gross income for State or a political subdivision thereof. this Act, and every 6 months thereafter, the foster care payments shall also apply Increasingly, State and local govern- Defense Intelligence Agency shall update the ments are relying on private agencies publications referred to in subsection (b)(2) to payments by qualifying placement agencies, and for other purposes; to the to arrange for foster care services for for purposes of determining People’s Repub- children and adults. While foster care Committee on Finance. lic of China military companies under this for children has been in existence for section. EXCLUSION FOR FOSTER CARE PAYMENTS TO decades, foster care for adults is a more SEC. 4. PROHIBITIONS. APPLY PAYMENTS BY QUALIFYING PLACE- recent phenomenon. Sometimes re- (a) OFFICERS, DIRECTORS, ETC.—It shall be MENTS AGENCIES unlawful for any person to serve as an offi- Mr. JEFFORDS. Mr. President, today ferred to as ‘‘host homes’’ or ‘‘develop- cer, director, or other manager of any office I am introducing a bill that will elimi- mental homes,’’ adult foster care fa- or business anywhere in the United States or nate unnecessary distinctions drawn by cilities have proven to be an effective its territories or possessions that is owned, the Internal Revenue Code for the tax alternative to institutional care for operated, or controlled by a People’s Repub- treatment of payments received by adults with disabilities. My home State lic of China military company. of Vermont, at the forefront of efforts (b) DIVESTITURE.—The President shall by families and individuals who open their homes to care for foster children and to develop individualized alternatives regulation require the closing and divesti- to institutional care, authorizes local ture of any office or business in the United adults. Currently, the law allows an ex- developmental service providers to act States or its territories or possessions that clusion from income for foster care as placement agencies and to contract is owned, operated, or controlled by a Peo- payments received by some providers, with families willing to provide foster ple’s Republic of China military company. while denying eligibility for the exclu- (c) IMPORTATION.—No goods or services care in their homes. The tax law’s dis- sion to other foster care providers. that are the growth, product, or manufac- parate tax treatment of foster care My bill expands the law’s exclusion ture of a People’s Republic of China military payments, however, impedes alter- of foster care payments. Under my bill, company may enter the customs territory of native arrangements. Persons provid- foster care payments to providers made the United States. ing foster care for individuals placed in (d) CONTRACTS, LOANS, OWNERSHIP INTER- by placement agencies that contract their homes by the government can ex- ESTS.—It shall be unlawful for any person with, or are licensed by, State or local clude foster care payments from in- subject to the jurisdiction of the United governments will be eligible for the ex- come. For providers receiving pay- States— clusion, regardless of the age of the in- ments from private agencies, however, (1) to make any loan or other extension of dividual in foster care. This bill is a credit to any People’s Republic of China the exclusion is not available (unless companion to H.R. 3991, introduced by military company; or the individual in foster care is under (2) to acquire an ownership interest in any Congressman JIM BUNNING of Ken- age 19 and the placement agency is a People’s Republic of China military com- tucky. By simplifying the tax treat- nonprofit organization). These rules pany. ment of foster care payments, the bill discourage families willing to provide (e) EXPORTS.—It shall be unlawful for any will remove the inequities and uncer- foster care in their homes to persons person subject to the jurisdiction of the tainties inherent in the current tax United States to export goods, technology, placed by private placement agencies, treatment of foster care payments. thus reducing the availability of care or services to, or for any person to export Under current law, foster care pro- goods, technology, or services that are sub- alternatives. Because of the complex- ject to the jurisdiction of the United States viders are permitted to deduct expendi- ity of the current law, providers often to, a People’s Republic of China military tures made while caring for foster indi- receive conflicting advice from tax pro- company. viduals. Providers must maintain de- fessionals regarding the proper tax (f) EXCEPTION FOR HUMANITARIAN ITEMS.— tailed records to substantiate these de- treatment of foster care payments they Subsections (a) through (e) shall not apply ductions. In lieu of this detailed record receive. with respect to a transaction if the Presi- keeping, section 131 of the Internal dent— Mr. President, this bill will advance Revenue Code allows certain foster the development of family-based foster (1) determines that the transaction in- care providers to exclude from income volves the transfer of food, clothing, medi- care services, a highly valued alter- cine, or emergency supplies intended to re- the payments they receive to care for native to institutionalization. I urge lieve human suffering; and foster care. Eligibility for this exclu- my colleagues to support it. (2) transmits notice of that determination sion depends upon a complicated analy- Mr. DODD. Mr. President, I am very to Congress. sis of three factors: the age of the per- pleased to rise along with my col- SEC. 5. REGULATORY AUTHORITY. son in foster care; the type of foster league, Senator JEFFORDS, in introduc- The President shall prescribe such regula- care placement agency; and the source ing a critically important piece of leg- tions as are necessary to carry out this Act. of the foster care payments. islation that will ensure fair treatment SEC. 6. PENALTIES. For children under age 19 in foster for individuals and families who pro- Any person who knowingly violates section care, section 131 permits providers to vide invaluable care to foster children 4 or any regulation issued thereunder— exclude payments when a State (or one and adults. (1) in the case of the first offense, shall be of its political subdivisions) or a chari- fined not more than $100,000, imprisoned not Presently, foster care providers are more than 1 year, or both; and table tax-exempt placement agency permitted to deduct expenditures made (2) in the case of any subsequent offense, places the individual in foster care and while caring for foster individuals if shall be fined not more than $1,000,000, im- makes the foster care payments. For detailed expense records are main- prisoned not more than 4 years, or both. persons age 19 and older, section 131 tained to support such deductions. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11707 However, section 131 of the Internal LONG-TERM CARE PATIENT PROTECTION ACT OF Why is this the case? Because current Revenue Code permits certain foster 1998 state and national safeguards are inad- care providers to exclude, from taxable Mr. KOHL. Mr. President, I rise equate to screen out abusive workers. income, payments they receive to care today to introduce the Long-Term Care All States are required to maintain for foster individuals. Who specifically Patient Protection Act of 1998, along registries of abusive nurse aides. But is available for this exclusion depends with Senators REID and FEINSTEIN. I nurse aides are not the only workers upon a complicated analysis of three am pleased to introduce this legisla- involved in abuse, and other workers factors: the age of the individual re- tion on behalf of the Administration. are not tracked at all. Even worse, ceiving foster care services, the type of Recently, the Department of Health there is no system to coordinate infor- foster care placement agency, and the & Human Services Office of Inspector mation about abusive nurse aides be- source of the foster care payments. General issued a report describing how tween States. A known abuser in Iowa easy it is for people with abusive and would have little trouble moving to Section 131 presently permits foster criminal backgrounds to find work in Wisconsin and continuing to work with care providers to exclude payments nursing homes. On September 14th, the patients there. from taxable income only when a state, Senate Aging Committee held hearings In addition, there is no Federal re- or one of its political divisions, or a on this disturbing problem, where we quirement that nursing homes conduct charitable tax exempt placement agen- heard horrifying stories of elderly pa- a criminal background check on pro- cy places the individual and makes the tients being abused by the very people spective employees. People with vio- foster care payments for children under who are charged with their care. While lent criminal backgrounds—people who 19 years of age. However, for adults the vast majority of nursing home have already been found guilty of mur- over the age of 19, section 131 permits workers are dedicated and professional, der, rape, and assault—could easily get foster providers to exclude payments even one instance of abuse is inexcus- a job in a nursing home or other health from taxable income only when a able. This should not be happening in a care setting without their past ever State, or one of its divisisions, places single nursing home in America. being discovered. the individual and provides the foster Senator REID and I have already in- The Administration’s bill that we in- care payments. troduced legislation, the Patient Abuse troduce today builds upon the exten- Mr. President, it is time that we re- Prevention Act, to require background sive work that Senator REID and I have move the inequities and needless com- checks for health care workers. Those done to address this issue, and incor- plexities of the current system. States with prior abusive and criminal back- porates some new ideas as well. and localities across the country are grounds would be prohibited from First, this legislation will create a increasingly relying on private agen- working in patient care. I am pleased National Registry of abusive nursing cies to arrange for foster care services that the Administration has also rec- home employees. States will be re- for both children and adults. However, ognized the importance of addressing quired to submit information from some foster care providers are under- this problem, and I have been glad to their current State registries to the National Registry. Nursing homes will standably reluctant to contract with work with them in this effort. While be required to check the National Reg- private placement agencies because the bill we introduce today on the Ad- istry before hiring a prospective work- current law requires such providers to ministration’s behalf is not perfect, I er. Any worker with a substantiated include foster care payments as taxable believe it is another important step in finding of abuse will be prohibited from income. In contrast, current law per- our efforts to pass strong patient pro- mits providers who care for foster indi- working in nursing homes. tections. Second, the bill provides a second viduals placed in their homes by gov- Mr. President, it is estimated that line of defense to prevent people with ernment agencies to exclude such pay- more than 43 percent of Americans criminal backgrounds from working in ments from taxable income. Current over the age of 65 will likely spend nursing homes. If the National Reg- law, therefore, discourages families time in a nursing home. The number of istry does not include information from providing foster care on behalf of people needing long-term care services about the prospective worker, the nurs- private placement agencies, thereby re- will continue to increase as the Baby ing home is then required to contact ducing badly-needed foster care oppor- Boom generation ages. The vast major- the state to initiate an FBI back- tunities for individuals requiring as- ity of nursing homes do an excellent ground check. Any conviction for pa- sistance. job in caring for their patients, but it tient abuse or a relevant violent crime The bill Senator JEFFORDS and I in- only takes a few abusive staff to cast a would bar that applicant from working troduce today will greatly simplify the dark shadow over what should be a in nursing homes. outdated tax rules applicable to foster healing environment. Let me be clear: I realize that this care payments. Under our legislation, A disturbing number of cases have legislation is not perfect. I have sig- foster care providers would be able to been reported where workers with nificant concerns about several unre- avoid onerous record keeping by ex- criminal backgrounds have been solved issues that I believe must be ad- cluding from income any foster care cleared to work in direct patient care, dressed. We must continue to work on payment received regardless of the age and have subsequently abused patients minimizing costs and determine a fair of the individual receiving foster care in their care. Just last year, the Mil- and reasonable way to distribute those services, the type of agency that placed waukee Journal-Sentinel ran a series costs. We must ensure that the system the individual, or the source of foster of articles describing this problem. is efficient and effective, with a quick care payments. To ensure appropriate This past March, The Wall Street Jour- turnaround time and accurate informa- oversight, this bill will require the nal published an article describing the tion for providers. And I believe that placement agency to be licensed either difficulties we face in tracking known we must apply these requirements to by, or under contract with, a state or abusers. other health care settings besides nurs- one or its political divisions. These news stories are only the tip of ing homes. It would do little good to the iceberg. Unfortunately, it is just Mr. President, this legislation ac- ban these people from working in nurs- far too easy for a worker with a history ing homes, and still permit them to complishes what current law does not— of abuse to find employment and prey consistent and fair treatment of fami- work in home health care. on the most vulnerable patients. The Senator REID and I have worked for a lies and individuals who open their OIG report found that 5 percent of long time with patient advocates, the homes and their hearts to foster chil- nursing home employees in Maryland nursing home and home health indus- dren and adults. and Illinois had prior criminal records. tries, and law enforcement officials to And it also found that between 15–20 address these issues. I have been very By Mr. KOHL (for himself, Mr. percent of those convicted of patient heartened by their enthusiasm and REID, and Mrs. FEINSTEIN): abuse had prior criminal records. It is willingness to work with us in this ef- S. 2570. A bill entitled the ‘‘Long- just too easy for known abusers to find fort. It is in all of our best interests to Term Care Patient Protection Act of work in health care and continue to pass legislation that is strong, work- 1998’’; to the Committee on Finance. prey on patients. able, and enforceable. S11708 CONGRESSIONAL RECORD — SENATE October 7, 1998 Despite the unresolved issues I have authorize nursing homes and home criminal background check on the indi- mentioned, I am introducing the Ad- health agencies to use the FBI criminal vidual through the Federal Bureau of ministration’s legislation today be- background check system. This amend- Investigations. cause I believe it will provide a strong ment is an important step towards our Finally, nursing homes would be re- incentive for everyone to stay at the goal of mandatory background checks, quired to report to the State any in- table and resolve these issues. All of and I am proud to report that this lan- stance in which the facility determines us—the President, Congress, health guage was included in the Commerce, that an employee has committee an act care professionals and consumer advo- Justice, State Appropriations Bill. of resident neglect, abuse, or theft of a cates—we all share the common goal of Upon our request, the Senate Special resident’s property during the course of protecting patients from abuse, neglect Committee and Aging dedicated a hear- employment. The OIG at the Depart- and maltreatment. We must keep ing to the issue of criminal background ment of Health and Human Services re- working together to create a viable na- checks for long-term care workers. At ported that 46 percent of facilities be- tional system that will prevent abusive this time, the Office of the Inspector lieve that incidents of abuse are under- workers from working with patients. General (OIG) at the Department of reported. This provision would ensure Although the remaining days of this Health and Human Services released a that offenders are reported and added Congress are few, we all need to come report entitling, ‘‘Safeguarding Long to the national registry before they together once again to reach consensus Term Care Residents’’. The year-long have the opportunity to strike again. on the remaining issues and prepare to investigation by the OIG spanning fa- One of the most difficult times for move this process forward. This legisla- cilities across the country produced any individual or family is when they tion gives us an opportunity to act the very recommendations Senator must make the decision to rely upon the support and services of a long-term now. I look forward to continuing our KOHL and I have been advocating for work on this issue, and I welcome com- over a year. Specifically, the OIG con- care facility. Families should not have to live with the fear that their loved ments and suggestions for improving curred with our proposal to develop one is being left in the hands of an in- the bill. criminal background checks, and to dividual with a criminal record. No one Mr. President, I want to repeat that create a national registry for nursing should have to endure the pain and I strongly believe that most nursing facility employees. Their findings were homes and their staff provide the high- outrage of learning that their loved consistent with our position that a one has fallen prey to a nursing home est quality care. However, it is impera- criminal background check system tive that Congress act immediately to employee with a violent or criminal could help weed out potential employ- record. At last month’s Aging Commit- get rid of the few that don’t. When a ees with a history of abuse and prevent patient checks into a nursing home, tee hearing, we heard the real life them from working with patients. nightmare of Richard Meyer, whose 92 they should not have to give up their Recently, President Clinton acknowl- right to be free from abuse, neglect, or year-old mother was sexually assaulted edged the need for tough legislative by a male certified nursing assistant mistreatment. They should not have to and administrative actions to improve worry about dying from malnutrition who had previously been charged and the quality of nursing homes. Using convicted for sexually assaulting a and dehydration. our original legislation as a guide, the Our nation’s seniors made our coun- young girl. We can and we must work Administration drafted a proposal to to prevent tragedies like this one from try what it is today. Before we cross address the crucial issue of criminal that bridge to the next century that we occurring again in the future. background checks for nursing home Americans over the age of 85 are the have all heard so much about, we must workers. I am pleased that the Admin- make sure we treat the people that fastest growing segment of our elderly istration has recognized the need for population. There are 31.6 million brought us this far with the dignity, criminal background checks and has care, and respect they deserve. I look Americans over the age of sixty-five, modeled its initiative after our legisla- and as the baby boom generation ages, forward to working with my colleagues tion. I am introducing the ‘‘Long-Term that number will skyrocket. Over 43 and the administration in this effort to Care Patient Protection Act of 1998’’ on percent of Americans will likely spend protect patients. Our Nation’s seniors behalf of the Administration because it time in a nursing home. As our nation and disabled deserve nothing less than builds on our extensive work in this seeks ways to care for an aging popu- our full attention to this matter. Mr. President, I ask that the text of area and represents an important step lation, we must establish greater pro- in the right direction. tections to ensure that our seniors will the bill be printed in the RECORD. [The bill was not available for print- The ‘‘Long-Term Care Patient Pro- receive the best care possible. ing. It will appear in a future issue of tection Act of 1998’’ would create a na- I have visited countless nursing tional registry of abusive workers. Fur- homes in my home state of Nevada. the RECORD.] Mr. REID. Mr. President, I rise today ther, the bill would expand the existing During these visits, I have always been impressed by the compassion and dedi- to join my colleague, Senator KOHL, in State nurse aide registries to include introducing the ‘‘Long Term Care Pa- substantiated findings of abuse by all cation of the staff. Most nurse aides tient Protection Act of 1998’’. This leg- nursing facility employees, not just and health care workers are profes- islation represents our latest step in a nurse aides. States would be required sional, honest, and dedicated. Unfortu- series of efforts to institute greater to submit any existing or newly ac- nately, it only takes one abusive staff member to terrorize the lives of the protections for nursing home residents. quired information contained in the residents. That is why we must work to Over the past year, Senator KOHL and State registries to the national reg- I, along with our colleagues on the istry of abusive workers. This provi- wed our the ‘‘bad apples’’ who do not Senate Special Committee on Aging, sion is crucial because it would ensure have the best interest of the patient in have worked to ensure that seniors are that once an employee is added to the mind. I urge you join Senator KOHL and not placed in the hands of criminals in national registry, the offender will not me in our efforts to provide greater nursing homes. The disturbing problem be able to simply cross state lines and protections for all nursing home resi- dents. of nursing home abuse by workers with find employment in another nursing a violent or criminal history was home where he may continue to prey By Mr. LIEBERMAN: brought to our attention just over a on vulnerable seniors. S. 2571. A bill to reduce errors and in- year ago. Shortly thereafter, Senator Another important portion of the bill crease accuracy and efficiency in the KOHL, GRASSLEY, and I introduced S. outlines the process by which nursing administration of Federal benefit pro- 1122, ‘‘The Patient Abuse Prevention homes must screen prospective em- grams, and for other purposes; to the Act.’’ This measure would require ployees. According to this legislation, Committee on Governmental Affairs. criminal background checks for poten- all nursing homes must first initiate a f tial long-term care facility workers search of the national registry of abu- and would create a national registry of sive workers. In cases where the pro- FEDERAL BENEFIT VERIFICATION abusive health care workers. spective employee is not listed on the AND INTEGRITY ACT This past July, Senator KOHL and I registry, the nursing home would be re- Mr. LIEBERMAN. Mr. President, sponsored an amendment that would quired to conduct a State and national today I introduce the Federal Benefit October 7, 1998 CONGRESSIONAL RECORD — SENATE S11709 Verification and Integrity Act. This has made great strides in improving sure the security and confidentiality of legislation takes a government-wide eligibility information accuracy, and records; prohibiting nonessential dupli- approach to improving eligibility ver- the federal government could clearly cation and re-disclosure of records ification and debt collection in Federal learn from the best business practices within or outside an agency receiving benefit and assistance programs by of companies like American Express, information for a test; expanding identifying, testing, evaluating, and, in Visa, Citicorp and Nationsbank. This encryption and electronic signature some cases, implementing ‘‘data shar- bill contains provisions to encourage technology to protect the confidential- ing’’ information technologies. Federal the government to test and incorporate ity and integrity of information; and agencies would be encouraged to make best commercial business practices for doubling the penalty for willfully vio- use of federal, state, and private data- eligibility verification. lating the privacy act to $10,000. Exist- bases such as the National Directory of Similarly, information contained in ing computer matching and privacy act New Hires and credit bureau data to the National Directory of New Hires laws will not be changed. help ensure that the government deliv- and other databases could be a vital aid The act also expands on the present ers benefits to the right person, at the to the Department of Education’s ef- full due process rights of beneficiaries, right time, for the right amount. This forts to locate debtors under its stu- including all rights under the Fair bill mirrors Title VI of H.R. 4243, a bill dent loan programs, and to other agen- Debt Collection Practices Act. The bill introduced in the House by Representa- cies trying to locate and collect from ensures that agencies administering tives STEVE HORN and CAROLYN debtors. The Department of Education federally funded benefit programs ade- MALONEY. devotes 70% of its debt collection ef- quately inform applicants applying for The President’s Council on Integrity forts to locating debtors. The National benefits that their data can be shared and Efficiency has found that the fed- Directory of New Hires, a comprehen- to verify their eligibility for those ben- eral government loses billions of dol- sive database that lists where virtually efits. The agency will be required to lars each year by not adequately veri- all Americans are employed, was re- maintain a record of each applicant’s fying information in applications for cently established as part of the legis- acknowledgment. In this way, agencies federal benefit programs. For example, lation to find and crack down on can encourage individuals to provide an audit by the Department of Edu- ‘‘deadbeat dads’’. The Directory is accurate information when applying cation’s Office of Inspector General dis- maintained by the Department of for benefits. Moreover, applicants will closed that approximately $109 million Health and Human Services, and the be given the opportunity to explain in- in Pell grants had been over-awarded in data contained in the database cannot consistencies. 1996 because students failed to report be shared with other agencies without Finally, the Committee recognizes or under-reported their income. The explicit legislative authorization. As the importance of keeping the National Department of Housing and Urban De- with child support collection, the De- Directory of New Hires data secure and velopment projected that during the partment of Education could use the private. Consequently, this legislation same year it had paid out at least $600 New Hires directory as an enormously intends that any agency requesting ac- million in excess rental subsidies be- helpful tool to locate where a debtor cess to the National Directory of New cause of tenants’ under-reporting of in- lives and works. Once a debtor is found, Hires have the statutory authorization come. the Department could then use its ex- to access the same kind of data from News reports confirm the pervasive- isting authority to notify the debtor, other data sources. Also, all data ness of this type of fraud against the and then as a last resort and after matches with the New Hires database government. One story in the Wall meeting all due process requirements, must occur under the Department of Street Journal described how ‘‘student- the Department could garnish the debt- Health and Human Services, the agen- aid consultants’’ charged clients $350 or’s wages. cy who owns this information. This each for phony tax returns, which To improve government-wide data- way, the government would be able to would under-report the student’s fam- sharing coordination, this legislation centralize all data matches at one loca- ily income. Because the government creates a ‘‘Federal Benefit Verification tion—where the data resides. does not compare the tax return ac- and Payment Integrity Board’’ which By using data-sharing technologies, companying the student loan applica- would provide oversight and foster agencies can deter and prevent fraud tion with the tax forms that had been agency interest in pursuing data shar- while becoming more accurate and effi- submitted to the IRS, the student can ing ideas and technologies. Once an cient. This bill promotes data-sharing fraudulently apply to the government agency tests an idea and obtains a posi- tools which can save taxpayers sub- for financial aid and receive thousands tive result, the Board can recommend stantial resources and at the same of dollars in Pell grants. In another ex- to the Congress that permanent au- time encourage beneficiaries of govern- ment programs to deal honestly with ample, the Washington Post reported thorizing legislation be enacted. Feder- their government. Accordingly, I urge that an owner of a California trade ally funded benefit programs that my colleagues to support this legisla- school was indicted on allegations that could use data-sharing technologies in- tion. he stole $1 million in federal Pell clude: the Pell Grant program, federal Mr. President, I ask unanimous con- grants by creating imaginary students. student loan programs, Medicaid, the sent that the text of the bill be printed Since the government never compared Food Stamp program, USDA and HUD in the RECORD. the names of these students with infor- housing programs, veterans compensa- There being no objection, the bill was mation it already had, the school was tion programs, Social Security pro- ordered to be printed in the RECORD, as able to hide its crimes for years. grams, the Railroad Retirement Sur- follows: The report of the President’s Council vivor program, the Civil Service Re- on Integrity and Efficiency concluded tirement Program, Small Business Ad- S. 2571 that federal agencies need eligibility ministration programs, and USDA Be it enacted by the Senate and House of Rep- verification to deter and detect the resentatives of the United States of America in business programs. While this list is Congress assembled, growing fraud in federal benefit and as- not exhaustive, the legislation would SECTION 1. SHORT TITLE. sistance programs. Several federal promote data-sharing between agencies This Act may be cited as the ‘‘Federal Ben- agencies do have procedures to try to that have the current statutory au- efit Verification and Integrity Act’’. verify information submitted by appli- thority to do so. SEC. 2. PURPOSES. cants by comparing it with informa- In addition, this legislation balances The purposes of this Act are the following: tion contained in various federal and the need for data in verifying eligi- (1) To reduce errors in Federal benefit pro- state government databases. Unfortu- bility with the paperwork burden and grams that lead to waste, fraud, or abuse and nately the legislative authority for privacy intrusion that data sharing im- encourage agencies to work together to iden- gaining access to this verifying data poses. In fact, this legislation contains tify common sources of errors. (2) To identify solutions to common prob- often does not encompass many of the a number of increased privacy protec- lems that will save money for the taxpayer most useful government sources: there tions, including requiring that agency and demonstrate the Government’s ability to is no comprehensive authority to share proposals contain administrative, tech- deliver Federal benefits to the right person, data among agencies. Private industry nical, and physical safeguards to en- at the right time, for the right amount. S11710 CONGRESSIONAL RECORD — SENATE October 7, 1998

(3) To focus on increasing accuracy and ef- (3) IDENTIFICATION OF TEST AREAS.—The Di- (d) GENERAL IMPLEMENTATION PLAN.—The ficiency for Federal benefit program eligi- rector of the Office of Management and Board shall prepare a plan for the implemen- bility, financial and program management, Budget and the Chief Information Officers’ tation of this section, including for the co- and debt collection. Council shall each recommend to the Board, ordination of the conduct of tests under this (4) To improve the coordination of Govern- within 120 days after the date of enactment title and the procedures for submission of ment information resources across Govern- of this Act, various information technology proposals for those tests. ment agencies to strengthen the delivery of practices and techniques that should be test- (e) REPORTS ON RESULTS OF TESTS.— Federal benefits. ed under this title. (1) ANNUAL REPORT.—Beginning not later (5) To balance the need for data in verify- (b) APPROVAL OF AGENCY PROPOSALS.— than 1 year after the date of enactment of ing eligibility with the paperwork burden (1) IN GENERAL.—The head of a Federal this Act, the Board shall submit annually to and privacy intrusion that data sharing im- agency may develop and submit to the Board the Congress a report on the tests conducted poses. a proposal for carrying out a test under this under this section. (6) To emphasize deterring and preventing section for a specific Federal benefit pro- (2) CONTENT.—The report shall include— fraud in the provision of Federal benefits, gram administered by the agency. The pro- (A) an estimate of potential cost savings rather than seeking to detect fraud after posal shall contain specific goals, including a and other impacts demonstrated by the Federal benefits have been provided. schedule, for improving customer service and tests; (7) To ensure that agencies administering error reduction in the program and other in- (B) an analysis of the feasibility of apply- federally funded benefit programs inform ap- formation requested by the Board. ing the practices and techniques dem- plicants applying for benefits under those (2) CONTENTS.—The proposal shall provide onstrated in each test within the Federal programs that their data can be shared to for the testing of information sharing in an Government, including analysis of what was verify their eligibility for those benefits. integrated manner where feasible of elec- the least amount of information that was (8) To encourage individuals to provide ac- tronic practices and techniques for improv- necessary to verify eligibility of applicants curate information when applying for bene- ing Federal benefit program management, under each Federal benefit program that par- fits under federally funded benefit programs. including the following: ticipated in the tests; SEC. 3. DEFINITIONS. (A) Use of encryption and electronic signa- (C) an assessment of the value of State In this Act: ture technology consistent with techniques data in those tests. and (1) BOARD.—The term ‘‘Board’’ means the acceptable to the National Institute of (D) such recommendations as the Board Federal Benefit Verification and Payment Standards and Technology, to protect the considers appropriate. Integrity Board established under this Act. confidentiality and integrity of information. (f) RECOMMENDATIONS ON IMPLEMENTATION OF ACT.—The Chairperson of the Board shall (2) FEDERAL BENEFIT PROGRAM.—The term (B) Use of other security controls and mon- ‘‘Federal benefit program’’ means any pro- itoring tools. make recommendations annually to the Di- gram administered or funded by the Federal (C) Use of risk profiles and risk alert tech- rector of the Office of Management and Government, or by any agent or State on be- nologies, including use of Federal, State, and Budget regarding how savings resulting from half of the Federal Government, providing private databases such as the National Di- the implementation of the Federal Benefit cash assistance or in-kind assistance in the rectory of New Hires, Federal and State tax Verification and Integrity Act may be used form of payments, grants, loans, or loan data, and credit bureau data. to enhance program integrity in high-risk guarantees to or for the benefit of any per- (D) Establishment of a management frame- programs such as Medicare and to reduce the son. work for exploring and reducing the informa- potential of waste, fraud, and erroneous pay- tion security risks associated with Federal ments. TITLE I—NOTIFICATION OF FEDERAL (g) AUTHORITY TO REQUEST TEST.—The agency operations and technologies, includ- BENEFIT RECIPIENTS REGARDING DATA Board may request the head of a Federal ing risk assessments and disaster recovery VERIFICATION agency that administers a Federal benefit planning. SEC. 101. PROGRAM AGENCY RESPONSIBILITY TO program to conduct a test under this section, (3) CONSULTATION.—Any agency whose pro- PROVIDE CORRECT INFORMATION. including the preparation and submission of posals would require access to another agen- (a) IN GENERAL.—An agency that admin- a proposal for such a test in accordance with cy’s database shall consult with that agency isters a Federal benefit payment program this section. The head of an agency shall re- prior to submission of the proposal to the shall provide notice informing applicants spond within 30 days by approving or dis- Board, including consultation with the ap- under the program, in information material approving such a request of the Board. propriate data integrity board. and instructions accompanying program ap- (h) USE OF TEST INFORMATION.—Informa- plication forms, that applicants’ data may be (4) PRIVACY SAFEGUARDS.—A proposal sub- tion on any individual obtained in the course verified to the extent permitted by law. mitted to the Board must contain a descrip- of a test under this section shall not be used (b) AGENCY COMPLIANCE.—An agency may tion of appropriate administrative, tech- as the exclusive basis of a decision concern- comply with subsection (a) by modifying pro- nical, and physical safeguards to ensure the ing the rights, benefits, or privileges of any gram materials and applications to include security and confidentiality of records and individual. to protect against any anticipated threats or such notice as part of their normal SEC. 202. SHARING OF INFORMATION IN NA- reissuance cycle for reprinting forms, but in hazards to their security or integrity which TIONAL DIRECTORY OF NEW HIRES. no case later than December 31, 2000. could result in substantial harm, embarrass- (a) AVAILABILITY OF INFORMATION.—Not- (c) RECORD OF ACKNOWLEDGMENTS.—The ment, inconvenience, or unfairness to any in- withstanding section 453(l) of the Social Se- head of each agency that administers a Fed- dividual with respect to whom information is curity Act (42 U.S.C. 653(l)), the Secretary of eral benefit program shall maintain a record maintained. The proposal shall include, in Health and Human Services may disclose in- of each applicant’s acknowledgment that the particular, prohibitions on duplication and formation to another Federal agency from applicant has received notice of the uses and redisclosure of records provided by the the National Directory of New Hires estab- disclosures to be made of the applicant’s in- source agency within or outside the recipient lished pursuant to section 453(i) of that Act formation, for as long as the applicant re- entity, except where required by law or es- (42 U.S.C. 653(i)) based on matches conducted ceives benefits from or owes a debt to the sential to the conduct of the test. by the Department of Health and Human Government under the program. (5) AGENCY REIMBURSEMENT.—The proposal Services for purposes of conducting a test TITLE II—FEDERAL BENEFIT PROGRAM shall include an estimate for reimbursement under this title. In determining whether to MANAGEMENT IMPROVEMENT TESTS that may be charged by a Federal agency to disclose such information to a Federal agen- SEC. 201. TESTS OF PRACTICES AND TECHNIQUES another agency in conducting tests under cy for such a test, the Secretary shall take FOR IMPROVING FEDERAL BENEFIT the proposal. into consideration the potential negative im- PROGRAM MANAGEMENT. (6) REVIEW OF PROPOSALS.—Not later than pact of the disclosure or use of such informa- (a) AUTHORITY TO CONDUCT TESTS.— 60 days after the date of receipt of a proposal tion on the effective operation of the Federal (1) IN GENERAL.—A Federal agency that ad- under this subsection, the Board shall review Parent Locator Service under section 453 of ministers a Federal benefit program may and recommend disposition of the proposal such Act, and of other Federal and State conduct a test of information technology to the heads of the data sharing agencies child support enforcement activities under practices or techniques to improve income under the proposal. The head of the agency part D of title IV of such Act. verification, debt collection, data privacy shall respond to the Board within 90 days. (b) FEE.—The head of an agency to which and integrity protection, and identification Such a response shall include findings as ap- information is disclosed pursuant to sub- authentication in the administration of the propriate by the data integrity board. section (a) shall reimburse the Secretary of program, in accordance with a proposal ap- (c) COOPERATIVE AGREEMENTS AND CON- Health and Human Services in accordance proved by the Federal Benefit Verification TRACTS.—The head of an agency participat- with section 453(k)(3) of the Social Security and Payment Integrity Board established by ing in a test under this section, in consulta- Act. this title. tion with the Board, may enter into a coop- (c) AUTHORITY TO DISCLOSE INFORMATION.— (2) WAIVER OF REGULATIONS.—Upon the re- erative agreement with a State or contract The head of an agency to whom information quest of the Board, the head of an agency with a private entity under which the State is disclosed under this section may disclose may waive the enforcement of any regula- or private entity, respectively, may provide the information to another Federal agency tion of the agency for the purposes of carry- services on behalf of the Federal agency in for use by the agency only as specified under ing out a test under this section. carrying out the test. a test proposal under this title. The head of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11711 a Federal agency to whom information is ance with sections 5702 and 5703 of title 5, in the International Mobile Satellite disclosed under this subsection may disclose United States Code. Organization, currently known as such information to a State agency admin- (f) REPORTS.—The Board shall periodically ‘‘Inmarsat’’, during and after its re- istering a federally funded benefit program, report to the Director of the Office of Man- structuring, scheduled to take place a public housing authority, or a guaranty agement and Budget regarding its activities. April 1. The United States is currently agency (as that term is defined in section SEC. 205. RECIPIENT BENEFIT ACCESS; IMPLE- 435(j) of the Higher Education Act of 1965) MENTATION OF TESTED INFORMA- a member of this organization, but its only for the purpose of conducting the test. TION TECHNOLOGY PRACTICES OR structure and functions are slated for (d) REDISCLOSURE LIMITATION.—An entity TECHNIQUES. significant reform. Rather than actu- that receives information for use in a test (a) COMMERCIAL SERVICES FOR ELECTRONIC ally owning and operating mobile sat- under this title that it was not otherwise au- SUBMISSIONS.— ellite telecommunications facilities, (1) IN GENERAL.—The Administrator of thorized by law to obtain may not redisclose the intergovernmental institution will the information or use it for any other pur- General Services may acquire on behalf of Federal agencies commercial services for ac- retain the much more limited role of pose. overseeing the provision of global mar- (e) SHARING OF STATE INFORMATION.—The cepting electronic payments for grants or provision of information pursuant to sub- loans and electronic claims submissions itime distress and safety services, en- section (a) shall not affect any determina- from the public. Such services shall be based suring that this important function is tion of whether a State meets the require- on accepted commercial practices for elec- carried out properly and effectively ments of section 303(h)(1)(C) of the Social Se- tronic identification, authentication, and in- under contract. U.S. participation in curity Act. come verification. the organization—which will keep the (2) AGENCY REGULATIONS.—The head of each SEC. 203. INCREASED PENALTIES AND PUNITIVE same name but change its acronym to DAMAGES UNDER PRIVACY ACT. Federal agency shall promulgate regulations providing for the use of the services de- ‘‘IMSO’’—will not require a U.S. finan- (a) INCREASED PENALTIES.—Section 552a(i) scribed in paragraph (1) by program recipi- cial contribution and will not impose of title 5, United States Code, is amended in any new legal obligations upon the each of paragraphs (1) and (3) by striking ents. ‘‘shall be guilty’’ and all that follows (3) FUNDING.—The Administrator may ex- U.S. government. Privatization of through the period and inserting ‘‘shall be pend such funds as may be required for the Inmarsat’s commercial satellite busi- fined not more than $10,000, imprisoned for design, testing, and pilot of a standard meth- ness is an objective broadly shared by not more than one year, or both.’’. od by which the public may be provided con- the legislative and executive branches, sistent, secure, and convenient electronic ac- (b) PUNITIVE DAMAGES.—Section 552a(g)(4) American businesses, COMSAT, which of title 5, United States Code, is amended— cess in applying to Federal agencies for loans and grants and in submitting claims. Begin- is the U.S. signatory entity, and the (1) by redesignating subparagraphs (A) and international community. (B) as clauses (i) and (ii), respectively; ning in fiscal year 2002, the Administrator may finance the acquisition and manage- To give some brief background, (2) by inserting ‘‘(A)’’ after ‘‘(4)’’; and Inmarsat was established in 1979 to (3) by adding at the end the following: ment of the commercial services described in paragraph (1). serve the global maritime industry by ‘‘(B) In any such suit in which the court de- (4) DEFINITION OF ELECTRONIC.—For pur- developing satellite communications termines that the agency acted in a manner poses of this subsection, the term ‘‘elec- that was willful and intentional, the court for ship management and distress and tronic’’ means through the Internet or tele- safety applications. Over the past 19 may award punitive damages in addition to phonically. damages and costs referred to in subpara- (b) RECOMMENDATIONS.—If the Board deter- years, Inmarsat has expanded both in graph (A).’’. mines that any information technology prac- terms of membership and mission. The SEC. 204. ESTABLISHMENT OF THE FEDERAL tice, technique, or information sharing ini- intergovernmental organization now BENEFIT VERIFICATION AND PAY- tiative tested under this title was success- counts 84 member countries and has ex- MENT INTEGRITY BOARD. fully demonstrated in the test and should be panded into land-mobile and aeronauti- (a) ESTABLISHMENT.—There is established implemented in the administration of a Fed- the Federal Benefit Verification and Pay- cal communications. eral benefit program, the Board shall— Inmarsat’s governing bodies, the ment Integrity Board. (1) recommend regulations or legislation to (b) MEMBERSHIP.—The Board shall be com- Inmarsat Council and the Assembly of implement that practice, technique, or ini- Parties, recently reached an agreement posed of 10 members appointed from among tiative, if the Board determines that imple- Federal or State employees, as follows: mentation is not otherwise prohibited under to restructure the organization, a move (1) 3 members, of whom one shall be ap- another law; or that has been strongly supported and pointed by the head of each of 3 Federal (2) include in its annual report to the Con- encouraged by the United States. This agencies designated by the Director of the gress under section 201 recommendations for restructuring will shift Inmarsat’s Office of Management and Budget. The Di- such legislation as may be necessary to au- commercial activities out of the inter- rector shall designate agencies under this thorize that implementation. paragraph from among the Federal agencies governmental organization and into a (c) REQUIREMENTS REGARDING DATA PROC- broadly-owned public corporation by responsible for administering Federal benefit ESSING SYSTEMS.—The Board shall include in programs. any recommendation of regulations under next spring. The new corporation will (2) 2 members appointed by the Director of subsection (a)— acquire all of Inmarsat’s operational the Office of Management and Budget, of (1) provisions that ensure use of generally assets, including its satellites, and will whom at least one shall be a State employee accepted data processing system develop- assume all of Inmarsat’s operational appointed to represent federally funded ment methodology; and functions. All that will remain of the State administered benefits programs. (2) provisions that will result in system ar- intergovernmental institution is a (3) 1 member appointed by the Secretary of chitecture that will facilitate information Health and Human Services. scaled-down secretariat with a small exchange, increase data sharing, and reduce staff to ensure that the new corpora- (4) 1 member appointed by the Secretary of costs, by elimination of redundancy in devel- the Treasury. opment and acquisition of data processing tion continues to meet certain public (5) 1 member appointed by the Commis- systems. service obligations, such as the Global sioner of Social Security. Maritime Distress and Safety System (6) 1 member appointed by the Secretary of By Mr. SARBANES: (GMDSS). It is important to U.S. inter- Labor. S. 2572. A bill to amend the Inter- ests that we participate in the over- (7) 1 member appointed by the Director of national Maritime Satellite Tele- sight of this function, as well as that the Office of Management and Budget to ad- communications Act to ensure the con- dress privacy concerns. we be fully represented in the organiza- (c) CHAIRPERSON.—The Director of the Of- tinuing provision of certain global sat- tion throughout the process of privat- fice of Management and Budget shall des- ellite safety services after the privat- ization. ignate one of the members of the Board as ization of the business operations of The legislation I am introducing will the chairperson of the Board. the International Mobile Satellite Or- enable a smooth transition to the new (d) ADMINISTRATIVE SUPPORT.—The heads ganization, and for other purposes; to structure. It contains two major provi- of Federal agencies having a member on the the Committee on Commerce, Science, sions. First, it authorizes the President Board may provide to the Board such admin- and Transportation. to maintain U.S. membership in IMSO istrative and other support services and fa- after restructuring to ensure the con- cilities as the Board may require to perform INTERNATIONAL MOBILE SATELLITE its functions under this title. ORGANIZATION tinued provision of global maritime (e) TRAVEL EXPENSES.—Members of the ∑ Mr. SARBANES. Mr. President, distress and safety satellite commu- Board shall receive travel expenses, includ- today I am introducing legislation to nications services. Second, it repeals ing per diem in lieu of subsistence, in accord- authorize continued U.S. participation those provisions of the International S11712 CONGRESSIONAL RECORD — SENATE October 7, 1998 Maritime Satellite Telecommuni- year. Much of this is for important pro- THE STOP SPENDING ACT OF 1998—Continued cations Act that will be rendered obso- grams that provide health care to Five-year lete by the restructuring of Inmarsat, American families, Social Security and total sav- including all those relating to Medicare to senior citizens, education Progran cut ings (In COMSAT’s role as the United States’ for our kids, roads for our cars, secu- Billions) signatory. The bill’s provisions will rity for our nation, housing for fami- Eliminate Rural Utilities Service electricity loan subsidies ...... 0.18 lies with modest incomes, protection Means-test irrigation subsidies ...... 0.05 take effect on the date that Inmarsat Update domestic livestock grazing fees ...... 0.25 transfers its commercial operations to for the environment, and research to Update hardrock mining royalties ...... 1.00 advance our civilization. However, Sell Power Marketing Administrations ...... 6.60 the new corporation. Terminate funding for DOE’s Plutonium Pyroprocessing program 0.23 Mr. President, I urge my colleagues there also is too much waste in govern- Terminate DOE’s Petroleum R&D Program ...... 0.24 to join me in support of this measure ment. And we must constantly reassess Cut funding for construction of new forest roads ...... 0.25 Adjust price of timber sold by Forest Service ...... 1.00 and ask unanimous consent that a copy our spending priorities. Abolish the Forest Service Salvage Fund ...... 0.18 of this legislation be included in the Many of the programs targeted in Cancel tactical aircraft program & procure current generation plan (e.g., F–22) ...... 13.70 RECORD. this legislation represent bad policy Close Uniformed Services University of the Health Services ...... 0.30 There being no objection, the bill was and bad economics. The benefits go pri- Return inflation windfall in DoD funds to the Treasury ...... 23.00 Delay next stage funding of THAAD ...... 1.10 ordered to be printed in the RECORD, as marily to a narrow group of bene- Reform troop transport to deployed ships ...... 7.00 follows: ficiaries, while the costs are borne by Accelerate Start II implementation ...... 5.10 Discontinue D5 missile ...... 3.00 S. 2572 consumers, taxpayers, and in some Reduce excess DoD inventory ...... 0.50 Be it enacted by the Senate and House of Rep- cases, the environment. The U.S. De- Eliminate Navy’s ELF Communications System ...... 0.07 Consolidate pilot training programs ...... 0.60 resentatives of the United States of America in partment of Agriculture’s sugar pro- Terminate Space Station ...... 10.65 Congress assembled, gram is one example of a program • SECTION 1. CONTINUING PROVISION OF GLOBAL which interferes with the proper func- Total savings ...... $79.65 SATELLITE SAFETY SERVICES tioning of the marketplace at the ex- AFTER PRIVATIZATION OF BUSINESS By Ms. SNOWE (for herself, Ms. OPERATIONS OF INTERNATIONAL pense of consumers and the general MOBILE SATELLITE ORGANIZATION. public. This program guarantees U.S. MIKULSKI, Ms. COLLINS, Mrs. (a) AUTHORITY.—The International Mari- sugar growers a price that is well above HUTCHISON, Ms. MOSELEY- time Satellite Telecommunications Act (47 the world price of sugar and results in BRAUN, Mrs. MURRAY, Mrs. U.S.C. 751 et seq.) is amended by adding at BOXER, Mr. DODD, Mr. JEF- the end the following: American consumers paying over $1 billion extra for sugar products each FORDS, Mr. REID, Mr. D’AMATO, ‘‘GLOBAL SATELLITE SAFETY SERVICES AFTER year. In addition, since the artificially Mr. ROCKEFELLER, Mr. KERREY, PRIVATIZATION OF BUSINESS OPERATIONS OF Mr. LIEBERMAN, Mr. INMARSAT high sugar prices that result from the TORRICELLI, Mr. DURBIN, Mr. ‘‘SEC. 506. In order to ensure the continued sugar program encourages cultivation SARBANES, Mr. KERRY, Mr. LAU- provision of global maritime distress and of marginal agricultural lands near the safety satellite telecommunications services Florida Everglades, much environ- TENBERG, Mr. INOUYE, and Mr. after the privatization of the business oper- mental damage has been done as a re- LEAHY): ations of INMARSAT, the President may sult of increased pollution and runoff S. 2576. A bill to create a National maintain on behalf of the United States from these lands. Unfortunately, the Museum of Women’s History Advisory membership in the International Mobile Sat- benefits from this program primarily Committee; to the Committee on Rules ellite Organization.’’. and Administration. (b) REPEAL OF SUPERSEDED AUTHORITY.— go to very few large and politically ADVISORY COMMISSION FOR THE NATIONAL (1) REPEAL.—That Act is further amended powerful corporations, not small farm- by striking sections 502, 503, 504, and 505 (47 ers. MUSEUM OF WOMEN’S HISTORY U.S.C. 751, 752, 753, and 757). This is but one example of the many ∑ Ms. SNOWE. Mr. President, today I (2) EFFECTIVE DATE.—The amendments wasteful and outdated programs cut or am introducing legislation to create an made by paragraph (1) shall take effect on eliminated as part of this legislation. Advisory Committee for the National the date on which the International Mobile There are many more examples which I Museum of Women’s History. And I am Satellite Organization ceases to operate di- will not detail at this time. However, pleased to be joined by 20 of my col- rectly a global mobile satellite system.∑ the bottom line is that we can make leagues: Senators MIKULSKI, COLLINS, By Mr. LAUTENBERG: our government more effective and DODD, JEFFORDS, ROCKEFELLER, S. 2573. A bill to make spending re- save money at the same time if we D’AMATO, HUTCHISON, KERREY (NB), ductions to save taxpayers money; to make the commitment to do so. LIEBERMAN, MOSELEY-BRAUN, MURRAY, the Committee on Armed Services. Mr. President, I understand that with REID, TORRICELLI, DURBIN, SARBANES, SAVING TAXPAYERS FROM OBSOLETE PROGRAMS the limited time remaining in the 105th KERRY (MA), LAUTENBERG, BOXER, AND SPENDING ACT OF 1998 Congress, this legislation is not likely INOUYE, and LEAHY. ∑ Mr. LAUTENBERG. Mr. President, to be approved before the end of this For far too long, women have con- today I introduce the Saving Tax- session. And I realize that many of tributed to history, but seem to have payers from Obsolete Programs and these proposals would face strong oppo- largely been forgotten in our history Spending Act of 1998 also known as the sition. But I hope my colleagues will books, as well as our monuments and STOP Spending Act of 1998. This legis- review this legislation and support my museums. It is long past time that the lation cuts or eliminates over 25 unnec- efforts to reduce government spending roles women have played be removed essary federal programs and would save in the future by cutting these outdated from the shadows of indifference and approximately $80 billion over the next and wasteful programs. given a place where they can shine. five years. I ask unanimous consent that a table The bill we are introducing today This legislation targets programs showing the spending cuts included in will create a 26 member Advisory Com- throughout the government—from the this legislation be included in the mittee will look at the following three Pentagon, to the Departments of Agri- RECORD. issues and report back to Congress on culture, Interior and Energy, to NASA. There being no objection, the table (1) identifying a site for the museum in If this legislation were to be enacted, was ordered to be printed in the the District of Columbia; (2) developing we would have a leaner, better, smarter RECORD, as follows: a business plan to allow the creation government. Many of these programs, and maintenance of the museum to be like the peanut quota program, are THE STOP SPENDING ACT OF 1998 done solely with private contributions outdated relics of a different era. Oth- Five-year and (3) assistance with the collection ers, like the cancellation of an unnec- total sav- and program of the museum. Progran cut ings (In essary tactical aircraft program, just Billions) It is important to note that this bill represent new thinking that more does not commit Congress to spending Terminate Agricultural subsidies in 2003 ...... $4.00 properly reflects a changing inter- Eliminate the Market Access Program ...... 0.45 any money for this museum. The Com- national security environment. Phase out the sugar program ...... 0.00 mittee’s report will tell us the feasibil- Phase out the peanut program ...... 0.00 Mr. President, the federal govern- Elimnate Wildlife Services Predator Control Program ...... 0.05 ity of funding the museum privately. ment spends about $1.7 trillion each Extend deficit reduction assessment on tobacco farmers ...... 0.15 And I believe that the Museum’s Board October 7, 1998 CONGRESSIONAL RECORD — SENATE S11713 has shown that they have the ability to was the first woman elected to the U.S. In fact the real question about the do just that. Senate in her own right in 1948, and in building of a women’s museum is not The concept for the National Mu- 1962 became the first woman to run for so much where it will be built—al- seum of Women’s History (NMWH) was the U.S. Presidency in the primaries of though that remains to be explored. created back in 1996. Since that time, a major political party. Or that the And it’s not even who will pay for it— the Board of Directors, lead by Presi- first female cabinet member was as I’ve said, it will be done entirely dent Karen Staser, has worked tire- Frances Perkins, who was Secretary of with private funds. The real question lessly to build support and interest for Labor for FDR. when it comes to a museum dedicated this project. And judging by the fact Hardly household names. But they to women’s history is, where will they that they have raised close to $10 mil- should be. And with a place to show- put it all! lion for the project, lent their support case their accomplishments, perhaps I would argue that we have a solemn to the moving of the Suffragette stat- one day they will take their rightful responsibility to teach our children, ute from the crypt to the Rotunda, and place beside America’s greatest minds, and ourselves, about our rich past—and raised $85,000 for that effort, I’d say visionary leaders, and groundbreaking that includes the myriad contributions they are well on their way to success. figures. of women, in all fields and every en- In fact, just this summer they do- But until then, we have a long way to deavor. These women can serve as role nated a bust of Sojourner Truth that go. Many of us know that women models and inspire our youth. They can was unveiled during the 150th anniver- fought and got the vote in 1920, with teach us about our past and guide us sary of the Suffragette movement. And the ratification of the 19th Amendment into our future. They can even prompt on September 28 they opened their to the Constitution. But how many young women to consider a career in ‘‘cyber museum’’ to the computer- know that Wyoming gave women the public service—as Senator Smith of going public (www.nmwh.org), which right to vote in 1869, 51 years earlier, Maine did for me. will serve as the Museum’s ‘‘home’’ and that by 1900 Utah, Colorado and Instead, today in America, more until there is a building. To steal a line Idaho had granted women the right to young women probably know the from a song, these sisters are truly vote? Or that the suffragette move- names of the latest super models then ‘‘doing it for themselves’’! ment took 72 years to meet its goal? the names of the female members of They have also spent a lot of time And few know that the women of Utah this Administration’s Cabinet. That is answering the question ‘‘why do we sewed dresses made from silk for the why we need a National Museum of need a women’s museum when we have Suffragettes on their cross country Women’s History, that is why I am the Smithsonian.’’ The first answer to tour. proud to sponsor this legislation, and that comes from Edith Mayo, Curator Rosie the Riverter was the name that is why I hope that my colleagues Emeritus of the Smithsonian National given to the hundreds of thousands of will join us in supporting the creation Museum of American History, who women who entered the workforce to of this Advisory Committee as a first notes that since 1963 only two exhib- help the war effort during World War II step toward writing the forgotten chap- its—two—were dedicated to the role of on the home front. But our history ters of the history of our nation.∑ women in history. books don’t discuss Jacquline Cochran By Mr. CHAFEE (for himself and Is it any wonder, then, that Congress and Nancy Harkness Love. Mr. MOYNIHAN): got in the habit of designating March Jackie was a pilot who went to Great S. 2575. A bill to expand authority for as National Women’s History Month? Britain with 21 other women and programs to encourage Federal em- The fact is, in the story of America’s ferried planes. In fact, she created ployees to commute by means other success, the chapter on women’s con- quite a stir when she ferried a new than single-occupancy motor vehicles tributions has largely been left on the bomber from Canada to England on the to include an option to pay cash for editing room floor. trip overseas. agency-provided parking spaces, and Here’s what I mean: We all know that Nancy created a ferrying program in for other purposes; to the Committee JOHN GLENN, the distinguished Senator Connecticut, known as the Women’s on Governmental Affairs. from the State of Ohio, was the first Auxiliary Ferrying Squadron, which THE ‘‘FEDERAL EMPLOYEE FLEXIBILITY ACT OF American to orbit the earth on board also ferried planes in the states. They 1998’’ Friendship 7 in 1962—and we wish him made an important contribution to our Mr. CHAFEE. Mr. President, I rise godspeed as he embarks on his second war effort, yet both of them have today to introduce, with Senator MOY- journey into space at the end of this ‘‘flown under the radar screen’’ of his- NIHAN, the ‘‘Federal Employee Flexibil- month. But how many people know tory for far too many years. ity Act of 1998,’’ a bill that would pro- that Margaret Reha Seddon was the We now have two women on the Su- vide flexibility and choices for Federal first U.S. woman to achieve the full preme Court; Sandra Day O’Conner ap- employees. This flexibility was pro- rank of astronaut, and flew her first pointed in 1981, and Ruth Bader vided to private sector employees in space mission aboard the Space Shuttle Ginsberg who joined her in 1993. But the Taxpayer Relief Act of 1997 and the ‘‘Discovery’’ in 1985, twenty three years what we never learned is that in 1870, Transportation Equity Act for the 21st after Senator GLENN’s historic flight? Iowa became the first state to admit a Century, so-called TEA 21. We believe And I can guarantee you more people woman to the bar: Arabella Mansfield. that these provisions provide to em- know the last person to hit over .400 in Or that the first woman was allowed to ployers and employees important new baseball—Ted Williams—than can practice before the U.S. Supreme Court flexibility which should reduce single name the first woman elected to Con- in 1879, and her name was Belva occupant vehicle trips from our high- gress—Jeannette Rankin of Montana, Lockwood. ways and therefore contribute to re- who was elected in 1916, four years be- Whatever period of history you duced congestion, a cleaner environ- fore ratification of the 19th Amend- chose—women played a role. Sybil ment, and increased energy conserva- ment gave women the right to vote. Ludington, a 16 year old, rode through tion. And how many people can tell you parts of New York and Connecticut in The Taxpayer Relief Act of 1997 and that, in 1924 Nellie Ross of Wyoming April of 1777 to warn that the Redcoats the Transportation Equity Act for the was the first woman elected governor were coming. Sacajawea, the Shoshone 21st Century include significant of a state? Or that it wasn’t until 1974 Indian guide, helped escort Lewis and changes to the way the Internal Reve- —50 years later—that the first woman Clark on their 8000 mile expedition. nue Code treats employer-provided governor was elected in her own right: Rosa Parks, Jo Ann Robinson and transportation fringe benefits. Unfor- Connecticut’s Ella Grasso? Myrlie Evers played important roles in tunately, we have become aware that History is filled with such little the civil rights movement in the 50’s personnel compensation law for Fed- known but important milestones: like and 60’s. And as we move into the 21st eral employees restricts implementa- the first woman elected to the United century, the role of women—who now tion of this new flexibility. States Senate was Hattie Wyatt Cara- make up 52 percent of the population— Prior to enactment of these two bills, way from Louisiana in 1932. That will continue to be integral to the fu- the Federal tax code provided that em- Maine’s own Margaret Chase Smith ture success of this country. ployer-provided parking is not subject S11714 CONGRESSIONAL RECORD — SENATE October 7, 1998 to Federal taxation, up to $170 per Mr. President, I ask that the text of Likewise, Federal tax code allowed month. However, this tax exemption the bill be printed in the RECORD. an employer to offer tax-free parking was lost for all employees if the park- There being no objection, the bill was up to a value of 4170 per month per em- ing was offered in lieu of compensation ordered to be printed in the RECORD, as ployee. However, if an employer gave for just one employee. In other words, follows: just one employee a choice between if an employer gave just one employee S. 2575 parking and some other taxable bene- a choice between parking and some Be it enacted by the Senate and House of Rep- fit—such as increased salary—the park- other benefit (such as a transit pass, or resentatives of the United States of America in ing of all other employees in the com- increased salary), the parking of all Congress assembled, pany became taxable. The result—em- other employees in the company be- SECTION 1. CASH PAYMENT TO FEDERAL EM- ployers have had no incentive to offer came taxable. It goes without saying PLOYEES FOR PARKING SPACES. employees the opportunity to ‘‘cash that no employers jeopardized a tax (a) SHORT TITLE.—This Act may be cited as out’’ their parking, perhaps taking an benefit for the overwhelming majority the ‘‘Federal Employee Flexibility Act of increase in salary and using mass tran- of their employees to provide flexibil- 1998’’. sit or carpooling. That hidden pro- (b) IN GENERAL.—Section 7905(b)(2) of title ity to others. In effect, the tax code parking bias in the tax code has likely prohibited employers from offering 5, United States Code, is amended— (1) in subparagraph (B) by striking ‘‘and’’ resulted in far too many employees their employees a choice. Parking was after the semicolon; choosing to drive to work over riding a take-it or leave-it benefit. (2) in subparagraph (C) by striking the pe- transit and other modes. The changes in these two laws make riod and inserting a semicolon and ‘‘and’’; The tax title of TEA–21 now contains it possible for employers to offer their and the proper language and offsets in employees more choices by eliminating (3) by adding at the end the following: place to eliminate this ‘‘constructive the take-it or leave-it restriction in ‘‘(D) taxable cash payment to an employee receipt’’ requirement—and increase the the Federal tax code. Employees whose in lieu of an agency-provided parking transit benefit from its current $65 to space.’’. only transportation benefit is parking $100 in 2002. It means that employers can now instead accept a salary en- Mr. MOYNIHAN. Mr. President, I rise who provide the transit benefit in lieu hancement, and find other means to today with my friend and colleague of salary will pay less in payroll taxes, get to work such as car pooling, van Senator CHAFEE to introduce the ‘‘Fed- while employees will receive a benefit pooling, biking, walking, or taking eral Employee Flexibility Act of 1998,’’ worth a full $65, instead of taxable in- transit. a bill to provide Federal employees come of $65. Likewise employers can Unfortunately, Federal employees with the commuting benefits that were now offer employee cash instead of a will not be able to benefit from the in- created in the Transportation Equity tax-free parking parking space, and we creased flexibility available to private Act for the 21st Century, known as hope reduce the number of employees sector employees, unless Federal com- TEA–21, and are now available for pri- who drive to work. The measure is pensation law is modified. Current Fed- vate sector employees. ‘‘paid for,’’ in Budget Act parlance, by eral law provides that a Federal em- This Act is part of an ongoing effort ployee may not receive additional pay a one-year freeze in the COLA adjust- that we started over seven years ago in ments for parking benefits, currently unless specifically authorized by law. the Intermodal Surface Transportation Therefore, a Federal employee could at $175 per month, and transit benefits. Efficiency Act to introduce pricing and But, unfortunately, the job is not not ‘‘cash out’’ a parking space at economic incentives into our national quite done. Federal employees will not work, and instead receive cash or other transportation policy. Traditionally, be able to benefit from the increased benefits. U.S. transportation policy has favored To address this limitation for transit flexibility available to private sector new highway construction over repair employees, unless Federal compensa- passes and similar benefits, the ‘‘Fed- and maintenance and auto travel over eral Employees Clean Air Incentives tion law is modified. Current Federal transit and other modes. Our tax code law provides that a Federal employee Act’’ allows the Federal government to also reflected this bias by providing provide transit benefits, bicycle serv- may not receive additional pay unless large incentives to employers to offer specifically authorized by law. There- ices, and non-monetary incentives to their employees tax-free parking employees. However, when this legisla- fore, a Federal employee could not spaces, while making it less attractive ‘‘cash out’’ a parking space at work, tion was enacted, the Federal tax code to provide transit or cash benefits in prohibited the so-called ‘‘cash out’’ op- and instead receive cash or other bene- lieu of parking. tion discussed above, and therefore was fits. This has particularly unfortunate The Finance Committee first set out not included in the list of transpor- consequences here in Washington, one to tackle this problem in the National tation-related exemptions in that stat- of the most congested cities in the Energy Policy Act of 1992. That Act ute. country, with an enormous Federal The short and simple bill we intro- capped non-taxable monthly parking workforce, the great majority of whom duce today would add ‘‘taxable cash re- benefits at $155, increased monthly drive single-occupancy vehicles to imbursement for the value of an em- transit benefits from $21 to $60, and work every day. ployer-provided parking space’’ to the added an annual COLA adjustment for The simple bill that Senator CHAFEE list of benefits that can be received by both. However, because of the ‘‘con- and I introduce today would add ‘‘tax- Federal employees. structive receipt’’ principle in the tax able cash reimbursement for the value Let me assure my colleagues and code, under the 1992 Act, an employer of an employer-provided parking Federal employees that this bill would could not offer his employees the tax- space’’ to the list of benefits Federal not require that Federal employees free commuting benefits in lieu of tax- employees can receive. I hope my col- lose their parking spaces, as may be able salary. leagues will join us in supporting this feared when there is discussion of Fed- In other words, if an employer offered bill and that we can act swiftly on this eral employee parking spaces. The bill to provide his employees non-taxable bill in the next session of Congress. simply provides Federal employees the $65 monthly transit passes but lower f same flexibility that is available to their salaries by $65 a month, and any ADDITIONAL COSPONSORS private sector employees. Employees employee chose to keep the salary— who want to retain their tax-free park- maybe they walk to work—under the S. 1286 ing space would be free to do so. ‘‘constructive receipt’’ principle, the At the request of Mr. JEFFORDS, the We think it is vital that the Federal transit passes for the other employees name of the Senator from Utah [Mr. government show leadership on the ap- would lose their tax-free status. This BENNETT] was added as a cosponsor of plication of new and innovative ways made the transit benefit program of S. 1286, a bill to amend the Internal to solve our transportation and envi- only limited attractiveness to employ- Revenue Code of 1986 to exclude from ronmental problems. I hope that my ers since they could only offer it as gross income certain amounts received colleagues will join me in supporting part of a negotiated increase in salary, as scholarships by an individual under this bill and that we can act swiftly on not as a benefit in lieu of existing sal- the National Health Corps Scholarship it in the next session of Congress. ary. Program. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11715

S. 1466 Internal Revenue Code of 1986 to im- DEWINE] was added as a cosponsor of At the request of Mr. ABRAHAM, the prove the research and experimen- Senate Concurrent Resolution 94, a name of the Senator from Georgia [Mr. tation tax credit, and for other pur- concurrent resolution supporting the COVERDELL] was added as a cosponsor poses. religious tolerance toward Muslims. of S. 1466, a bill to amend the Public S. 2283 SENATE CONCURRENT RESOLUTION 121 Health Service Act to permit faith- At the request of Mr. DEWINE, the At the request of Mr. SPECTER, the based substance abuse treatment cen- name of the Senator from Illinois [Mr. names of the Senator from Minnesota ters to receive Federal assistance, to DURBIN] was added as a cosponsor of S. [Mr. WELLSTONE], the Senator from permit individuals receiving Federal 2283, a bill to support sustainable and Montana [Mr. BAUCUS], and the Sen- drug treatment assistance to select pri- broad-based agricultural and rural de- ator from Illinois [Ms. MOSELEY- vate and religiously oriented treat- velopment in sub-Saharan Africa, and BRAUN] were added as cosponsors of ment, and to protect the rights of indi- for other purposes. Senate Concurrent Resolution 121, a viduals from being required to receive S. 2356 concurrent resolution expressing the religiously oriented treatment. At the request of Mr. ROBERTS, the sense of Congress that the President S. 1720 names of the Senator from Arkansas should take all necessary measures to At the request of Mr. LEAHY, the [Mr. HUTCHINSON] and the Senator from respond to the increase in steel imports name of the Senator from Illinois [Mr. Idaho [Mr. KEMPTHORNE] were added as resulting from the financial crises in DURBIN] was added as a cosponsor of S. cosponsors of S. 2356, a bill to amend Asia, the independent States of the 1720, a bill to amend title 17, United the Federal Food, Drug, and Cosmetic former Soviet Union, Russia, and other States Code, to reform the copyright Act to provide for uniform food safety areas of the world, and for other pur- law with respect to satellite retrans- warning notification requirements, and poses. missions of broadcast signals, and for for other purposes. SENATE RESOLUTION 56 other purposes. S. 2358 At the request of Mr. GRASSLEY, the names of the Senator from Indiana S. 1970 At the request of Mr. ROCKEFELLER, [Mr. LUGAR] and the Senator from Col- At the request of Mr. ABRAHAM, the the name of the Senator from New orado [Mr. ALLARD] were added as co- name of the Senator from Rhode Island Mexico [Mr. BINGAMAN] was added as a cosponsor of S. 2358, a bill to provide sponsors of Senate Resolution 56, a res- [Mr. CHAFEE] was added as a cosponsor for the establishment of a service-con- olution designating March 25, 1997 as of S. 1970, a bill to require the Sec- ‘‘Greek Independence Day: A National retary of the Interior to establish a nection for illnesses associated with service in the Persian Gulf War, to ex- Day of Celebration of Greek and Amer- program to provide assistance in the ican Democracy.’’ conservation of neotropical migratory tend and enhance certain health care authorities relating to such service, SENATE RESOLUTION 257 birds. and for other purposes. At the request of Mr. MURKOWSKI, the S. 2080 S. 2364 name of the Senator from West Vir- At the request of Mr. HELMS, the At the request of Mr. CHAFEE, the ginia [Mr. BYRD] was added as a co- names of the Senator from Alabama names of the Senator from Wisconsin sponsor of Senate Resolution 257, a res- [Mr. SHELBY], the Senator from Ken- [Mr. FEINGOLD], the Senator from Lou- olution expressing the sense of the Sen- tucky [Mr. FORD], and the Senator isiana [Mr. BREAUX], and the Senator ate that October 15, 1998, should be des- from Montana [Mr. BURNS] were added from Vermont [Mr. LEAHY] were added ignated as ‘‘National Inhalant Abuse as cosponsors of S. 2080, a bill to pro- as cosponsors of S. 2364, a bill to reau- Awareness Day.’’ vide for the President to increase sup- thorize and make reforms to programs f port to the democratic opposition in authorized by the Public Works and SENATE RESOLUTION 289—AU- Cuba, to authorize support under the Economic Development Act of 1965. Cuban Liberty and Democratic Solidar- THORIZING THE PRINTING OF S. 2415 ity (LIBERTAD) Act of 1996 for the pro- THE ‘‘TESTIMONY FROM THE At the request of Mr. SANTORUM, the HEARINGS OF THE TASK FORCE vision and transport of increased hu- name of the Senator from North Caro- manitarian assistance directly to the ON ECONOMIC SANCTIONS’’ lina [Mr. HELMS] was added as a co- oppressed people of Cuba to help them sponsor of S. 2415, a bill to amend the Mr. MCCONNELL submitted the fol- lowing resolution; which was consid- regain their freedom, and for other pur- Internal Revenue Code of 1986 to reduce ered and agreed to: poses. the tax on beer to its pre-1991 level. S. 2180 S. RES. 289 S. 2418 Resolved, That the ‘‘Testimony from the At the request of Mr. LOTT, the At the request of Mr. JEFFORDS, the names of the Senator from Louisiana Hearings of the Task Force on Economic name of the Senator from New York Sanctions’’, be printed as a Senate docu- [Ms. LANDRIEU], the Senator from [Mr. D’AMATO] was added as a cospon- ment, and that there be printed 300 addi- Texas [Mrs. HUTCHISON], and the Sen- sor of S. 2418, a bill to establish rural tional copies of such document for the use of ator from West Virginia [Mr. ROCKE- opportunity communities, and for the Task Force on Economic Sanctions at a FELLER] were added as cosponsors of S. other purposes. cost not to exceed $16,311. 2180, a bill to amend the Comprehen- S. 2514 f sive Environmental Response, Com- At the request of Mr. LEAHY, the SENATE RESOLUTION 290—TO AU- pensation, and Liability Act of 1980 to name of the Senator from New Hamp- clarify liability under that Act for cer- THORIZE REPRESENTATION BY shire [Mr. SMITH] was added as a co- SENATE LEGAL COUNSEL tain recycling transactions. sponsor of S. 2514, a bill to amend the S. 2263 Communications Act of 1934 to clarify Mr. LOTT (for himself and Mr. DASCHLE) submitted the following reso- At the request of Mr. GORTON, the State and local authority to regulate lution; which was considered and names of the Senator from California the placement, construction, and modi- agreed to: [Mrs. FEINSTEIN] and the Senator from fication of broadcast transmission and Hawaii [Mr. INOUYE] were added as co- telecommunications facilities, and for S. RES. 290 sponsors of S. 2263, a bill to amend the other purposes. Whereas, Senator John F. Kerry has re- Public Health Service Act to provide ceived a subpoena for documents in the case S. 2525 of Tyree v. Central Intelligence Agency, et al., for the expansion, intensification, and At the request of Mr. LOTT, the name Case No. 98–CV–11829, now pending in the coordination of the activities of the of the Senator from Missouri [Mr. United States District Court for the District National Institutes of Health with re- ASHCROFT] was added as a cosponsor of of Massachusetts; spect to research on autism. S. 2525, a bill to establish a program to Whereas, pursuant to sections 703(a) and 704(a)(2) of the Ethics in Government Act of S. 2268 support a transition to democracy in 1978, 2 U.S.C. 288b(a) and 288c(a)(1), the Sen- At the request of Mr. BINGAMAN, the Iraq. ate may direct its counsel to represent Mem- name of the Senator from Connecticut SENATE CONCURRENT RESOLUTION 94 bers of the Senate with respect to any sub- [Mr. LIEBERMAN] was added as a co- At the request of Mr. ABRAHAM, the poena, order, or request for documents relat- sponsor of S. 2268, a bill to amend the name of the Senator from Ohio [Mr. ing to their official responsibilities; and S11716 CONGRESSIONAL RECORD — SENATE October 7, 1998 Whereas, by the privileges of the Senate of ‘‘(E) with respect to electronic commerce, tended to be proposed by them to the the United States and Rule XI of the Stand- an examination of the efforts of State and bill, S. 442, supra; as follows: ing Rules of the Senate, no evidence under local governments to collect sales and use Beginning on page ll, line ll, strike all the control or in the possession of the Senate taxes owned on purchases from interstate through page ll, line ll, and insert: may, by the judicial process, be taken from sellers, the advantages and disadvantages of SEC. 101. MORATORIUM. such control or possession but by permission authorizing State and local governments to (a) MORATORIUM.—No State or political of the Senate: Now, therefore, be it require such sellers to collect and remit such subdivision thereof shall impose any of the Resolved, That the Senate Legal Counsel is taxes, the likely impact of such collections following taxes on transactions occurring authorized to represent Senator Kerry in on local retail sales, and the level of con- during the period beginning on July 29, 1998, connection with the subpoena served upon tacts sufficient to permit a State or local and ending 3 years after the date of the en- him in the case of Tyree v. Central Intelligence government to impose an obligation to col- actment of this Act: Agency, et al. lect such taxes on such interstate sellers; (1) Taxes on Internet access. f and’’. (2) Bit taxes. SENATE RESOLUTION 291—TO AU- (3) Multiple or discriminatory taxes on GRAHAM AMENDMENT NO. 3752 electronic commerce. THORIZE REPRESENTATION BY (b) APPLICATION OF MORATORIUM.—Sub- SENATE LEGAL COUNSEL (Ordered to lie on the table.) section (a) shall not apply with respect to Mr. LOTT (for himself and Mr. Mr. GRAHAM submitted an amend- the provision of Internet access that is of- fered for sale as part of a package of services DASCHLE) submitted the following reso- ment intended to be proposed by him to amendment No. 3720 submitted by that includes services other than Internet lution; which was considered and access, unless the service provider separately Mr. MCCAIN to the bill, S. 442, supra; as agreed to: states that portion of the billing that applies S. RES. 291 follows: to such services on the user’s bill. Whereas, the Secretary of the Senate, Gary On page 1, line 8, strike ‘‘, assessed or’’ and SEC. 102. ADVISORY COMMISSION ON ELEC- Sisco, and the Sergeant at Arms and Door- insert ‘‘and’’. TRONIC COMMERCE. keeper of the Senate, Gregory S. Casey, have (a) ESTABLISHMENT OF COMMISSION.—There been named as defendants in the case of GRAHAM AMENDMENT NO. 3753 is established a commission to be known as Clifford Alexander, et al. v. William M. Daley, the Advisory Commission on Electronic et al., Case No. 1:98CV02187, now pending in (Ordered to lie on the table.) Commerce (in this title referred to as the the United States District Court for the Dis- Mr. GRAHAM submitted an amend- ‘‘Commission’’). The Commission shall— trict of Columbia; and ment intended to be proposed by him (1) be composed of 16 members appointed in Whereas, pursuant to sections 703(a) and to amendment No. 3716 submitted by accordance with subsection (b), including the chairperson who shall be selected by the 704(a)(2) of the Ethics in Government Act of Mr. MCCAIN to the bill, S. 442, supra; as members of the Commission from among 1987, 2 U.S.C. 288b(a) and 288c(a)(1), the Sen- follows: ate may direct its counsel to represent offi- themselves; and cers of the Senate in civil actions with re- On page 1, line 1, strike ‘‘4’’ and insert ‘‘3’’. (2) conduct its business in accordance with spect to their official responsibilities: Now, the provisions of this title. therefore, be it GRAHAM AMENDMENT NO. 3754 (b) MEMBERSHIP.— Resolved, That the Senate Legal Counsel is (1) IN GENERAL.—The Commissioners shall authorized to represent the Secretary of the (Ordered to lie on the table.) serve for the life of the Commission. The Senate and the Sergeant at Arms and Door- Mr. GRAHAM submitted an amend- membership of the Commission shall be as keeper of the Senate in the case of Alexander, ment intended to be proposed by him follows: et al. v. Daley, et al. to amendment No. 3715 submitted by (A) Four representatives from the Federal Government comprised of the Secretary of f Mr. MCCAIN to the bill, S. 442, supra; as Commerce, the Secretary of State, the Sec- follows: AMENDMENTS SUBMITTED retary of the Treasury, and the United On page 1, line 1, strike ‘‘6’’ and insert ‘‘3’’. States Trade Representative, or their respec- tive representatives. INTERNET TAX FREEDOM ACT GRHAM AMENDMENT NO. 3755 (B) Six representatives from State and local governments comprised of— (Ordered to lie on the table.) (i) two representatives appointed by the GRAHAM AMENDMENTS NOS. 3750– Mr. GRAHAM submitted an amend- Majority Leader of the Senate; 3751 ment intended to be proposed by him (ii) one representative appointed by the to amendment No. 3714 submitted by Minority Leader of the Senate; (Ordered to lie on the table.) (iii) two representatives appointed by the Mr. GRAHAM submitted two amend- Mr. MCCAIN to the bill, S. 442, supra; as follows: Speaker of the House of Representatives; and ments intended to be proposed by him (iv) one representative appointed by the to amendment No. 3722 submitted by On Page 1, line 1, strike ‘‘5’’ and insert ‘‘3’’. Minority Leader of the House of Representa- Mr. MCCAIN to the bill (S. 442) to estab- tives. lish a national policy against State and GRAHAM AMENDMENTS NOS. 3756– (C) Six representatives of the electronic in- local government interference with 3758 dustry and consumer groups comprised of— (i) two representatives appointed by the interstate commerce on the Internet or (Ordered to lie on the table.) Majority Leader of the Senate; interactive computer services, and to Mr. GRAHAM submitted three (ii) one representative appointed by the exercise Congressional jurisdiction amendments intended to be proposed Minority Leader of the Senate; over interstate commerce by establish- by him to amendment No. 3711 submit- (iii) two representatives appointed by the ing a moratorium on the imposition of ted by Mr. MCCAIN to the bill, S. 442, Speaker of the House of Representatives; and exactions that would interfere with the supra; as follows: (iv) one representative appointed by the Minority Leader of the House of Representa- free flow of commerce via the Internet, AMENDMENT NO. 3756 and for other purposes; as follows: tives. On page 3, line 4, strike ‘‘; or’’ and all that (2) APPOINTMENTS.—Appointments to the AMENDMENT NO. 3750 follows through line 23, and insert a period. Commission shall be made not later than 45 On page 2, line 4, strike ‘‘and’’ and insert days after the date of the enactment of this the following: AMENDMENT NO. 3758 Act. The chairperson shall be selected not ‘‘(E) an examination of the effects of tax- On page 2, strike lines 16 through 22. later than 60 days after the date of the enact- ation including the absence of taxation, on ment of this Act. all interstate sales transactions, including Amendment No. 3757 (3) VACANCIES.—Any vacancy in the Com- transactions using the Internet, on local re- mission shall not affect its powers, but shall tail businesses and on State and local gov- On page 2, line 19, insert ‘‘billing,’’ after ‘‘business,’’. be filled in the same manner as the original ernments, which examination may include a appointment. review of the efforts of State and local gov- (c) ACCEPTANCE OF GIFTS AND GRANTS.— ernments to collect sales and use taxes BENNETT (AND OTHERS) The Commission may accept, use, and dis- owned on in-State purchases from out-of- AMENDMENT NO. 3759 pose of gifts or grants of services or prop- State sellers; and’’. erty, both real and personal, for purposes of (Ordered to lie on the table.) aiding or facilitating the work of the Com- AMENDMENT NO. 3751 Mr. BENNETT (for himself, Mr. mission. Gifts or grants not used at the expi- On page 2, line 4, strike ‘‘and’’ and insert KERREY, Ms. LANDRIEU, and Mr. ration of the Commission shall be returned the following: MCCAIN) submitted an amendment in- to the donor or grantor. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11717

(d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- days in advance and shall be open to the pub- shall have reasonable access to materials, re- istration of sales and use taxes on interstate lic. sources, data, and other information from commerce, including a review of the need for (3) OPPORTUNITIES TO TESTIFY.—The Com- the Department of Justice, the Department a single or uniform tax registration, single mission shall provide opportunities for rep- of Commerce, the Department of State, the or uniform tax returns, simplified remit- resentatives of the general public, taxpayer Department of the Treasury, and the Office tance requirements, simplified administra- groups, consumer groups, and State and of the United States Trade Representative. tive procedures, or the need for an independ- local government officials to testify. The Commission shall also have reasonable ent third party collection system; and (4) ADDITIONAL RULES.—The Commission access to use the facilities of any such De- (E) the examination of ways to simplify may adopt other rules as needed. partment or Office for purposes of conduct- Federal and State and local taxes imposed on (g) DUTIES OF THE COMMISSION.— ing meetings. the provision of telecommunications serv- (1) IN GENERAL.—The Commission shall (e) SUNSET.—The Commission shall termi- ices. conduct a thorough study of Federal, State nate 2 years after the date of the enactment SEC. 103. REPORT. and local, and international taxation and of this Act. Not later than 2 years after the date of the tariff treatment of transactions using the (f) RULES OF THE COMMISSION.— enactment of this Act, the Commission shall Internet and Internet access and other com- (1) QUORUM.—Nine members of the Com- transmit to Congress a report reflecting the parable interstate or international sales ac- mission shall constitute a quorum for con- results of the Commission’s study under this tivities. ducting the business of the Commission. title. No finding or recommendation shall be (2) ISSUES TO BE STUDIED.—The Commission (2) MEETINGS.—Any meetings held by the included in the report unless agreed to by at may include in the study under subsection Commission shall be duly noticed at least 14 least two-thirds of the members of the Com- (a)— days in advance and shall be open to the pub- mission serving at the time the finding or (A) an examination of— lic. recommendation is made. (i) barriers imposed in foreign markets on (3) OPPORTUNITIES TO TESTIFY.—The Com- United States providers of property, goods, mission shall provide opportunities for rep- HUTCHINSON (AND OTHERS) services, or information engaged in elec- resentatives of the general public, taxpayer AMENDMENT NO. 3760 tronic commerce and on United States pro- groups, consumer groups, and State and viders of telecommunications services; and local government officials to testify. Mr. HUTCHINSON (for himself, Mr. (ii) how the imposition of such barriers (4) ADDITIONAL RULES.—The Commission ENZI, and Mr. GRAHAM) proposed an will affect United States consumers, the may adopt other rules as needed. amendment to the bill, S. 442, supra; as competitiveness of United States citizens (g) DUTIES OF THE COMMISSION.— follows: providing property, goods, services, or infor- (1) IN GENERAL.—The Commission shall mation in foreign markets, and the growth conduct a thorough study of Federal, State At the end of the McCain amendment, add and maturing of the Internet; and local, and international taxation and the following: (B) an examination of the collection and tariff treatment of transactions using the (F) an examination of the effects of tax- administration of consumption taxes on Internet and Internet access and other com- ation, including the absence of taxation, on interstate commerce in other countries and parable interstate or international sales ac- all interstate sales transactions, including the United States, and the impact of such tivities. transactions using the Internet, on local re- collection on the global economy, including (2) ISSUES TO BE STUDIED.—The Commission tail businesses and on State and local gov- an examination of the relationship between may include in the study under subsection ernments, which examination may include a the collection and administration of such (a)— review of the efforts of State and local gov- taxes when the transaction uses the Internet (A) an examination of— ernments to collect sales and use taxes owed and when it does not; (i) barriers imposed in foreign markets on on in-State purchases from out-of-State sell- (C) an examination of the impact of the United States providers of property, goods, ers. Internet and Internet access (particularly services, or information engaged in elec- voice transmission) on the revenue base for tronic commerce and on United States pro- GRAMM AMENDMENTS NOS. 3761– taxes imposed under section 4251 of the In- viders of telecommunications services; and ternal Revenue Code of 1986; (ii) how the imposition of such barriers 3770 (D) an examination of— will affect United States consumers, the (Ordered to lie on the table.) (i) the efforts of State and local govern- competitiveness of United States citizens Mr. GRAMM submitted 10 amend- ments to collect sales and use taxes owed on providing property, goods, services, or infor- ments intended to be proposed by him purchases from interstate sellers, the advan- mation in foreign markets, and the growth to the bill, S. 442, supra; as follows: tages and disadvantages of authorizing State and maturing of the Internet; and local governments to require such sellers (B) an examination of the collection and AMENDMENT NO. 3761 to collect and remit such taxes, particularly administration of consumption taxes on Strike ‘‘days after the date of the enact- with respect to electronic commerce, and the interstate commerce in other countries and ment of this Act. level of contacts sufficient to permit a State the United States, and the impact of such (3) VACANCIES.—Any vacancy in the Com- or local government to impose such taxes on collection on the global economy, including mission shall not affect its powers, but shall such interstate commerce; an examination of the relationship between be filled in the same manner as the original (ii) model State legislation relating to tax- the collection and administration of such appointment. ation of transactions using the Internet and taxes when the transaction uses the Internet (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- and when it does not; The Commission may accept, use, and dis- ogy, definitions of the transactions, services, (C) an examination of the impact of the pose of gifts or grants of services or prop- and other activities that may be subject to Internet and Internet access (particularly erty, both real and personal, for purposes of State and local taxation, procedural struc- voice transmission) on the revenue base for aiding or facilitating the work of the Com- tures and mechanisms applicable to such taxes imposed under section 4251 of the In- mission. Gifts or grants not used at the expi- taxation, and a mechanism for the resolution ternal Revenue Code of 1986; ration of the Commission shall be returned of disputes between States regarding matters (D) an examination of— to the donor or grantor. of multiple taxation; and (i) the efforts of State and local govern- (d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- ments to collect sales and use taxes owed on shall have reasonable access to materials, re- istration of sales and use taxes on interstate purchases from interstate sellers, the advan- sources, data, and other information from commerce, including a review of the need for tages and disadvantages of authorizing State the Department of Justice, the Department a single or uniform tax registration, single and local governments to require such sellers of Commerce, the Department of State, the or uniform tax returns, simplified remit- to collect and remit such taxes, particularly Department of the Treasury, and the Office tance requirements, simplified administra- with respect to electronic commerce, and the of the United States Trade Representative. tive procedures, or the need for an independ- level of contacts sufficient to permit a State The Commission shall also have reasonable ent third party collection system; and or local government to impose such taxes on access to use the facilities of any such De- (E) the examination of ways to simplify such interstate commerce; partment or Office for purposes of conduct- Federal and State and local taxes imposed on (ii) model State legislation relating to tax- ing meetings. the provision of telecommunications serv- ation of transactions using the Internet and (e) SUNSET.—The Commission shall termi- ices. Internet access, including uniform terminol- nate 18 months after the date of the enact- ogy, definitions of the transactions, services, ment of this Act. SEC. 103. REPORT. and other activities that may be subject to (f) RULES OF THE COMMISSION.— Not later than 18 months after the date of State and local taxation, procedural struc- (1) QUORUM.—Nine members of the Com- the enactment of this Act, the Commission tures and mechanisms applicable to such mission shall constitute a quorum for con- shall transmit to Congress a report reflect- taxation, and a mechanism for the resolution ducting the business of the Commission. ing the results of the Commission’s study of disputes between States regarding matters (2) MEETINGS.—Any meetings held by the under this title. No finding or recommenda- of multiple taxation; and Commission shall be duly noticed at least 14 tion shall be included in the report unless S11718 CONGRESSIONAL RECORD — SENATE October 7, 1998 agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is tion, the Organization for Economic Co- bers of the Commission serving at the time measured by the amount of the sales price or operation and Development, the Trans-At- the finding or recommendation is made. other charge for such property or service. lantic Economic Partnership, the Asia Pa- SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of cific Economic Cooperation forum, the Free For the purposes of this title: the several States, the District of Columbia, Trade Area of the America, the North Amer- (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- ican Free Trade Agreement, and other appro- any tax on electronic commerce expressly sion of the United States. priate venues. imposed on or measured by the volume of (8) TAX.— (b) NEGOTIATING OBJECTIVES.—The nego- digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— tiating objectives of the United States shall cally, or the volume of digital information (i) any levy, fee, or charge imposed under be— per unit of time transmitted electronically, governmental authority by any govern- (1) to assure that electronic commerce is but does not include taxes imposed on the mental entity; or free from— provision of telecommunications services. (ii) the imposition of or obligation to col- (A) tariff and nontariff barriers; (2) DISCRIMINATORY TAX.—The term ‘‘dis- lect and to remit to a governmental entity (B) burdensome and discriminatory regula- criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a tion and standards; and a State or political subdivision thereof on governmental entity. (C) discriminatory taxation; and electronic commerce that— (B) EXCEPTION.—Such term shall not in- (2) to accelerate the growth of electronic (A) is not generally imposed and legally clude any franchise fees or similar fees im- commerce by expanding market access op- collectible by such State or such political posed by a State or local franchising author- portunities for— subdivision on transactions involving the ity, pursuant to section 622 or 653 of the (A) the development of telecommuni- same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, cations infrastructure; information accomplished through other 573). (B) the procurement of telecommuni- means; (9) TELECOMMUNICATIONS SERVICES.—The cations equipment; (B) is not generally imposed and legally term ‘‘telecommunications services’’ has the (C) the provision of Internet access and collectible at the same rate by such State or meaning given such term in section 3(46) of telecommunications services; and such political subdivision on transactions in- the Communications Act of 1934 (47 U.S.C. (D) the exchange of goods, services, and volving the same or similar property, goods, 153(46)) and includes communications serv- digitalized information. services, or information accomplished ices (as defined in section 4251 of the Internal (c) ELECTRONIC COMMERCE.—For purposes through other means, unless the rate is Revenue Code of 1986). of this section, the term ‘‘electronic com- lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS merce’’ has the meaning given that term in not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET section 104(3). (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL SEC. 204. NO EXPANSION OF TAX AUTHORITY. the tax on a different person or entity than TAXES. Nothing in this Act shall be construed to in the case of transactions involving the It is the sense of Congress that no new Fed- expand the duty of any person to collect or same or similar property, goods, services, or eral taxes similar to the taxes described in pay taxes beyond that which existed imme- information accomplished through other section 101(a) should be enacted with respect diately before the date of the enactment of means. to the Internet and Internet access during this Act. (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. SEC. 205. PRESERVATION OF AUTHORITY. action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 Nothing in this Act shall limit or other- through Internet access, comprising the sale, U.S.C. 2241) is amended— wise affect the implementation of the Tele- lease, license, offer, or delivery of property, (1) in subsection (a)(1)— communications Act of 1996 (Public Law 104– goods, services, or information, whether or (A) in subparagraph (A)— 104) or the amendments made by such Act. not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause SECTION 1. SHORT TITLE. sion of Internet access. (i); This Act may be cited as the ‘‘Government (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause Paperwork Elimination Act.’’ the combination of computer facilities and (ii); and electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- MATION TECHNOLOGY. lated equipment and software, comprising lowing new clause: the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; Section 3504(a)(1)(B)(vi) of title 44, United computer networks that employ the Trans- and States Code, is amended to read as follows: mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— ‘‘(vi) the acquisition and use of informa- or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause tion technology, including the use of alter- transmit information. (i); native information technologies (such as the (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause use of electronic submission, maintenance, access’’ means a service that enables users to (ii); or disclosure of information) to substitute access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- for paper, and the use and acceptance of elec- or other services offered over the Internet, lowing new clause: tronic signatures.’’. and may also include access to proprietary ‘‘(iii) the value of additional United States SEC. 3. PROCEDURES. content, information, and other services as electronic commerce,’’; and (a) Within 18 months after enactment of part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ this Act, in order to fulfill the responsibility sumers. Such term does not include tele- after ‘‘or invested in’’; to administer the functions assigned under communications services. (2) in subsection (a)(2)(E)— chapter 35 of title 44, United States Code, the ULTIPLE TAX.— (6) M (A) by striking ‘‘and’’ at the end of clause Clinger-Cohen Act of 1996 (P.L. 104–106), and (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); the provisions of this Act, the Director of means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause the Office of Management and Budget shall or political subdivision thereof on the same (ii); and develop procedures and guidelines for execu- or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- tive agency use. that is also subject to another tax imposed ing new clause: (1) The procedures shall be compatible with by another State or political subdivision ‘‘(iii) the value of electronic commerce standards and technology for electronic sig- thereof (whether or not at the same rate or transacted with,’’; and natures as may be generally used in com- on the same basis), without a credit (for ex- (3) by adding at the end the following new merce and industry and by State govern- ample, a resale exemption certificate) for subsection: ments, based upon consultation with appro- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes priate private sector and State government (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- standard setting bodies. clude a sales or use tax imposed by a State merce’ has the meaning given that term in (2) Such procedures shall not inappropri- and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom ately favor one industry or technology. on the same electronic commerce or a tax on Act.’’. persons engaged in electronic commerce (3) An electronic signature shall be as reli- SEC. 203. DECLARATION THAT THE INTERNET able as is appropriate for the purpose, and ef- which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER forts shall be made to keep the information (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. submitted intact. subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.— It is the sense of Con- (4) Successful submission of an electronic tax’’ means a tax that is imposed on or inci- gress that the President should seek bilat- form shall be electronically acknowledged. dent to the sale, purchase, storage, consump- eral, regional, and multilateral agreements (5) In accordance with all other sections of tion, distribution, or other use of tangible to remove barriers to global electronic com- the Act, to the extent feasible and appro- personal property or services as may be de- merce through the World Trade Organiza- priate, and described in a written finding, an October 7, 1998 CONGRESSIONAL RECORD — SENATE S11719 agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term (7) PARENT.—The term ‘‘parent’’ includes a cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of legal guardian. lar form, shall take all steps necessary to en- signing an electronic message that— (8) PERSONAL INFORMATION.—The term sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- ‘‘personal information’’ means individually natures are made available for submitting lar person as the source of such electronic identifiable information about an individual such forms. message; and collected online, including— SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the (A) a first and last name; RECTOR OF THE OFFICE OF MAN- information contained in such electronic (B) a home or other physical address in- AGEMENT AND BUDGET. message. cluding street name and name of a city or In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; ter 35 of title 44, United States Code, the vey’’ include documents produced by an (D) a telephone number; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an (E) a Social Security number; the provisions of this Act, the Director of agency and non-government persons. (F) any other identifier that the Commis- sion determines permits the physical or on- the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY line contracting of a specific individual; or ensure that, within five years of the date of PROTECTION (G) information concerning the child or the enactment of this Act, executive agencies SEC. 201. SHORT TITLE. provide for the optional use of electronic parents of that child that the website col- This title may be cited as the ‘‘Children’s lects online from the child and combines maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. formation where practicable, as an alter- with an identifier described in this para- SEC. 202. DEFINITIONS. native information technology to substitute graph. In this title: for paper, and the use and acceptance of elec- (9) VERIFIABLE PARENTAL CONSENT.—The (1) CHILD.—the term ‘‘child’’ means an in- tronic signatures where practicable. term ‘‘verifiable parental consent’’ means dividual under the age of 13. any reasonable effort (taking into consider- SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- Within 18 months of enactment of this Act, (A) means any person who operates a quest for authorization for future collection in order to fulfill the responsibility to ad- website located on the Internet or an online use, and disclosure described in the notice, minister the functions assigned under chap- service and who collects or maintains per- to ensure that a parent of a child receives ter 35 of title 44, United States Code, the sonal information from or about the users of notice of the operator’s personal information Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, collection, use, and disclosure practices, and the provisions of this Act, the Director of or on whose behalf such information is col- authorizes the collection, use, and disclo- the Office of Management and Budget shall lected or maintained, where such website or sure, as applicable, of personal information develop procedures and guidelines for execu- online service is operated for commercial and the subsequent use of that information tive agency use to permit employer elec- purposes, including any person offering prod- before that information is collected from tronic storage and filing of forms containing ucts or services for sale through that website that child. information pertaining to employees. or online service, involving commerce— (10) WEBSITE OR ONLINE SERVICE DIRECTED SEC. 6. STUDY. (i) among the several States or with 1 or TO CHILDREN.— In order to fulfill the responsibility to ad- more foreign nations; (A) IN GENERAL.—The term ‘‘website or on- minister the functions assigned under chap- (ii) in any territory of the United States or line service directed to children’’ means— ter 35 of title 44, United States Code, the in the District of Columbia, or between any (i) A commercial website or online service Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— that is targeted to children; or the provisions of this Act, the Director of (I) another such territory; or (ii) that portion of a commercial website the Office of Management and Budget, shall (II) any State or foreign nation; or or online service that is targeted to children. conduct an ongoing study of paperwork re- (iii) between the District of Columbia and (B) LIMITATION.—A commercial website or duction and electronic commerce, the im- any State, territory, or foreign nation; but online service, or a portion of a commercial pact on individual privacy, and the security (B) does not include any non-profit entity website or online service, shall not be and authenticity of transactions due to the that would otherwise be exempt from cov- deemed directed to children solely for refer- use of electronic signatures pursuant to this erage under section 5 of the Federal Trade ring or linking to a commercial website or Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). online service directed to children by using gress. (3) COMMISSION.—The term ‘‘Commission’’ information location tools, including a direc- means the Federal Trade Commission. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF tory, index, reference, pointer, or hypertext ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ link. Electronic records submitted or main- means, with respect to personal informa- (11) PERSON.—The term ‘‘person’’ means tained in accordance with agency procedures tion— any individual, partnership, corporation, and guidelines established pursuant to this (A) the release of personal information col- trust, estate, cooperative, association, or title, or electronic signatures or other forms lected from a child in identifiable form by an other entity. operator for any purpose, except where such of electronic authentication used in accord- (12) ONLINE CONTACT INFORMATION.—The ance with such procedures and guidelines, information is provided to a person other term ‘‘online contact information’’ means an shall not be denied legal effect, validity or than the operator who provides support for e-mail address or another substantially simi- enforceability because they are in electronic the internal operations of the website and lar identifier that permits direct contact form. does not disclose or use that information for with a person online. any other purpose; and SEC. 203. REGULATION OF UNFAIR AND DECEP- SEC. 8. DISCLOSURE OF INFORMATION. (B) making personal information collected Except as provided by law, information TIVE ACTS AND PRACTICES IN CON- from a child by a website or online service NECTION WITH THE COLLECTION collected in the provision of electronic signa- directed to children or with actual knowl- ture services for communications with an AND USE OF PERSONAL INFORMA- edge that such information was collected TION FROM AND ABOUT CHILDREN agency, as provided by this Act, shall only be from a child, publicly available in identifi- ON THE INTERNET. used or disclosed by persons who obtain, col- able form, by any means including by a pub- (A) ACTS PROHIBITED.— lect, or maintain such information as a busi- lic posting, through the Internet, or (1) IN GENERAL.—It is unlawful for an oper- ness or government practice, for the purpose through— ator of a website or online service directed to of facilitating such communications, or with (i) a home page of a website; children, or any operator that has actual the prior affirmative consent of the person (ii) a pen pal service; knowledge that it is collecting personal in- about whom the information pertains. (iii) an electronic mail service; formation from a child, to collect personal SEC. 9. APPLICATION WITH OTHER LAWS. (iv) a message board; or information from a child in a manner that Nothing in this title shall apply to the De- (v) a chat room. violates the regulations prescribed under partment of the Treasury or the Internal (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). Revenue Service, to the extent that— agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— (1) it involves the administration of the in- defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an ternal revenue laws; and States Code. operator of such a website or online service (2) it conflicts with any provision of the In- (6) INTERNET.—The term ‘‘Internet’’ means nor the operator’s agent shall be held to be ternal Revenue Service Restructuring and collectively the myriad of computer and liable under any Federal or State law for any Reform Act of 1998 or the Internal Revenue telecommunications facilities, including disclosure made in good faith and following Code of 1986. equipment and operating software, which reasonable procedures in responding to a re- SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- quest for disclosure of personal information For purposes of this Act: work of networks that employ the Trans- under subsection (b)(1)(B)(iii) to the parent (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, of a child. tive agency’’ has the meaning given that or any predecessor or successor protocols to (b) REGULATIONS.— term in section 105 of title 5, United States such protocol, to communicate information (1) IN GENERAL.—Not later than 1 year after Code. of all kinds by wire or radio. the date of the enactment of this Act, the S11720 CONGRESSIONAL RECORD — SENATE October 7, 1998 Commission shall promulgate under section (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. 553 of title 5, United States Code, regulations such safety; (a) IN GENERAL.— that— (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (A) require the operator of any website or any other purpose; and attorney general of a State has reason to be- online service directed to children that col- (iii) not disclosed on the site, lieve that an interest of the residents of that lects personal information from children or if the operator uses reasonable efforts to pro- State has been or is threatened or adversely the operator of a website or online service vide a parent notice of the name and online affected by the engagement of any person in that has actual knowledge that it is collect- contact information collected from the a practice that violates any regulation of the ing personal information from a child— child, the purposes for which it is to be used, Commission prescribed under section 203(b), (i) to provide notice on the website of what and an opportunity for the parent to request the State, as parens patriae, may bring a information is collected from children by the that the operator make no further use of the civil action on behalf of the residents of the operator, how the operator uses such infor- information and that it not be maintained in State in a district court of the United States mation, and the operator’s disclosure prac- retrievable form; or of appropriate jurisdiction to— tices for such information; and (E) the collection, use, or dissemination of (A) enjoin that practice; (ii) to obtain verifiable parental consent (B) enforce compliance with the regula- such information by the operator of such a for the collection, use, or disclosure of per- tion; website or online service necessary— sonal information from children; (C) obtain damage, restitution, or other (i) to protect the security or integrity of (B) require the operator to provide, upon compensation on behalf of residents of the its website; request of a parent under this subparagraph State; or whose child has provided personal informa- (ii) to take precautions against liability; (D) obtain such other relief as the court tion to that website or online service, upon (iii) to respond to judicial process; or may consider to be appropriate. (iv) to the extent permitted under other proper identification of that parent, to such (2) NOTICE.— parent— provisions of law, to provide information to (A) IN GENERAL.—Before filing an action (i) a description of the specific types of law enforcement agencies or for an inves- under paragraph (1), the attorney general of personal information collected from the tigation on a matter related to public safety. the State involved shall provide to the Com- child by that operator; (3) TERMINATION OF SERVICE.—The regula- mission— (ii) the opportunity at any time to refuse tions shall permit the operator of a website (i) written notice of that action; and to permit the operator’s further use or main- or an online service to terminate service pro- (ii) a copy of the complaint for that action. tenance in retrievable form, or future online vided to a child whose parent has refused, (B) EXEMPTION.— collection, of personal information from that under the regulations prescribed under para- (i) IN GENERAL.—Subparagraph (A) shall child; and graph (1)(B)(ii), to permit the operator’s fur- not apply with respect to the filing of an ac- (iii) notwithstanding any other provision ther use or maintenance in retrievable form, tion by an attorney general of a State under of law, a means that is reasonable under the or future online collection, of personal infor- this subsection, if the attorney general de- circumstances for the parent to obtain any mation from that child. termines that it is not feasible to provide the personal information collected from that (c) ENFORCEMENT.—Subject to sections 204 notice described in that subparagraph before child; and 206, a violation of a regulation pre- the filing of the action. (C) prohibit conditioning a child’s partici- scribed under subsection (a) shall be treated (ii) NOTIFICATION.—In an action described pation in a game, the offering of a prize, or as a violation of a rule defining an unfair or in clause (i), the attorney general of a State another activity on the child disclosing more deceptive act or practice prescribed under shall provide notice and a copy of the com- personal information than is reasonably nec- section 18(a)(1)(B) of the Federal Trade Com- plaint to the Commission at the same time essary to participate in such activity; and mission Act (15 U.S.C. 57a(a)(1)(B)). as the attorney general files the action. (D) require the operator of such a website (d) INCONSISTENT STATE LAW.—No State or (b) INTERVENTION.— or online service to establish and maintain local government may impose any liability (1) IN GENERAL.—On receiving notice under reasonable procedures to protect the con- for commercial activities or actions by oper- subsection (a)(2), the Commission shall have fidentiality, security, and integrity of per- ators in interstate or foreign commerce in the right to intervene in the action that is sonal information collected from children. connection with an activity or action de- the subject of the notice. (2) WHEN CONSENT NOT REQUIRED.—The reg- scribed in this title that is inconsistent with (2) EFFECT OF INTERVENTION.—If the Com- ulations shall provide that verifiable paren- the treatment of those activities or actions mission intervenes in an action under sub- tal consent under paragraph (1)(A)(ii) is not under this section. section (a), it shall have the right— required in the case of— SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter (A) online contact information collected that arises in that action; and (a) GUIDELINES.—An operator may satisfy from a child that is used only to respond di- (B) to file a petition for appeal. the requirements of regulations issued under rectly on a one-time basis to a specific re- (3) AMICUS CURIAE.—Upon application to section 203(b) by following a set of self-regu- quest from the child and is not used to re- the court, a person whose self-regulatory latory guidelines, issued by representatives contact the child and is not maintained in guidelines have been approved by the Com- of the marketing or online industries, or by retrievable form by the operator; mission and are relied upon as a defense by (B) a request for the name or online con- other persons, approved under subsection (b). any defendant to a proceeding under this sec- (b) INCENTIVES.— tact information of a parent or child that is tion may file amicus curiae in that proceed- (1) SELF-REGULATORY INCENTIVES.—In pre- used for the sole purpose of obtaining paren- ing. scribing regulations under section 203, the tal consent or providing notice under this (c) CONSTRUCTION.—For purposes of bring- section and where such information is not Commission shall provide incentives for self- ing any civil action under subsection (a), maintained in retrievable form by the opera- regulation by operators to implement the nothing in this title shall be construed to tor if parental consent is not obtained after protections afforded children under the regu- prevent an attorney general of a State from a reasonable time; latory requirements described in subsection exercising the powers conferred on the attor- (C) online contact information collected (b) of that section. ney general by the laws of that State to— from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (1) conduct investigations; more than once directly to a specific request shall include provisions for ensuring that a (2) administer oaths or affirmations; or from the child and is not used to recontact person will be deemed to be in compliance (3) compel the attendance of witnesses or the child beyond the scope of that request— with the requirements of the regulations the production of documentary and other (i) if, before any additional response after under section 203 if that person complies evidence. the initial response to the child, the operator with guidelines that, after notice and com- (d) ACTIONS BY THE COMMISSION.—In any uses reasonable efforts to provide a parent ment, are approved by the Commission upon case in which an action is instituted by or on notice of the online contact information col- making a determination that the guidelines behalf of the Commission for violation of lected from the child, the purposes for which meet the requirements of the regulations any regulation prescribed under section 293, it is to be used, and an opportunity for the issued under section 203. no State may, during the pendency of that parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The action, institute an action under subsection further use of the information and that it Commission shall act upon requests for safe (a) against any defendant named in the com- not be maintained in retrievable form; or harbor treatment within 180 days of the fil- plaint in that action for violation of that (ii) without notice to the parent in such ing of the request, and shall set forth in regulation. circumstances as the Commission may deter- writing its conclusions with regard to such (e) VENUE; SERVICE OF PROCESS.— mine are appropriate, taking into consider- requests. (1) VENUE.—Any action brought under sub- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- section (a) may be brought in the district information and services, and risks to the se- sion on a request for approval of guidelines, court of the United States that meets appli- curity and privacy of the child, in regula- or the failure to act within 180 days on a re- cable requirements relating to venue under tions promulgated under this subsection; quest for approval of guidelines, submitted section 1391 of title 28, United States Code. (D) the name of the child and online con- under subsection (b) may be appealed to a (2) SERVICE OF PROCESS.—In an action tact information (to the extent reasonably district court of the United States of appro- brought under subsection (a), process may be necessary to protect the safety of a child priate jurisdiction as provided for in section served in any district in which the defend- participant on the site)— 706 of title 5, United States Code. ant— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11721

(A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (A) an examination of— (B) may be found. tained in the Act shall be construed to limit (i) barriers imposed in foreign markets on SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any United States providers of property, goods, OF ACT. other provisions of law. services, or information engaged in elec- (a) IN GENERAL.—Except as otherwise pro- SEC. 207. REVIEW. tronic commerce and on United States pro- vided, this title shall be enforced by the (a) IN GENERAL.—Not later than 5 years viders of telecommunications services; and Commission under the Federal Trade Com- after the effective date of the regulations (ii) how the imposition of such barriers mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- will affect United States consumers, the (b) PROVISIONS.—Compliance with the re- mission shall— competitiveness of United States citizens quirements imposed under this title shall be (1) review the implementation of this title, providing property, goods, services, or infor- enforced under— including the effect of the implementation of mation in foreign markets, and the growth (1) section 8 of the Federal Deposit Insur- this title on practices relating to the collec- and maturing of the Internet; ance Act (12 U.S.C. 1818), in the case of— tion and disclosure of information relating (B) an examination of the collection and (A) national banks, and Federal branches to children, children’s ability to obtain ac- and Federal agencies of foreign banks, by the administration of consumption taxes on cess to information of their choice online, interstate commerce in other countries and Office of the Comptroller of the Currency; and on the availability of websites directed (B) member banks of the Federal Reserve the United States, and the impact of such to children; and collection on the global economy, including System (other than national banks), (2) prepare and submit to Congress a report an examination of the relationship between branches and agencies of foreign banks on the results of the review under paragraph the collection and administration of such (other than Federal branches, Federal agen- (1). cies, and insured State branches of foreign taxes when the transaction uses the Internet SEC. 208. EFFECTIVE DATE. and when it does not; banks), commercial lending companies Sections 203(a), 205, and 206 of this title (C) an examination of the impact of the owned or controlled by foreign banks, and take effect on the later of— organizations operating under section 25 or (1) the date that is 18 months after the date Internet and Internet access (particularly 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or voice transmission) on the revenue base for 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules taxes imposed under section 4251 of the In- (C) banks insured by the Federal Deposit on the first application for safe harbor treat- ternal Revenue Code of 1986; Insurance Corporation (other than members ment under section 204 if the Commission (D) an examination of— of the Federal Reserve System) and insured does not rule on the first such application (i) the efforts of State and local govern- State branches of foreign banks, by the within one year after the date of enactment ments to collect sales and use taxes owed on Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date purchases from interstate sellers, the advan- surance Corporation; that is 30 months after the date of enact- tages and disadvantages of authorizing State (2) section 8 of the Federal Deposit Insur- ment of this Act.’’. and local governments to require such sellers ance Act (12 U.S.C. 1818), by the Director of to collect and remit such taxes, particularly the Office of Thrift Supervision, in the case AMENDMENT NO. 3762 with respect to electronic commerce, and the of a savings association the deposits of which Strike ‘‘days after the date of the enact- level of contacts sufficient to permit a State are insured by the Federal Deposit Insurance ment of this Act. or local government to impose such taxes on Corporation; (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; (3) the Federal Credit Union Act (12 U.S.C. mission shall not affect its powers, but shall (ii) model State legislation relating to tax- 1751 et seq.) by the National Credit Union be filled in the same manner as the original ation of transactions using the Internet and Administration Board with respect to any appointment. Internet access, including uniform terminol- Federal credit union; (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, (4) part A of subtitle VII of title 49, United The Commission may accept, use, and dis- and other activities that may be subject to States Code, by the Secretary of Transpor- pose of gifts or grants of services or prop- State and local taxation, procedural struc- tation with respect to any air carrier or for- erty, both real and personal, for purposes of tures and mechanisms applicable to such eign air carrier subject to that part; aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution (5) the Packers and Stockyards Act, 1921 (7 mission. Gifts or grants not used at the expi- of disputes between States regarding matters U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned of multiple taxation; and tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. (iii) ways to simplify the interstate admin- Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate activities subject to that Act; and shall have reasonable access to materials, re- commerce, including a review of the need for (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from a single or uniform tax registration, single (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department or uniform tax returns, simplified remit- tion with respect to any Federal land bank, of Commerce, the Department of State, the tance requirements, simplified administra- Federal land bank association, Federal inter- Department of the Treasury, and the Office tive procedures, or the need for an independ- mediate credit bank, or production credit as- of the United States Trade Representative. ent third party collection system; and sociation. The Commission shall also have reasonable (c) EXERCISE OF CERTAIN POWERS.—For the (E) the examination of ways to simplify access to use the facilities of any such De- Federal and State and local taxes imposed on purpose of the exercise by any agency re- partment or Office for purposes of conduct- ferred to in subsection (a) of its powers under the provision of telecommunications serv- ing meetings. ices. any Act referred to in that subsection, a vio- (e) SUNSET.—The Commission shall termi- lation of any requirement imposed under nate 18 months after the date of the enact- SEC. 103. REPORT. this title shall be deemed to be a violation of ment of this Act. Not later than 18 months after the date of a requirement imposed under that Act. In (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission addition to its powers under any provision of (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- law specifically referred to in subsection (a), mission shall constitute a quorum for con- ing the results of the Commission’s study each of the agencies referred to in that sub- ducting the business of the Commission. under this title. No finding or recommenda- section may exercise, for the purpose of en- (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless forcing compliance with any requirement Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- imposed under this title, any other authority days in advance and shall be open to the pub- bers of the Commission serving at the time conferred on it by law. lic. the finding or recommendation is made. (d) ACTIONS BY THE COMMISSION.—The Com- (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. mission shall prevent any person from vio- mission shall provide opportunities for rep- For the purposes of this title: lating a rule of the Commission under sec- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means tion 203 in the same manner, by the same groups, consumer groups, and State and any tax on electronic commerce expressly means, and with the same jurisdiction, pow- local government officials to testify. imposed on or measured by the volume of ers, and duties as though all applicable (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- terms and provisions of the Federal Trade may adopt other rules as needed. cally, or the volume of digital information Commission Act (15 U.S.C. 41 et seq.) were (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, incorporated into and made a part of this (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the title. Any entity that violates such rule conduct a thorough study of Federal, State provision of telecommunications services. shall be subject to the penalties and entitled and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- to the privileges and immunities provided in tariff treatment of transactions using the criminatory tax’’ means any tax imposed by the Federal Trade Commission Act in the Internet and Internet access and other com- a State or political subdivision thereof on same manner, by the same means, and with parable interstate or international sales ac- electronic commerce that— the same jurisdiction, power, and duties as tivities. (A) is not generally imposed and legally though all applicable terms and provisions of (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political the Federal Trade Commission Act were in- may include in the study under subsection subdivision on transactions involving the corporated into and made a part of this title. (a)— same or similar property, goods, services, or S11722 CONGRESSIONAL RECORD — SENATE October 7, 1998

information accomplished through other (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and means; term ‘‘telecommunications services’’ has the telecommunications services; and (B) is not generally imposed and legally meaning given such term in section 3(46) of (D) the exchange of goods, services, and collectible at the same rate by such State or the Communications Act of 1934 (47 U.S.C. digitalized information. such political subdivision on transactions in- 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes volving the same or similar property, goods, ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- services, or information accomplished Revenue Code of 1986). merce’’ has the meaning given that term in through other means, unless the rate is TITLE II—OTHER PROVISIONS section 104(3). lower as part of a phase-out of the tax over SEC. 204. NO EXPANSION OF TAX AUTHORITY. SEC. 201. DECLARATION THAT INTERNET not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to (C) imposes an obligation to collect or pay TAXES. expand the duty of any person to collect or the tax on a different person or entity than It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- in the case of transactions involving the eral taxes similar to the taxes described in diately before the date of the enactment of same or similar property, goods, services, or section 101(a) should be enacted with respect this Act. information accomplished through other to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. means. the moratorium provided in such section. Nothing in this Act shall limit or other- (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. wise affect the implementation of the Tele- ‘‘electronic commerce’’ means any trans- Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– action conducted over the Internet or U.S.C. 2241) is amended— 104) or the amendments made by such Act. through Internet access, comprising the sale, (1) in subsection (a)(1)— SECTION 1. SHORT TITLE. lease, license, offer, or delivery of property, (A) in subparagraph (A)— This Act may be cited as the ‘‘Government goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause Paperwork Elimination Act.’’ not for consideration, and includes the provi- (i); SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause MATION TECHNOLOGY. (4) INTERNET.—The term ‘‘Internet’’ means (ii); and Section 3504(a)(1)(B)(vi) of title 44, United the combination of computer facilities and (iii) by inserting after clause (ii) the fol- States Code, is amended to read as follows: electromagnetic transmission media, and re- lowing new clause: ‘‘(vi) the acquisition and use of informa- tion technology, including the use of alter- lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; native information technologies (such as the the interconnected worldwide network of and use of electronic submission, maintenance, computer networks that employ the Trans- (B) in subparagraph (C)— or disclosure of information) to substitute mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause or any predecessor or successor protocol, to for paper, and the use and acceptance of elec- (i); tronic signatures.’’. transmit information. (ii) by inserting ‘‘and’’ at the end of clause SEC. 3. PROCEDURES. (5) INTERNET ACCESS.—The term ‘‘Internet (ii); (a) Within 18 months after enactment of access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- access content, information, electronic mail, this Act, in order to fulfill the responsibility lowing new clause: or other services offered over the Internet, to administer the functions assigned under ‘‘(iii) the value of additional United States and may also include access to proprietary chapter 35 of title 44, United States Code, the electronic commerce,’’; and content, information, and other services as Clinger-Cohen Act of 1996 (P.L. 104–106), and (iv) by inserting ‘‘or transacted with,’’ part of a package of services offered to con- the provisions of this Act, the Director of after ‘‘or invested in’’; sumers. Such term does not include tele- the Office of Management and Budget shall (2) in subsection (a)(2)(E)— communications services. develop procedures and guidelines for execu- (A) by striking ‘‘and’’ at the end of clause (6) MULTIPLE TAX.— tive agency use. (i); (A) IN GENERAL.—The term ‘‘multiple tax’’ (1) The procedures shall be compatible with (B) by inserting ‘‘and’’ at the end of clause means any tax that is imposed by one State standards and technology for electronic sig- or political subdivision thereof on the same (ii); and natures as may be generally used in com- or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- merce and industry and by State govern- that is also subject to another tax imposed ing new clause: ments, based upon consultation with appro- by another State or political subdivision ‘‘(iii) the value of electronic commerce priate private sector and State government thereof (whether or not at the same rate or transacted with,’’; and standard setting bodies. on the same basis), without a credit (for ex- (3) by adding at the end the following new (2) Such procedures shall not inappropri- ample, a resale exemption certificate) for subsection: ately favor one industry or technology. ‘‘(d) ELECTRONIC COMMERCE.—For purposes taxes paid in other jurisdictions. (3) An electronic signature shall be as reli- of this section, the term ‘electronic com- able as is appropriate for the purpose, and ef- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in clude a sales or use tax imposed by a State forts shall be made to keep the information section 104(3) of the Internet Tax Freedom and 1 or more political subdivisions thereof submitted intact. Act.’’. (4) Successful submission of an electronic on the same electronic commerce or a tax on form shall be electronically acknowledged. persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF FOREIGN TAR- (5) In accordance with all other sections of which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER the Act, to the extent feasible and appro- or use tax thereon. RESTRICTIONS. priate, and described in a written finding, an (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- agency, when it expects to receive electroni- subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- cally 50,000 or more submittals of a particu- tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements lar form, shall take all steps necessary to en- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- sure that multiple formats of electronic sig- tion, distribution, or other use of tangible merce through the World Trade Organiza- natures are made available for submitting personal property or services as may be de- tion, the Organization for Economic Co- such forms. fined by laws imposing such tax and which is operation and Development, the Trans-At- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- RECTOR OF THE OFFICE OF MAN- other charge for such property or service. cific Economic Cooperation forum, the Free AGEMENT AND BUDGET. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- In order to fulfill the responsibility to ad- the several States, the District of Columbia, ican Free Trade Agreement, and other appro- minister the functions assigned under chap- or any commonwealth, territory, or posses- priate venues. ter 35 of title 44, United States Code, the sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- Clinger-Cohen Act of 1996 (P.L. 104–106), and (8) TAX.— tiating objectives of the United States shall the provisions of this Act, the Director of (A) IN GENERAL.—The term ‘‘tax’’ means— be— the Office of Management and Budget shall (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is ensure that, within five years of the date of governmental authority by any govern- free from— enactment of this Act, executive agencies mental entity; or (A) tariff and nontariff barriers; provide for the optional use of electronic (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- maintenance, submission, or disclosure of in- lect and to remit to a governmental entity tion and standards; and formation where practicable, as an alter- any such levy, fee, or charge imposed by a (C) discriminatory taxation; and native information technology to substitute governmental entity. (2) to accelerate the growth of electronic for paper, and the use and acceptance of elec- (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- tronic signatures where practicable. clude any franchise fees or similar fees im- portunities for— SEC. 5. ELECTRONIC STORAGE OF FORMS. posed by a State or local franchising author- (A) the development of telecommuni- Within 18 months of enactment of this Act, ity, pursuant to section 622 or 653 of the cations infrastructure; in order to fulfill the responsibility to ad- Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- minister the functions assigned under chap- 573). cations equipment; ter 35 of title 44, United States Code, the October 7, 1998 CONGRESSIONAL RECORD — SENATE S11723 Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of to ensure that a parent of a child receives the provisions of this Act, the Director of or visitors to such website or online service, notice of the operator’s personal information the Office of Management and Budget shall or on whose behalf such information is col- collection, use, and disclosure practices, and develop procedures and guidelines for execu- lected or maintained, where such website or authorizes the collection, use, and disclo- tive agency use to permit employer elec- online service is operated for commercial sure, as applicable, of personal information tronic storage and filing of forms containing purposes, including any person offering prod- and the subsequent use of that information information pertaining to employees. ucts or services for sale through that website before that information is collected from SEC. 6. STUDY. or online service, involving commerce— that child. In order to fulfill the responsibility to ad- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED minister the functions assigned under chap- more foreign nations; TO CHILDREN.— ter 35 of title 44, United States Code, the (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any line service directed to children’’ means— the provisions of this Act, the Director of such territory and— (i) A commercial website or online service the Office of Management and Budget, shall (I) another such territory; or that is targeted to children; or conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (ii) that portion of a commercial website duction and electronic commerce, the im- (iii) between the District of Columbia and or online service that is targeted to children. pact on individual privacy, and the security any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or and authenticity of transactions due to the (B) does not include any non-profit entity online service, or a portion of a commercial use of electronic signatures pursuant to this that would otherwise be exempt from cov- website or online service, shall not be Act, and shall report the findings to Con- erage under section 5 of the Federal Trade deemed directed to children solely for refer- gress. Commission Act (15 U.S.C. 45). ring or linking to a commercial website or (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. ELECTRONIC RECORDS. information location tools, including a direc- (4) DISCLOSURE.—The term ‘‘disclosure’’ Electronic records submitted or main- tory, index, reference, pointer, or hypertext means, with respect to personal informa- tained in accordance with agency procedures link. tion— and guidelines established pursuant to this (11) PERSON.—The term ‘‘person’’ means (A) the release of personal information col- title, or electronic signatures or other forms any individual, partnership, corporation, lected from a child in identifiable form by an of electronic authentication used in accord- trust, estate, cooperative, association, or operator for any purpose, except where such ance with such procedures and guidelines, other entity. information is provided to a person other shall not be denied legal effect, validity or (12) ONLINE CONTACT INFORMATION.—The than the operator who provides support for enforceability because they are in electronic term ‘‘online contact information’’ means an the internal operations of the website and form. e-mail address or another substantially simi- does not disclose or use that information for lar identifier that permits direct contact SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and with a person online. Except as provided by law, information (B) making personal information collected collected in the provision of electronic signa- SEC. 203. REGULATION OF UNFAIR AND DECEP- from a child by a website or online service TIVE ACTS AND PRACTICES IN CON- ture services for communications with an directed to children or with actual knowl- NECTION WITH THE COLLECTION agency, as provided by this Act, shall only be edge that such information was collected AND USE OF PERSONAL INFORMA- used or disclosed by persons who obtain, col- from a child, publicly available in identifi- TION FROM AND ABOUT CHILDREN lect, or maintain such information as a busi- able form, by any means including by a pub- ON THE INTERNET. ness or government practice, for the purpose lic posting, through the Internet, or (A) ACTS PROHIBITED.— of facilitating such communications, or with through— (1) IN GENERAL.—It is unlawful for an oper- the prior affirmative consent of the person (i) a home page of a website; ator of a website or online service directed to about whom the information pertains. (ii) a pen pal service; children, or any operator that has actual SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; knowledge that it is collecting personal in- Nothing in this title shall apply to the De- (iv) a message board; or formation from a child, to collect personal partment of the Treasury or the Internal (v) a chat room. information from a child in a manner that Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal violates the regulations prescribed under (1) it involves the administration of the in- agency’’ means an agency, as that term is subsection (b). ternal revenue laws; and defined in section 551(1) of title 5, United (2) DISCLOSURE TO PARENT PROTECTED.— (2) it conflicts with any provision of the In- States Code. Notwithstanding paragraph (1), neither an ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means operator of such a website or online service Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and nor the operator’s agent shall be held to be Code of 1986. telecommunications facilities, including liable under any Federal or State law for any SEC. 10. DEFINITIONS. equipment and operating software, which disclosure made in good faith and following For purposes of this Act: comprise the interconnected world-wide net- reasonable procedures in responding to a re- (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- quest for disclosure of personal information tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, under subsection (b)(1)(B)(iii) to the parent term in section 105 of title 5, United States or any predecessor or successor protocols to of a child. Code. such protocol, to communicate information (b) REGULATIONS.— (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. (1) IN GENERAL.—Not later than 1 year after ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a the date of the enactment of this Act, the signing an electronic message that— legal guardian. Commission shall promulgate under section (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term 553 of title 5, United States Code, regulations lar person as the source of such electronic ‘‘personal information’’ means individually that— message; and identifiable information about an individual (A) require the operator of any website or (B) indicates such person’s approval of the collected online, including— online service directed to children that col- information contained in such electronic (A) a first and last name; lects personal information from children or message. (B) a home or other physical address in- the operator of a website or online service (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or that has actual knowledge that it is collect- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; ing personal information from a child— vey’’ include documents produced by an (C) an e-mail address; (i) to provide notice on the website of what agency to facilitate interaction between an (D) a telephone number; information is collected from children by the agency and non-government persons. (E) a Social Security number; operator, how the operator uses such infor- (F) any other identifier that the Commis- mation, and the operator’s disclosure prac- TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- tices for such information; and PROTECTION line contracting of a specific individual; or (ii) to obtain verifiable parental consent SEC. 201. SHORT TITLE. (G) information concerning the child or the for the collection, use, or disclosure of per- This title may be cited as the ‘‘Children’s parents of that child that the website col- sonal information from children; Online Privacy Protection Act of 1999’’. lects online from the child and combines (B) require the operator to provide, upon SEC. 202. DEFINITIONS. with an identifier described in this para- request of a parent under this subparagraph In this title: graph. whose child has provided personal informa- (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The tion to that website or online service, upon dividual under the age of 13. term ‘‘verifiable parental consent’’ means proper identification of that parent, to such (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- parent— (A) means any person who operates a ation available technology), including a re- (i) a description of the specific types of website located on the Internet or an online quest for authorization for future collection personal information collected from the service and who collects or maintains per- use, and disclosure described in the notice, child by that operator; S11724 CONGRESSIONAL RECORD — SENATE October 7, 1998

(ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- to permit the operator’s further use or main- tions shall permit the operator of a website mission— tenance in retrievable form, or future online or an online service to terminate service pro- (i) written notice of that action; and collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- section (a), it shall have the right— (A) online contact information collected SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy that arises in that action; and rectly on a one-time basis to a specific re- the requirements of regulations issued under (B) to file a petition for appeal. quest from the child and is not used to re- section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to contact the child and is not maintained in latory guidelines, issued by representatives retrievable form by the operator; the court, a person whose self-regulatory of the marketing or online industries, or by guidelines have been approved by the Com- (B) a request for the name or online con- other persons, approved under subsection (b). tact information of a parent or child that is mission and are relied upon as a defense by (b) INCENTIVES.— any defendant to a proceeding under this sec- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- tal consent or providing notice under this scribing regulations under section 203, the ing. section and where such information is not Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- maintained in retrievable form by the opera- regulation by operators to implement the ing any civil action under subsection (a), tor if parental consent is not obtained after protections afforded children under the regu- nothing in this title shall be construed to a reasonable time; latory requirements described in subsection prevent an attorney general of a State from (C) online contact information collected (b) of that section. exercising the powers conferred on the attor- from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— more than once directly to a specific request shall include provisions for ensuring that a (1) conduct investigations; from the child and is not used to recontact person will be deemed to be in compliance (2) administer oaths or affirmations; or the child beyond the scope of that request— with the requirements of the regulations (3) compel the attendance of witnesses or (i) if, before any additional response after under section 203 if that person complies the production of documentary and other the initial response to the child, the operator with guidelines that, after notice and com- evidence. uses reasonable efforts to provide a parent ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any notice of the online contact information col- making a determination that the guidelines case in which an action is instituted by or on lected from the child, the purposes for which meet the requirements of the regulations behalf of the Commission for violation of it is to be used, and an opportunity for the issued under section 203. any regulation prescribed under section 293, parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The no State may, during the pendency of that further use of the information and that it Commission shall act upon requests for safe action, institute an action under subsection not be maintained in retrievable form; or harbor treatment within 180 days of the fil- (a) against any defendant named in the com- (ii) without notice to the parent in such ing of the request, and shall set forth in plaint in that action for violation of that circumstances as the Commission may deter- writing its conclusions with regard to such regulation. mine are appropriate, taking into consider- requests. (e) VENUE; SERVICE OF PROCESS.— ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- (1) VENUE.—Any action brought under sub- information and services, and risks to the se- sion on a request for approval of guidelines, section (a) may be brought in the district curity and privacy of the child, in regula- or the failure to act within 180 days on a re- court of the United States that meets appli- tions promulgated under this subsection; quest for approval of guidelines, submitted cable requirements relating to venue under (D) the name of the child and online con- under subsection (b) may be appealed to a section 1391 of title 28, United States Code. tact information (to the extent reasonably district court of the United States of appro- (2) SERVICE OF PROCESS.—In an action necessary to protect the safety of a child priate jurisdiction as provided for in section brought under subsection (a), process may be participant on the site)— 706 of title 5, United States Code. served in any district in which the defend- (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. ant— such safety; (a) IN GENERAL.— (A) is an inhabitant; or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (B) may be found. any other purpose; and attorney general of a State has reason to be- SEC. 206. ADMINISTRATION AND APPLICABILITY (iii) not disclosed on the site, lieve that an interest of the residents of that OF ACT. if the operator uses reasonable efforts to pro- State has been or is threatened or adversely (a) IN GENERAL.—Except as otherwise pro- vide a parent notice of the name and online affected by the engagement of any person in vided, this title shall be enforced by the contact information collected from the a practice that violates any regulation of the Commission under the Federal Trade Com- child, the purposes for which it is to be used, Commission prescribed under section 203(b), mission Act (15 U.S.C. 41 et seq.). and an opportunity for the parent to request the State, as parens patriae, may bring a (b) PROVISIONS.—Compliance with the re- that the operator make no further use of the civil action on behalf of the residents of the quirements imposed under this title shall be information and that it not be maintained in State in a district court of the United States enforced under— retrievable form; or of appropriate jurisdiction to— (1) section 8 of the Federal Deposit Insur- (E) the collection, use, or dissemination of (A) enjoin that practice; ance Act (12 U.S.C. 1818), in the case of— such information by the operator of such a (B) enforce compliance with the regula- (A) national banks, and Federal branches website or online service necessary— tion; and Federal agencies of foreign banks, by the (i) to protect the security or integrity of (C) obtain damage, restitution, or other Office of the Comptroller of the Currency; its website; compensation on behalf of residents of the (B) member banks of the Federal Reserve (ii) to take precautions against liability; State; or System (other than national banks), (iii) to respond to judicial process; or (D) obtain such other relief as the court branches and agencies of foreign banks (iv) to the extent permitted under other may consider to be appropriate. (other than Federal branches, Federal agen- provisions of law, to provide information to (2) NOTICE.— cies, and insured State branches of foreign law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action banks), commercial lending companies tigation on a matter related to public safety. under paragraph (1), the attorney general of owned or controlled by foreign banks, and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11725 organizations operating under section 25 or (1) the date that is 18 months after the date (C) an examination of the impact of the 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or Internet and Internet access (particularly 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules voice transmission) on the revenue base for (C) banks insured by the Federal Deposit on the first application for safe harbor treat- taxes imposed under section 4251 of the In- Insurance Corporation (other than members ment under section 204 if the Commission ternal Revenue Code of 1986; of the Federal Reserve System) and insured does not rule on the first such application (D) an examination of— State branches of foreign banks, by the within one year after the date of enactment (i) the efforts of State and local govern- Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date ments to collect sales and use taxes owed on surance Corporation; that is 30 months after the date of enact- purchases from interstate sellers, the advan- (2) section 8 of the Federal Deposit Insur- ment of this Act.’’. tages and disadvantages of authorizing State ance Act (12 U.S.C. 1818), by the Director of and local governments to require such sellers the Office of Thrift Supervision, in the case AMENDMENT NO. 3763 to collect and remit such taxes, particularly of a savings association the deposits of which with respect to electronic commerce, and the are insured by the Federal Deposit Insurance Strike ‘‘days after the date of the enact- ment of this Act. level of contacts sufficient to permit a State Corporation; or local government to impose such taxes on (3) the Federal Credit Union Act (12 U.S.C. (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; 1751 et seq.) by the National Credit Union mission shall not affect its powers, but shall (ii) model State legislation relating to tax- Administration Board with respect to any be filled in the same manner as the original ation of transactions using the Internet and Federal credit union; appointment. (4) part A of subtitle VII of title 49, United (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- States Code, by the Secretary of Transpor- The Commission may accept, use, and dis- ogy, definitions of the transactions, services, tation with respect to any air carrier or for- pose of gifts or grants of services or prop- and other activities that may be subject to eign air carrier subject to that part; erty, both real and personal, for purposes of State and local taxation, procedural struc- (5) the Packers and Stockyards Act, 1921 (7 aiding or facilitating the work of the Com- tures and mechanisms applicable to such U.S.C. 181 et. seq.) (except as provided in sec- mission. Gifts or grants not used at the expi- taxation, and a mechanism for the resolution tion 406 of that Act (7 U.S.C. 226, 227)), by the ration of the Commission shall be returned of disputes between States regarding matters Secretary of Agriculture with respect to any to the donor or grantor. of multiple taxation; and activities subject to that Act; and (d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- (6) the Farm Credit Act of 1971 (12 U.S.C. shall have reasonable access to materials, re- istration of sales and use taxes on interstate (2001 et seq.) by the Farm Credit Administra- sources, data, and other information from commerce, including a review of the need for tion with respect to any Federal land bank, the Department of Justice, the Department a single or uniform tax registration, single Federal land bank association, Federal inter- of Commerce, the Department of State, the or uniform tax returns, simplified remit- mediate credit bank, or production credit as- Department of the Treasury, and the Office tance requirements, simplified administra- sociation. of the United States Trade Representative. tive procedures, or the need for an independ- (c) EXERCISE OF CERTAIN POWERS.—For the The Commission shall also have reasonable ent third party collection system; and purpose of the exercise by any agency re- access to use the facilities of any such De- (E) the examination of ways to simplify ferred to in subsection (a) of its powers under partment or Office for purposes of conduct- Federal and State and local taxes imposed on any Act referred to in that subsection, a vio- ing meetings. the provision of telecommunications serv- lation of any requirement imposed under (e) SUNSET.—The Commission shall termi- ices. this title shall be deemed to be a violation of nate 18 months after the date of the enact- SEC. 103. REPORT. a requirement imposed under that Act. In ment of this Act. Not later than 18 months after the date of addition to its powers under any provision of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission law specifically referred to in subsection (a), (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- each of the agencies referred to in that sub- mission shall constitute a quorum for con- ing the results of the Commission’s study section may exercise, for the purpose of en- ducting the business of the Commission. under this title. No finding or recommenda- forcing compliance with any requirement (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless imposed under this title, any other authority Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- conferred on it by law. days in advance and shall be open to the pub- bers of the Commission serving at the time (d) ACTIONS BY THE COMMISSION.—The Com- the finding or recommendation is made. mission shall prevent any person from vio- lic. lating a rule of the Commission under sec- (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. tion 203 in the same manner, by the same mission shall provide opportunities for rep- For the purposes of this title: means, and with the same jurisdiction, pow- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means ers, and duties as though all applicable groups, consumer groups, and State and any tax on electronic commerce expressly terms and provisions of the Federal Trade local government officials to testify. imposed on or measured by the volume of Commission Act (15 U.S.C. 41 et seq.) were (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- incorporated into and made a part of this may adopt other rules as needed. cally, or the volume of digital information title. Any entity that violates such rule (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, shall be subject to the penalties and entitled (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the to the privileges and immunities provided in conduct a thorough study of Federal, State provision of telecommunications services. the Federal Trade Commission Act in the and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- same manner, by the same means, and with tariff treatment of transactions using the criminatory tax’’ means any tax imposed by the same jurisdiction, power, and duties as Internet and Internet access and other com- a State or political subdivision thereof on though all applicable terms and provisions of parable interstate or international sales ac- electronic commerce that— the Federal Trade Commission Act were in- tivities. (A) is not generally imposed and legally corporated into and made a part of this title. (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political (e) EFFECT ON OTHER LAWS.—Nothing con- may include in the study under subsection subdivision on transactions involving the tained in the Act shall be construed to limit (a)— same or similar property, goods, services, or the authority of the Commission under any (A) an examination of— information accomplished through other other provisions of law. (i) barriers imposed in foreign markets on means; SEC. 207. REVIEW. United States providers of property, goods, (B) is not generally imposed and legally (a) IN GENERAL.—Not later than 5 years services, or information engaged in elec- collectible at the same rate by such State or after the effective date of the regulations tronic commerce and on United States pro- such political subdivision on transactions in- initially issued under section 203, the Com- viders of telecommunications services; and volving the same or similar property, goods, mission shall— (ii) how the imposition of such barriers services, or information accomplished (1) review the implementation of this title, will affect United States consumers, the through other means, unless the rate is including the effect of the implementation of competitiveness of United States citizens lower as part of a phase-out of the tax over this title on practices relating to the collec- providing property, goods, services, or infor- not more than a 5-year period; or tion and disclosure of information relating mation in foreign markets, and the growth (C) imposes an obligation to collect or pay to children, children’s ability to obtain ac- and maturing of the Internet; the tax on a different person or entity than cess to information of their choice online, (B) an examination of the collection and in the case of transactions involving the and on the availability of websites directed administration of consumption taxes on same or similar property, goods, services, or to children; and interstate commerce in other countries and information accomplished through other (2) prepare and submit to Congress a report the United States, and the impact of such means. on the results of the review under paragraph collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term (1). an examination of the relationship between ‘‘electronic commerce’’ means any trans- SEC. 208. EFFECTIVE DATE. the collection and administration of such action conducted over the Internet or Sections 203(a), 205, and 206 of this title taxes when the transaction uses the Internet through Internet access, comprising the sale, take effect on the later of— and when it does not; lease, license, offer, or delivery of property, S11726 CONGRESSIONAL RECORD — SENATE October 7, 1998 goods, services, or information, whether or (A) in subparagraph (A)— SECTION 1. SHORT TITLE. not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government sion of Internet access. (i); Paperwork Elimination Act.’’ (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- the combination of computer facilities and (ii); and MATION TECHNOLOGY. electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United lated equipment and software, comprising lowing new clause: States Code, is amended to read as follows: the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; ‘‘(vi) the acquisition and use of informa- computer networks that employ the Trans- and tion technology, including the use of alter- mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— native information technologies (such as the or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause use of electronic submission, maintenance, transmit information. (i); or disclosure of information) to substitute (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- access’’ means a service that enables users to (ii); tronic signatures.’’. access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. or other services offered over the Internet, lowing new clause: (a) Within 18 months after enactment of and may also include access to proprietary ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility content, information, and other services as electronic commerce,’’; and to administer the functions assigned under part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the sumers. Such term does not include tele- after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and communications services. (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); develop procedures and guidelines for execu- means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause tive agency use. or political subdivision thereof on the same (ii); and (1) The procedures shall be compatible with or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- that is also subject to another tax imposed ing new clause: natures as may be generally used in com- by another State or political subdivision ‘‘(iii) the value of electronic commerce merce and industry and by State govern- thereof (whether or not at the same rate or transacted with,’’; and ments, based upon consultation with appro- on the same basis), without a credit (for ex- (3) by adding at the end the following new priate private sector and State government ample, a resale exemption certificate) for subsection: standard setting bodies. taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes (2) Such procedures shall not inappropri- (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- ately favor one industry or technology. clude a sales or use tax imposed by a State merce’ has the meaning given that term in (3) An electronic signature shall be as reli- and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom able as is appropriate for the purpose, and ef- on the same electronic commerce or a tax on Act.’’. forts shall be made to keep the information persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET submitted intact. which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- (4) Successful submission of an electronic or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER form shall be electronically acknowledged. (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. (5) In accordance with all other sections of subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.— It is the sense of Con- the Act, to the extent feasible and appro- tax’’ means a tax that is imposed on or inci- gress that the President should seek bilat- priate, and described in a written finding, an dent to the sale, purchase, storage, consump- eral, regional, and multilateral agreements agency, when it expects to receive electroni- tion, distribution, or other use of tangible to remove barriers to global electronic com- cally 50,000 or more submittals of a particu- personal property or services as may be de- merce through the World Trade Organiza- lar form, shall take all steps necessary to en- fined by laws imposing such tax and which is tion, the Organization for Economic Co- sure that multiple formats of electronic sig- measured by the amount of the sales price or operation and Development, the Trans-At- natures are made available for submitting other charge for such property or service. lantic Economic Partnership, the Asia Pa- such forms. (7) STATE.—The term ‘‘State’’ means any of cific Economic Cooperation forum, the Free SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- the several States, the District of Columbia, Trade Area of the America, the North Amer- RECTOR OF THE OFFICE OF MAN- or any commonwealth, territory, or posses- ican Free Trade Agreement, and other appro- AGEMENT AND BUDGET. sion of the United States. priate venues. In order to fulfill the responsibility to ad- (8) TAX.— (b) NEGOTIATING OBJECTIVES.—The nego- minister the functions assigned under chap- (A) IN GENERAL.—The term ‘‘tax’’ means— tiating objectives of the United States shall ter 35 of title 44, United States Code, the (i) any levy, fee, or charge imposed under be— Clinger-Cohen Act of 1996 (P.L. 104–106), and governmental authority by any govern- (1) to assure that electronic commerce is the provisions of this Act, the Director of mental entity; or free from— the Office of Management and Budget shall (ii) the imposition of or obligation to col- (A) tariff and nontariff barriers; ensure that, within five years of the date of lect and to remit to a governmental entity (B) burdensome and discriminatory regula- enactment of this Act, executive agencies any such levy, fee, or charge imposed by a tion and standards; and provide for the optional use of electronic governmental entity. (C) discriminatory taxation; and maintenance, submission, or disclosure of in- (B) EXCEPTION.—Such term shall not in- (2) to accelerate the growth of electronic formation where practicable, as an alter- clude any franchise fees or similar fees im- commerce by expanding market access op- native information technology to substitute posed by a State or local franchising author- portunities for— for paper, and the use and acceptance of elec- ity, pursuant to section 622 or 653 of the (A) the development of telecommuni- tronic signatures where practicable. Communications Act of 1934 (47 U.S.C. 542, cations infrastructure; SEC. 5. ELECTRONIC STORAGE OF FORMS. 573). (B) the procurement of telecommuni- Within 18 months of enactment of this Act, (9) TELECOMMUNICATIONS SERVICES.—The cations equipment; in order to fulfill the responsibility to ad- term ‘‘telecommunications services’’ has the (C) the provision of Internet access and minister the functions assigned under chap- meaning given such term in section 3(46) of telecommunications services; and ter 35 of title 44, United States Code, the the Communications Act of 1934 (47 U.S.C. (D) the exchange of goods, services, and Clinger-Cohen Act of 1996 (P.L. 104–106), and 153(46)) and includes communications serv- digitalized information. the provisions of this Act, the Director of ices (as defined in section 4251 of the Internal (c) ELECTRONIC COMMERCE.—For purposes the Office of Management and Budget shall Revenue Code of 1986). of this section, the term ‘‘electronic com- develop procedures and guidelines for execu- TITLE II—OTHER PROVISIONS merce’’ has the meaning given that term in tive agency use to permit employer elec- section 104(3). SEC. 201. DECLARATION THAT INTERNET tronic storage and filing of forms containing SHOULD BE FREE OF NEW FEDERAL SEC. 204. NO EXPANSION OF TAX AUTHORITY. information pertaining to employees. TAXES. Nothing in this Act shall be construed to SEC. 6. STUDY. It is the sense of Congress that no new Fed- expand the duty of any person to collect or In order to fulfill the responsibility to ad- eral taxes similar to the taxes described in pay taxes beyond that which existed imme- minister the functions assigned under chap- section 101(a) should be enacted with respect diately before the date of the enactment of ter 35 of title 44, United States Code, the to the Internet and Internet access during this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and the moratorium provided in such section. SEC. 205. PRESERVATION OF AUTHORITY. the provisions of this Act, the Director of SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- the Office of Management and Budget, shall Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- conduct an ongoing study of paperwork re- U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– duction and electronic commerce, the im- (1) in subsection (a)(1)— 104) or the amendments made by such Act. pact on individual privacy, and the security October 7, 1998 CONGRESSIONAL RECORD — SENATE S11727 and authenticity of transactions due to the (B) does not include any non-profit entity website or online service, shall not be use of electronic signatures pursuant to this that would otherwise be exempt from cov- deemed directed to children solely for refer- Act, and shall report the findings to Con- erage under section 5 of the Federal Trade ring or linking to a commercial website or gress. Commission Act (15 U.S.C. 45). online service directed to children by using SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (3) COMMISSION.—The term ‘‘Commission’’ information location tools, including a direc- ELECTRONIC RECORDS. means the Federal Trade Commission. tory, index, reference, pointer, or hypertext Electronic records submitted or main- (4) DISCLOSURE.—The term ‘‘disclosure’’ link. tained in accordance with agency procedures means, with respect to personal informa- (11) PERSON.—The term ‘‘person’’ means and guidelines established pursuant to this tion— any individual, partnership, corporation, title, or electronic signatures or other forms (A) the release of personal information col- trust, estate, cooperative, association, or of electronic authentication used in accord- lected from a child in identifiable form by an other entity. ance with such procedures and guidelines, operator for any purpose, except where such (12) ONLINE CONTACT INFORMATION.—The shall not be denied legal effect, validity or information is provided to a person other term ‘‘online contact information’’ means an enforceability because they are in electronic than the operator who provides support for e-mail address or another substantially simi- form. the internal operations of the website and lar identifier that permits direct contact does not disclose or use that information for with a person online. SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and SEC. 203. REGULATION OF UNFAIR AND DECEP- Except as provided by law, information (B) making personal information collected TIVE ACTS AND PRACTICES IN CON- collected in the provision of electronic signa- from a child by a website or online service NECTION WITH THE COLLECTION ture services for communications with an directed to children or with actual knowl- AND USE OF PERSONAL INFORMA- agency, as provided by this Act, shall only be TION FROM AND ABOUT CHILDREN edge that such information was collected ON THE INTERNET. used or disclosed by persons who obtain, col- from a child, publicly available in identifi- lect, or maintain such information as a busi- (A) ACTS PROHIBITED.— able form, by any means including by a pub- (1) IN GENERAL.—It is unlawful for an oper- ness or government practice, for the purpose lic posting, through the Internet, or of facilitating such communications, or with ator of a website or online service directed to through— children, or any operator that has actual the prior affirmative consent of the person (i) a home page of a website; about whom the information pertains. knowledge that it is collecting personal in- (ii) a pen pal service; formation from a child, to collect personal SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; information from a child in a manner that (iv) a message board; or Nothing in this title shall apply to the De- violates the regulations prescribed under (v) a chat room. partment of the Treasury or the Internal subsection (b). (5) FEDERAL AGENCY.—The term ‘‘Federal Revenue Service, to the extent that— (2) DISCLOSURE TO PARENT PROTECTED.— agency’’ means an agency, as that term is (1) it involves the administration of the in- Notwithstanding paragraph (1), neither an defined in section 551(1) of title 5, United ternal revenue laws; and operator of such a website or online service States Code. (2) it conflicts with any provision of the In- nor the operator’s agent shall be held to be (6) INTERNET.—The term ‘‘Internet’’ means ternal Revenue Service Restructuring and liable under any Federal or State law for any collectively the myriad of computer and Reform Act of 1998 or the Internal Revenue disclosure made in good faith and following telecommunications facilities, including Code of 1986. reasonable procedures in responding to a re- equipment and operating software, which SEC. 10. DEFINITIONS. quest for disclosure of personal information comprise the interconnected world-wide net- For purposes of this Act: under subsection (b)(1)(B)(iii) to the parent work of networks that employ the Trans- (1) EXECUTIVE AGENCY.—The term ‘‘execu- of a child. mission Control Protocol/Internet Protocol, tive agency’’ has the meaning given that (b) REGULATIONS.— term in section 105 of title 5, United States or any predecessor or successor protocols to (1) IN GENERAL.—Not later than 1 year after Code. such protocol, to communicate information the date of the enactment of this Act, the of all kinds by wire or radio. (2) ELECTRONIC SIGNATURE.—The term Commission shall promulgate under section (7) PARENT.—The term ‘‘parent’’ includes a ‘‘electronic signature’’ means a method of 553 of title 5, United States Code, regulations legal guardian. signing an electronic message that— that— (8) PERSONAL INFORMATION.—The term (A) identifies and authenticates a particu- (A) require the operator of any website or ‘‘personal information’’ means individually lar person as the source of such electronic online service directed to children that col- identifiable information about an individual message; and lects personal information from children or collected online, including— (B) indicates such person’s approval of the the operator of a website or online service (A) a first and last name; that has actual knowledge that it is collect- information contained in such electronic (B) a home or other physical address in- message. ing personal information from a child— cluding street name and name of a city or (i) to provide notice on the website of what (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; information is collected from children by the terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; vey’’ include documents produced by an operator, how the operator uses such infor- (D) a telephone number; mation, and the operator’s disclosure prac- agency to facilitate interaction between an (E) a Social Security number; agency and non-government persons. tices for such information; and (F) any other identifier that the Commis- (ii) to obtain verifiable parental consent TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- for the collection, use, or disclosure of per- PROTECTION line contracting of a specific individual; or sonal information from children; (G) information concerning the child or the SEC. 201. SHORT TITLE. (B) require the operator to provide, upon parents of that child that the website col- This title may be cited as the ‘‘Children’s request of a parent under this subparagraph lects online from the child and combines Online Privacy Protection Act of 1999’’. whose child has provided personal informa- with an identifier described in this para- tion to that website or online service, upon SEC. 202. DEFINITIONS. graph. proper identification of that parent, to such In this title: (9) VERIFIABLE PARENTAL CONSENT.—The parent— (1) CHILD.—the term ‘‘child’’ means an in- term ‘‘verifiable parental consent’’ means (i) a description of the specific types of dividual under the age of 13. any reasonable effort (taking into consider- personal information collected from the (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- child by that operator; (A) means any person who operates a quest for authorization for future collection (ii) the opportunity at any time to refuse website located on the Internet or an online use, and disclosure described in the notice, to permit the operator’s further use or main- service and who collects or maintains per- to ensure that a parent of a child receives tenance in retrievable form, or future online sonal information from or about the users of notice of the operator’s personal information collection, of personal information from that or visitors to such website or online service, collection, use, and disclosure practices, and child; and or on whose behalf such information is col- authorizes the collection, use, and disclo- (iii) notwithstanding any other provision lected or maintained, where such website or sure, as applicable, of personal information of law, a means that is reasonable under the online service is operated for commercial and the subsequent use of that information circumstances for the parent to obtain any purposes, including any person offering prod- before that information is collected from personal information collected from that ucts or services for sale through that website that child. child; or online service, involving commerce— (10) WEBSITE OR ONLINE SERVICE DIRECTED (C) prohibit conditioning a child’s partici- (i) among the several States or with 1 or TO CHILDREN.— pation in a game, the offering of a prize, or more foreign nations; (A) IN GENERAL.—The term ‘‘website or on- another activity on the child disclosing more (ii) in any territory of the United States or line service directed to children’’ means— personal information than is reasonably nec- in the District of Columbia, or between any (i) A commercial website or online service essary to participate in such activity; and such territory and— that is targeted to children; or (D) require the operator of such a website (I) another such territory; or (ii) that portion of a commercial website or online service to establish and maintain (II) any State or foreign nation; or or online service that is targeted to children. reasonable procedures to protect the con- (iii) between the District of Columbia and (B) LIMITATION.—A commercial website or fidentiality, security, and integrity of per- any State, territory, or foreign nation; but online service, or a portion of a commercial sonal information collected from children. S11728 CONGRESSIONAL RECORD — SENATE October 7, 1998

(2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- (A) online contact information collected SEC. 204. SAFE HARBORS. section (a), it shall have the right— (A) to be heard with respect to any matter from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy that arises in that action; and rectly on a one-time basis to a specific re- the requirements of regulations issued under quest from the child and is not used to re- (B) to file a petition for appeal. section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to contact the child and is not maintained in latory guidelines, issued by representatives the court, a person whose self-regulatory retrievable form by the operator; of the marketing or online industries, or by guidelines have been approved by the Com- (B) a request for the name or online con- other persons, approved under subsection (b). mission and are relied upon as a defense by tact information of a parent or child that is (b) INCENTIVES.— any defendant to a proceeding under this sec- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- tal consent or providing notice under this scribing regulations under section 203, the ing. section and where such information is not Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- maintained in retrievable form by the opera- regulation by operators to implement the ing any civil action under subsection (a), tor if parental consent is not obtained after protections afforded children under the regu- nothing in this title shall be construed to a reasonable time; latory requirements described in subsection prevent an attorney general of a State from (C) online contact information collected (b) of that section. exercising the powers conferred on the attor- from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— more than once directly to a specific request shall include provisions for ensuring that a (1) conduct investigations; from the child and is not used to recontact person will be deemed to be in compliance (2) administer oaths or affirmations; or the child beyond the scope of that request— with the requirements of the regulations (3) compel the attendance of witnesses or (i) if, before any additional response after under section 203 if that person complies the production of documentary and other the initial response to the child, the operator with guidelines that, after notice and com- evidence. (d) ACTIONS BY THE COMMISSION.—In any uses reasonable efforts to provide a parent ment, are approved by the Commission upon case in which an action is instituted by or on notice of the online contact information col- making a determination that the guidelines lected from the child, the purposes for which behalf of the Commission for violation of meet the requirements of the regulations any regulation prescribed under section 293, it is to be used, and an opportunity for the issued under section 203. parent to request that the operator make no no State may, during the pendency of that (3) EXPEDITED RESPONSE TO REQUESTS.—The action, institute an action under subsection further use of the information and that it Commission shall act upon requests for safe (a) against any defendant named in the com- not be maintained in retrievable form; or harbor treatment within 180 days of the fil- plaint in that action for violation of that (ii) without notice to the parent in such ing of the request, and shall set forth in regulation. circumstances as the Commission may deter- writing its conclusions with regard to such (e) VENUE; SERVICE OF PROCESS.— mine are appropriate, taking into consider- requests. (1) VENUE.—Any action brought under sub- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- section (a) may be brought in the district information and services, and risks to the se- sion on a request for approval of guidelines, court of the United States that meets appli- curity and privacy of the child, in regula- or the failure to act within 180 days on a re- cable requirements relating to venue under tions promulgated under this subsection; quest for approval of guidelines, submitted section 1391 of title 28, United States Code. (D) the name of the child and online con- under subsection (b) may be appealed to a (2) SERVICE OF PROCESS.—In an action tact information (to the extent reasonably district court of the United States of appro- brought under subsection (a), process may be necessary to protect the safety of a child priate jurisdiction as provided for in section served in any district in which the defend- participant on the site)— 706 of title 5, United States Code. ant— (A) is an inhabitant; or (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. such safety; (B) may be found. (a) IN GENERAL.— (ii) not used to recontact the child or for SEC. 206. ADMINISTRATION AND APPLICABILITY (1) CIVIL ACTIONS.—In any case in which the OF ACT. any other purpose; and attorney general of a State has reason to be- (iii) not disclosed on the site, (a) IN GENERAL.—Except as otherwise pro- lieve that an interest of the residents of that vided, this title shall be enforced by the if the operator uses reasonable efforts to pro- State has been or is threatened or adversely Commission under the Federal Trade Com- vide a parent notice of the name and online affected by the engagement of any person in mission Act (15 U.S.C. 41 et seq.). contact information collected from the a practice that violates any regulation of the (b) PROVISIONS.—Compliance with the re- child, the purposes for which it is to be used, Commission prescribed under section 203(b), quirements imposed under this title shall be and an opportunity for the parent to request the State, as parens patriae, may bring a enforced under— that the operator make no further use of the civil action on behalf of the residents of the (1) section 8 of the Federal Deposit Insur- information and that it not be maintained in State in a district court of the United States ance Act (12 U.S.C. 1818), in the case of— retrievable form; or of appropriate jurisdiction to— (A) national banks, and Federal branches (E) the collection, use, or dissemination of (A) enjoin that practice; and Federal agencies of foreign banks, by the such information by the operator of such a (B) enforce compliance with the regula- Office of the Comptroller of the Currency; website or online service necessary— tion; (B) member banks of the Federal Reserve (i) to protect the security or integrity of (C) obtain damage, restitution, or other System (other than national banks), its website; compensation on behalf of residents of the branches and agencies of foreign banks (ii) to take precautions against liability; State; or (other than Federal branches, Federal agen- (iii) to respond to judicial process; or (D) obtain such other relief as the court cies, and insured State branches of foreign (iv) to the extent permitted under other may consider to be appropriate. banks), commercial lending companies provisions of law, to provide information to (2) NOTICE.— owned or controlled by foreign banks, and law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action organizations operating under section 25 or tigation on a matter related to public safety. under paragraph (1), the attorney general of 25(a) of the Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), by the Board; and (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- (C) banks insured by the Federal Deposit tions shall permit the operator of a website mission— Insurance Corporation (other than members or an online service to terminate service pro- (i) written notice of that action; and of the Federal Reserve System) and insured vided to a child whose parent has refused, (ii) a copy of the complaint for that action. State branches of foreign banks, by the under the regulations prescribed under para- (B) EXEMPTION.— Board of Directors of the Federal Deposit In- graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall surance Corporation; ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- (2) section 8 of the Federal Deposit Insur- or future online collection, of personal infor- tion by an attorney general of a State under ance Act (12 U.S.C. 1818), by the Director of mation from that child. this subsection, if the attorney general de- the Office of Thrift Supervision, in the case (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the of a savings association the deposits of which and 206, a violation of a regulation pre- notice described in that subparagraph before are insured by the Federal Deposit Insurance scribed under subsection (a) shall be treated the filing of the action. Corporation; as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described (3) the Federal Credit Union Act (12 U.S.C. deceptive act or practice prescribed under in clause (i), the attorney general of a State 1751 et seq.) by the National Credit Union section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- Administration Board with respect to any mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time Federal credit union; (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. (4) part A of subtitle VII of title 49, United local government may impose any liability (b) INTERVENTION.— States Code, by the Secretary of Transpor- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under tation with respect to any air carrier or for- ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have eign air carrier subject to that part; October 7, 1998 CONGRESSIONAL RECORD — SENATE S11729 (5) the Packers and Stockyards Act, 1921 (7 mission. Gifts or grants not used at the expi- of disputes between States regarding matters U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned of multiple taxation; and tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. (iii) ways to simplify the interstate admin- Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate activities subject to that Act; and shall have reasonable access to materials, re- commerce, including a review of the need for (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from a single or uniform tax registration, single (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department or uniform tax returns, simplified remit- tion with respect to any Federal land bank, of Commerce, the Department of State, the tance requirements, simplified administra- Federal land bank association, Federal inter- Department of the Treasury, and the Office tive procedures, or the need for an independ- mediate credit bank, or production credit as- of the United States Trade Representative. ent third party collection system; and sociation. The Commission shall also have reasonable (E) the examination of ways to simplify (c) EXERCISE OF CERTAIN POWERS.—For the access to use the facilities of any such De- Federal and State and local taxes imposed on purpose of the exercise by any agency re- partment or Office for purposes of conduct- the provision of telecommunications serv- ferred to in subsection (a) of its powers under ing meetings. ices. (e) SUNSET.—The Commission shall termi- any Act referred to in that subsection, a vio- nate 18 months after the date of the enact- SEC. 103. REPORT. lation of any requirement imposed under ment of this Act. Not later than 18 months after the date of this title shall be deemed to be a violation of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission a requirement imposed under that Act. In (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- addition to its powers under any provision of mission shall constitute a quorum for con- ing the results of the Commission’s study law specifically referred to in subsection (a), ducting the business of the Commission. under this title. No finding or recommenda- each of the agencies referred to in that sub- (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless section may exercise, for the purpose of en- Commission shall be duly noticed at least 17 agreed to by at least two-thirds of the mem- forcing compliance with any requirement days in advance and shall be open to the pub- bers of the Commission serving at the time imposed under this title, any other authority lic. the finding or recommendation is made. conferred on it by law. (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. (d) ACTIONS BY THE COMMISSION.—The Com- mission shall provide opportunities for rep- For the purposes of this title: mission shall prevent any person from vio- resentatives of the general public, taxpayer lating a rule of the Commission under sec- (1) BIT TAX.—The term ‘‘bit tax’’ means groups, consumer groups, and State and any tax on electronic commerce expressly tion 203 in the same manner, by the same local government officials to testify. means, and with the same jurisdiction, pow- imposed on or measured by the volume of (4) ADDITIONAL RULES.—The Commission ers, and duties as though all applicable digital information transmitted electroni- may adopt other rules as needed. cally, or the volume of digital information terms and provisions of the Federal Trade (g) DUTIES OF THE COMMISSION.— Commission Act (15 U.S.C. 41 et seq.) were per unit of time transmitted electronically, (1) IN GENERAL.—The Commission shall but does not include taxes imposed’’. incorporated into and made a part of this conduct a thorough study of Federal, State title. Any entity that violates such rule and local, and international taxation and AMENDMENT NO. 3764 shall be subject to the penalties and entitled tariff treatment of transactions using the to the privileges and immunities provided in Internet and Internet access and other com- Strike ‘‘days after the date of the enact- the Federal Trade Commission Act in the parable interstate or international sales ac- ment of this Act. same manner, by the same means, and with tivities. (3) VACANCIES.—Any vacancy in the Com- the same jurisdiction, power, and duties as (2) ISSUES TO BE STUDIED.—The Commission mission shall not affect its powers, but shall though all applicable terms and provisions of may include in the study under subsection be filled in the same manner as the original the Federal Trade Commission Act were in- (a)— appointment. corporated into and made a part of this title. (A) an examination of— (c) ACCEPTANCE OF GIFTS AND GRANTS.— (e) EFFECT ON OTHER LAWS.—Nothing con- (i) barriers imposed in foreign markets on The Commission may accept, use, and dis- tained in the Act shall be construed to limit United States providers of property, goods, pose of gifts or grants of services or prop- the authority of the Commission under any services, or information engaged in elec- erty, both real and personal, for purposes of other provisions of law. tronic commerce and on United States pro- aiding or facilitating the work of the Com- SEC. 207. REVIEW. viders of telecommunications services; and mission. Gifts or grants not used at the expi- (a) IN GENERAL.—Not later than 5 years (ii) how the imposition of such barriers ration of the Commission shall be returned after the effective date of the regulations will affect United States consumers, the to the donor or grantor. initially issued under section 203, the Com- competitiveness of United States citizens (d) OTHER RESOURCES.—The Commission mission shall— providing property, goods, services, or infor- shall have reasonable access to materials, re- (1) review the implementation of this title, mation in foreign markets, and the growth sources, data, and other information from including the effect of the implementation of and maturing of the Internet; the Department of Justice, the Department this title on practices relating to the collec- (B) an examination of the collection and of Commerce, the Department of State, the tion and disclosure of information relating administration of consumption taxes on Department of the Treasury, and the Office to children, children’s ability to obtain ac- interstate commerce in other countries and of the United States Trade Representative. cess to information of their choice online, the United States, and the impact of such The Commission shall also have reasonable and on the availability of websites directed collection on the global economy, including access to use the facilities of any such De- to children; and an examination of the relationship between partment or Office for purposes of conduct- (2) prepare and submit to Congress a report the collection and administration of such ing meetings. on the results of the review under paragraph taxes when the transaction uses the Internet (e) SUNSET.—The Commission shall termi- (1). and when it does not; nate 18 months after the date of the enact- SEC. 208. EFFECTIVE DATE. (C) an examination of the impact of the ment of this Act. Sections 203(a), 205, and 206 of this title Internet and Internet access (particularly (f) RULES OF THE COMMISSION.— take effect on the later of— voice transmission) on the revenue base for (1) QUORUM.—Nine members of the Com- (1) the date that is 18 months after the date taxes imposed under section 4251 of the In- mission shall constitute a quorum for con- of enactment of this Act; or ternal Revenue Code of 1986; ducting the business of the Commission. (2) the date on which the Commission rules (D) an examination of— (2) MEETINGS.—Any meetings held by the on the first application for safe harbor treat- (i) the efforts of State and local govern- Commission shall be duly noticed at least 14 ment under section 204 if the Commission ments to collect sales and use taxes owed on days in advance and shall be open to the pub- does not rule on the first such application purchases from interstate sellers, the advan- lic. within one year after the date of enactment tages and disadvantages of authorizing State (3) OPPORTUNITIES TO TESTIFY.—The Com- of this Act, but in no case later than the date and local governments to require such sellers mission shall provide opportunities for rep- that is 30 months after the date of enact- to collect and remit such taxes, particularly resentatives of the general public, taxpayer ment of this Act.’’, and insert in lieu thereof: with respect to electronic commerce, and the groups, consumer groups, and State and ‘‘days after the date of the enactment of this level of contacts sufficient to permit a State local government officials to testify. Act. or local government to impose such taxes on (4) ADDITIONAL RULES.—The Commission (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; may adopt other rules as needed. mission shall not affect its powers, but shall (ii) model State legislation relating to tax- (g) DUTIES OF THE COMMISSION.— be filled in the same manner as the original ation of transactions using the Internet and (1) IN GENERAL.—The Commission shall appointment. Internet access, including uniform terminol- conduct a thorough study of Federal, State (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, and local, and international taxation and The Commission may accept, use, and dis- and other activities that may be subject to tariff treatment of transactions using the pose of gifts or grants of services or prop- State and local taxation, procedural struc- Internet and Internet access and other com- erty, both real and personal, for purposes of tures and mechanisms applicable to such parable interstate or international sales ac- aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution tivities. S11730 CONGRESSIONAL RECORD — SENATE October 7, 1998

(2) ISSUES TO BE STUDIED.—The Commission subdivision on transactions involving the Communications Act of 1934 (47 U.S.C. 542, may include in the study under subsection same or similar property, goods, services, or 573). (a)— information accomplished through other (9) TELECOMMUNICATIONS SERVICES.—The (A) an examination of— means; term ‘‘telecommunications services’’ has the (i) barriers imposed in foreign markets on (B) is not generally imposed and legally meaning given such term in section 3(46) of United States providers of property, goods, collectible at the same rate by such State or the Communications Act of 1934 (47 U.S.C. services, or information engaged in elec- such political subdivision on transactions in- 153(46)) and includes communications serv- tronic commerce and on United States pro- volving the same or similar property, goods, ices (as defined in section 4251 of the Internal viders of telecommunications services; and services, or information accomplished Revenue Code of 1986). (ii) how the imposition of such barriers through other means, unless the rate is TITLE II—OTHER PROVISIONS will affect United States consumers, the lower as part of a phase-out of the tax over SEC. 201. DECLARATION THAT INTERNET competitiveness of United States citizens not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL providing property, goods, services, or infor- (C) imposes an obligation to collect or pay TAXES. mation in foreign markets, and the growth the tax on a different person or entity than It is the sense of Congress that no new Fed- and maturing of the Internet; in the case of transactions involving the eral taxes similar to the taxes described in (B) an examination of the collection and same or similar property, goods, services, or section 101(a) should be enacted with respect administration of consumption taxes on information accomplished through other to the Internet and Internet access during interstate commerce in other countries and means. the moratorium provided in such section. the United States, and the impact of such (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. collection on the global economy, including ‘‘electronic commerce’’ means any trans- Section 181 of the Trade Act of 1974 (19 an examination of the relationship between action conducted over the Internet or U.S.C. 2241) is amended— the collection and administration of such through Internet access, comprising the sale, (1) in subsection (a)(1)— taxes when the transaction uses the Internet lease, license, offer, or delivery of property, (A) in subparagraph (A)— and when it does not; goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause (C) an examination of the impact of the not for consideration, and includes the provi- (i); Internet and Internet access (particularly sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause voice transmission) on the revenue base for (4) INTERNET.—The term ‘‘Internet’’ means (ii); and taxes imposed under section 4251 of the In- the combination of computer facilities and (iii) by inserting after clause (ii) the fol- ternal Revenue Code of 1986; electromagnetic transmission media, and re- lowing new clause: (D) an examination of— lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; (i) the efforts of State and local govern- the interconnected worldwide network of and ments to collect sales and use taxes owed on computer networks that employ the Trans- (B) in subparagraph (C)— purchases from interstate sellers, the advan- mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause tages and disadvantages of authorizing State or any predecessor or successor protocol, to (i); and local governments to require such sellers transmit information. (ii) by inserting ‘‘and’’ at the end of clause (5) INTERNET ACCESS.—The term ‘‘Internet to collect and remit such taxes, particularly (ii); with respect to electronic commerce, and the access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- level of contacts sufficient to permit a State access content, information, electronic mail, lowing new clause: or local government to impose such taxes on or other services offered over the Internet, ‘‘(iii) the value of additional United States such interstate commerce; and may also include access to proprietary electronic commerce,’’; and (ii) model State legislation relating to tax- content, information, and other services as (iv) by inserting ‘‘or transacted with,’’ ation of transactions using the Internet and part of a package of services offered to con- after ‘‘or invested in’’; Internet access, including uniform terminol- sumers. Such term does not include tele- (2) in subsection (a)(2)(E)— ogy, definitions of the transactions, services, communications services. (A) by striking ‘‘and’’ at the end of clause and other activities that may be subject to (6) MULTIPLE TAX.— (i); State and local taxation, procedural struc- (A) IN GENERAL.—The term ‘‘multiple tax’’ tures and mechanisms applicable to such means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause taxation, and a mechanism for the resolution or political subdivision thereof on the same (ii); and of disputes between States regarding matters or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- of multiple taxation; and that is also subject to another tax imposed ing new clause: (iii) ways to simplify the interstate admin- by another State or political subdivision ‘‘(iii) the value of electronic commerce istration of sales and use taxes on interstate thereof (whether or not at the same rate or transacted with,’’; and commerce, including a review of the need for on the same basis), without a credit (for ex- (3) by adding at the end the following new a single or uniform tax registration, single ample, a resale exemption certificate) for subsection: ‘‘(d) ELECTRONIC COMMERCE.—For purposes or uniform tax returns, simplified remit- taxes paid in other jurisdictions. of this section, the term ‘electronic com- tance requirements, simplified administra- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in tive procedures, or the need for an independ- clude a sales or use tax imposed by a State section 104(3) of the Internet Tax Freedom ent third party collection system; and and 1 or more political subdivisions thereof Act.’’. (E) the examination of ways to simplify on the same electronic commerce or a tax on Federal and State and local taxes imposed on persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- the provision of telecommunications serv- IFFS, TRADE BARRIERS, AND OTHER ices. or use tax thereon. RESTRICTIONS. SEC. 103. REPORT. (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- Not later than 18 months after the date of subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- the enactment of this Act, the Commission tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements shall transmit to Congress a report reflect- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- ing the results of the Commission’s study tion, distribution, or other use of tangible merce through the World Trade Organiza- under this title. No finding or recommenda- personal property or services as may be de- tion, the Organization for Economic Co- tion shall be included in the report unless fined by laws imposing such tax and which is operation and Development, the Trans-At- agreed to by at least two-thirds of the mem- measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- bers of the Commission serving at the time other charge for such property or service. cific Economic Cooperation forum, the Free the finding or recommendation is made. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- SEC. 104. DEFINITIONS. the several States, the District of Columbia, ican Free Trade Agreement, and other appro- For the purposes of this title: or any commonwealth, territory, or posses- priate venues. (1) BIT TAX.—The term ‘‘bit tax’’ means sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- any tax on electronic commerce expressly (8) TAX.— tiating objectives of the United States shall imposed on or measured by the volume of (A) IN GENERAL.—The term ‘‘tax’’ means— be— digital information transmitted electroni- (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is cally, or the volume of digital information governmental authority by any govern- free from— per unit of time transmitted electronically, mental entity; or (A) tariff and nontariff barriers; but does not include taxes imposed on the (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- provision of telecommunications services. lect and to remit to a governmental entity tion and standards; and (2) DISCRIMINATORY TAX.—The term ‘‘dis- any such levy, fee, or charge imposed by a (C) discriminatory taxation; and criminatory tax’’ means any tax imposed by governmental entity. (2) to accelerate the growth of electronic a State or political subdivision thereof on (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- electronic commerce that— clude any franchise fees or similar fees im- portunities for— (A) is not generally imposed and legally posed by a State or local franchising author- (A) the development of telecommuni- collectible by such State or such political ity, pursuant to section 622 or 653 of the cations infrastructure; October 7, 1998 CONGRESSIONAL RECORD — SENATE S11731 (B) the procurement of telecommuni- minister the functions assigned under chap- service and who collects or maintains per- cations equipment; ter 35 of title 44, United States Code, the sonal information from or about the users of (C) the provision of Internet access and Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, telecommunications services; and the provisions of this Act, the Director of or on whose behalf such information is col- (D) the exchange of goods, services, and the Office of Management and Budget shall lected or maintained, where such website or digitalized information. develop procedures and guidelines for execu- online service is operated for commercial (c) ELECTRONIC COMMERCE.—For purposes tive agency use to permit employer elec- purposes, including any person offering prod- of this section, the term ‘‘electronic com- tronic storage and filing of forms containing ucts or services for sale through that website merce’’ has the meaning given that term in information pertaining to employees. or online service, involving commerce— section 104(3). SEC. 6. STUDY. (i) among the several States or with 1 or SEC. 204. NO EXPANSION OF TAX AUTHORITY. In order to fulfill the responsibility to ad- more foreign nations; Nothing in this Act shall be construed to minister the functions assigned under chap- (ii) in any territory of the United States or expand the duty of any person to collect or ter 35 of title 44, United States Code, the in the District of Columbia, or between any pay taxes beyond that which existed imme- Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— diately before the date of the enactment of the provisions of this Act, the Director of (I) another such territory; or this Act. the Office of Management and Budget, shall (II) any State or foreign nation; or SEC. 205. PRESERVATION OF AUTHORITY. conduct an ongoing study of paperwork re- (iii) between the District of Columbia and Nothing in this Act shall limit or other- duction and electronic commerce, the im- any State, territory, or foreign nation; but wise affect the implementation of the Tele- pact on individual privacy, and the security (B) does not include any non-profit entity communications Act of 1996 (Public Law 104– and authenticity of transactions due to the that would otherwise be exempt from cov- 104) or the amendments made by such Act. use of electronic signatures pursuant to this erage under section 5 of the Federal Trade SECTION 1. SHORT TITLE. Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). This Act may be cited as the ‘‘Government gress. (3) COMMISSION.—The term ‘‘Commission’’ Paperwork Elimination Act.’’ means the Federal Trade Commission. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ MATION TECHNOLOGY. Electronic records submitted or main- means, with respect to personal informa- Section 3504(a)(1)(B)(vi) of title 44, United tained in accordance with agency procedures tion— States Code, is amended to read as follows: and guidelines established pursuant to this (A) the release of personal information col- ‘‘(vi) the acquisition and use of informa- title, or electronic signatures or other forms lected from a child in identifiable form by an tion technology, including the use of alter- of electronic authentication used in accord- operator for any purpose, except where such native information technologies (such as the information is provided to a person other use of electronic submission, maintenance, ance with such procedures and guidelines, shall not be denied legal effect, validity or than the operator who provides support for or disclosure of information) to substitute the internal operations of the website and for paper, and the use and acceptance of elec- enforceability because they are in electronic form. does not disclose or use that information for tronic signatures.’’. any other purpose; and SEC. 8. DISCLOSURE OF INFORMATION. SEC. 3. PROCEDURES. (B) making personal information collected Except as provided by law, information (a) Within 18 months after enactment of from a child by a website or online service collected in the provision of electronic signa- this Act, in order to fulfill the responsibility directed to children or with actual knowl- ture services for communications with an to administer the functions assigned under edge that such information was collected agency, as provided by this Act, shall only be chapter 35 of title 44, United States Code, the from a child, publicly available in identifi- used or disclosed by persons who obtain, col- Clinger-Cohen Act of 1996 (P.L. 104–106), and able form, by any means including by a pub- lect, or maintain such information as a busi- the provisions of this Act, the Director of lic posting, through the Internet, or ness or government practice, for the purpose the Office of Management and Budget shall through— of facilitating such communications, or with develop procedures and guidelines for execu- (i) a home page of a website; the prior affirmative consent of the person tive agency use. (ii) a pen pal service; (1) The procedures shall be compatible with about whom the information pertains. (iii) an electronic mail service; standards and technology for electronic sig- SEC. 9. APPLICATION WITH OTHER LAWS. (iv) a message board; or natures as may be generally used in com- Nothing in this title shall apply to the De- (v) a chat room. merce and industry and by State govern- partment of the Treasury or the Internal (5) FEDERAL AGENCY.—The term ‘‘Federal ments, based upon consultation with appro- Revenue Service, to the extent that— agency’’ means an agency, as that term is priate private sector and State government (1) it involves the administration of the in- defined in section 551(1) of title 5, United standard setting bodies. ternal revenue laws; and States Code. (2) Such procedures shall not inappropri- (2) it conflicts with any provision of the In- (6) INTERNET.—The term ‘‘Internet’’ means ately favor one industry or technology. ternal Revenue Service Restructuring and (3) An electronic signature shall be as reli- collectively the myriad of computer and Reform Act of 1998 or the Internal Revenue telecommunications facilities, including able as is appropriate for the purpose, and ef- Code of 1986. forts shall be made to keep the information equipment and operating software, which SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- submitted intact. For purposes of this Act: (4) Successful submission of an electronic work of networks that employ the Trans- (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, form shall be electronically acknowledged. tive agency’’ has the meaning given that (5) In accordance with all other sections of or any predecessor or successor protocols to term in section 105 of title 5, United States the Act, to the extent feasible and appro- such protocol, to communicate information Code. priate, and described in a written finding, an of all kinds by wire or radio. (2) ELECTRONIC SIGNATURE.—The term (7) PARENT.—The term ‘‘parent’’ includes a agency, when it expects to receive electroni- ‘‘electronic signature’’ means a method of cally 50,000 or more submittals of a particu- legal guardian. signing an electronic message that— (8) PERSONAL INFORMATION.—The term lar form, shall take all steps necessary to en- (A) identifies and authenticates a particu- ‘‘personal information’’ means individually sure that multiple formats of electronic sig- lar person as the source of such electronic identifiable information about an individual natures are made available for submitting message; and collected online, including— such forms. (B) indicates such person’s approval of the (A) a first and last name; SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- information contained in such electronic (B) a home or other physical address in- RECTOR OF THE OFFICE OF MAN- message. AGEMENT AND BUDGET. cluding street name and name of a city or (3) FORM, QUESTIONNAIRE, OR SURVEY.—The In order to fulfill the responsibility to ad- town; terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- minister the functions assigned under chap- (C) an e-mail address; vey’’ include documents produced by an ter 35 of title 44, United States Code, the (D) a telephone number; agency to facilitate interaction between an Clinger-Cohen Act of 1996 (P.L. 104–106), and (E) a Social Security number; agency and non-government persons. the provisions of this Act, the Director of (F) any other identifier that the Commis- the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- ensure that, within five years of the date of PROTECTION line contracting of a specific individual; or enactment of this Act, executive agencies SEC. 201. SHORT TITLE. (G) information concerning the child or the provide for the optional use of electronic This title may be cited as the ‘‘Children’s parents of that child that the website col- maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. lects online from the child and combines formation where practicable, as an alter- SEC. 202. DEFINITIONS. with an identifier described in this para- native information technology to substitute In this title: graph. for paper, and the use and acceptance of elec- (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The tronic signatures where practicable. dividual under the age of 13. term ‘‘verifiable parental consent’’ means SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- Within 18 months of enactment of this Act, (A) means any person who operates a ation available technology), including a re- in order to fulfill the responsibility to ad- website located on the Internet or an online quest for authorization for future collection S11732 CONGRESSIONAL RECORD — SENATE October 7, 1998

use, and disclosure described in the notice, (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- to ensure that a parent of a child receives to permit the operator’s further use or main- tions shall permit the operator of a website notice of the operator’s personal information tenance in retrievable form, or future online or an online service to terminate service pro- collection, use, and disclosure practices, and collection, of personal information from that vided to a child whose parent has refused, authorizes the collection, use, and disclo- child; and under the regulations prescribed under para- sure, as applicable, of personal information (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- and the subsequent use of that information of law, a means that is reasonable under the ther use or maintenance in retrievable form, before that information is collected from circumstances for the parent to obtain any or future online collection, of personal infor- that child. personal information collected from that mation from that child. (10) WEBSITE OR ONLINE SERVICE DIRECTED child; (c) ENFORCEMENT.—Subject to sections 204 TO CHILDREN.— (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated line service directed to children’’ means— another activity on the child disclosing more as a violation of a rule defining an unfair or (i) A commercial website or online service personal information than is reasonably nec- deceptive act or practice prescribed under that is targeted to children; or essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- (ii) that portion of a commercial website (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). or online service that is targeted to children. or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- local government may impose any liability online service, or a portion of a commercial fidentiality, security, and integrity of per- for commercial activities or actions by oper- website or online service, shall not be sonal information collected from children. ators in interstate or foreign commerce in deemed directed to children solely for refer- (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- ring or linking to a commercial website or ulations shall provide that verifiable paren- scribed in this title that is inconsistent with online service directed to children by using tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions information location tools, including a direc- required in the case of— under this section. tory, index, reference, pointer, or hypertext (A) online contact information collected SEC. 204. SAFE HARBORS. link. from a child that is used only to respond di- (11) PERSON.—The term ‘‘person’’ means (a) GUIDELINES.—An operator may satisfy rectly on a one-time basis to a specific re- any individual, partnership, corporation, the requirements of regulations issued under quest from the child and is not used to re- trust, estate, cooperative, association, or section 203(b) by following a set of self-regu- contact the child and is not maintained in other entity. latory guidelines, issued by representatives retrievable form by the operator; (12) ONLINE CONTACT INFORMATION.—The of the marketing or online industries, or by (B) a request for the name or online con- term ‘‘online contact information’’ means an other persons, approved under subsection (b). tact information of a parent or child that is e-mail address or another substantially simi- (b) INCENTIVES.— used for the sole purpose of obtaining paren- lar identifier that permits direct contact (1) SELF-REGULATORY INCENTIVES.—In pre- tal consent or providing notice under this with a person online. scribing regulations under section 203, the section and where such information is not Commission shall provide incentives for self- SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- TIVE ACTS AND PRACTICES IN CON- regulation by operators to implement the NECTION WITH THE COLLECTION tor if parental consent is not obtained after protections afforded children under the regu- AND USE OF PERSONAL INFORMA- a reasonable time; latory requirements described in subsection TION FROM AND ABOUT CHILDREN (C) online contact information collected (b) of that section. ON THE INTERNET. from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (A) ACTS PROHIBITED.— more than once directly to a specific request shall include provisions for ensuring that a (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. that— such safety; (A) require the operator of any website or (a) IN GENERAL.— (ii) not used to recontact the child or for online service directed to children that col- (1) CIVIL ACTIONS.—In any case in which the any other purpose; and lects personal information from children or attorney general of a State has reason to be- (iii) not disclosed on the site, the operator of a website or online service lieve that an interest of the residents of that that has actual knowledge that it is collect- if the operator uses reasonable efforts to pro- State has been or is threatened or adversely ing personal information from a child— vide a parent notice of the name and online affected by the engagement of any person in (i) to provide notice on the website of what contact information collected from the a practice that violates any regulation of the information is collected from children by the child, the purposes for which it is to be used, Commission prescribed under section 203(b), operator, how the operator uses such infor- and an opportunity for the parent to request the State, as parens patriae, may bring a mation, and the operator’s disclosure prac- that the operator make no further use of the civil action on behalf of the residents of the tices for such information; and information and that it not be maintained in State in a district court of the United States (ii) to obtain verifiable parental consent retrievable form; or of appropriate jurisdiction to— for the collection, use, or disclosure of per- (E) the collection, use, or dissemination of (A) enjoin that practice; sonal information from children; such information by the operator of such a (B) enforce compliance with the regula- (B) require the operator to provide, upon website or online service necessary— tion; request of a parent under this subparagraph (i) to protect the security or integrity of (C) obtain damage, restitution, or other whose child has provided personal informa- its website; compensation on behalf of residents of the tion to that website or online service, upon (ii) to take precautions against liability; State; or proper identification of that parent, to such (iii) to respond to judicial process; or (D) obtain such other relief as the court parent— (iv) to the extent permitted under other may consider to be appropriate. (i) a description of the specific types of provisions of law, to provide information to (2) NOTICE.— personal information collected from the law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action child by that operator; tigation on a matter related to public safety. under paragraph (1), the attorney general of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11733 the State involved shall provide to the Com- organizations operating under section 25 or (1) the date that is 18 months after the date mission— 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or (i) written notice of that action; and 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules (ii) a copy of the complaint for that action. (C) banks insured by the Federal Deposit on the first application for safe harbor treat- (B) EXEMPTION.— Insurance Corporation (other than members ment under section 204 if the Commission (i) IN GENERAL.—Subparagraph (A) shall of the Federal Reserve System) and insured does not rule on the first such application not apply with respect to the filing of an ac- State branches of foreign banks, by the within one year after the date of enactment tion by an attorney general of a State under Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date this subsection, if the attorney general de- surance Corporation; that is 30 months after the date of enact- termines that it is not feasible to provide the (2) section 8 of the Federal Deposit Insur- ment of this Act.’’, and insert in lieu thereof: notice described in that subparagraph before ance Act (12 U.S.C. 1818), by the Director of ‘‘days after the date of the enactment of this the filing of the action. the Office of Thrift Supervision, in the case Act. (ii) NOTIFICATION.—In an action described of a savings association the deposits of which (3) VACANCIES.—Any vacancy in the Com- in clause (i), the attorney general of a State are insured by the Federal Deposit Insurance mission shall not affect its powers, but shall shall provide notice and a copy of the com- Corporation; be filled in the same manner as the original plaint to the Commission at the same time (3) the Federal Credit Union Act (12 U.S.C. appointment. as the attorney general files the action. 1751 et seq.) by the National Credit Union (c) ACCEPTANCE OF GIFTS AND GRANTS.— (b) INTERVENTION.— Administration Board with respect to any The Commission may accept, use, and dis- (1) IN GENERAL.—On receiving notice under Federal credit union; pose of gifts or grants of services or prop- subsection (a)(2), the Commission shall have (4) part A of subtitle VII of title 49, United erty, both real and personal, for purposes of the right to intervene in the action that is States Code, by the Secretary of Transpor- aiding or facilitating the work of the Com- the subject of the notice. tation with respect to any air carrier or for- mission. Gifts or grants not used at the expi- (2) EFFECT OF INTERVENTION.—If the Com- eign air carrier subject to that part; ration of the Commission shall be returned mission intervenes in an action under sub- (5) the Packers and Stockyards Act, 1921 (7 to the donor or grantor. section (a), it shall have the right— U.S.C. 181 et. seq.) (except as provided in sec- (d) OTHER RESOURCES.—The Commission (A) to be heard with respect to any matter tion 406 of that Act (7 U.S.C. 226, 227)), by the shall have reasonable access to materials, re- that arises in that action; and Secretary of Agriculture with respect to any sources, data, and other information from (B) to file a petition for appeal. activities subject to that Act; and the Department of Justice, the Department (6) the Farm Credit Act of 1971 (12 U.S.C. (3) AMICUS CURIAE.—Upon application to of Commerce, the Department of State, the (2001 et seq.) by the Farm Credit Administra- the court, a person whose self-regulatory Department of the Treasury, and the Office tion with respect to any Federal land bank, guidelines have been approved by the Com- of the United States Trade Representative. Federal land bank association, Federal inter- mission and are relied upon as a defense by The Commission shall also have reasonable mediate credit bank, or production credit as- any defendant to a proceeding under this sec- access to use the facilities of any such De- sociation. tion may file amicus curiae in that proceed- partment or Office for purposes of conduct- (c) EXERCISE OF CERTAIN POWERS.—For the ing. purpose of the exercise by any agency re- ing meetings. (e) SUNSET.—The Commission shall termi- (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under nate 18 months after the date of the enact- ing any civil action under subsection (a), any Act referred to in that subsection, a vio- ment of this Act. nothing in this title shall be construed to lation of any requirement imposed under (f) RULES OF THE COMMISSION.— prevent an attorney general of a State from this title shall be deemed to be a violation of (1) QUORUM.—Nine members of the Com- exercising the powers conferred on the attor- a requirement imposed under that Act. In mission shall constitute a quorum for con- ney general by the laws of that State to— addition to its powers under any provision of ducting the business of the Commission. (1) conduct investigations; law specifically referred to in subsection (a), (2) MEETINGS.—Any meetings held by the (2) administer oaths or affirmations; or each of the agencies referred to in that sub- Commission shall be duly noticed at least 18 (3) compel the attendance of witnesses or section may exercise, for the purpose of en- days in advance and shall be open to the pub- the production of documentary and other forcing compliance with any requirement lic. evidence. imposed under this title, any other authority (3) OPPORTUNITIES TO TESTIFY.—The Com- (d) ACTIONS BY THE COMMISSION.—In any conferred on it by law. case in which an action is instituted by or on (d) ACTIONS BY THE COMMISSION.—The Com- mission shall provide opportunities for rep- behalf of the Commission for violation of mission shall prevent any person from vio- resentatives of the general public, taxpayer any regulation prescribed under section 293, lating a rule of the Commission under sec- groups, consumer groups, and State and no State may, during the pendency of that tion 203 in the same manner, by the same local government officials to testify. action, institute an action under subsection means, and with the same jurisdiction, pow- (4) ADDITIONAL RULES.—The Commission (a) against any defendant named in the com- ers, and duties as though all applicable may adopt other rules as needed. plaint in that action for violation of that terms and provisions of the Federal Trade (g) DUTIES OF THE COMMISSION.— regulation. Commission Act (15 U.S.C. 41 et seq.) were (1) IN GENERAL.—The Commission shall (e) VENUE; SERVICE OF PROCESS.— incorporated into and made a part of this conduct a thorough study of Federal, State (1) VENUE.—Any action brought under sub- title. Any entity that violates such rule and local, and international taxation and section (a) may be brought in the district shall be subject to the penalties and entitled tariff treatment of transactions using the court of the United States that meets appli- to the privileges and immunities provided in Internet and Internet access and other com- cable requirements relating to venue under the Federal Trade Commission Act in the parable interstate or international sales ac- section 1391 of title 28, United States Code. same manner, by the same means, and with tivities. (2) SERVICE OF PROCESS.—In an action the same jurisdiction, power, and duties as (2) ISSUES TO BE STUDIED.—The Commission brought under subsection (a), process may be though all applicable terms and provisions of may include in the study under subsection served in any district in which the defend- the Federal Trade Commission Act were in- (a)— ant— corporated into and made a part of this title. (A) an examination of— (A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (i) barriers imposed in foreign markets on (B) may be found. tained in the Act shall be construed to limit United States providers of property, goods, SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any services, or information engaged in elec- OF ACT. other provisions of law. tronic commerce and on United States pro- (a) IN GENERAL.—Except as otherwise pro- SEC. 207. REVIEW. viders of telecommunications services; and vided, this title shall be enforced by the (a) IN GENERAL.—Not later than 5 years (ii) how the imposition of such barriers Commission under the Federal Trade Com- after the effective date of the regulations will affect United States consumers, the mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- competitiveness of United States citizens (b) PROVISIONS.—Compliance with the re- mission shall— providing property, goods, services, or infor- quirements imposed under this title shall be (1) review the implementation of this title, mation in foreign markets, and the growth enforced under— including the effect of the implementation of and maturing of the Internet; (1) section 8 of the Federal Deposit Insur- this title on practices relating to the collec- (B) an examination of the collection and ance Act (12 U.S.C. 1818), in the case of— tion and disclosure of information relating administration of consumption taxes on (A) national banks, and Federal branches to children, children’s ability to obtain ac- interstate commerce in other countries and and Federal agencies of foreign banks, by the cess to information of their choice online, the United States, and the impact of such Office of the Comptroller of the Currency; and on the availability of websites directed collection on the global economy, including (B) member banks of the Federal Reserve to children; and an examination of the relationship between System (other than national banks), (2) prepare and submit to Congress a report the collection and administration of such branches and agencies of foreign banks on the results of the review under paragraph taxes when the transaction uses the Internet (other than Federal branches, Federal agen- (1). and when it does not; cies, and insured State branches of foreign SEC. 208. EFFECTIVE DATE. (C) an examination of the impact of the banks), commercial lending companies Sections 203(a), 205, and 206 of this title Internet and Internet access (particularly owned or controlled by foreign banks, and take effect on the later of— voice transmission) on the revenue base for S11734 CONGRESSIONAL RECORD — SENATE October 7, 1998

taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause ternal Revenue Code of 1986; the combination of computer facilities and (ii); and (D) an examination of— electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- (i) the efforts of State and local govern- lated equipment and software, comprising lowing new clause: ments to collect sales and use taxes owed on the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; purchases from interstate sellers, the advan- computer networks that employ the Trans- and tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— and local governments to require such sellers or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause to collect and remit such taxes, particularly transmit information. (i); with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause level of contacts sufficient to permit a State access’’ means a service that enables users to (ii); or local government to impose such taxes on access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- such interstate commerce; or other services offered over the Internet, lowing new clause: (ii) model State legislation relating to tax- and may also include access to proprietary ‘‘(iii) the value of additional United States ation of transactions using the Internet and content, information, and other services as electronic commerce,’’; and Internet access, including uniform terminol- part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ ogy, definitions of the transactions, services, sumers. Such term does not include tele- after ‘‘or invested in’’; and other activities that may be subject to communications services. (2) in subsection (a)(2)(E)— State and local taxation, procedural struc- (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); taxation, and a mechanism for the resolution means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause of disputes between States regarding matters or political subdivision thereof on the same (ii); and of multiple taxation; and or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- (iii) ways to simplify the interstate admin- that is also subject to another tax imposed ing new clause: istration of sales and use taxes on interstate by another State or political subdivision ‘‘(iii) the value of electronic commerce commerce, including a review of the need for thereof (whether or not at the same rate or transacted with,’’; and a single or uniform tax registration, single on the same basis), without a credit (for ex- (3) by adding at the end the following new or uniform tax returns, simplified remit- ample, a resale exemption certificate) for subsection: tance requirements, simplified administra- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- ent third party collection system; and clude a sales or use tax imposed by a State merce’ has the meaning given that term in (E) the examination of ways to simplify and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom Federal and State and local taxes imposed on on the same electronic commerce or a tax on Act.’’. the provision of telecommunications serv- persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET ices. which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- SEC. 103. REPORT. or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.— It is the sense of Con- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- gress that the President should seek bilat- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- eral, regional, and multilateral agreements under this title. No finding or recommenda- tion, distribution, or other use of tangible to remove barriers to global electronic com- tion shall be included in the report unless personal property or services as may be de- merce through the World Trade Organiza- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is tion, the Organization for Economic Co- bers of the Commission serving at the time measured by the amount of the sales price or operation and Development, the Trans-At- the finding or recommendation is made. other charge for such property or service. lantic Economic Partnership, the Asia Pa- cific Economic Cooperation forum, the Free SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- For the purposes of this title: the several States, the District of Columbia, ican Free Trade Agreement, and other appro- (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- priate venues. any tax on electronic commerce expressly sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- imposed on or measured by the volume of (8) TAX.— tiating objectives of the United States shall digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— be— cally, or the volume of digital information (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is per unit of time transmitted electronically, governmental authority by any govern- free from— but does not include taxes imposed on the mental entity; or (A) tariff and nontariff barriers; provision of telecommunications services. (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- (2) DISCRIMINATORY TAX.—The term ‘‘dis- lect and to remit to a governmental entity tion and standards; and criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a (C) discriminatory taxation; and a State or political subdivision thereof on governmental entity. (2) to accelerate the growth of electronic electronic commerce that— (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- (A) is not generally imposed and legally clude any franchise fees or similar fees im- portunities for— collectible by such State or such political posed by a State or local franchising author- (A) the development of telecommuni- subdivision on transactions involving the ity, pursuant to section 622 or 653 of the cations infrastructure; same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- information accomplished through other 573). cations equipment; means; (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and (B) is not generally imposed and legally term ‘‘telecommunications services’’ has the telecommunications services; and collectible at the same rate by such State or meaning given such term in section 3(46) of (D) the exchange of goods, services, and such political subdivision on transactions in- the Communications Act of 1934 (47 U.S.C. digitalized information. volving the same or similar property, goods, 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes services, or information accomplished ices (as defined in section 4251 of the Internal Revenue Code of 1986). of this section, the term ‘‘electronic com- through other means, unless the rate is merce’’ has the meaning given that term in TITLE II—OTHER PROVISIONS lower as part of a phase-out of the tax over section 104(3). not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL the tax on a different person or entity than TAXES. Nothing in this Act shall be construed to in the case of transactions involving the It is the sense of Congress that no new Fed- expand the duty of any person to collect or same or similar property, goods, services, or eral taxes similar to the taxes described in pay taxes beyond that which existed imme- information accomplished through other section 101(a) should be enacted with respect diately before the date of the enactment of means. to the Internet and Internet access during this Act. (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. SEC. 205. PRESERVATION OF AUTHORITY. ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- through Internet access, comprising the sale, U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– lease, license, offer, or delivery of property, (1) in subsection (a)(1)— 104) or the amendments made by such Act. goods, services, or information, whether or (A) in subparagraph (A)— SECTION 1. SHORT TITLE. not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government sion of Internet access. (i); Paperwork Elimination Act.’’ October 7, 1998 CONGRESSIONAL RECORD — SENATE S11735

SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (3) COMMISSION.—The term ‘‘Commission’’ MATION TECHNOLOGY. ELECTRONIC RECORDS. means the Federal Trade Commission. Section 3504(a)(1)(B)(vi) of title 44, United Electronic records submitted or main- (4) DISCLOSURE.—The term ‘‘disclosure’’ States Code, is amended to read as follows: tained in accordance with agency procedures means, with respect to personal informa- ‘‘(vi) the acquisition and use of informa- and guidelines established pursuant to this tion— tion technology, including the use of alter- title, or electronic signatures or other forms (A) the release of personal information col- native information technologies (such as the of electronic authentication used in accord- lected from a child in identifiable form by an use of electronic submission, maintenance, ance with such procedures and guidelines, operator for any purpose, except where such or disclosure of information) to substitute shall not be denied legal effect, validity or information is provided to a person other for paper, and the use and acceptance of elec- enforceability because they are in electronic than the operator who provides support for tronic signatures.’’. form. the internal operations of the website and SEC. 3. PROCEDURES. SEC. 8. DISCLOSURE OF INFORMATION. does not disclose or use that information for (a) Within 18 months after enactment of Except as provided by law, information any other purpose; and this Act, in order to fulfill the responsibility collected in the provision of electronic signa- (B) making personal information collected to administer the functions assigned under ture services for communications with an from a child by a website or online service chapter 35 of title 44, United States Code, the agency, as provided by this Act, shall only be directed to children or with actual knowl- Clinger-Cohen Act of 1996 (P.L. 104–106), and used or disclosed by persons who obtain, col- edge that such information was collected the provisions of this Act, the Director of lect, or maintain such information as a busi- from a child, publicly available in identifi- the Office of Management and Budget shall ness or government practice, for the purpose able form, by any means including by a pub- develop procedures and guidelines for execu- of facilitating such communications, or with lic posting, through the Internet, or tive agency use. the prior affirmative consent of the person through— (1) The procedures shall be compatible with about whom the information pertains. (i) a home page of a website; standards and technology for electronic sig- (ii) a pen pal service; SEC. 9. APPLICATION WITH OTHER LAWS. natures as may be generally used in com- (iii) an electronic mail service; merce and industry and by State govern- Nothing in this title shall apply to the De- (iv) a message board; or ments, based upon consultation with appro- partment of the Treasury or the Internal (v) a chat room. priate private sector and State government Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal standard setting bodies. (1) it involves the administration of the in- agency’’ means an agency, as that term is (2) Such procedures shall not inappropri- ternal revenue laws; and defined in section 551(1) of title 5, United ately favor one industry or technology. (2) it conflicts with any provision of the In- States Code. (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and forts shall be made to keep the information Code of 1986. telecommunications facilities, including submitted intact. SEC. 10. DEFINITIONS. equipment and operating software, which (4) Successful submission of an electronic For purposes of this Act: comprise the interconnected world-wide net- form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- (5) In accordance with all other sections of tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, the Act, to the extent feasible and appro- term in section 105 of title 5, United States or any predecessor or successor protocols to priate, and described in a written finding, an Code. such protocol, to communicate information agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a lar form, shall take all steps necessary to en- signing an electronic message that— legal guardian. sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term natures are made available for submitting lar person as the source of such electronic ‘‘personal information’’ means individually such forms. message; and identifiable information about an individual SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the collected online, including— RECTOR OF THE OFFICE OF MAN- information contained in such electronic (A) a first and last name; AGEMENT AND BUDGET. message. (B) a home or other physical address in- In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; ter 35 of title 44, United States Code, the vey’’ include documents produced by an (C) an e-mail address; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an (D) a telephone number; the provisions of this Act, the Director of agency and non-government persons. (E) a Social Security number; the Office of Management and Budget shall (F) any other identifier that the Commis- ensure that, within five years of the date of TITLE II—CHILDREN’S ONLINE PRIVACY PROTECTION sion determines permits the physical or on- enactment of this Act, executive agencies line contracting of a specific individual; or provide for the optional use of electronic SEC. 201. SHORT TITLE. (G) information concerning the child or the maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s parents of that child that the website col- formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. lects online from the child and combines native information technology to substitute SEC. 202. DEFINITIONS. with an identifier described in this para- for paper, and the use and acceptance of elec- In this title: graph. tronic signatures where practicable. (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. term ‘‘verifiable parental consent’’ means Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- in order to fulfill the responsibility to ad- (A) means any person who operates a ation available technology), including a re- minister the functions assigned under chap- website located on the Internet or an online quest for authorization for future collection ter 35 of title 44, United States Code, the service and who collects or maintains per- use, and disclosure described in the notice, Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of to ensure that a parent of a child receives the provisions of this Act, the Director of or visitors to such website or online service, notice of the operator’s personal information the Office of Management and Budget shall or on whose behalf such information is col- collection, use, and disclosure practices, and develop procedures and guidelines for execu- lected or maintained, where such website or authorizes the collection, use, and disclo- tive agency use to permit employer elec- online service is operated for commercial sure, as applicable, of personal information tronic storage and filing of forms containing purposes, including any person offering prod- and the subsequent use of that information information pertaining to employees. ucts or services for sale through that website before that information is collected from SEC. 6. STUDY. or online service, involving commerce— that child. In order to fulfill the responsibility to ad- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED minister the functions assigned under chap- more foreign nations; TO CHILDREN.— ter 35 of title 44, United States Code, the (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any line service directed to children’’ means— the provisions of this Act, the Director of such territory and— (i) A commercial website or online service the Office of Management and Budget, shall (I) another such territory; or that is targeted to children; or conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (ii) that portion of a commercial website duction and electronic commerce, the im- (iii) between the District of Columbia and or online service that is targeted to children. pact on individual privacy, and the security any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or and authenticity of transactions due to the (B) does not include any non-profit entity online service, or a portion of a commercial use of electronic signatures pursuant to this that would otherwise be exempt from cov- website or online service, shall not be Act, and shall report the findings to Con- erage under section 5 of the Federal Trade deemed directed to children solely for refer- gress. Commission Act (15 U.S.C. 45). ring or linking to a commercial website or S11736 CONGRESSIONAL RECORD — SENATE October 7, 1998 online service directed to children by using tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions information location tools, including a direc- required in the case of— under this section. tory, index, reference, pointer, or hypertext (A) online contact information collected SEC. 204. SAFE HARBORS. link. from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy (11) PERSON.—The term ‘‘person’’ means rectly on a one-time basis to a specific re- the requirements of regulations issued under any individual, partnership, corporation, quest from the child and is not used to re- section 203(b) by following a set of self-regu- trust, estate, cooperative, association, or contact the child and is not maintained in latory guidelines, issued by representatives other entity. retrievable form by the operator; of the marketing or online industries, or by (12) ONLINE CONTACT INFORMATION.—The (B) a request for the name or online con- other persons, approved under subsection (b). term ‘‘online contact information’’ means an tact information of a parent or child that is (b) INCENTIVES.— e-mail address or another substantially simi- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- lar identifier that permits direct contact tal consent or providing notice under this scribing regulations under section 203, the with a person online. section and where such information is not Commission shall provide incentives for self- SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- regulation by operators to implement the TIVE ACTS AND PRACTICES IN CON- tor if parental consent is not obtained after protections afforded children under the regu- NECTION WITH THE COLLECTION a reasonable time; latory requirements described in subsection AND USE OF PERSONAL INFORMA- (C) online contact information collected TION FROM AND ABOUT CHILDREN (b) of that section. ON THE INTERNET. from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (A) ACTS PROHIBITED.— more than once directly to a specific request shall include provisions for ensuring that a (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. that— such safety; (a) IN GENERAL.— (A) require the operator of any website or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the online service directed to children that col- any other purpose; and attorney general of a State has reason to be- lects personal information from children or (iii) not disclosed on the site, lieve that an interest of the residents of that the operator of a website or online service if the operator uses reasonable efforts to pro- State has been or is threatened or adversely that has actual knowledge that it is collect- vide a parent notice of the name and online affected by the engagement of any person in ing personal information from a child— contact information collected from the a practice that violates any regulation of the (i) to provide notice on the website of what child, the purposes for which it is to be used, Commission prescribed under section 203(b), information is collected from children by the and an opportunity for the parent to request the State, as parens patriae, may bring a operator, how the operator uses such infor- that the operator make no further use of the civil action on behalf of the residents of the mation, and the operator’s disclosure prac- information and that it not be maintained in State in a district court of the United States tices for such information; and retrievable form; or (ii) to obtain verifiable parental consent of appropriate jurisdiction to— (E) the collection, use, or dissemination of for the collection, use, or disclosure of per- (A) enjoin that practice; such information by the operator of such a sonal information from children; (B) enforce compliance with the regula- website or online service necessary— (B) require the operator to provide, upon tion; (i) to protect the security or integrity of request of a parent under this subparagraph (C) obtain damage, restitution, or other its website; whose child has provided personal informa- compensation on behalf of residents of the (ii) to take precautions against liability; tion to that website or online service, upon State; or (iii) to respond to judicial process; or proper identification of that parent, to such (D) obtain such other relief as the court (iv) to the extent permitted under other parent— may consider to be appropriate. (i) a description of the specific types of provisions of law, to provide information to (2) NOTICE.— personal information collected from the law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action child by that operator; tigation on a matter related to public safety. under paragraph (1), the attorney general of (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- to permit the operator’s further use or main- tions shall permit the operator of a website mission— tenance in retrievable form, or future online or an online service to terminate service pro- (i) written notice of that action; and collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11737

(2) EFFECT OF INTERVENTION.—If the Com- (5) the Packers and Stockyards Act, 1921 (7 erty, both real and personal, for purposes of mission intervenes in an action under sub- U.S.C. 181 et. seq.) (except as provided in sec- aiding or facilitating the work of the Com- section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the mission. Gifts or grants not used at the expi- (A) to be heard with respect to any matter Secretary of Agriculture with respect to any ration of the Commission shall be returned that arises in that action; and activities subject to that Act; and to the donor or grantor. (B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. (d) OTHER RESOURCES.—The Commission (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- shall have reasonable access to materials, re- the court, a person whose self-regulatory tion with respect to any Federal land bank, sources, data, and other information from guidelines have been approved by the Com- Federal land bank association, Federal inter- the Department of Justice, the Department mission and are relied upon as a defense by mediate credit bank, or production credit as- of Commerce, the Department of State, the any defendant to a proceeding under this sec- sociation. Department of the Treasury, and the Office tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the of the United States Trade Representative. ing. purpose of the exercise by any agency re- The Commission shall also have reasonable (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under access to use the facilities of any such De- ing any civil action under subsection (a), any Act referred to in that subsection, a vio- partment or Office for purposes of conduct- nothing in this title shall be construed to lation of any requirement imposed under ing meetings. prevent an attorney general of a State from this title shall be deemed to be a violation of (e) SUNSET.—The Commission shall termi- exercising the powers conferred on the attor- a requirement imposed under that Act. In nate 18 months after the date of the enact- ney general by the laws of that State to— addition to its powers under any provision of ment of this Act. (1) conduct investigations; law specifically referred to in subsection (a), (2) administer oaths or affirmations; or (f) RULES OF THE COMMISSION.— each of the agencies referred to in that sub- (3) compel the attendance of witnesses or (1) QUORUM.—Nine members of the Com- section may exercise, for the purpose of en- the production of documentary and other mission shall constitute a quorum for con- forcing compliance with any requirement evidence. ducting the business of the Commission. imposed under this title, any other authority (d) ACTIONS BY THE COMMISSION.—In any (2) MEETINGS.—Any meetings held by the case in which an action is instituted by or on conferred on it by law. Commission shall be duly noticed at least 14 behalf of the Commission for violation of (d) ACTIONS BY THE COMMISSION.—The Com- days in advance and shall be open to the pub- any regulation prescribed under section 293, mission shall prevent any person from vio- lic. no State may, during the pendency of that lating a rule of the Commission under sec- (3) OPPORTUNITIES TO TESTIFY.—The Com- action, institute an action under subsection tion 203 in the same manner, by the same mission shall provide opportunities for rep- (a) against any defendant named in the com- means, and with the same jurisdiction, pow- resentatives of the general public, taxpayer plaint in that action for violation of that ers, and duties as though all applicable groups, consumer groups, and State and regulation. terms and provisions of the Federal Trade local government officials to testify. (e) VENUE; SERVICE OF PROCESS.— Commission Act (15 U.S.C. 41 et seq.) were (4) ADDITIONAL RULES.—The Commission (1) VENUE.—Any action brought under sub- incorporated into and made a part of this may adopt other rules as needed. section (a) may be brought in the district title. Any entity that violates such rule (g) DUTIES OF THE COMMISSION.— court of the United States that meets appli- shall be subject to the penalties and entitled (1) IN GENERAL.—The Commission shall cable requirements relating to venue under to the privileges and immunities provided in conduct a thorough study of Federal, State section 1391 of title 28, United States Code. the Federal Trade Commission Act in the and local, and international taxation and (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with tariff treatment of transactions using the brought under subsection (a), process may be the same jurisdiction, power, and duties as Internet and Internet access and other com- served in any district in which the defend- though all applicable terms and provisions of parable interstate or international sales ac- ant— the Federal Trade Commission Act were in- tivities. (A) is an inhabitant; or corporated into and made a part of this title. (2) ISSUES TO BE STUDIED.—The Commission (B) may be found. (e) EFFECT ON OTHER LAWS.—Nothing con- may include in the study under subsection SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit (a)— OF ACT. the authority of the Commission under any (A) an examination of— (a) IN GENERAL.—Except as otherwise pro- other provisions of law. (i) barriers imposed in foreign markets on vided, this title shall be enforced by the SEC. 207. REVIEW. United States providers of property, goods, Commission under the Federal Trade Com- (a) IN GENERAL.—Not later than 5 years services, or information engaged in elec- mission Act (15 U.S.C. 41 et seq.). after the effective date of the regulations tronic commerce and on United States pro- (b) PROVISIONS.—Compliance with the re- initially issued under section 203, the Com- viders of telecommunications services; and quirements imposed under this title shall be mission shall— (ii) how the imposition of such barriers enforced under— (1) review the implementation of this title, will affect United States consumers, the (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of competitiveness of United States citizens ance Act (12 U.S.C. 1818), in the case of— this title on practices relating to the collec- providing property, goods, services, or infor- (A) national banks, and Federal branches tion and disclosure of information relating and Federal agencies of foreign banks, by the mation in foreign markets, and the growth to children, children’s ability to obtain ac- and maturing of the Internet; Office of the Comptroller of the Currency; cess to information of their choice online, (B) member banks of the Federal Reserve (B) an examination of the collection and and on the availability of websites directed System (other than national banks), administration of consumption taxes on to children; and interstate commerce in other countries and branches and agencies of foreign banks (2) prepare and submit to Congress a report (other than Federal branches, Federal agen- the United States, and the impact of such on the results of the review under paragraph collection on the global economy, including cies, and insured State branches of foreign (1). banks), commercial lending companies an examination of the relationship between owned or controlled by foreign banks, and SEC. 208. EFFECTIVE DATE. the collection and administration of such organizations operating under section 25 or Sections 203(a), 205, and 206 of this title taxes when the transaction uses the Internet 25(a) of the Federal Reserve Act (12 U.S.C. take effect on the later of— and when it does not; (1) the date that is 18 months after the date 601 et seq. and 611 et. seq.), by the Board; and (C) an examination of the impact of the (C) banks insured by the Federal Deposit of enactment of this Act; or Internet and Internet access (particularly Insurance Corporation (other than members (2) the date on which the Commission rules voice transmission) on the revenue base for of the Federal Reserve System) and insured on the first application for safe harbor treat- taxes imposed under section 4251 of the In- State branches of foreign banks, by the ment under section 204 if the Commission ternal Revenue Code of 1986; Board of Directors of the Federal Deposit In- does not rule on the first such application (D) an examination of— surance Corporation; within one year after the date of enactment (i) the efforts of State and local govern- (2) section 8 of the Federal Deposit Insur- of this Act, but in no case later than the date ments to collect sales and use taxes owed on ance Act (12 U.S.C. 1818), by the Director of that is 30 months after the date of enact- purchases from interstate sellers, the advan- the Office of Thrift Supervision, in the case ment of this Act.’’ tages and disadvantages of authorizing State of a savings association the deposits of which and local governments to require such sellers are insured by the Federal Deposit Insurance AMENDMENT NO. 3765 to collect and remit such taxes, particularly Corporation; Strike ‘‘days after the date of the enact- with respect to electronic commerce, and the (3) the Federal Credit Union Act (12 U.S.C. ment of this Act. level of contacts sufficient to permit a State 1751 et seq.) by the National Credit Union (3) VACANCIES.—Any vacancy in the Com- or local government to impose such taxes on Administration Board with respect to any mission shall not affect its powers, but shall such interstate commerce; Federal credit union; be filled in the same manner as the original (ii) model State legislation relating to tax- (4) part A of subtitle VII of title 49, United appointment. ation of transactions using the Internet and States Code, by the Secretary of Transpor- (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- tation with respect to any air carrier or for- The Commission may accept, use, and dis- ogy, definitions of the transactions, services, eign air carrier subject to that part; pose of gifts or grants of services or prop- and other activities that may be subject to S11738 CONGRESSIONAL RECORD — SENATE October 7, 1998

State and local taxation, procedural struc- (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); taxation, and a mechanism for the resolution means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause of disputes between States regarding matters or political subdivision thereof on the same (ii); and of multiple taxation; and or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- (iii) ways to simplify the interstate admin- that is also subject to another tax imposed ing new clause: istration of sales and use taxes on interstate by another State or political subdivision ‘‘(iii) the value of electronic commerce commerce, including a review of the need for thereof (whether or not at the same rate or transacted with,’’; and a single or uniform tax registration, single on the same basis), without a credit (for ex- (3) by adding at the end the following new or uniform tax returns, simplified remit- ample, a resale exemption certificate) for subsection: tance requirements, simplified administra- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- ent third party collection system; and clude a sales or use tax imposed by a State merce’ has the meaning given that term in (E) the examination of ways to simplify and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom Federal and State and local taxes imposed on on the same electronic commerce or a tax on Act.’’. the provision of telecommunications serv- persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET ices. which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- SEC. 103. REPORT. or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.— It is the sense of Con- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- gress that the President should seek bilat- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- eral, regional, and multilateral agreements under this title. No finding or recommenda- tion, distribution, or other use of tangible to remove barriers to global electronic com- tion shall be included in the report unless personal property or services as may be de- merce through the World Trade Organiza- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is tion, the Organization for Economic Co- bers of the Commission serving at the time measured by the amount of the sales price or operation and Development, the Trans-At- the finding or recommendation is made. other charge for such property or service. lantic Economic Partnership, the Asia Pa- cific Economic Cooperation forum, the Free SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- For the purposes of this title: the several States, the District of Columbia, ican Free Trade Agreement, and other appro- (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- priate venues. any tax on electronic commerce expressly sion of the United States. (8) TAX.— (b) NEGOTIATING OBJECTIVES.—The nego- imposed on or measured by the volume of tiating objectives of the United States shall digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— (i) any levy, fee, or charge imposed under be— cally, or the volume of digital information (1) to assure that electronic commerce is per unit of time transmitted electronically, governmental authority by any govern- mental entity; or free from— but does not include taxes imposed on the (A) tariff and nontariff barriers; provision of telecommunications services. (ii) the imposition of or obligation to col- lect and to remit to a governmental entity (B) burdensome and discriminatory regula- (2) DISCRIMINATORY TAX.—The term ‘‘dis- tion and standards; and criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a governmental entity. (C) discriminatory taxation; and a State or political subdivision thereof on (2) to accelerate the growth of electronic electronic commerce that— (B) EXCEPTION.—Such term shall not in- clude any franchise fees or similar fees im- commerce by expanding market access op- (A) is not generally imposed and legally portunities for— collectible by such State or such political posed by a State or local franchising author- ity, pursuant to section 622 or 653 of the (A) the development of telecommuni- subdivision on transactions involving the cations infrastructure; same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, 573). (B) the procurement of telecommuni- information accomplished through other cations equipment; means; (9) TELECOMMUNICATIONS SERVICES.—The term ‘‘telecommunications services’’ has the (C) the provision of Internet access and (B) is not generally imposed and legally telecommunications services; and collectible at the same rate by such State or meaning given such term in section 3(46) of the Communications Act of 1934 (47 U.S.C. (D) the exchange of goods, services, and such political subdivision on transactions in- digitalized information. volving the same or similar property, goods, 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes services, or information accomplished ices (as defined in section 4251 of the Internal Revenue Code of 1986). of this section, the term ‘‘electronic com- through other means, unless the rate is merce’’ has the meaning given that term in lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS section 104(3). not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to the tax on a different person or entity than TAXES. expand the duty of any person to collect or in the case of transactions involving the It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- same or similar property, goods, services, or eral taxes similar to the taxes described in diately before the date of the enactment of information accomplished through other section 101(a) should be enacted with respect this Act. means. to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- through Internet access, comprising the sale, U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– lease, license, offer, or delivery of property, (1) in subsection (a)(1)— 104) or the amendments made by such Act. goods, services, or information, whether or (A) in subparagraph (A)— SECTION 1. SHORT TITLE. not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government sion of Internet access. (i); Paperwork Elimination Act.’’ (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- the combination of computer facilities and (ii); and MATION TECHNOLOGY. electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United lated equipment and software, comprising lowing new clause: States Code, is amended to read as follows: the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; ‘‘(vi) the acquisition and use of informa- computer networks that employ the Trans- and tion technology, including the use of alter- mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— native information technologies (such as the or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause use of electronic submission, maintenance, transmit information. (i); or disclosure of information) to substitute (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- access’’ means a service that enables users to (ii); tronic signatures.’’. access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. or other services offered over the Internet, lowing new clause: (a) Within 18 months after enactment of and may also include access to proprietary ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility content, information, and other services as electronic commerce,’’; and to administer the functions assigned under part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the sumers. Such term does not include tele- after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and communications services. (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11739 the Office of Management and Budget shall lect, or maintain such information as a busi- from a child, publicly available in identifi- develop procedures and guidelines for execu- ness or government practice, for the purpose able form, by any means including by a pub- tive agency use. of facilitating such communications, or with lic posting, through the Internet, or (1) The procedures shall be compatible with the prior affirmative consent of the person through— standards and technology for electronic sig- about whom the information pertains. (i) a home page of a website; natures as may be generally used in com- (ii) a pen pal service; SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; merce and industry and by State govern- Nothing in this title shall apply to the De- ments, based upon consultation with appro- (iv) a message board; or partment of the Treasury or the Internal (v) a chat room. priate private sector and State government Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal standard setting bodies. (1) it involves the administration of the in- agency’’ means an agency, as that term is (2) Such procedures shall not inappropri- ternal revenue laws; and defined in section 551(1) of title 5, United ately favor one industry or technology. (2) it conflicts with any provision of the In- States Code. (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and forts shall be made to keep the information Code of 1986. telecommunications facilities, including submitted intact. equipment and operating software, which (4) Successful submission of an electronic SEC. 10. DEFINITIONS. For purposes of this Act: comprise the interconnected world-wide net- form shall be electronically acknowledged. work of networks that employ the Trans- (5) In accordance with all other sections of (1) EXECUTIVE AGENCY.—The term ‘‘execu- tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, the Act, to the extent feasible and appro- or any predecessor or successor protocols to priate, and described in a written finding, an term in section 105 of title 5, United States Code. such protocol, to communicate information agency, when it expects to receive electroni- of all kinds by wire or radio. cally 50,000 or more submittals of a particu- (2) ELECTRONIC SIGNATURE.—The term ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a lar form, shall take all steps necessary to en- legal guardian. signing an electronic message that— sure that multiple formats of electronic sig- (8) PERSONAL INFORMATION.—The term (A) identifies and authenticates a particu- natures are made available for submitting ‘‘personal information’’ means individually lar person as the source of such electronic such forms. identifiable information about an individual message; and SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- collected online, including— RECTOR OF THE OFFICE OF MAN- (B) indicates such person’s approval of the (A) a first and last name; AGEMENT AND BUDGET. information contained in such electronic (B) a home or other physical address in- In order to fulfill the responsibility to ad- message. cluding street name and name of a city or minister the functions assigned under chap- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; ter 35 of title 44, United States Code, the terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; Clinger-Cohen Act of 1996 (P.L. 104–106), and vey’’ include documents produced by an (D) a telephone number; the provisions of this Act, the Director of agency to facilitate interaction between an (E) a Social Security number; (F) any other identifier that the Commis- the Office of Management and Budget shall agency and non-government persons. sion determines permits the physical or on- ensure that, within five years of the date of TITLE II—CHILDREN’S ONLINE PRIVACY line contracting of a specific individual; or enactment of this Act, executive agencies PROTECTION (G) information concerning the child or the provide for the optional use of electronic SEC. 201. SHORT TITLE. parents of that child that the website col- maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s lects online from the child and combines formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. with an identifier described in this para- native information technology to substitute SEC. 202. DEFINITIONS. graph. for paper, and the use and acceptance of elec- (9) VERIFIABLE PARENTAL CONSENT.—The tronic signatures where practicable. In this title: (1) CHILD.—the term ‘‘child’’ means an in- term ‘‘verifiable parental consent’’ means SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. any reasonable effort (taking into consider- Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- in order to fulfill the responsibility to ad- (A) means any person who operates a quest for authorization for future collection minister the functions assigned under chap- website located on the Internet or an online use, and disclosure described in the notice, ter 35 of title 44, United States Code, the service and who collects or maintains per- to ensure that a parent of a child receives Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of notice of the operator’s personal information the provisions of this Act, the Director of or visitors to such website or online service, collection, use, and disclosure practices, and authorizes the collection, use, and disclo- the Office of Management and Budget shall or on whose behalf such information is col- sure, as applicable, of personal information develop procedures and guidelines for execu- lected or maintained, where such website or and the subsequent use of that information tive agency use to permit employer elec- online service is operated for commercial before that information is collected from tronic storage and filing of forms containing purposes, including any person offering prod- that child. information pertaining to employees. ucts or services for sale through that website (10) WEBSITE OR ONLINE SERVICE DIRECTED SEC. 6. STUDY. or online service, involving commerce— In order to fulfill the responsibility to ad- TO CHILDREN.— (i) among the several States or with 1 or (A) IN GENERAL.—The term ‘‘website or on- minister the functions assigned under chap- more foreign nations; line service directed to children’’ means— ter 35 of title 44, United States Code, the (ii) in any territory of the United States or (i) A commercial website or online service Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any that is targeted to children; or the provisions of this Act, the Director of such territory and— (ii) that portion of a commercial website the Office of Management and Budget, shall (I) another such territory; or or online service that is targeted to children. conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (B) LIMITATION.—A commercial website or duction and electronic commerce, the im- (iii) between the District of Columbia and online service, or a portion of a commercial pact on individual privacy, and the security any State, territory, or foreign nation; but website or online service, shall not be and authenticity of transactions due to the (B) does not include any non-profit entity deemed directed to children solely for refer- use of electronic signatures pursuant to this that would otherwise be exempt from cov- ring or linking to a commercial website or Act, and shall report the findings to Con- erage under section 5 of the Federal Trade online service directed to children by using gress. Commission Act (15 U.S.C. 45). information location tools, including a direc- SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (3) COMMISSION.—The term ‘‘Commission’’ tory, index, reference, pointer, or hypertext ELECTRONIC RECORDS. means the Federal Trade Commission. link. Electronic records submitted or main- (4) DISCLOSURE.—The term ‘‘disclosure’’ (11) PERSON.—The term ‘‘person’’ means tained in accordance with agency procedures means, with respect to personal informa- any individual, partnership, corporation, and guidelines established pursuant to this tion— trust, estate, cooperative, association, or title, or electronic signatures or other forms (A) the release of personal information col- other entity. of electronic authentication used in accord- lected from a child in identifiable form by an (12) ONLINE CONTACT INFORMATION.—The ance with such procedures and guidelines, operator for any purpose, except where such term ‘‘online contact information’’ means an shall not be denied legal effect, validity or information is provided to a person other e-mail address or another substantially simi- enforceability because they are in electronic than the operator who provides support for lar identifier that permits direct contact form. the internal operations of the website and with a person online. SEC. 8. DISCLOSURE OF INFORMATION. does not disclose or use that information for SEC. 203. REGULATION OF UNFAIR AND DECEP- TIVE ACTS AND PRACTICES IN CON- Except as provided by law, information any other purpose; and NECTION WITH THE COLLECTION collected in the provision of electronic signa- (B) making personal information collected AND USE OF PERSONAL INFORMA- ture services for communications with an from a child by a website or online service TION FROM AND ABOUT CHILDREN agency, as provided by this Act, shall only be directed to children or with actual knowl- ON THE INTERNET. used or disclosed by persons who obtain, col- edge that such information was collected (A) ACTS PROHIBITED.— S11740 CONGRESSIONAL RECORD — SENATE October 7, 1998

(1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. that— such safety; (a) IN GENERAL.— (A) require the operator of any website or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the online service directed to children that col- any other purpose; and attorney general of a State has reason to be- lects personal information from children or (iii) not disclosed on the site, lieve that an interest of the residents of that the operator of a website or online service if the operator uses reasonable efforts to pro- State has been or is threatened or adversely that has actual knowledge that it is collect- vide a parent notice of the name and online affected by the engagement of any person in ing personal information from a child— contact information collected from the a practice that violates any regulation of the (i) to provide notice on the website of what child, the purposes for which it is to be used, Commission prescribed under section 203(b), information is collected from children by the and an opportunity for the parent to request the State, as parens patriae, may bring a operator, how the operator uses such infor- that the operator make no further use of the civil action on behalf of the residents of the mation, and the operator’s disclosure prac- information and that it not be maintained in State in a district court of the United States tices for such information; and retrievable form; or of appropriate jurisdiction to— (ii) to obtain verifiable parental consent (E) the collection, use, or dissemination of (A) enjoin that practice; for the collection, use, or disclosure of per- such information by the operator of such a (B) enforce compliance with the regula- sonal information from children; website or online service necessary— (B) require the operator to provide, upon tion; (i) to protect the security or integrity of request of a parent under this subparagraph (C) obtain damage, restitution, or other its website; whose child has provided personal informa- compensation on behalf of residents of the (ii) to take precautions against liability; tion to that website or online service, upon State; or (iii) to respond to judicial process; or proper identification of that parent, to such (D) obtain such other relief as the court (iv) to the extent permitted under other parent— may consider to be appropriate. provisions of law, to provide information to (i) a description of the specific types of (2) NOTICE.— law enforcement agencies or for an inves- personal information collected from the (A) IN GENERAL.—Before filing an action tigation on a matter related to public safety. child by that operator; under paragraph (1), the attorney general of (3) TERMINATION OF SERVICE.—The regula- (ii) the opportunity at any time to refuse the State involved shall provide to the Com- tions shall permit the operator of a website to permit the operator’s further use or main- mission— or an online service to terminate service pro- tenance in retrievable form, or future online (i) written notice of that action; and vided to a child whose parent has refused, collection, of personal information from that (ii) a copy of the complaint for that action. under the regulations prescribed under para- child; and (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- (A) online contact information collected SEC. 204. SAFE HARBORS. section (a), it shall have the right— from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy (A) to be heard with respect to any matter rectly on a one-time basis to a specific re- the requirements of regulations issued under that arises in that action; and quest from the child and is not used to re- section 203(b) by following a set of self-regu- (B) to file a petition for appeal. contact the child and is not maintained in latory guidelines, issued by representatives (3) AMICUS CURIAE.—Upon application to retrievable form by the operator; of the marketing or online industries, or by the court, a person whose self-regulatory (B) a request for the name or online con- other persons, approved under subsection (b). guidelines have been approved by the Com- tact information of a parent or child that is (b) INCENTIVES.— mission and are relied upon as a defense by used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- any defendant to a proceeding under this sec- tal consent or providing notice under this scribing regulations under section 203, the tion may file amicus curiae in that proceed- section and where such information is not Commission shall provide incentives for self- ing. maintained in retrievable form by the opera- regulation by operators to implement the (c) CONSTRUCTION.—For purposes of bring- tor if parental consent is not obtained after protections afforded children under the regu- ing any civil action under subsection (a), a reasonable time; latory requirements described in subsection nothing in this title shall be construed to (C) online contact information collected (b) of that section. prevent an attorney general of a State from from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives exercising the powers conferred on the attor- more than once directly to a specific request shall include provisions for ensuring that a ney general by the laws of that State to— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11741

(1) conduct investigations; addition to its powers under any provision of (1) QUORUM.—Ten members of the Commis- (2) administer oaths or affirmations; or law specifically referred to in subsection (a), sion shall constitute a quorum for conduct- (3) compel the attendance of witnesses or each of the agencies referred to in that sub- ing the business of the Commission. the production of documentary and other section may exercise, for the purpose of en- (2) MEETINGS.—Any meetings held by the evidence. forcing compliance with any requirement Commission shall be duly noticed at least 14 (d) ACTIONS BY THE COMMISSION.—In any imposed under this title, any other authority days in advance and shall be open to the pub- case in which an action is instituted by or on conferred on it by law. lic. behalf of the Commission for violation of (d) ACTIONS BY THE COMMISSION.—The Com- (3) OPPORTUNITIES TO TESTIFY.—The Com- any regulation prescribed under section 293, mission shall prevent any person from vio- mission shall provide opportunities for rep- no State may, during the pendency of that lating a rule of the Commission under sec- resentatives of the general public, taxpayer action, institute an action under subsection tion 203 in the same manner, by the same groups, consumer groups, and State and (a) against any defendant named in the com- means, and with the same jurisdiction, pow- local government officials to testify. plaint in that action for violation of that ers, and duties as though all applicable (4) ADDITIONAL RULES.—The Commission regulation. terms and provisions of the Federal Trade may adopt other rules as needed. (e) VENUE; SERVICE OF PROCESS.— Commission Act (15 U.S.C. 41 et seq.) were (g) DUTIES OF THE COMMISSION.— (1) VENUE.—Any action brought under sub- incorporated into and made a part of this (1) IN GENERAL.—The Commission shall section (a) may be brought in the district title. Any entity that violates such rule conduct a thorough study of Federal, State court of the United States that meets appli- shall be subject to the penalties and entitled and local, and international taxation and cable requirements relating to venue under to the privileges and immunities provided in tariff treatment of transactions using the section 1391 of title 28, United States Code. the Federal Trade Commission Act in the Internet and Internet access and other com- (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with parable interstate or international sales ac- brought under subsection (a), process may be the same jurisdiction, power, and duties as tivities. served in any district in which the defend- though all applicable terms and provisions of (2) ISSUES TO BE STUDIED.—The Commission ant— the Federal Trade Commission Act were in- may include in the study under subsection (A) is an inhabitant; or corporated into and made a part of this title. (a)— (B) may be found. (e) EFFECT ON OTHER LAWS.—Nothing con- (A) an examination of— SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit (i) barriers imposed in foreign markets on OF ACT. the authority of the Commission under any United States providers of property, goods, (a) IN GENERAL.—Except as otherwise pro- other provisions of law. services, or information engaged in elec- vided, this title shall be enforced by the SEC. 207. REVIEW. tronic commerce and on United States pro- Commission under the Federal Trade Com- (a) IN GENERAL.—Not later than 5 years viders of telecommunications services; and mission Act (15 U.S.C. 41 et seq.). after the effective date of the regulations (ii) how the imposition of such barriers (b) PROVISIONS.—Compliance with the re- initially issued under section 203, the Com- will affect United States consumers, the quirements imposed under this title shall be mission shall— competitiveness of United States citizens enforced under— (1) review the implementation of this title, providing property, goods, services, or infor- (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of mation in foreign markets, and the growth ance Act (12 U.S.C. 1818), in the case of— this title on practices relating to the collec- and maturing of the Internet; (A) national banks, and Federal branches tion and disclosure of information relating (B) an examination of the collection and and Federal agencies of foreign banks, by the to children, children’s ability to obtain ac- administration of consumption taxes on Office of the Comptroller of the Currency; cess to information of their choice online, interstate commerce in other countries and (B) member banks of the Federal Reserve and on the availability of websites directed the United States, and the impact of such System (other than national banks), to children; and collection on the global economy, including branches and agencies of foreign banks (2) prepare and submit to Congress a report an examination of the relationship between (other than Federal branches, Federal agen- on the results of the review under paragraph the collection and administration of such cies, and insured State branches of foreign (1). taxes when the transaction uses the Internet banks), commercial lending companies and when it does not; owned or controlled by foreign banks, and SEC. 208. EFFECTIVE DATE. (C) an examination of the impact of the organizations operating under section 25 or Sections 203(a), 205, and 206 of this title Internet and Internet access (particularly 25(a) of the Federal Reserve Act (12 U.S.C. take effect on the later of— voice transmission) on the revenue base for 601 et seq. and 611 et. seq.), by the Board; and (1) the date that is 18 months after the date taxes imposed under section 4251 of the In- (C) banks insured by the Federal Deposit of enactment of this Act; or ternal Revenue Code of 1986; Insurance Corporation (other than members (2) the date on which the Commission rules (D) an examination of— of the Federal Reserve System) and insured on the first application for safe harbor treat- (i) the efforts of State and local govern- State branches of foreign banks, by the ment under section 204 if the Commission ments to collect sales and use taxes owed on Board of Directors of the Federal Deposit In- does not rule on the first such application purchases from interstate sellers, the advan- surance Corporation; within one year after the date of enactment (2) section 8 of the Federal Deposit Insur- of this Act, but in no case later than the date tages and disadvantages of authorizing State ance Act (12 U.S.C. 1818), by the Director of that is 30 months after the date of enact- and local governments to require such sellers the Office of Thrift Supervision, in the case ment of this Act.’’, to collect and remit such taxes, particularly of a savings association the deposits of which and insert in lieu thereof: ‘‘days after the with respect to electronic commerce, and the are insured by the Federal Deposit Insurance date of the enactment of this Act. level of contacts sufficient to permit a State or local government to impose such taxes on Corporation; (3) VACANCIES.—Any vacancy in the Com- (3) the Federal Credit Union Act (12 U.S.C. mission shall not affect its powers, but shall such interstate commerce; 1751 et seq.) by the National Credit Union be filled in the same manner as the original (ii) model State legislation relating to tax- Administration Board with respect to any appointment. ation of transactions using the Internet and Federal credit union; (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- (4) part A of subtitle VII of title 49, United The Commission may accept, use, and dis- ogy, definitions of the transactions, services, States Code, by the Secretary of Transpor- pose of gifts or grants of services or prop- and other activities that may be subject to tation with respect to any air carrier or for- erty, both real and personal, for purposes of State and local taxation, procedural struc- eign air carrier subject to that part; aiding or facilitating the work of the Com- tures and mechanisms applicable to such (5) the Packers and Stockyards Act, 1921 (7 mission. Gifts or grants not used at the expi- taxation, and a mechanism for the resolution U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned of disputes between States regarding matters tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. of multiple taxation; and Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- activities subject to that Act; and shall have reasonable access to materials, re- istration of sales and use taxes on interstate (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from commerce, including a review of the need for (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department a single or uniform tax registration, single tion with respect to any Federal land bank, of Commerce, the Department of State, the or uniform tax returns, simplified remit- Federal land bank association, Federal inter- Department of the Treasury, and the Office tance requirements, simplified administra- mediate credit bank, or production credit as- of the United States Trade Representative. tive procedures, or the need for an independ- sociation. The Commission shall also have reasonable ent third party collection system; and (c) EXERCISE OF CERTAIN POWERS.—For the access to use the facilities of any such De- (E) the examination of ways to simplify purpose of the exercise by any agency re- partment or Office for purposes of conduct- Federal and State and local taxes imposed on ferred to in subsection (a) of its powers under ing meetings. the provision of telecommunications serv- any Act referred to in that subsection, a vio- (e) SUNSET.—The Commission shall termi- ices. lation of any requirement imposed under nate 18 months after the date of the enact- SEC. 103. REPORT. this title shall be deemed to be a violation of ment of this Act. Not later than 18 months after the date of a requirement imposed under that Act. In (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission S11742 CONGRESSIONAL RECORD — SENATE October 7, 1998 shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements ing the results of the Commission’s study dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- under this title. No finding or recommenda- tion, distribution, or other use of tangible merce through the World Trade Organiza- tion shall be included in the report unless personal property or services as may be de- tion, the Organization for Economic Co- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is operation and Development, the Trans-At- bers of the Commission serving at the time measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- the finding or recommendation is made. other charge for such property or service. cific Economic Cooperation forum, the Free SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- For the purposes of this title: the several States, the District of Columbia, ican Free Trade Agreement, and other appro- (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- priate venues. any tax on electronic commerce expressly sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- imposed on or measured by the volume of (8) TAX.— tiating objectives of the United States shall digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— be— cally, or the volume of digital information (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is per unit of time transmitted electronically, governmental authority by any govern- free from— mental entity; or but does not include taxes imposed on the (A) tariff and nontariff barriers; (ii) the imposition of or obligation to col- provision of telecommunications services. (B) burdensome and discriminatory regula- lect and to remit to a governmental entity (2) DISCRIMINATORY TAX.—The term ‘‘dis- tion and standards; and any such levy, fee, or charge imposed by a criminatory tax’’ means any tax imposed by (C) discriminatory taxation; and governmental entity. a State or political subdivision thereof on (2) to accelerate the growth of electronic (B) EXCEPTION.—Such term shall not in- electronic commerce that— commerce by expanding market access op- clude any franchise fees or similar fees im- (A) is not generally imposed and legally portunities for— posed by a State or local franchising author- collectible by such State or such political (A) the development of telecommuni- ity, pursuant to section 622 or 653 of the subdivision on transactions involving the cations infrastructure; Communications Act of 1934 (47 U.S.C. 542, same or similar property, goods, services, or (B) the procurement of telecommuni- 573). information accomplished through other cations equipment; (9) TELECOMMUNICATIONS SERVICES.—The means; (C) the provision of Internet access and term ‘‘telecommunications services’’ has the (B) is not generally imposed and legally telecommunications services; and meaning given such term in section 3(46) of collectible at the same rate by such State or (D) the exchange of goods, services, and the Communications Act of 1934 (47 U.S.C. such political subdivision on transactions in- digitalized information. 153(46)) and includes communications serv- volving the same or similar property, goods, (c) ELECTRONIC COMMERCE.—For purposes ices (as defined in section 4251 of the Internal services, or information accomplished of this section, the term ‘‘electronic com- Revenue Code of 1986). through other means, unless the rate is merce’’ has the meaning given that term in lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS section 104(3). not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to the tax on a different person or entity than TAXES. expand the duty of any person to collect or in the case of transactions involving the It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- same or similar property, goods, services, or eral taxes similar to the taxes described in diately before the date of the enactment of information accomplished through other section 101(a) should be enacted with respect this Act. to the Internet and Internet access during means. SEC. 205. PRESERVATION OF AUTHORITY. the moratorium provided in such section. (3) ELECTRONIC COMMERCE.—The term Nothing in this Act shall limit or other- ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. wise affect the implementation of the Tele- action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– U.S.C. 2241) is amended— through Internet access, comprising the sale, 104) or the amendments made by such Act. (1) in subsection (a)(1)— lease, license, offer, or delivery of property, SECTION 1. SHORT TITLE. (A) in subparagraph (A)— goods, services, or information, whether or This Act may be cited as the ‘‘Government (i) by striking ‘‘and’’ at the end of clause not for consideration, and includes the provi- Paperwork Elimination Act.’’ (i); sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- (4) INTERNET.—The term ‘‘Internet’’ means (ii); and MATION TECHNOLOGY. the combination of computer facilities and (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United electromagnetic transmission media, and re- lowing new clause: States Code, is amended to read as follows: lated equipment and software, comprising ‘‘(vi) the acquisition and use of informa- ‘‘(iii) United States electronic commerce,’’; the interconnected worldwide network of tion technology, including the use of alter- and computer networks that employ the Trans- native information technologies (such as the (B) in subparagraph (C)— mission Control Protocol/Internet Protocol, use of electronic submission, maintenance, (i) by striking ‘‘and’’ at the end of clause or any predecessor or successor protocol, to or disclosure of information) to substitute (i); transmit information. for paper, and the use and acceptance of elec- (ii) by inserting ‘‘and’’ at the end of clause (5) INTERNET ACCESS.—The term ‘‘Internet tronic signatures.’’. (ii); access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. access content, information, electronic mail, lowing new clause: (a) Within 18 months after enactment of or other services offered over the Internet, ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility and may also include access to proprietary electronic commerce,’’; and to administer the functions assigned under content, information, and other services as (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the part of a package of services offered to con- after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and sumers. Such term does not include tele- (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of communications services. (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall (6) MULTIPLE TAX.— (i); develop procedures and guidelines for execu- (A) IN GENERAL.—The term ‘‘multiple tax’’ (B) by inserting ‘‘and’’ at the end of clause tive agency use. means any tax that is imposed by one State (ii); and (1) The procedures shall be compatible with or political subdivision thereof on the same (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- or essentially the same electronic commerce ing new clause: natures as may be generally used in com- that is also subject to another tax imposed ‘‘(iii) the value of electronic commerce merce and industry and by State govern- by another State or political subdivision transacted with,’’; and ments, based upon consultation with appro- thereof (whether or not at the same rate or (3) by adding at the end the following new priate private sector and State government on the same basis), without a credit (for ex- subsection: standard setting bodies. ample, a resale exemption certificate) for ‘‘(d) ELECTRONIC COMMERCE.—For purposes (2) Such procedures shall not inappropri- taxes paid in other jurisdictions. of this section, the term ‘electronic com- ately favor one industry or technology. (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in (3) An electronic signature shall be as reli- clude a sales or use tax imposed by a State section 104(3) of the Internet Tax Freedom able as is appropriate for the purpose, and ef- and 1 or more political subdivisions thereof Act.’’. forts shall be made to keep the information on the same electronic commerce or a tax on SEC. 203. DECLARATION THAT THE INTERNET submitted intact. persons engaged in electronic commerce SHOULD BE FREE OF FOREIGN TAR- (4) Successful submission of an electronic which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER form shall be electronically acknowledged. or use tax thereon. RESTRICTIONS. (5) In accordance with all other sections of (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- the Act, to the extent feasible and appro- subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- priate, and described in a written finding, an October 7, 1998 CONGRESSIONAL RECORD — SENATE S11743 agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term (7) PARENT.—The term ‘‘parent’’ includes a cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of legal guardian. lar form, shall take all steps necessary to en- signing an electronic message that— (8) PERSONAL INFORMATION.—The term sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- ‘‘personal information’’ means individually natures are made available for submitting lar person as the source of such electronic identifiable information about an individual such forms. message; and collected online, including— SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the (A) a first and last name; RECTOR OF THE OFFICE OF MAN- information contained in such electronic (B) a home or other physical address in- AGEMENT AND BUDGET. message. cluding street name and name of a city or In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; ter 35 of title 44, United States Code, the vey’’ include documents produced by an (D) a telephone number; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an (E) a Social Security number; the provisions of this Act, the Director of agency and non-government persons. (F) any other identifier that the Commis- sion determines permits the physical or on- the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY line contracting of a specific individual; or ensure that, within five years of the date of PROTECTION (G) information concerning the child or the enactment of this Act, executive agencies SEC. 201. SHORT TITLE. provide for the optional use of electronic parents of that child that the website col- This title may be cited as the ‘‘Children’s lects online from the child and combines maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. formation where practicable, as an alter- with an identifier described in this para- SEC. 202. DEFINITIONS. native information technology to substitute graph. In this title: for paper, and the use and acceptance of elec- (9) VERIFIABLE PARENTAL CONSENT.—The (1) CHILD.—the term ‘‘child’’ means an in- tronic signatures where practicable. term ‘‘verifiable parental consent’’ means dividual under the age of 13. any reasonable effort (taking into consider- SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- Within 18 months of enactment of this Act, (A) means any person who operates a quest for authorization for future collection in order to fulfill the responsibility to ad- website located on the Internet or an online use, and disclosure described in the notice, minister the functions assigned under chap- service and who collects or maintains per- to ensure that a parent of a child receives ter 35 of title 44, United States Code, the sonal information from or about the users of notice of the operator’s personal information Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, collection, use, and disclosure practices, and the provisions of this Act, the Director of or on whose behalf such information is col- authorizes the collection, use, and disclo- the Office of Management and Budget shall lected or maintained, where such website or sure, as applicable, of personal information develop procedures and guidelines for execu- online service is operated for commercial and the subsequent use of that information tive agency use to permit employer elec- purposes, including any person offering prod- before that information is collected from tronic storage and filing of forms containing ucts or services for sale through that website that child. information pertaining to employees. or online service, involving commerce— (10) WEBSITE OR ONLINE SERVICE DIRECTED SEC. 6. STUDY. (i) among the several States or with 1 or TO CHILDREN.— In order to fulfill the responsibility to ad- more foreign nations; (A) IN GENERAL.—The term ‘‘website or on- minister the functions assigned under chap- (ii) in any territory of the United States or line service directed to children’’ means— ter 35 of title 44, United States Code, the in the District of Columbia, or between any (i) A commercial website or online service Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— that is targeted to children; or the provisions of this Act, the Director of (I) another such territory; or (ii) that portion of a commercial website the Office of Management and Budget, shall (II) any State or foreign nation; or or online service that is targeted to children. conduct an ongoing study of paperwork re- (iii) between the District of Columbia and (B) LIMITATION.—A commercial website or duction and electronic commerce, the im- any State, territory, or foreign nation; but online service, or a portion of a commercial pact on individual privacy, and the security (B) does not include any non-profit entity website or online service, shall not be and authenticity of transactions due to the that would otherwise be exempt from cov- deemed directed to children solely for refer- use of electronic signatures pursuant to this erage under section 5 of the Federal Trade ring or linking to a commercial website or Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). online service directed to children by using gress. (3) COMMISSION.—The term ‘‘Commission’’ information location tools, including a direc- means the Federal Trade Commission. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF tory, index, reference, pointer, or hypertext ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ link. Electronic records submitted or main- means, with respect to personal informa- (11) PERSON.—The term ‘‘person’’ means tained in accordance with agency procedures tion— any individual, partnership, corporation, and guidelines established pursuant to this (A) the release of personal information col- trust, estate, cooperative, association, or title, or electronic signatures or other forms lected from a child in identifiable form by an other entity. operator for any purpose, except where such of electronic authentication used in accord- (12) ONLINE CONTACT INFORMATION.—The ance with such procedures and guidelines, information is provided to a person other term ‘‘online contact information’’ means an shall not be denied legal effect, validity or than the operator who provides support for e-mail address or another substantially simi- enforceability because they are in electronic the internal operations of the website and lar identifier that permits direct contact form. does not disclose or use that information for with a person online. any other purpose; and SEC. 203. REGULATION OF UNFAIR AND DECEP- SEC. 8. DISCLOSURE OF INFORMATION. (B) making personal information collected Except as provided by law, information TIVE ACTS AND PRACTICES IN CON- from a child by a website or online service NECTION WITH THE COLLECTION collected in the provision of electronic signa- directed to children or with actual knowl- ture services for communications with an AND USE OF PERSONAL INFORMA- edge that such information was collected TION FROM AND ABOUT CHILDREN agency, as provided by this Act, shall only be from a child, publicly available in identifi- ON THE INTERNET. used or disclosed by persons who obtain, col- able form, by any means including by a pub- (A) ACTS PROHIBITED.— lect, or maintain such information as a busi- lic posting, through the Internet, or (1) IN GENERAL.—It is unlawful for an oper- ness or government practice, for the purpose through— ator of a website or online service directed to of facilitating such communications, or with (i) a home page of a website; children, or any operator that has actual the prior affirmative consent of the person (ii) a pen pal service; knowledge that it is collecting personal in- about whom the information pertains. (iii) an electronic mail service; formation from a child, to collect personal SEC. 9. APPLICATION WITH OTHER LAWS. (iv) a message board; or information from a child in a manner that Nothing in this title shall apply to the De- (v) a chat room. violates the regulations prescribed under partment of the Treasury or the Internal (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). Revenue Service, to the extent that— agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— (1) it involves the administration of the in- defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an ternal revenue laws; and States Code. operator of such a website or online service (2) it conflicts with any provision of the In- (6) INTERNET.—The term ‘‘Internet’’ means nor the operator’s agent shall be held to be ternal Revenue Service Restructuring and collectively the myriad of computer and liable under any Federal or State law for any Reform Act of 1998 or the Internal Revenue telecommunications facilities, including disclosure made in good faith and following Code of 1986. equipment and operating software, which reasonable procedures in responding to a re- SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- quest for disclosure of personal information For purposes of this Act: work of networks that employ the Trans- under subsection (b)(1)(B)(iii) to the parent (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, of a child. tive agency’’ has the meaning given that or any predecessor or successor protocols to (b) REGULATIONS.— term in section 105 of title 5, United States such protocol, to communicate information (1) IN GENERAL.—Not later than 1 year after Code. of all kinds by wire or radio. the date of the enactment of this Act, the S11744 CONGRESSIONAL RECORD — SENATE October 7, 1998 Commission shall promulgate under section (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. 553 of title 5, United States Code, regulations such safety; (a) IN GENERAL.— that— (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (A) require the operator of any website or any other purpose; and attorney general of a State has reason to be- online service directed to children that col- (iii) not disclosed on the site, lieve that an interest of the residents of that lects personal information from children or if the operator uses reasonable efforts to pro- State has been or is threatened or adversely the operator of a website or online service vide a parent notice of the name and online affected by the engagement of any person in that has actual knowledge that it is collect- contact information collected from the a practice that violates any regulation of the ing personal information from a child— child, the purposes for which it is to be used, Commission prescribed under section 203(b), (i) to provide notice on the website of what and an opportunity for the parent to request the State, as parens patriae, may bring a information is collected from children by the that the operator make no further use of the civil action on behalf of the residents of the operator, how the operator uses such infor- information and that it not be maintained in State in a district court of the United States mation, and the operator’s disclosure prac- retrievable form; or of appropriate jurisdiction to— tices for such information; and (E) the collection, use, or dissemination of (A) enjoin that practice; (ii) to obtain verifiable parental consent (B) enforce compliance with the regula- such information by the operator of such a for the collection, use, or disclosure of per- tion; website or online service necessary— sonal information from children; (C) obtain damage, restitution, or other (i) to protect the security or integrity of (B) require the operator to provide, upon compensation on behalf of residents of the its website; request of a parent under this subparagraph State; or whose child has provided personal informa- (ii) to take precautions against liability; (D) obtain such other relief as the court tion to that website or online service, upon (iii) to respond to judicial process; or may consider to be appropriate. (iv) to the extent permitted under other proper identification of that parent, to such (2) NOTICE.— parent— provisions of law, to provide information to (A) IN GENERAL.—Before filing an action (i) a description of the specific types of law enforcement agencies or for an inves- under paragraph (1), the attorney general of personal information collected from the tigation on a matter related to public safety. the State involved shall provide to the Com- child by that operator; (3) TERMINATION OF SERVICE.—The regula- mission— (ii) the opportunity at any time to refuse tions shall permit the operator of a website (i) written notice of that action; and to permit the operator’s further use or main- or an online service to terminate service pro- (ii) a copy of the complaint for that action. tenance in retrievable form, or future online vided to a child whose parent has refused, (B) EXEMPTION.— collection, of personal information from that under the regulations prescribed under para- (i) IN GENERAL.—Subparagraph (A) shall child; and graph (1)(B)(ii), to permit the operator’s fur- not apply with respect to the filing of an ac- (iii) notwithstanding any other provision ther use or maintenance in retrievable form, tion by an attorney general of a State under of law, a means that is reasonable under the or future online collection, of personal infor- this subsection, if the attorney general de- circumstances for the parent to obtain any mation from that child. termines that it is not feasible to provide the personal information collected from that (c) ENFORCEMENT.—Subject to sections 204 notice described in that subparagraph before child; and 206, a violation of a regulation pre- the filing of the action. (C) prohibit conditioning a child’s partici- scribed under subsection (a) shall be treated (ii) NOTIFICATION.—In an action described pation in a game, the offering of a prize, or as a violation of a rule defining an unfair or in clause (i), the attorney general of a State another activity on the child disclosing more deceptive act or practice prescribed under shall provide notice and a copy of the com- personal information than is reasonably nec- section 18(a)(1)(B) of the Federal Trade Com- plaint to the Commission at the same time essary to participate in such activity; and mission Act (15 U.S.C. 57a(a)(1)(B)). as the attorney general files the action. (D) require the operator of such a website (d) INCONSISTENT STATE LAW.—No State or (b) INTERVENTION.— or online service to establish and maintain local government may impose any liability (1) IN GENERAL.—On receiving notice under reasonable procedures to protect the con- for commercial activities or actions by oper- subsection (a)(2), the Commission shall have fidentiality, security, and integrity of per- ators in interstate or foreign commerce in the right to intervene in the action that is sonal information collected from children. connection with an activity or action de- the subject of the notice. (2) WHEN CONSENT NOT REQUIRED.—The reg- scribed in this title that is inconsistent with (2) EFFECT OF INTERVENTION.—If the Com- ulations shall provide that verifiable paren- the treatment of those activities or actions mission intervenes in an action under sub- tal consent under paragraph (1)(A)(ii) is not under this section. section (a), it shall have the right— required in the case of— SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter (A) online contact information collected that arises in that action; and (a) GUIDELINES.—An operator may satisfy from a child that is used only to respond di- (B) to file a petition for appeal. the requirements of regulations issued under rectly on a one-time basis to a specific re- (3) AMICUS CURIAE.—Upon application to section 203(b) by following a set of self-regu- quest from the child and is not used to re- the court, a person whose self-regulatory latory guidelines, issued by representatives contact the child and is not maintained in guidelines have been approved by the Com- of the marketing or online industries, or by retrievable form by the operator; mission and are relied upon as a defense by (B) a request for the name or online con- other persons, approved under subsection (b). any defendant to a proceeding under this sec- (b) INCENTIVES.— tact information of a parent or child that is tion may file amicus curiae in that proceed- (1) SELF-REGULATORY INCENTIVES.—In pre- used for the sole purpose of obtaining paren- ing. scribing regulations under section 203, the tal consent or providing notice under this (c) CONSTRUCTION.—For purposes of bring- section and where such information is not Commission shall provide incentives for self- ing any civil action under subsection (a), maintained in retrievable form by the opera- regulation by operators to implement the nothing in this title shall be construed to tor if parental consent is not obtained after protections afforded children under the regu- prevent an attorney general of a State from a reasonable time; latory requirements described in subsection exercising the powers conferred on the attor- (C) online contact information collected (b) of that section. ney general by the laws of that State to— from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (1) conduct investigations; more than once directly to a specific request shall include provisions for ensuring that a (2) administer oaths or affirmations; or from the child and is not used to recontact person will be deemed to be in compliance (3) compel the attendance of witnesses or the child beyond the scope of that request— with the requirements of the regulations the production of documentary and other (i) if, before any additional response after under section 203 if that person complies evidence. the initial response to the child, the operator with guidelines that, after notice and com- (d) ACTIONS BY THE COMMISSION.—In any uses reasonable efforts to provide a parent ment, are approved by the Commission upon case in which an action is instituted by or on notice of the online contact information col- making a determination that the guidelines behalf of the Commission for violation of lected from the child, the purposes for which meet the requirements of the regulations any regulation prescribed under section 293, it is to be used, and an opportunity for the issued under section 203. no State may, during the pendency of that parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The action, institute an action under subsection further use of the information and that it Commission shall act upon requests for safe (a) against any defendant named in the com- not be maintained in retrievable form; or harbor treatment within 180 days of the fil- plaint in that action for violation of that (ii) without notice to the parent in such ing of the request, and shall set forth in regulation. circumstances as the Commission may deter- writing its conclusions with regard to such (e) VENUE; SERVICE OF PROCESS.— mine are appropriate, taking into consider- requests. (1) VENUE.—Any action brought under sub- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- section (a) may be brought in the district information and services, and risks to the se- sion on a request for approval of guidelines, court of the United States that meets appli- curity and privacy of the child, in regula- or the failure to act within 180 days on a re- cable requirements relating to venue under tions promulgated under this subsection; quest for approval of guidelines, submitted section 1391 of title 28, United States Code. (D) the name of the child and online con- under subsection (b) may be appealed to a (2) SERVICE OF PROCESS.—In an action tact information (to the extent reasonably district court of the United States of appro- brought under subsection (a), process may be necessary to protect the safety of a child priate jurisdiction as provided for in section served in any district in which the defend- participant on the site)— 706 of title 5, United States Code. ant— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11745

(A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (A) an examination of— (B) may be found. tained in the Act shall be construed to limit (i) barriers imposed in foreign markets on SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any United States providers of property, goods, OF ACT. other provisions of law. services, or information engaged in elec- (a) IN GENERAL.—Except as otherwise pro- SEC. 207. REVIEW. tronic commerce and on United States pro- vided, this title shall be enforced by the (a) IN GENERAL.—Not later than 5 years viders of telecommunications services; and Commission under the Federal Trade Com- after the effective date of the regulations (ii) how the imposition of such barriers mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- will affect United States consumers, the (b) PROVISIONS.—Compliance with the re- mission shall— competitiveness of United States citizens quirements imposed under this title shall be (1) review the implementation of this title, providing property, goods, services, or infor- enforced under— including the effect of the implementation of mation in foreign markets, and the growth (1) section 8 of the Federal Deposit Insur- this title on practices relating to the collec- and maturing of the Internet; ance Act (12 U.S.C. 1818), in the case of— tion and disclosure of information relating (B) an examination of the collection and (A) national banks, and Federal branches to children, children’s ability to obtain ac- and Federal agencies of foreign banks, by the administration of consumption taxes on cess to information of their choice online, interstate commerce in other countries and Office of the Comptroller of the Currency; and on the availability of websites directed (B) member banks of the Federal Reserve the United States, and the impact of such to children; and collection on the global economy, including System (other than national banks), (2) prepare and submit to Congress a report an examination of the relationship between branches and agencies of foreign banks on the results of the review under paragraph the collection and administration of such (other than Federal branches, Federal agen- (1). cies, and insured State branches of foreign taxes when the transaction uses the Internet SEC. 208. EFFECTIVE DATE. and when it does not; banks), commercial lending companies Sections 203(a), 205, and 206 of this title (C) an examination of the impact of the owned or controlled by foreign banks, and take effect on the later of— organizations operating under section 25 or (1) the date that is 18 months after the date Internet and Internet access (particularly 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or voice transmission) on the revenue base for 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules taxes imposed under section 4251 of the In- (C) banks insured by the Federal Deposit on the first application for safe harbor treat- ternal Revenue Code of 1986; Insurance Corporation (other than members ment under section 204 if the Commission (D) an examination of— of the Federal Reserve System) and insured does not rule on the first such application (i) the efforts of State and local govern- State branches of foreign banks, by the within one year after the date of enactment ments to collect sales and use taxes owed on Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date purchases from interstate sellers, the advan- surance Corporation; that is 30 months after the date of enact- tages and disadvantages of authorizing State (2) section 8 of the Federal Deposit Insur- ment of this Act.’’ and local governments to require such sellers ance Act (12 U.S.C. 1818), by the Director of to collect and remit such taxes, particularly the Office of Thrift Supervision, in the case AMENDMENT NO. 3766 with respect to electronic commerce, and the of a savings association the deposits of which Strike ‘‘days after the date of the enact- level of contacts sufficient to permit a State are insured by the Federal Deposit Insurance ment of this Act. or local government to impose such taxes on Corporation; (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; (3) the Federal Credit Union Act (12 U.S.C. mission shall not affect its powers, but shall (ii) model State legislation relating to tax- 1751 et seq.) by the National Credit Union be filled in the same manner as the original ation of transactions using the Internet and Administration Board with respect to any appointment. Internet access, including uniform terminol- Federal credit union; (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, (4) part A of subtitle VII of title 49, United The Commission may accept, use, and dis- and other activities that may be subject to States Code, by the Secretary of Transpor- pose of gifts or grants of services or prop- State and local taxation, procedural struc- tation with respect to any air carrier or for- erty, both real and personal, for purposes of tures and mechanisms applicable to such eign air carrier subject to that part; aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution (5) the Packers and Stockyards Act, 1921 (7 mission. Gifts or grants not used at the expi- of disputes between States regarding matters U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned of multiple taxation; and tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. (iii) ways to simplify the interstate admin- Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate activities subject to that Act; and shall have reasonable access to materials, re- commerce, including a review of the need for (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from a single or uniform tax registration, single (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department or uniform tax returns, simplified remit- tion with respect to any Federal land bank, of Commerce, the Department of State, the tance requirements, simplified administra- Federal land bank association, Federal inter- Department of the Treasury, and the Office tive procedures, or the need for an independ- mediate credit bank, or production credit as- of the United States Trade Representative. ent third party collection system; and sociation. The Commission shall also have reasonable (c) EXERCISE OF CERTAIN POWERS.—For the (E) the examination of ways to simplify access to use the facilities of any such De- Federal and State and local taxes imposed on purpose of the exercise by any agency re- partment or Office for purposes of conduct- ferred to in subsection (a) of its powers under the provision of telecommunications serv- ing meetings. ices. any Act referred to in that subsection, a vio- (e) SUNSET.—The Commission shall termi- lation of any requirement imposed under nate 18 months after the date of the enact- SEC. 103. REPORT. this title shall be deemed to be a violation of ment of this Act. Not later than 18 months after the date of a requirement imposed under that Act. In (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission addition to its powers under any provision of (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- law specifically referred to in subsection (a), mission shall constitute a quorum for con- ing the results of the Commission’s study each of the agencies referred to in that sub- ducting the business of the Commission. under this title. No finding or recommenda- section may exercise, for the purpose of en- (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless forcing compliance with any requirement Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- imposed under this title, any other authority days in advance and shall be open to the pub- bers of the Commission serving at the time conferred on it by law. lic. the finding or recommendation is made. (d) ACTIONS BY THE COMMISSION.—The Com- (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. mission shall prevent any person from vio- mission shall provide opportunities for rep- For the purposes of this title: lating a rule of the Commission under sec- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means tion 203 in the same manner, by the same groups, consumer groups, and State and any tax on electronic commerce expressly means, and with the same jurisdiction, pow- local government officials to testify. imposed on or measured by the volume of ers, and duties as though all applicable (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- terms and provisions of the Federal Trade may adopt other rules as needed. cally, or the volume of digital information Commission Act (15 U.S.C. 41 et seq.) were (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, incorporated into and made a part of this (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the title. Any entity that violates such rule conduct a thorough study of Federal, State provision of telecommunications services. shall be subject to the penalties and entitled and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- to the privileges and immunities provided in tariff treatment of transactions using the criminatory tax’’ means any tax imposed by the Federal Trade Commission Act in the Internet and Internet access and other com- a State or political subdivision thereof on same manner, by the same means, and with parable interstate or international sales ac- electronic commerce that— the same jurisdiction, power, and duties as tivities. (A) is not generally imposed and legally though all applicable terms and provisions of (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political the Federal Trade Commission Act were in- may include in the study under subsection subdivision on transactions involving the corporated into and made a part of this title. (a)— same or similar property, goods, services, or S11746 CONGRESSIONAL RECORD — SENATE October 7, 1998

information accomplished through other (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and means; term ‘‘telecommunications services’’ has the telecommunications services; and (B) is not generally imposed and legally meaning given such term in section 3(46) of (D) the exchange of goods, services, and collectible at the same rate by such State or the Communications Act of 1934 (47 U.S.C. digitalized information. such political subdivision on transactions in- 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes volving the same or similar property, goods, ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- services, or information accomplished Revenue Code of 1986). merce’’ has the meaning given that term in through other means, unless the rate is TITLE II—OTHER PROVISIONS section 104(3). lower as part of a phase-out of the tax over SEC. 204. NO EXPANSION OF TAX AUTHORITY. SEC. 201. DECLARATION THAT INTERNET not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to (C) imposes an obligation to collect or pay TAXES. expand the duty of any person to collect or the tax on a different person or entity than It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- in the case of transactions involving the eral taxes similar to the taxes described in diately before the date of the enactment of same or similar property, goods, services, or section 101(a) should be enacted with respect this Act. information accomplished through other to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. means. the moratorium provided in such section. Nothing in this Act shall limit or other- (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. wise affect the implementation of the Tele- ‘‘electronic commerce’’ means any trans- Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– action conducted over the Internet or U.S.C. 2241) is amended— 104) or the amendments made by such Act. through Internet access, comprising the sale, (1) in subsection (a)(1)— SECTION 1. SHORT TITLE. lease, license, offer, or delivery of property, (A) in subparagraph (A)— This Act may be cited as the ‘‘Government goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause Paperwork Elimination Act.’’ not for consideration, and includes the provi- (i); SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause MATION TECHNOLOGY. (4) INTERNET.—The term ‘‘Internet’’ means (ii); and Section 3504(a)(1)(B)(vi) of title 44, United the combination of computer facilities and (iii) by inserting after clause (ii) the fol- States Code, is amended to read as follows: electromagnetic transmission media, and re- lowing new clause: ‘‘(vi) the acquisition and use of informa- tion technology, including the use of alter- lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; native information technologies (such as the the interconnected worldwide network of and use of electronic submission, maintenance, computer networks that employ the Trans- (B) in subparagraph (C)— or disclosure of information) to substitute mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause or any predecessor or successor protocol, to for paper, and the use and acceptance of elec- (i); tronic signatures.’’. transmit information. (ii) by inserting ‘‘and’’ at the end of clause SEC. 3. PROCEDURES. (5) INTERNET ACCESS.—The term ‘‘Internet (ii); (a) Within 18 months after enactment of access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- access content, information, electronic mail, this Act, in order to fulfill the responsibility lowing new clause: or other services offered over the Internet, to administer the functions assigned under ‘‘(iii) the value of additional United States and may also include access to proprietary chapter 35 of title 44, United States Code, the electronic commerce,’’; and content, information, and other services as Clinger-Cohen Act of 1996 (P.L. 104–106), and (iv) by inserting ‘‘or transacted with,’’ part of a package of services offered to con- the provisions of this Act, the Director of after ‘‘or invested in’’; sumers. Such term does not include tele- the Office of Management and Budget shall (2) in subsection (a)(2)(E)— communications services. develop procedures and guidelines for execu- (A) by striking ‘‘and’’ at the end of clause (6) MULTIPLE TAX.— tive agency use. (i); (A) IN GENERAL.—The term ‘‘multiple tax’’ (1) The procedures shall be compatible with (B) by inserting ‘‘and’’ at the end of clause means any tax that is imposed by one State standards and technology for electronic sig- or political subdivision thereof on the same (ii); and natures as may be generally used in com- or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- merce and industry and by State govern- that is also subject to another tax imposed ing new clause: ments, based upon consultation with appro- by another State or political subdivision ‘‘(iii) the value of electronic commerce priate private sector and State government thereof (whether or not at the same rate or transacted with,’’; and standard setting bodies. on the same basis), without a credit (for ex- (3) by adding at the end the following new (2) Such procedures shall not inappropri- ample, a resale exemption certificate) for subsection: ately favor one industry or technology. ‘‘(d) ELECTRONIC COMMERCE.—For purposes taxes paid in other jurisdictions. (3) An electronic signature shall be as reli- of this section, the term ‘electronic com- able as is appropriate for the purpose, and ef- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in clude a sales or use tax imposed by a State forts shall be made to keep the information section 104(3) of the Internet Tax Freedom and 1 or more political subdivisions thereof submitted intact. Act.’’. (4) Successful submission of an electronic on the same electronic commerce or a tax on form shall be electronically acknowledged. persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF FOREIGN TAR- (5) In accordance with all other sections of which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER the Act, to the extent feasible and appro- or use tax thereon. RESTRICTIONS. priate, and described in a written finding, an (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- agency, when it expects to receive electroni- subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- cally 50,000 or more submittals of a particu- tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements lar form, shall take all steps necessary to en- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- sure that multiple formats of electronic sig- tion, distribution, or other use of tangible merce through the World Trade Organiza- natures are made available for submitting personal property or services as may be de- tion, the Organization for Economic Co- such forms. fined by laws imposing such tax and which is operation and Development, the Trans-At- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- RECTOR OF THE OFFICE OF MAN- other charge for such property or service. cific Economic Cooperation forum, the Free AGEMENT AND BUDGET. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- In order to fulfill the responsibility to ad- the several States, the District of Columbia, ican Free Trade Agreement, and other appro- minister the functions assigned under chap- or any commonwealth, territory, or posses- priate venues. ter 35 of title 44, United States Code, the sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- Clinger-Cohen Act of 1996 (P.L. 104–106), and (8) TAX.— tiating objectives of the United States shall the provisions of this Act, the Director of (A) IN GENERAL.—The term ‘‘tax’’ means— be— the Office of Management and Budget shall (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is ensure that, within five years of the date of governmental authority by any govern- free from— enactment of this Act, executive agencies mental entity; or (A) tariff and nontariff barriers; provide for the optional use of electronic (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- maintenance, submission, or disclosure of in- lect and to remit to a governmental entity tion and standards; and formation where practicable, as an alter- any such levy, fee, or charge imposed by a (C) discriminatory taxation; and native information technology to substitute governmental entity. (2) to accelerate the growth of electronic for paper, and the use and acceptance of elec- (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- tronic signatures where practicable. clude any franchise fees or similar fees im- portunities for— SEC. 5. ELECTRONIC STORAGE OF FORMS. posed by a State or local franchising author- (A) the development of telecommuni- Within 18 months of enactment of this Act, ity, pursuant to section 622 or 653 of the cations infrastructure; in order to fulfill the responsibility to ad- Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- minister the functions assigned under chap- 573). cations equipment; ter 35 of title 44, United States Code, the October 7, 1998 CONGRESSIONAL RECORD — SENATE S11747 Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of to ensure that a parent of a child receives the provisions of this Act, the Director of or visitors to such website or online service, notice of the operator’s personal information the Office of Management and Budget shall or on whose behalf such information is col- collection, use, and disclosure practices, and develop procedures and guidelines for execu- lected or maintained, where such website or authorizes the collection, use, and disclo- tive agency use to permit employer elec- online service is operated for commercial sure, as applicable, of personal information tronic storage and filing of forms containing purposes, including any person offering prod- and the subsequent use of that information information pertaining to employees. ucts or services for sale through that website before that information is collected from SEC. 6. STUDY. or online service, involving commerce— that child. In order to fulfill the responsibility to ad- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED minister the functions assigned under chap- more foreign nations; TO CHILDREN.— ter 35 of title 44, United States Code, the (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any line service directed to children’’ means— the provisions of this Act, the Director of such territory and— (i) A commercial website or online service the Office of Management and Budget, shall (I) another such territory; or that is targeted to children; or conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (ii) that portion of a commercial website duction and electronic commerce, the im- (iii) between the District of Columbia and or online service that is targeted to children. pact on individual privacy, and the security any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or and authenticity of transactions due to the (B) does not include any non-profit entity online service, or a portion of a commercial use of electronic signatures pursuant to this that would otherwise be exempt from cov- website or online service, shall not be Act, and shall report the findings to Con- erage under section 5 of the Federal Trade deemed directed to children solely for refer- gress. Commission Act (15 U.S.C. 45). ring or linking to a commercial website or (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. ELECTRONIC RECORDS. information location tools, including a direc- (4) DISCLOSURE.—The term ‘‘disclosure’’ Electronic records submitted or main- tory, index, reference, pointer, or hypertext means, with respect to personal informa- tained in accordance with agency procedures link. tion— and guidelines established pursuant to this (11) PERSON.—The term ‘‘person’’ means (A) the release of personal information col- title, or electronic signatures or other forms any individual, partnership, corporation, lected from a child in identifiable form by an of electronic authentication used in accord- trust, estate, cooperative, association, or operator for any purpose, except where such ance with such procedures and guidelines, other entity. information is provided to a person other shall not be denied legal effect, validity or (12) ONLINE CONTACT INFORMATION.—The than the operator who provides support for enforceability because they are in electronic term ‘‘online contact information’’ means an the internal operations of the website and form. e-mail address or another substantially simi- does not disclose or use that information for lar identifier that permits direct contact SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and with a person online. Except as provided by law, information (B) making personal information collected collected in the provision of electronic signa- SEC. 203. REGULATION OF UNFAIR AND DECEP- from a child by a website or online service TIVE ACTS AND PRACTICES IN CON- ture services for communications with an directed to children or with actual knowl- NECTION WITH THE COLLECTION agency, as provided by this Act, shall only be edge that such information was collected AND USE OF PERSONAL INFORMA- used or disclosed by persons who obtain, col- from a child, publicly available in identifi- TION FROM AND ABOUT CHILDREN lect, or maintain such information as a busi- able form, by any means including by a pub- ON THE INTERNET. ness or government practice, for the purpose lic posting, through the Internet, or (a) ACTS PROHIBITED.— of facilitating such communications, or with through— (1) IN GENERAL.—It is unlawful for an oper- the prior affirmative consent of the person (i) a home page of a website; ator of a website or online service directed to about whom the information pertains. (ii) a pen pal service; children, or any operator that has actual SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; knowledge that it is collecting personal in- Nothing in this title shall apply to the De- (iv) a message board; or formation from a child, to collect personal partment of the Treasury or the Internal (v) a chat room. information from a child in a manner that Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal violates the regulations prescribed under (1) it involves the administration of the in- agency’’ means an agency, as that term is subsection (b). ternal revenue laws; and defined in section 551(1) of title 5, United (2) DISCLOSURE TO PARENT PROTECTED.— (2) it conflicts with any provision of the In- States Code. Notwithstanding paragraph (1), neither an ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means operator of such a website or online service Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and nor the operator’s agent shall be held to be Code of 1986. telecommunications facilities, including liable under any Federal or State law for any SEC. 10. DEFINITIONS. equipment and operating software, which disclosure made in good faith and following For purposes of this Act: comprise the interconnected world-wide net- reasonable procedures in responding to a re- (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- quest for disclosure of personal information tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, under subsection (b)(1)(B)(iii) to the parent term in section 105 of title 5, United States or any predecessor or successor protocols to of a child. Code. such protocol, to communicate information (b) REGULATIONS.— (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. (1) IN GENERAL.—Not later than 1 year after ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a the date of the enactment of this Act, the signing an electronic message that— legal guardian. Commission shall promulgate under section (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term 553 of title 5, United States Code, regulations lar person as the source of such electronic ‘‘personal information’’ means individually that— message; and identifiable information about an individual (A) require the operator of any website or (B) indicates such person’s approval of the collected online, including— online service directed to children that col- information contained in such electronic (A) a first and last name; lects personal information from children or message. (B) a home or other physical address in- the operator of a website or online service (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or that has actual knowledge that it is collect- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; ing personal information from a child— vey’’ include documents produced by an (C) an e-mail address; (i) to provide notice on the website of what agency to facilitate interaction between an (D) a telephone number; information is collected from children by the agency and non-government persons. (E) a Social Security number; operator, how the operator uses such infor- (F) any other identifier that the Commis- mation, and the operator’s disclosure prac- TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- tices for such information; and PROTECTION line contracting of a specific individual; or (ii) to obtain verifiable parental consent SEC. 201. SHORT TITLE. (G) information concerning the child or the for the collection, use, or disclosure of per- This title may be cited as the ‘‘Children’s parents of that child that the website col- sonal information from children; Online Privacy Protection Act of 1999’’. lects online from the child and combines (B) require the operator to provide, upon SEC. 202. DEFINITIONS. with an identifier described in this para- request of a parent under this subparagraph In this title: graph. whose child has provided personal informa- (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The tion to that website or online service, upon dividual under the age of 13. term ‘‘verifiable parental consent’’ means proper identification of that parent, to such (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- parent— (A) means any person who operates a ation available technology), including a re- (i) a description of the specific types of website located on the Internet or an online quest for authorization for future collection personal information collected from the service and who collects or maintains per- use, and disclosure described in the notice, child by that operator; S11748 CONGRESSIONAL RECORD — SENATE October 7, 1998

(ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- to permit the operator’s further use or main- tions shall permit the operator of a website mission— tenance in retrievable form, or future online or an online service to terminate service pro- (i) written notice of that action; and collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- section (a), it shall have the right— (A) online contact information collected SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy that arises in that action; and rectly on a one-time basis to a specific re- the requirements of regulations issued under (B) to file a petition for appeal. quest from the child and is not used to re- section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to contact the child and is not maintained in latory guidelines, issued by representatives retrievable form by the operator; the court, a person whose self-regulatory of the marketing or online industries, or by guidelines have been approved by the Com- (B) a request for the name or online con- other persons, approved under subsection (b). tact information of a parent or child that is mission and are relied upon as a defense by (b) INCENTIVES.— any defendant to a proceeding under this sec- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- tal consent or providing notice under this scribing regulations under section 203, the ing. section and where such information is not Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- maintained in retrievable form by the opera- regulation by operators to implement the ing any civil action under subsection (a), tor if parental consent is not obtained after protections afforded children under the regu- nothing in this title shall be construed to a reasonable time; latory requirements described in subsection prevent an attorney general of a State from (C) online contact information collected (b) of that section. exercising the powers conferred on the attor- from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— more than once directly to a specific request shall include provisions for ensuring that a (1) conduct investigations; from the child and is not used to recontact person will be deemed to be in compliance (2) administer oaths or affirmations; or the child beyond the scope of that request— with the requirements of the regulations (3) compel the attendance of witnesses or (i) if, before any additional response after under section 203 if that person complies the production of documentary and other the initial response to the child, the operator with guidelines that, after notice and com- evidence. uses reasonable efforts to provide a parent ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any notice of the online contact information col- making a determination that the guidelines case in which an action is instituted by or on lected from the child, the purposes for which meet the requirements of the regulations behalf of the Commission for violation of it is to be used, and an opportunity for the issued under section 203. any regulation prescribed under section 293, parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The no State may, during the pendency of that further use of the information and that it Commission shall act upon requests for safe action, institute an action under subsection not be maintained in retrievable form; or harbor treatment within 180 days of the fil- (a) against any defendant named in the com- (ii) without notice to the parent in such ing of the request, and shall set forth in plaint in that action for violation of that circumstances as the Commission may deter- writing its conclusions with regard to such regulation. mine are appropriate, taking into consider- requests. (e) VENUE; SERVICE OF PROCESS.— ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- (1) VENUE.—Any action brought under sub- information and services, and risks to the se- sion on a request for approval of guidelines, section (a) may be brought in the district curity and privacy of the child, in regula- or the failure to act within 180 days on a re- court of the United States that meets appli- tions promulgated under this subsection; quest for approval of guidelines, submitted cable requirements relating to venue under (D) the name of the child and online con- under subsection (b) may be appealed to a section 1391 of title 28, United States Code. tact information (to the extent reasonably district court of the United States of appro- (2) SERVICE OF PROCESS.—In an action necessary to protect the safety of a child priate jurisdiction as provided for in section brought under subsection (a), process may be participant on the site)— 706 of title 5, United States Code. served in any district in which the defend- (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. ant— such safety; (a) IN GENERAL.— (A) is an inhabitant; or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (B) may be found. any other purpose; and attorney general of a State has reason to be- SEC. 206. ADMINISTRATION AND APPLICABILITY (iii) not disclosed on the site, lieve that an interest of the residents of that OF ACT. if the operator uses reasonable efforts to pro- State has been or is threatened or adversely (a) IN GENERAL.—Except as otherwise pro- vide a parent notice of the name and online affected by the engagement of any person in vided, this title shall be enforced by the contact information collected from the a practice that violates any regulation of the Commission under the Federal Trade Com- child, the purposes for which it is to be used, Commission prescribed under section 203(b), mission Act (15 U.S.C. 41 et seq.). and an opportunity for the parent to request the State, as parens patriae, may bring a (b) PROVISIONS.—Compliance with the re- that the operator make no further use of the civil action on behalf of the residents of the quirements imposed under this title shall be information and that it not be maintained in State in a district court of the United States enforced under— retrievable form; or of appropriate jurisdiction to— (1) section 8 of the Federal Deposit Insur- (E) the collection, use, or dissemination of (A) enjoin that practice; ance Act (12 U.S.C. 1818), in the case of— such information by the operator of such a (B) enforce compliance with the regula- (A) national banks, and Federal branches website or online service necessary— tion; and Federal agencies of foreign banks, by the (i) to protect the security or integrity of (C) obtain damage, restitution, or other Office of the Comptroller of the Currency; its website; compensation on behalf of residents of the (B) member banks of the Federal Reserve (ii) to take precautions against liability; State; or System (other than national banks), (iii) to respond to judicial process; or (D) obtain such other relief as the court branches and agencies of foreign banks (iv) to the extent permitted under other may consider to be appropriate. (other than Federal branches, Federal agen- provisions of law, to provide information to (2) NOTICE.— cies, and insured State branches of foreign law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action banks), commercial lending companies tigation on a matter related to public safety. under paragraph (1), the attorney general of owned or controlled by foreign banks, and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11749 organizations operating under section 25 or (1) the date that is 18 months after the date taxes imposed under section 4251 of the In- 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or ternal Revenue Code of 1986; 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules (D) an examination of— (C) banks insured by the Federal Deposit on the first application for safe harbor treat- (i) the efforts of State and local govern- Insurance Corporation (other than members ment under section 204 if the Commission ments to collect sales and use taxes owed on of the Federal Reserve System) and insured does not rule on the first such application purchases from interstate sellers, the advan- State branches of foreign banks, by the within one year after the date of enactment tages and disadvantages of authorizing State Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date and local governments to require such sellers surance Corporation; that is 30 months after the date of enact- to collect and remit such taxes, particularly (2) section 8 of the Federal Deposit Insur- ment of this Act.’’, and insert in lieu thereof: with respect to electronic commerce, and the ance Act (12 U.S.C. 1818), by the Director of ‘‘days after the date of the enactment of this level of contacts sufficient to permit a State the Office of Thrift Supervision, in the case Act. or local government to impose such taxes on of a savings association the deposits of which (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; are insured by the Federal Deposit Insurance mission shall not affect its powers, but shall (ii) model State legislation relating to tax- Corporation; be filled in the same manner as the original ation of transactions using the Internet and (3) the Federal Credit Union Act (12 U.S.C. appointment. Internet access, including uniform terminol- 1751 et seq.) by the National Credit Union (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, Administration Board with respect to any The Commission may accept, use, and dis- and other activities that may be subject to Federal credit union; pose of gifts or grants of services or prop- (4) part A of subtitle VII of title 49, United State and local taxation, procedural struc- erty, both real and personal, for purposes of tures and mechanisms applicable to such States Code, by the Secretary of Transpor- aiding or facilitating the work of the Com- tation with respect to any air carrier or for- taxation, and a mechanism for the resolution mission. Gifts or grants not used at the expi- of disputes between States regarding matters eign air carrier subject to that part; ration of the Commission shall be returned (5) the Packers and Stockyards Act, 1921 (7 of multiple taxation; and to the donor or grantor. (iii) ways to simplify the interstate admin- U.S.C. 181 et. seq.) (except as provided in sec- (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate tion 406 of that Act (7 U.S.C. 226, 227)), by the shall have reasonable access to materials, re- commerce, including a review of the need for Secretary of Agriculture with respect to any sources, data, and other information from a single or uniform tax registration, single activities subject to that Act; and the Department of Justice, the Department or uniform tax returns, simplified remit- (6) the Farm Credit Act of 1971 (12 U.S.C. of Commerce, the Department of State, the tance requirements, simplified administra- (2001 et seq.) by the Farm Credit Administra- Department of the Treasury, and the Office tion with respect to any Federal land bank, tive procedures, or the need for an independ- of the United States Trade Representative. Federal land bank association, Federal inter- ent third party collection system; and The Commission shall also have reasonable mediate credit bank, or production credit as- (E) the examination of ways to simplify access to use the facilities of any such De- sociation. Federal and State and local taxes imposed on partment or Office for purposes of conduct- (c) EXERCISE OF CERTAIN POWERS.—For the the provision of telecommunications serv- ing meetings. purpose of the exercise by any agency re- ices. (e) SUNSET.—The Commission shall termi- ferred to in subsection (a) of its powers under nate 21 months after the date of the enact- SEC. 103. REPORT. any Act referred to in that subsection, a vio- ment of this Act. Not later than 18 months after the date of lation of any requirement imposed under (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission this title shall be deemed to be a violation of (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- a requirement imposed under that Act. In mission shall constitute a quorum for con- ing the results of the Commission’s study addition to its powers under any provision of ducting the business of the Commission. under this title. No finding or recommenda- law specifically referred to in subsection (a), (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless each of the agencies referred to in that sub- Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- section may exercise, for the purpose of en- days in advance and shall be open to the pub- bers of the Commission serving at the time forcing compliance with any requirement lic. the finding or recommendation is made. imposed under this title, any other authority (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. conferred on it by law. For the purposes of this title: (d) ACTIONS BY THE COMMISSION.—The Com- mission shall provide opportunities for rep- mission shall prevent any person from vio- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means lating a rule of the Commission under sec- groups, consumer groups, and State and any tax on electronic commerce expressly tion 203 in the same manner, by the same local government officials to testify. imposed on or measured by the volume of means, and with the same jurisdiction, pow- (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- ers, and duties as though all applicable may adopt other rules as needed. cally, or the volume of digital information terms and provisions of the Federal Trade (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, Commission Act (15 U.S.C. 41 et seq.) were (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the incorporated into and made a part of this conduct a thorough study of Federal, State provision of telecommunications services. title. Any entity that violates such rule and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- shall be subject to the penalties and entitled tariff treatment of transactions using the criminatory tax’’ means any tax imposed by to the privileges and immunities provided in Internet and Internet access and other com- a State or political subdivision thereof on the Federal Trade Commission Act in the parable interstate or international sales ac- electronic commerce that— same manner, by the same means, and with tivities. (A) is not generally imposed and legally the same jurisdiction, power, and duties as (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political though all applicable terms and provisions of may include in the study under subsection subdivision on transactions involving the the Federal Trade Commission Act were in- (a)— same or similar property, goods, services, or corporated into and made a part of this title. (A) an examination of— information accomplished through other (e) EFFECT ON OTHER LAWS.—Nothing con- (i) barriers imposed in foreign markets on means; tained in the Act shall be construed to limit United States providers of property, goods, (B) is not generally imposed and legally the authority of the Commission under any services, or information engaged in elec- collectible at the same rate by such State or other provisions of law. tronic commerce and on United States pro- such political subdivision on transactions in- SEC. 207. REVIEW. viders of telecommunications services; and volving the same or similar property, goods, (a) IN GENERAL.—Not later than 5 years (ii) how the imposition of such barriers services, or information accomplished after the effective date of the regulations will affect United States consumers, the through other means, unless the rate is initially issued under section 203, the Com- competitiveness of United States citizens lower as part of a phase-out of the tax over mission shall— providing property, goods, services, or infor- not more than a 5-year period; or (1) review the implementation of this title, mation in foreign markets, and the growth (C) imposes an obligation to collect or pay including the effect of the implementation of and maturing of the Internet; the tax on a different person or entity than this title on practices relating to the collec- (B) an examination of the collection and in the case of transactions involving the tion and disclosure of information relating administration of consumption taxes on same or similar property, goods, services, or to children, children’s ability to obtain ac- interstate commerce in other countries and information accomplished through other cess to information of their choice online, the United States, and the impact of such means. and on the availability of websites directed collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term to children; and an examination of the relationship between ‘‘electronic commerce’’ means any trans- (2) prepare and submit to Congress a report the collection and administration of such action conducted over the Internet or on the results of the review under paragraph taxes when the transaction uses the Internet through Internet access, comprising the sale, (1). and when it does not; lease, license, offer, or delivery of property, SEC. 208. EFFECTIVE DATE. (C) an examination of the impact of the goods, services, or information, whether or Sections 203(a), 205, and 206 of this title Internet and Internet access (particularly not for consideration, and includes the provi- take effect on the later of— voice transmission) on the revenue base for sion of Internet access. S11750 CONGRESSIONAL RECORD — SENATE October 7, 1998

(4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- the combination of computer facilities and (ii); and MATION TECHNOLOGY. electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United lated equipment and software, comprising lowing new clause: States Code, is amended to read as follows: the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; ‘‘(vi) the acquisition and use of informa- computer networks that employ the Trans- and tion technology, including the use of alter- mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— native information technologies (such as the or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause use of electronic submission, maintenance, transmit information. (i); or disclosure of information) to substitute (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- access’’ means a service that enables users to (ii); tronic signatures.’’. access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. or other services offered over the Internet, lowing new clause: (a) Within 18 months after enactment of and may also include access to proprietary ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility content, information, and other services as electronic commerce,’’; and to administer the functions assigned under part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the sumers. Such term does not include tele- after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and communications services. (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); develop procedures and guidelines for execu- means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause tive agency use. or political subdivision thereof on the same (ii); and (1) The procedures shall be compatible with or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- that is also subject to another tax imposed ing new clause: natures as may be generally used in com- by another State or political subdivision ‘‘(iii) the value of electronic commerce merce and industry and by State govern- thereof (whether or not at the same rate or transacted with,’’; and ments, based upon consultation with appro- on the same basis), without a credit (for ex- (3) by adding at the end the following new priate private sector and State government ample, a resale exemption certificate) for subsection: standard setting bodies. (2) Such procedures shall not inappropri- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes ately favor one industry or technology. (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- (3) An electronic signature shall be as reli- clude a sales or use tax imposed by a State merce’ has the meaning given that term in able as is appropriate for the purpose, and ef- and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom forts shall be made to keep the information on the same electronic commerce or a tax on Act.’’. submitted intact. persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET (4) Successful submission of an electronic which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- form shall be electronically acknowledged. or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER (5) In accordance with all other sections of (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. the Act, to the extent feasible and appro- subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.—It is the sense of Congress priate, and described in a written finding, an tax’’ means a tax that is imposed on or inci- that the President should seek bilateral, re- agency, when it expects to receive electroni- dent to the sale, purchase, storage, consump- gional, and multilateral agreements to re- cally 50,000 or more submittals of a particu- tion, distribution, or other use of tangible move barriers to global electronic commerce lar form, shall take all steps necessary to en- personal property or services as may be de- through the World Trade Organization, the sure that multiple formats of electronic sig- fined by laws imposing such tax and which is Organization for Economic Cooperation and natures are made available for submitting measured by the amount of the sales price or Development, the Trans-Atlantic Economic such forms. other charge for such property or service. Partnership, the Asia Pacific Economic Co- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (7) STATE.—The term ‘‘State’’ means any of operation forum, the Free Trade Area of the RECTOR OF THE OFFICE OF MAN- the several States, the District of Columbia, America, the North American Free Trade AGEMENT AND BUDGET. or any commonwealth, territory, or posses- Agreement, and other appropriate venues. In order to fulfill the responsibility to ad- sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- minister the functions assigned under chap- (8) TAX.— tiating objectives of the United States shall ter 35 of title 44, United States Code, the (A) IN GENERAL.—The term ‘‘tax’’ means— be— Clinger-Cohen Act of 1996 (P.L. 104–106), and (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is the provisions of this Act, the Director of governmental authority by any govern- free from— the Office of Management and Budget shall mental entity; or (A) tariff and nontariff barriers; ensure that, within five years of the date of (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- enactment of this Act, executive agencies lect and to remit to a governmental entity tion and standards; and provide for the optional use of electronic any such levy, fee, or charge imposed by a (C) discriminatory taxation; and maintenance, submission, or disclosure of in- governmental entity. (2) to accelerate the growth of electronic formation where practicable, as an alter- (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- native information technology to substitute clude any franchise fees or similar fees im- portunities for— for paper, and the use and acceptance of elec- posed by a State or local franchising author- (A) the development of telecommuni- tronic signatures where practicable. ity, pursuant to section 622 or 653 of the cations infrastructure; SEC. 5. ELECTRONIC STORAGE OF FORMS. Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- Within 18 months of enactment of this Act, 573). cations equipment; in order to fulfill the responsibility to ad- (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and minister the functions assigned under chap- term ‘‘telecommunications services’’ has the telecommunications services; and ter 35 of title 44, United States Code, the meaning given such term in section 3(46) of (D) the exchange of goods, services, and Clinger-Cohen Act of 1996 (P.L. 104–106), and the Communications Act of 1934 (47 U.S.C. digitalized information. the provisions of this Act, the Director of 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes the Office of Management and Budget shall ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- develop procedures and guidelines for execu- Revenue Code of 1986). merce’’ has the meaning given that term in tive agency use to permit employer elec- TITLE II—OTHER PROVISIONS section 104(3). tronic storage and filing of forms containing SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. information pertaining to employees. SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to SEC. 6. STUDY. TAXES. expand the duty of any person to collect or In order to fulfill the responsibility to ad- It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- minister the functions assigned under chap- eral taxes similar to the taxes described in diately before the date of the enactment of ter 35 of title 44, United States Code, the section 101(a) should be enacted with respect this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and to the Internet and Internet access during the provisions of this Act, the Director of SEC. 205. PRESERVATION OF AUTHORITY. the moratorium provided in such section. the Office of Management and Budget, shall SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- conduct an ongoing study of paperwork re- Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- duction and electronic commerce, the im- U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– pact on individual privacy, and the security (1) in subsection (a)(1)— 104) or the amendments made by such Act. and authenticity of transactions due to the (A) in subparagraph (A)— SECTION 1. SHORT TITLE. use of electronic signatures pursuant to this (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government Act, and shall report the findings to Con- (i); Paperwork Elimination Act.’’ gress. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11751

SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using ELECTRONIC RECORDS. means the Federal Trade Commission. information location tools, including a direc- Electronic records submitted or main- (4) DISCLOSURE.—The term ‘‘disclosure’’ tory, index, reference, pointer, or hypertext tained in accordance with agency procedures means, with respect to personal informa- link. and guidelines established pursuant to this tion— (11) PERSON.—The term ‘‘person’’ means title, or electronic signatures or other forms (A) the release of personal information col- any individual, partnership, corporation, of electronic authentication used in accord- lected from a child in identifiable form by an trust, estate, cooperative, association, or ance with such procedures and guidelines, operator for any purpose, except where such other entity. shall not be denied legal effect, validity or information is provided to a person other (12) ONLINE CONTACT INFORMATION.—The enforceability because they are in electronic than the operator who provides support for term ‘‘online contact information’’ means an form. the internal operations of the website and e-mail address or another substantially simi- lar identifier that permits direct contact SEC. 8. DISCLOSURE OF INFORMATION. does not disclose or use that information for with a person online. Except as provided by law, information any other purpose; and collected in the provision of electronic signa- (B) making personal information collected SEC. 203. REGULATION OF UNFAIR AND DECEP- from a child by a website or online service TIVE ACTS AND PRACTICES IN CON- ture services for communications with an NECTION WITH THE COLLECTION agency, as provided by this Act, shall only be directed to children or with actual knowl- AND USE OF PERSONAL INFORMA- used or disclosed by persons who obtain, col- edge that such information was collected TION FROM AND ABOUT CHILDREN lect, or maintain such information as a busi- from a child, publicly available in identifi- ON THE INTERNET. ness or government practice, for the purpose able form, by any means including by a pub- (a) ACTS PROHIBITED.— of facilitating such communications, or with lic posting, through the Internet, or (1) IN GENERAL.—It is unlawful for an oper- the prior affirmative consent of the person through— ator of a website or online service directed to about whom the information pertains. (i) a home page of a website; children, or any operator that has actual (ii) a pen pal service; knowledge that it is collecting personal in- SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; formation from a child, to collect personal Nothing in this title shall apply to the De- (iv) a message board; or information from a child in a manner that partment of the Treasury or the Internal (v) a chat room. violates the regulations prescribed under Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). (1) it involves the administration of the in- agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— ternal revenue laws; and defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an (2) it conflicts with any provision of the In- States Code. operator of such a website or online service ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means nor the operator’s agent shall be held to be Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and liable under any Federal or State law for any Code of 1986. telecommunications facilities, including disclosure made in good faith and following SEC. 10. DEFINITIONS. equipment and operating software, which reasonable procedures in responding to a re- For purposes of this Act: comprise the interconnected world-wide net- quest for disclosure of personal information (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- under subsection (b)(1)(B)(iii) to the parent tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, of a child. term in section 105 of title 5, United States or any predecessor or successor protocols to (b) REGULATIONS.— (1) IN GENERAL.—Not later than 1 year after Code. such protocol, to communicate information the date of the enactment of this Act, the (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. Commission shall promulgate under section ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a 553 of title 5, United States Code, regulations signing an electronic message that— legal guardian. (A) identifies and authenticates a particu- that— (8) PERSONAL INFORMATION.—The term (A) require the operator of any website or lar person as the source of such electronic ‘‘personal information’’ means individually online service directed to children that col- message; and identifiable information about an individual lects personal information from children or (B) indicates such person’s approval of the collected online, including— the operator of a website or online service information contained in such electronic (A) a first and last name; that has actual knowledge that it is collect- message. (B) a home or other physical address in- ing personal information from a child— (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or (i) to provide notice on the website of what terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; information is collected from children by the vey’’ include documents produced by an (C) an e-mail address; operator, how the operator uses such infor- agency to facilitate interaction between an (D) a telephone number; mation, and the operator’s disclosure prac- agency and non-government persons. (E) a Social Security number; tices for such information; and TITLE II—CHILDREN’S ONLINE PRIVACY (F) any other identifier that the Commis- (ii) to obtain verifiable parental consent PROTECTION sion determines permits the physical or on- for the collection, use, or disclosure of per- line contracting of a specific individual; or sonal information from children; SEC. 201. SHORT TITLE. (G) information concerning the child or the (B) require the operator to provide, upon This title may be cited as the ‘‘Children’s parents of that child that the website col- request of a parent under this subparagraph Online Privacy Protection Act of 1999’’. lects online from the child and combines whose child has provided personal informa- SEC. 202. DEFINITIONS. with an identifier described in this para- tion to that website or online service, upon In this title: graph. proper identification of that parent, to such (1) CHILD.—The term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The parent— dividual under the age of 13. term ‘‘verifiable parental consent’’ means (i) a description of the specific types of (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- personal information collected from the (A) means any person who operates a ation available technology), including a re- child by that operator; website located on the Internet or an online quest for authorization for future collection (ii) the opportunity at any time to refuse service and who collects or maintains per- use, and disclosure described in the notice, to permit the operator’s further use or main- sonal information from or about the users of to ensure that a parent of a child receives tenance in retrievable form, or future online or visitors to such website or online service, notice of the operator’s personal information collection, of personal information from that child; and or on whose behalf such information is col- collection, use, and disclosure practices, and lected or maintained, where such website or (iii) notwithstanding any other provision authorizes the collection, use, and disclo- of law, a means that is reasonable under the online service is operated for commercial sure, as applicable, of personal information circumstances for the parent to obtain any purposes, including any person offering prod- and the subsequent use of that information personal information collected from that ucts or services for sale through that website before that information is collected from child; or online service, involving commerce— that child. (C) prohibit conditioning a child’s partici- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED pation in a game, the offering of a prize, or more foreign nations; TO CHILDREN.— another activity on the child disclosing more (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- personal information than is reasonably nec- in the District of Columbia, or between any line service directed to children’’ means— essary to participate in such activity; and such territory and— (i) a commercial website or online service (D) require the operator of such a website (I) another such territory; or that is targeted to children; or or online service to establish and maintain (II) any State or foreign nation; or (ii) that portion of a commercial website reasonable procedures to protect the con- (iii) between the District of Columbia and or online service that is targeted to children. fidentiality, security, and integrity of per- any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or sonal information collected from children. (B) does not include any non-profit entity online service, or a portion of a commercial (2) WHEN CONSENT NOT REQUIRED.—The reg- that would otherwise be exempt from cov- website or online service, shall not be ulations shall provide that verifiable paren- erage under section 5 of the Federal Trade deemed directed to children solely for refer- tal consent under paragraph (1)(A)(ii) is not Commission Act (15 U.S.C. 45). ring or linking to a commercial website or required in the case of— S11752 CONGRESSIONAL RECORD — SENATE October 7, 1998 (A) online contact information collected SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy that arises in that action; and rectly on a one-time basis to a specific re- the requirements of regulations issued under (B) to file a petition for appeal. quest from the child and is not used to re- section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to contact the child and is not maintained in latory guidelines, issued by representatives the court, a person whose self-regulatory retrievable form by the operator; of the marketing or online industries, or by guidelines have been approved by the Com- (B) a request for the name or online con- other persons, approved under subsection (b). mission and are relied upon as a defense by tact information of a parent or child that is (b) INCENTIVES.— any defendant to a proceeding under this sec- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- tal consent or providing notice under this scribing regulations under section 203, the ing. section and where such information is not Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- maintained in retrievable form by the opera- regulation by operators to implement the ing any civil action under subsection (a), tor if parental consent is not obtained after protections afforded children under the regu- nothing in this title shall be construed to a reasonable time; latory requirements described in subsection prevent an attorney general of a State from (C) online contact information collected (b) of that section. exercising the powers conferred on the attor- from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— more than once directly to a specific request shall include provisions for ensuring that a (1) conduct investigations; (2) administer oaths or affirmations; or from the child and is not used to recontact person will be deemed to be in compliance (3) compel the attendance of witnesses or the child beyond the scope of that request— with the requirements of the regulations the production of documentary and other (i) if, before any additional response after under section 203 if that person complies evidence. the initial response to the child, the operator with guidelines that, after notice and com- ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any uses reasonable efforts to provide a parent case in which an action is instituted by or on notice of the online contact information col- making a determination that the guidelines meet the requirements of the regulations behalf of the Commission for violation of lected from the child, the purposes for which any regulation prescribed under section 293, it is to be used, and an opportunity for the issued under section 203. (3) EXPEDITED RESPONSE TO REQUESTS.—The no State may, during the pendency of that parent to request that the operator make no action, institute an action under subsection further use of the information and that it Commission shall act upon requests for safe harbor treatment within 180 days of the fil- (a) against any defendant named in the com- not be maintained in retrievable form; or plaint in that action for violation of that (ii) without notice to the parent in such ing of the request, and shall set forth in writing its conclusions with regard to such regulation. circumstances as the Commission may deter- (e) VENUE; SERVICE OF PROCESS.— requests. mine are appropriate, taking into consider- (1) VENUE.—Any action brought under sub- (c) APPEALS.—Final action by the Commis- ation the benefits to the child of access to section (a) may be brought in the district sion on a request for approval of guidelines, information and services, and risks to the se- court of the United States that meets appli- or the failure to act within 180 days on a re- curity and privacy of the child, in regula- cable requirements relating to venue under quest for approval of guidelines, submitted tions promulgated under this subsection; section 1391 of title 28, United States Code. under subsection (b) may be appealed to a (D) the name of the child and online con- (2) SERVICE OF PROCESS.—In an action tact information (to the extent reasonably district court of the United States of appro- brought under subsection (a), process may be necessary to protect the safety of a child priate jurisdiction as provided for in section served in any district in which the defend- participant on the site)— 706 of title 5, United States Code. ant— (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. (A) is an inhabitant; or such safety; (a) IN GENERAL.— (B) may be found. (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the SEC. 206. ADMINISTRATION AND APPLICABILITY any other purpose; and attorney general of a State has reason to be- OF ACT. (iii) not disclosed on the site, lieve that an interest of the residents of that (a) IN GENERAL.—Except as otherwise pro- State has been or is threatened or adversely if the operator uses reasonable efforts to pro- vided, this title shall be enforced by the affected by the engagement of any person in vide a parent notice of the name and online Commission under the Federal Trade Com- a practice that violates any regulation of the contact information collected from the mission Act (15 U.S.C. 41 et seq.). Commission prescribed under section 203(b), child, the purposes for which it is to be used, (b) PROVISIONS.—Compliance with the re- the State, as parens patriae, may bring a and an opportunity for the parent to request quirements imposed under this title shall be civil action on behalf of the residents of the that the operator make no further use of the enforced under— State in a district court of the United States (1) section 8 of the Federal Deposit Insur- information and that it not be maintained in of appropriate jurisdiction to— ance Act (12 U.S.C. 1818), in the case of— retrievable form; or (A) enjoin that practice; (A) national banks, and Federal branches (E) the collection, use, or dissemination of (B) enforce compliance with the regula- and Federal agencies of foreign banks, by the such information by the operator of such a tion; Office of the Comptroller of the Currency; website or online service necessary— (C) obtain damage, restitution, or other (B) member banks of the Federal Reserve (i) to protect the security or integrity of compensation on behalf of residents of the System (other than national banks), its website; State; or branches and agencies of foreign banks (ii) to take precautions against liability; (D) obtain such other relief as the court (other than Federal branches, Federal agen- (iii) to respond to judicial process; or may consider to be appropriate. cies, and insured State branches of foreign (iv) to the extent permitted under other (2) NOTICE.— banks), commercial lending companies provisions of law, to provide information to (A) IN GENERAL.—Before filing an action owned or controlled by foreign banks, and law enforcement agencies or for an inves- under paragraph (1), the attorney general of organizations operating under section 25 or tigation on a matter related to public safety. the State involved shall provide to the Com- 25(a) of the Federal Reserve Act (12 U.S.C. (3) TERMINATION OF SERVICE.—The regula- mission— 601 et seq. and 611 et. seq.), by the Board; and tions shall permit the operator of a website (i) written notice of that action; and (C) banks insured by the Federal Deposit or an online service to terminate service pro- (ii) a copy of the complaint for that action. Insurance Corporation (other than members vided to a child whose parent has refused, (B) EXEMPTION.— of the Federal Reserve System) and insured under the regulations prescribed under para- (i) IN GENERAL.—Subparagraph (A) shall State branches of foreign banks, by the graph (1)(B)(ii), to permit the operator’s fur- not apply with respect to the filing of an ac- Board of Directors of the Federal Deposit In- ther use or maintenance in retrievable form, tion by an attorney general of a State under surance Corporation; or future online collection, of personal infor- this subsection, if the attorney general de- (2) section 8 of the Federal Deposit Insur- mation from that child. termines that it is not feasible to provide the ance Act (12 U.S.C. 1818), by the Director of (c) ENFORCEMENT.—Subject to sections 204 notice described in that subparagraph before the Office of Thrift Supervision, in the case and 206, a violation of a regulation pre- the filing of the action. of a savings association the deposits of which scribed under subsection (a) shall be treated (ii) NOTIFICATION.—In an action described are insured by the Federal Deposit Insurance as a violation of a rule defining an unfair or in clause (i), the attorney general of a State Corporation; deceptive act or practice prescribed under shall provide notice and a copy of the com- (3) the Federal Credit Union Act (12 U.S.C. section 18(a)(1)(B) of the Federal Trade Com- plaint to the Commission at the same time 1751 et seq.) by the National Credit Union mission Act (15 U.S.C. 57a(a)(1)(B)). as the attorney general files the action. Administration Board with respect to any (d) INCONSISTENT STATE LAW.—No State or (b) INTERVENTION.— Federal credit union; local government may impose any liability (1) IN GENERAL.—On receiving notice under (4) part A of subtitle VII of title 49, United for commercial activities or actions by oper- subsection (a)(2), the Commission shall have States Code, by the Secretary of Transpor- ators in interstate or foreign commerce in the right to intervene in the action that is tation with respect to any air carrier or for- connection with an activity or action de- the subject of the notice. eign air carrier subject to that part; scribed in this title that is inconsistent with (2) EFFECT OF INTERVENTION.—If the Com- (5) the Packers and Stockyards Act, 1921 (7 the treatment of those activities or actions mission intervenes in an action under sub- U.S.C. 181 et. seq.) (except as provided in sec- under this section. section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the October 7, 1998 CONGRESSIONAL RECORD — SENATE S11753 Secretary of Agriculture with respect to any ration of the Commission shall be returned of disputes between States regarding matters activities subject to that Act; and to the donor or grantor. of multiple taxation; and (6) the Farm Credit Act of 1971 (12 U.S.C. (d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- (2001 et seq.) by the Farm Credit Administra- shall have reasonable access to materials, re- istration of sales and use taxes on interstate tion with respect to any Federal land bank, sources, data, and other information from commerce, including a review of the need for Federal land bank association, Federal inter- the Department of Justice, the Department a single or uniform tax registration, single mediate credit bank, or production credit as- of Commerce, the Department of State, the or uniform tax returns, simplified remit- sociation. Department of the Treasury, and the Office tance requirements, simplified administra- (c) EXERCISE OF CERTAIN POWERS.—For the of the United States Trade Representative. tive procedures, or the need for an independ- purpose of the exercise by any agency re- The Commission shall also have reasonable ent third party collection system; and ferred to in subsection (a) of its powers under access to use the facilities of any such De- (E) the examination of ways to simplify any Act referred to in that subsection, a vio- partment or Office for purposes of conduct- Federal and State and local taxes imposed on lation of any requirement imposed under ing meetings. the provision of telecommunications serv- this title shall be deemed to be a violation of (e) SUNSET.—The Commission shall termi- ices. a requirement imposed under that Act. In nate 18 months after the date of the enact- SEC. 103. REPORT. addition to its powers under any provision of ment of this Act. Not later than 18 months after the date of law specifically referred to in subsection (a), (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission each of the agencies referred to in that sub- (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- section may exercise, for the purpose of en- mission shall constitute a quorum for con- ing the results of the Commission’s study forcing compliance with any requirement ducting the business of the Commission. under this title. No finding or recommenda- imposed under this title, any other authority (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless conferred on it by law. Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- (d) ACTIONS BY THE COMMISSION.—The Com- days in advance and shall be open to the pub- bers of the Commission serving at the time mission shall prevent any person from vio- lic. the finding or recommendation is made. lating a rule of the Commission under sec- (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. tion 203 in the same manner, by the same mission shall provide opportunities for rep- For the purposes of this title: means, and with the same jurisdiction, pow- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means ers, and duties as though all applicable groups, consumer groups, and State and any tax on electronic commerce expressly terms and provisions of the Federal Trade local government officials to testify. imposed on or measured by the volume of Commission Act (15 U.S.C. 41 et seq.) were (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- incorporated into and made a part of this may adopt other rules as needed. cally, or the volume of digital information title. Any entity that violates such rule (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, shall be subject to the penalties and entitled (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the to the privileges and immunities provided in conduct a thorough study of Federal, State provision of telecommunications services. the Federal Trade Commission Act in the and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- same manner, by the same means, and with tariff treatment of transactions using the criminatory tax’’ means any tax imposed by the same jurisdiction, power, and duties as Internet and Internet access and other com- a State or political subdivision thereof on though all applicable terms and provisions of parable interstate or international sales ac- electronic commerce that— the Federal Trade Commission Act were in- tivities. (A) is not generally imposed and legally corporated into and made a part of this title. (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political (e) EFFECT ON OTHER LAWS.—Nothing con- may include in the study under subsection subdivision on transactions involving the tained in the Act shall be construed to limit (a)— same or similar property, goods, services, or the authority of the Commission under any (A) an examination of— information accomplished through other other provisions of law. (i) barriers imposed in foreign markets on means; SEC. 207. REVIEW. United States providers of property, goods, (B) is not generally imposed and legally (a) IN GENERAL.—Not later than 5 years services, or information engaged in elec- collectible at the same rate by such State or after the effective date of the regulations tronic commerce and on United States pro- such political subdivision on transactions in- initially issued under section 203, the Com- viders of telecommunications services; and volving the same or similar property, goods, mission shall— (ii) how the imposition of such barriers services, or information accomplished (1) review the implementation of this title, will affect United States consumers, the through other means, unless the rate is including the effect of the implementation of competitiveness of United States citizens lower as part of a phase-out of the tax over this title on practices relating to the collec- providing property, goods, services, or infor- not more than a 5-year period; or tion and disclosure of information relating mation in foreign markets, and the growth (C) imposes an obligation to collect or pay to children, children’s ability to obtain ac- and maturing of the Internet; the tax on a different person or entity than cess to information of their choice online, (B) an examination of the collection and in the case of transactions involving the and on the availability of websites directed administration of consumption taxes on same or similar property, goods, services, or to children; and interstate commerce in other countries and information accomplished through other (2) prepare and submit to Congress a report the United States, and the impact of such means. on the results of the review under paragraph collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term (1). an examination of the relationship between ‘‘electronic commerce’’ means any trans- SEC. 208. EFFECTIVE DATE. the collection and administration of such action conducted over the Internet or Sections 203(a), 205, and 206 of this title taxes when the transaction uses the Internet through Internet access, comprising the sale, take effect on the later of— and when it does not; lease, license, offer, or delivery of property, (1) the date that is 18 months after the date (C) an examination of the impact of the goods, services, or information, whether or of enactment of this Act; or Internet and Internet access (particularly not for consideration, and includes the provi- (2) the date on which the Commission rules voice transmission) on the revenue base for sion of Internet access. on the first application for safe harbor treat- taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means ment under section 204 if the Commission ternal Revenue Code of 1986; the combination of computer facilities and does not rule on the first such application (D) an examination of— electromagnetic transmission media, and re- within one year after the date of enactment (i) the efforts of State and local govern- lated equipment and software, comprising of this Act, but in no case later than the date ments to collect sales and use taxes owed on the interconnected worldwide network of that is 30 months after the date of enact- purchases from interstate sellers, the advan- computer networks that employ the Trans- ment of this Act.’’ tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, and local governments to require such sellers or any predecessor or successor protocol, to AMENDMENT NO. 3767 to collect and remit such taxes, particularly transmit information. Strike ‘‘days after the date of the enact- with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet ment of this Act. level of contacts sufficient to permit a State access’’ means a service that enables users to (3) VACANCIES.—Any vacancy in the Com- or local government to impose such taxes on access content, information, electronic mail, mission shall not affect its powers, but shall such interstate commerce; or other services offered over the Internet, be filled in the same manner as the original (ii) model State legislation relating to tax- and may also include access to proprietary appointment. ation of transactions using the Internet and content, information, and other services as (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- part of a package of services offered to con- The Commission may accept, use, and dis- ogy, definitions of the transactions, services, sumers. Such term does not include tele- pose of gifts or grants of services or prop- and other activities that may be subject to communications services. erty, both real and personal, for purposes of State and local taxation, procedural struc- (6) MULTIPLE TAX.— aiding or facilitating the work of the Com- tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ mission. Gifts or grants not used at the expi- taxation, and a mechanism for the resolution means any tax that is imposed by one State S11754 CONGRESSIONAL RECORD — SENATE October 7, 1998 or political subdivision thereof on the same (C) by inserting after clause (ii) the follow- natures as may be generally used in com- or essentially the same electronic commerce ing new clause: merce and industry and by State govern- that is also subject to another tax imposed ‘‘(iii) the value of electronic commerce ments, based upon consultation with appro- by another State or political subdivision transacted with,’’; and priate private sector and State government thereof (whether or not at the same rate or (3) by adding at the end the following new standard setting bodies. on the same basis), without a credit (for ex- subsection: (2) Such procedures shall not inappropri- ample, a resale exemption certificate) for ‘‘(d) ELECTRONIC COMMERCE.—For purposes ately favor one industry or technology. taxes paid in other jurisdictions. of this section, the term ‘electronic com- (3) An electronic signature shall be as reli- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in able as is appropriate for the purpose, and ef- clude a sales or use tax imposed by a State section 104(3) of the Internet Tax Freedom forts shall be made to keep the information and 1 or more political subdivisions thereof Act.’’. submitted intact. on the same electronic commerce or a tax on SEC. 203. DECLARATION THAT THE INTERNET (4) Successful submission of an electronic persons engaged in electronic commerce SHOULD BE FREE OF FOREIGN TAR- form shall be electronically acknowledged. which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER (5) In accordance with all other sections of or use tax thereon. RESTRICTIONS. the Act, to the extent feasible and appro- (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- priate, and described in a written finding, an subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- agency, when it expects to receive electroni- tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements cally 50,000 or more submittals of a particu- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- lar form, shall take all steps necessary to en- tion, distribution, or other use of tangible merce through the World Trade Organiza- sure that multiple formats of electronic sig- personal property or services as may be de- tion, the Organization for Economic Co- natures are made available for submitting fined by laws imposing such tax and which is operation and Development, the Trans-At- such forms. measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- other charge for such property or service. cific Economic Cooperation forum, the Free RECTOR OF THE OFFICE OF MAN- (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- AGEMENT AND BUDGET. the several States, the District of Columbia, ican Free Trade Agreement, and other appro- In order to fulfill the responsibility to ad- or any commonwealth, territory, or posses- priate venues. minister the functions assigned under chap- sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- ter 35 of title 44, United States Code, the (8) TAX.— tiating objectives of the United States shall Clinger-Cohen Act of 1996 (P.L. 104–106), and (A) IN GENERAL.—The term ‘‘tax’’ means— be— the provisions of this Act, the Director of (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is the Office of Management and Budget shall governmental authority by any govern- free from— ensure that, within five years of the date of mental entity; or (A) tariff and nontariff barriers; enactment of this Act, executive agencies (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- provide for the optional use of electronic lect and to remit to a governmental entity tion and standards; and maintenance, submission, or disclosure of in- any such levy, fee, or charge imposed by a (C) discriminatory taxation; and formation where practicable, as an alter- governmental entity. (2) to accelerate the growth of electronic native information technology to substitute (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- for paper, and the use and acceptance of elec- clude any franchise fees or similar fees im- portunities for— tronic signatures where practicable. posed by a State or local franchising author- (A) the development of telecommuni- SEC. 5. ELECTRONIC STORAGE OF FORMS. ity, pursuant to section 622 or 653 of the cations infrastructure; Within 18 months of enactment of this Act, Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- in order to fulfill the responsibility to ad- 573). cations equipment; minister the functions assigned under chap- (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and ter 35 of title 44, United States Code, the term ‘‘telecommunications services’’ has the telecommunications services; and Clinger-Cohen Act of 1996 (P.L. 104–106), and meaning given such term in section 3(46) of (D) the exchange of goods, services, and the provisions of this Act, the Director of the Communications Act of 1934 (47 U.S.C. digitalized information. the Office of Management and Budget shall 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes develop procedures and guidelines for execu- ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- tive agency use to permit employer elec- Revenue Code of 1986). merce’’ has the meaning given that term in tronic storage and filing of forms containing section 104(3). TITLE II—OTHER PROVISIONS information pertaining to employees. SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. Nothing in this Act shall be construed to SEC. 6. STUDY. SHOULD BE FREE OF NEW FEDERAL In order to fulfill the responsibility to ad- TAXES. expand the duty of any person to collect or It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- minister the functions assigned under chap- eral taxes similar to the taxes described in diately before the date of the enactment of ter 35 of title 44, United States Code, the section 101(a) should be enacted with respect this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and the provisions of this Act, the Director of to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. the moratorium provided in such section. Nothing in this Act shall limit or other- the Office of Management and Budget, shall conduct an ongoing study of paperwork re- SEC. 202. NATIONAL TRADE ESTIMATE. wise affect the implementation of the Tele- Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– duction and electronic commerce, the im- U.S.C. 2241) is amended— 104) or the amendments made by such Act. pact on individual privacy, and the security and authenticity of transactions due to the (1) in subsection (a)(1)— SECTION 1. SHORT TITLE. use of electronic signatures pursuant to this (A) in subparagraph (A)— This Act may be cited as the ‘‘Government Act, and shall report the findings to Con- (i) by striking ‘‘and’’ at the end of clause Paperwork Elimination Act.’’ gress. (i); SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- (ii) by inserting ‘‘and’’ at the end of clause MATION TECHNOLOGY. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (ii); and Section 3504(a)(1)(B)(vi) of title 44, United ELECTRONIC RECORDS. (iii) by inserting after clause (ii) the fol- States Code, is amended to read as follows: Electronic records submitted or main- lowing new clause: ‘‘(vi) the acquisition and use of informa- tained in accordance with agency procedures ‘‘(iii) United States electronic commerce,’’; tion technology, including the use of alter- and guidelines established pursuant to this and native information technologies (such as the title, or electronic signatures or other forms (B) in subparagraph (C)— use of electronic submission, maintenance, of electronic authentication used in accord- (i) by striking ‘‘and’’ at the end of clause or disclosure of information) to substitute ance with such procedures and guidelines, (i); for paper, and the use and acceptance of elec- shall not be denied legal effect, validity or (ii) by inserting ‘‘and’’ at the end of clause tronic signatures.’’. enforceability because they are in electronic (ii); SEC. 3. PROCEDURES. form. (iii) by inserting after clause (ii) the fol- (a) Within 18 months after enactment of SEC. 8. DISCLOSURE OF INFORMATION. lowing new clause: this Act, in order to fulfill the responsibility Except as provided by law, information ‘‘(iii) the value of additional United States to administer the functions assigned under collected in the provision of electronic signa- electronic commerce,’’; and chapter 35 of title 44, United States Code, the ture services for communications with an (iv) by inserting ‘‘or transacted with,’’ Clinger-Cohen Act of 1996 (P.L. 104–106), and agency, as provided by this Act, shall only be after ‘‘or invested in’’; the provisions of this Act, the Director of used or disclosed by persons who obtain, col- (2) in subsection (a)(2)(E)— the Office of Management and Budget shall lect, or maintain such information as a busi- (A) by striking ‘‘and’’ at the end of clause develop procedures and guidelines for execu- ness or government practice, for the purpose (i); tive agency use. of facilitating such communications, or with (B) by inserting ‘‘and’’ at the end of clause (1) The procedures shall be compatible with the prior affirmative consent of the person (ii); and standards and technology for electronic sig- about whom the information pertains. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11755 SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; knowledge that it is collecting personal in- Nothing in this title shall apply to the De- (iv) a message board; or formation from a child, to collect personal partment of the Treasury or the Internal (v) a chat room. information from a child in a manner that Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal violates the regulations prescribed under (1) it involves the administration of the in- agency’’ means an agency, as that term is subsection (b). ternal revenue laws; and defined in section 551(1) of title 5, United (2) DISCLOSURE TO PARENT PROTECTED.— (2) it conflicts with any provision of the In- States Code. Notwithstanding paragraph (1), neither an ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means operator of such a website or online service Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and nor the operator’s agent shall be held to be Code of 1986. telecommunications facilities, including liable under any Federal or State law for any SEC. 10. DEFINITIONS. equipment and operating software, which disclosure made in good faith and following For purposes of this Act: comprise the interconnected world-wide net- reasonable procedures in responding to a re- (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- quest for disclosure of personal information tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, under subsection (b)(1)(B)(iii) to the parent term in section 105 of title 5, United States or any predecessor or successor protocols to of a child. Code. such protocol, to communicate information (b) REGULATIONS.— (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. (1) IN GENERAL.—Not later than 1 year after ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a the date of the enactment of this Act, the signing an electronic message that— legal guardian. Commission shall promulgate under section (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term 553 of title 5, United States Code, regulations lar person as the source of such electronic ‘‘personal information’’ means individually that— message; and identifiable information about an individual (A) require the operator of any website or (B) indicates such person’s approval of the collected online, including— online service directed to children that col- information contained in such electronic (A) a first and last name; lects personal information from children or message. (B) a home or other physical address in- the operator of a website or online service (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or that has actual knowledge that it is collect- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; ing personal information from a child— vey’’ include documents produced by an (C) an e-mail address; (i) to provide notice on the website of what agency to facilitate interaction between an (D) a telephone number; information is collected from children by the agency and non-government persons. (E) a Social Security number; operator, how the operator uses such infor- (F) any other identifier that the Commis- mation, and the operator’s disclosure prac- TITLE II—CHILDREN’S ONLINE PRIVACY tices for such information; and PROTECTION sion determines permits the physical or on- line contracting of a specific individual; or (ii) to obtain verifiable parental consent SEC. 201. SHORT TITLE. (G) information concerning the child or the for the collection, use, or disclosure of per- This title may be cited as the ‘‘Children’s parents of that child that the website col- sonal information from children; (B) require the operator to provide, upon Online Privacy Protection Act of 1999’’. lects online from the child and combines request of a parent under this subparagraph SEC. 202. DEFINITIONS. with an identifier described in this para- whose child has provided personal informa- In this title: graph. tion to that website or online service, upon (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The proper identification of that parent, to such dividual under the age of 13. term ‘‘verifiable parental consent’’ means parent— (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- (A) means any person who operates a (i) a description of the specific types of ation available technology), including a re- personal information collected from the website located on the Internet or an online quest for authorization for future collection service and who collects or maintains per- child by that operator; use, and disclosure described in the notice, (ii) the opportunity at any time to refuse sonal information from or about the users of to ensure that a parent of a child receives to permit the operator’s further use or main- or visitors to such website or online service, notice of the operator’s personal information tenance in retrievable form, or future online or on whose behalf such information is col- collection, use, and disclosure practices, and collection, of personal information from that lected or maintained, where such website or authorizes the collection, use, and disclo- child; and online service is operated for commercial sure, as applicable, of personal information (iii) notwithstanding any other provision purposes, including any person offering prod- and the subsequent use of that information of law, a means that is reasonable under the ucts or services for sale through that website before that information is collected from circumstances for the parent to obtain any or online service, involving commerce— that child. personal information collected from that (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED child; more foreign nations; TO CHILDREN.— (C) prohibit conditioning a child’s partici- (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or in the District of Columbia, or between any line service directed to children’’ means— another activity on the child disclosing more such territory and— (i) A commercial website or online service personal information than is reasonably nec- (I) another such territory; or that is targeted to children; or essary to participate in such activity; and (II) any State or foreign nation; or (ii) that portion of a commercial website (D) require the operator of such a website (iii) between the District of Columbia and or online service that is targeted to children. or online service to establish and maintain any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- (B) does not include any non-profit entity online service, or a portion of a commercial fidentiality, security, and integrity of per- that would otherwise be exempt from cov- website or online service, shall not be sonal information collected from children. erage under section 5 of the Federal Trade deemed directed to children solely for refer- (2) WHEN CONSENT NOT REQUIRED.—The reg- Commission Act (15 U.S.C. 45). ring or linking to a commercial website or ulations shall provide that verifiable paren- (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using tal consent under paragraph (1)(A)(ii) is not means the Federal Trade Commission. information location tools, including a direc- required in the case of— (4) DISCLOSURE.—The term ‘‘disclosure’’ tory, index, reference, pointer, or hypertext (A) online contact information collected means, with respect to personal informa- link. from a child that is used only to respond di- tion— (11) PERSON.—The term ‘‘person’’ means rectly on a one-time basis to a specific re- (A) the release of personal information col- any individual, partnership, corporation, quest from the child and is not used to re- lected from a child in identifiable form by an trust, estate, cooperative, association, or contact the child and is not maintained in operator for any purpose, except where such other entity. retrievable form by the operator; information is provided to a person other (12) ONLINE CONTACT INFORMATION.—The (B) a request for the name or online con- than the operator who provides support for term ‘‘online contact information’’ means an tact information of a parent or child that is the internal operations of the website and e-mail address or another substantially simi- used for the sole purpose of obtaining paren- does not disclose or use that information for lar identifier that permits direct contact tal consent or providing notice under this any other purpose; and with a person online. section and where such information is not (B) making personal information collected SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- from a child by a website or online service TIVE ACTS AND PRACTICES IN CON- tor if parental consent is not obtained after directed to children or with actual knowl- NECTION WITH THE COLLECTION a reasonable time; edge that such information was collected AND USE OF PERSONAL INFORMA- (C) online contact information collected from a child, publicly available in identifi- TION FROM AND ABOUT CHILDREN from a child that is used only to respond able form, by any means including by a pub- ON THE INTERNET. more than once directly to a specific request lic posting, through the Internet, or (A) ACTS PROHIBITED.— from the child and is not used to recontact through— (1) IN GENERAL.—It is unlawful for an oper- the child beyond the scope of that request— (i) a home page of a website; ator of a website or online service directed to (i) if, before any additional response after (ii) a pen pal service; children, or any operator that has actual the initial response to the child, the operator S11756 CONGRESSIONAL RECORD — SENATE October 7, 1998

uses reasonable efforts to provide a parent ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any notice of the online contact information col- making a determination that the guidelines case in which an action is instituted by or on lected from the child, the purposes for which meet the requirements of the regulations behalf of the Commission for violation of it is to be used, and an opportunity for the issued under section 203. any regulation prescribed under section 293, parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The no State may, during the pendency of that further use of the information and that it Commission shall act upon requests for safe action, institute an action under subsection not be maintained in retrievable form; or harbor treatment within 180 days of the fil- (a) against any defendant named in the com- (ii) without notice to the parent in such ing of the request, and shall set forth in plaint in that action for violation of that circumstances as the Commission may deter- writing its conclusions with regard to such regulation. mine are appropriate, taking into consider- requests. (e) VENUE; SERVICE OF PROCESS.— ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- (1) VENUE.—Any action brought under sub- information and services, and risks to the se- sion on a request for approval of guidelines, section (a) may be brought in the district curity and privacy of the child, in regula- or the failure to act within 180 days on a re- court of the United States that meets appli- tions promulgated under this subsection; quest for approval of guidelines, submitted cable requirements relating to venue under (D) the name of the child and online con- under subsection (b) may be appealed to a section 1391 of title 28, United States Code. tact information (to the extent reasonably district court of the United States of appro- (2) SERVICE OF PROCESS.—In an action necessary to protect the safety of a child priate jurisdiction as provided for in section brought under subsection (a), process may be participant on the site)— 706 of title 5, United States Code. served in any district in which the defend- (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. ant— such safety; (a) IN GENERAL.— (A) is an inhabitant; or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (B) may be found. any other purpose; and attorney general of a State has reason to be- SEC. 206. ADMINISTRATION AND APPLICABILITY (iii) not disclosed on the site, lieve that an interest of the residents of that OF ACT. if the operator uses reasonable efforts to pro- State has been or is threatened or adversely (a) IN GENERAL.—Except as otherwise pro- vide a parent notice of the name and online affected by the engagement of any person in vided, this title shall be enforced by the contact information collected from the a practice that violates any regulation of the Commission under the Federal Trade Com- child, the purposes for which it is to be used, Commission prescribed under section 203(b), mission Act (15 U.S.C. 41 et seq.). (b) PROVISIONS.—Compliance with the re- and an opportunity for the parent to request the State, as parens patriae, may bring a quirements imposed under this title shall be that the operator make no further use of the civil action on behalf of the residents of the enforced under— information and that it not be maintained in State in a district court of the United States (1) section 8 of the Federal Deposit Insur- retrievable form; or of appropriate jurisdiction to— ance Act (12 U.S.C. 1818), in the case of— (E) the collection, use, or dissemination of (A) enjoin that practice; (A) national banks, and Federal branches such information by the operator of such a (B) enforce compliance with the regula- and Federal agencies of foreign banks, by the website or online service necessary— tion; Office of the Comptroller of the Currency; (i) to protect the security or integrity of (C) obtain damage, restitution, or other compensation on behalf of residents of the (B) member banks of the Federal Reserve its website; System (other than national banks), (ii) to take precautions against liability; State; or branches and agencies of foreign banks (iii) to respond to judicial process; or (D) obtain such other relief as the court (other than Federal branches, Federal agen- (iv) to the extent permitted under other may consider to be appropriate. cies, and insured State branches of foreign provisions of law, to provide information to (2) NOTICE.— banks), commercial lending companies law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action owned or controlled by foreign banks, and tigation on a matter related to public safety. under paragraph (1), the attorney general of organizations operating under section 25 or (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- 25(a) of the Federal Reserve Act (12 U.S.C. tions shall permit the operator of a website mission— 601 et seq. and 611 et. seq.), by the Board; and or an online service to terminate service pro- (i) written notice of that action; and (C) banks insured by the Federal Deposit vided to a child whose parent has refused, (ii) a copy of the complaint for that action. Insurance Corporation (other than members under the regulations prescribed under para- (B) EXEMPTION.— of the Federal Reserve System) and insured graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall State branches of foreign banks, by the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- Board of Directors of the Federal Deposit In- or future online collection, of personal infor- tion by an attorney general of a State under surance Corporation; mation from that child. this subsection, if the attorney general de- termines that it is not feasible to provide the (2) section 8 of the Federal Deposit Insur- (c) ENFORCEMENT.—Subject to sections 204 notice described in that subparagraph before ance Act (12 U.S.C. 1818), by the Director of and 206, a violation of a regulation pre- the Office of Thrift Supervision, in the case scribed under subsection (a) shall be treated the filing of the action. (ii) NOTIFICATION.—In an action described of a savings association the deposits of which as a violation of a rule defining an unfair or in clause (i), the attorney general of a State are insured by the Federal Deposit Insurance deceptive act or practice prescribed under shall provide notice and a copy of the com- Corporation; section 18(a)(1)(B) of the Federal Trade Com- plaint to the Commission at the same time (3) the Federal Credit Union Act (12 U.S.C. mission Act (15 U.S.C. 57a(a)(1)(B)). as the attorney general files the action. 1751 et seq.) by the National Credit Union (d) INCONSISTENT STATE LAW.—No State or (b) INTERVENTION.— Administration Board with respect to any local government may impose any liability (1) IN GENERAL.—On receiving notice under Federal credit union; for commercial activities or actions by oper- subsection (a)(2), the Commission shall have (4) part A of subtitle VII of title 49, United ators in interstate or foreign commerce in the right to intervene in the action that is States Code, by the Secretary of Transpor- connection with an activity or action de- the subject of the notice. tation with respect to any air carrier or for- scribed in this title that is inconsistent with (2) EFFECT OF INTERVENTION.—If the Com- eign air carrier subject to that part; the treatment of those activities or actions mission intervenes in an action under sub- (5) the Packers and Stockyards Act, 1921 (7 under this section. section (a), it shall have the right— U.S.C. 181 et. seq.) (except as provided in sec- SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter tion 406 of that Act (7 U.S.C. 226, 227)), by the (a) GUIDELINES.—An operator may satisfy that arises in that action; and Secretary of Agriculture with respect to any the requirements of regulations issued under (B) to file a petition for appeal. activities subject to that Act; and section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to (6) the Farm Credit Act of 1971 (12 U.S.C. latory guidelines, issued by representatives the court, a person whose self-regulatory (2001 et seq.) by the Farm Credit Administra- of the marketing or online industries, or by guidelines have been approved by the Com- tion with respect to any Federal land bank, other persons, approved under subsection (b). mission and are relied upon as a defense by Federal land bank association, Federal inter- (b) INCENTIVES.— any defendant to a proceeding under this sec- mediate credit bank, or production credit as- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- sociation. scribing regulations under section 203, the ing. (c) EXERCISE OF CERTAIN POWERS.—For the Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- purpose of the exercise by any agency re- regulation by operators to implement the ing any civil action under subsection (a), ferred to in subsection (a) of its powers under protections afforded children under the regu- nothing in this title shall be construed to any Act referred to in that subsection, a vio- latory requirements described in subsection prevent an attorney general of a State from lation of any requirement imposed under (b) of that section. exercising the powers conferred on the attor- this title shall be deemed to be a violation of (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— a requirement imposed under that Act. In shall include provisions for ensuring that a (1) conduct investigations; addition to its powers under any provision of person will be deemed to be in compliance (2) administer oaths or affirmations; or law specifically referred to in subsection (a), with the requirements of the regulations (3) compel the attendance of witnesses or each of the agencies referred to in that sub- under section 203 if that person complies the production of documentary and other section may exercise, for the purpose of en- with guidelines that, after notice and com- evidence. forcing compliance with any requirement October 7, 1998 CONGRESSIONAL RECORD — SENATE S11757

imposed under this title, any other authority (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. conferred on it by law. mission shall provide opportunities for rep- For the purposes of this title: (d) ACTIONS BY THE COMMISSION.—The Com- resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means mission shall prevent any person from vio- groups, consumer groups, and State and any tax on electronic commerce expressly lating a rule of the Commission under sec- local government officials to testify. imposed on or measured by the volume of tion 203 in the same manner, by the same (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- means, and with the same jurisdiction, pow- may adopt other rules as needed. cally, or the volume of digital information ers, and duties as though all applicable (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, terms and provisions of the Federal Trade (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the Commission Act (15 U.S.C. 41 et seq.) were conduct a thorough study of Federal, State provision of telecommunications services. incorporated into and made a part of this and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- title. Any entity that violates such rule tariff treatment of transactions using the criminatory tax’’ means any tax imposed by shall be subject to the penalties and entitled Internet and Internet access and other com- a State or political subdivision thereof on to the privileges and immunities provided in parable interstate or international sales ac- electronic commerce that— the Federal Trade Commission Act in the tivities. (A) is not generally imposed and legally same manner, by the same means, and with (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political the same jurisdiction, power, and duties as may include in the study under subsection subdivision on transactions involving the though all applicable terms and provisions of (a)— same or similar property, goods, services, or the Federal Trade Commission Act were in- (A) an examination of— information accomplished through other corporated into and made a part of this title. (i) barriers imposed in foreign markets on means; (e) EFFECT ON OTHER LAWS.—Nothing con- United States providers of property, goods, (B) is not generally imposed and legally tained in the Act shall be construed to limit services, or information engaged in elec- collectible at the same rate by such State or the authority of the Commission under any tronic commerce and on United States pro- such political subdivision on transactions in- other provisions of law. viders of telecommunications services; and volving the same or similar property, goods, SEC. 207. REVIEW. (ii) how the imposition of such barriers services, or information accomplished (a) IN GENERAL.—Not later than 5 years will affect United States consumers, the through other means, unless the rate is after the effective date of the regulations competitiveness of United States citizens lower as part of a phase-out of the tax over initially issued under section 203, the Com- providing property, goods, services, or infor- not more than a 5-year period; or mission shall— mation in foreign markets, and the growth (C) imposes an obligation to collect or pay (1) review the implementation of this title, and maturing of the Internet; the tax on a different person or entity than including the effect of the implementation of (B) an examination of the collection and in the case of transactions involving the this title on practices relating to the collec- administration of consumption taxes on same or similar property, goods, services, or tion and disclosure of information relating interstate commerce in other countries and information accomplished through other to children, children’s ability to obtain ac- the United States, and the impact of such means. cess to information of their choice online, collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term and on the availability of websites directed an examination of the relationship between ‘‘electronic commerce’’ means any trans- to children; and the collection and administration of such action conducted over the Internet or (2) prepare and submit to Congress a report taxes when the transaction uses the Internet through Internet access, comprising the sale, on the results of the review under paragraph and when it does not; lease, license, offer, or delivery of property, (1). (C) an examination of the impact of the goods, services, or information, whether or SEC. 208. EFFECTIVE DATE. Internet and Internet access (particularly not for consideration, and includes the provi- Sections 203(a), 205, and 206 of this title voice transmission) on the revenue base for sion of Internet access. take effect on the later of— taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (1) the date that is 18 months after the date ternal Revenue Code of 1986; the combination of computer facilities and of enactment of this Act; or (D) an examination of— electromagnetic transmission media, and re- (2) the date on which the Commission rules (i) the efforts of State and local govern- lated equipment and software, comprising on the first application for safe harbor treat- ments to collect sales and use taxes owed on the interconnected worldwide network of ment under section 204 if the Commission purchases from interstate sellers, the advan- computer networks that employ the Trans- does not rule on the first such application tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, within one year after the date of enactment and local governments to require such sellers or any predecessor or successor protocol, to of this Act, but in no case later than the date to collect and remit such taxes, particularly transmit information. that is 30 months after the date of enact- with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet ment of this Act.’’, and insert in lieu thereof: level of contacts sufficient to permit a State access’’ means a service that enables users to (3) VACANCIES.—Any vacancy in the Com- or local government to impose such taxes on access content, information, electronic mail, mission shall not affect its powers, but shall such interstate commerce; or other services offered over the Internet, be filled in the same manner as the original (ii) model State legislation relating to tax- and may also include access to proprietary appointment. ation of transactions using the Internet and content, information, and other services as (c) ACCEPTANCE OF GIFTS AND GRANTS.— Internet access, including uniform terminol- part of a package of services offered to con- The Commission may accept, use, and dis- ogy, definitions of the transactions, services, sumers. Such term does not include tele- pose of gifts or grants of services or prop- and other activities that may be subject to communications services. erty, both real and personal, for purposes of State and local taxation, procedural struc- (6) MULTIPLE TAX.— aiding or facilitating the work of the Com- tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ mission. Gifts or grants not used at the expi- taxation, and a mechanism for the resolution means any tax that is imposed by one State ration of the Commission shall be returned of disputes between States regarding matters or political subdivision thereof on the same to the donor or grantor. of multiple taxation; and or essentially the same electronic commerce (d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- that is also subject to another tax imposed shall have reasonable access to materials, re- istration of sales and use taxes on interstate by another State or political subdivision sources, data, and other information from commerce, including a review of the need for thereof (whether or not at the same rate or the Department of Justice, the Department a single or uniform tax registration, single on the same basis), without a credit (for ex- of Commerce, the Department of State, the or uniform tax returns, simplified remit- ample, a resale exemption certificate) for Department of the Treasury, and the Office tance requirements, simplified administra- taxes paid in other jurisdictions. of the United States Trade Representative. tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- The Commission shall also have reasonable ent third party collection system; and clude a sales or use tax imposed by a State access to use the facilities of any such De- (E) the examination of ways to simplify and 1 or more political subdivisions thereof partment or Office for purposes of conduct- Federal and State and local taxes imposed on on the same electronic commerce or a tax on ing meetings. the provision of telecommunications serv- persons engaged in electronic commerce (e) SUNSET.—The Commission shall termi- ices. which also may have been subject to a sales nate 20 months after the date of the enact- SEC. 103. REPORT. or use tax thereon. ment of this Act. Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (1) QUORUM.—Ten members of the Commis- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- sion shall constitute a quorum for conduct- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- ing the business of the Commission. under this title. No finding or recommenda- tion, distribution, or other use of tangible (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless personal property or services as may be de- Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is days in advance and shall be open to the pub- bers of the Commission serving at the time measured by the amount of the sales price or lic. the finding or recommendation is made. other charge for such property or service. S11758 CONGRESSIONAL RECORD — SENATE October 7, 1998

(7) STATE.—The term ‘‘State’’ means any of cific Economic Cooperation forum, the Free SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- the several States, the District of Columbia, Trade Area of the America, the North Amer- RECTOR OF THE OFFICE OF MAN- or any commonwealth, territory, or posses- ican Free Trade Agreement, and other appro- AGEMENT AND BUDGET. sion of the United States. priate venues. In order to fulfill the responsibility to ad- (8) TAX.— (b) NEGOTIATING OBJECTIVES.—The nego- minister the functions assigned under chap- (A) IN GENERAL.—The term ‘‘tax’’ means— tiating objectives of the United States shall ter 35 of title 44, United States Code, the (i) any levy, fee, or charge imposed under be— Clinger-Cohen Act of 1996 (P.L. 104–106), and governmental authority by any govern- (1) to assure that electronic commerce is the provisions of this Act, the Director of mental entity; or free from— the Office of Management and Budget shall (ii) the imposition of or obligation to col- (A) tariff and nontariff barriers; ensure that, within five years of the date of lect and to remit to a governmental entity (B) burdensome and discriminatory regula- enactment of this Act, executive agencies any such levy, fee, or charge imposed by a tion and standards; and provide for the optional use of electronic governmental entity. (C) discriminatory taxation; and maintenance, submission, or disclosure of in- (B) EXCEPTION.—Such term shall not in- (2) to accelerate the growth of electronic formation where practicable, as an alter- clude any franchise fees or similar fees im- commerce by expanding market access op- native information technology to substitute posed by a State or local franchising author- portunities for— for paper, and the use and acceptance of elec- ity, pursuant to section 622 or 653 of the (A) the development of telecommuni- tronic signatures where practicable. Communications Act of 1934 (47 U.S.C. 542, cations infrastructure; SEC. 5. ELECTRONIC STORAGE OF FORMS. 573). (B) the procurement of telecommuni- Within 18 months of enactment of this Act, (9) TELECOMMUNICATIONS SERVICES.—The cations equipment; in order to fulfill the responsibility to ad- term ‘‘telecommunications services’’ has the (C) the provision of Internet access and minister the functions assigned under chap- meaning given such term in section 3(46) of telecommunications services; and ter 35 of title 44, United States Code, the the Communications Act of 1934 (47 U.S.C. (D) the exchange of goods, services, and Clinger-Cohen Act of 1996 (P.L. 104–106), and 153(46)) and includes communications serv- digitalized information. the provisions of this Act, the Director of ices (as defined in section 4251 of the Internal (c) ELECTRONIC COMMERCE.—For purposes the Office of Management and Budget shall Revenue Code of 1986). of this section, the term ‘‘electronic com- develop procedures and guidelines for execu- TITLE II—OTHER PROVISIONS merce’’ has the meaning given that term in tive agency use to permit employer elec- section 104(3). tronic storage and filing of forms containing SEC. 201. DECLARATION THAT INTERNET information pertaining to employees. SHOULD BE FREE OF NEW FEDERAL SEC. 204. NO EXPANSION OF TAX AUTHORITY. TAXES. Nothing in this Act shall be construed to SEC. 6. STUDY. It is the sense of Congress that no new Fed- expand the duty of any person to collect or In order to fulfill the responsibility to ad- eral taxes similar to the taxes described in pay taxes beyond that which existed imme- minister the functions assigned under chap- section 101(a) should be enacted with respect diately before the date of the enactment of ter 35 of title 44, United States Code, the to the Internet and Internet access during this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and the moratorium provided in such section. SEC. 205. PRESERVATION OF AUTHORITY. the provisions of this Act, the Director of SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- the Office of Management and Budget, shall conduct an ongoing study of paperwork re- Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- duction and electronic commerce, the im- U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– pact on individual privacy, and the security (1) in subsection (a)(1)— 104) or the amendments made by such Act. and authenticity of transactions due to the (A) in subparagraph (A)— SECTION 1. SHORT TITLE. use of electronic signatures pursuant to this (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government Act, and shall report the findings to Con- (i); Paperwork Elimination Act.’’ gress. (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- (ii); and MATION TECHNOLOGY. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United ELECTRONIC RECORDS. lowing new clause: States Code, is amended to read as follows: Electronic records submitted or main- ‘‘(iii) United States electronic commerce,’’; ‘‘(vi) the acquisition and use of informa- tained in accordance with agency procedures and tion technology, including the use of alter- and guidelines established pursuant to this (B) in subparagraph (C)— native information technologies (such as the title, or electronic signatures or other forms (i) by striking ‘‘and’’ at the end of clause use of electronic submission, maintenance, of electronic authentication used in accord- (i); or disclosure of information) to substitute ance with such procedures and guidelines, (ii) by inserting ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- shall not be denied legal effect, validity or (ii); tronic signatures.’’. enforceability because they are in electronic form. (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. lowing new clause: (a) Within 18 months after enactment of SEC. 8. DISCLOSURE OF INFORMATION. ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility Except as provided by law, information electronic commerce,’’; and to administer the functions assigned under collected in the provision of electronic signa- (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the ture services for communications with an after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency, as provided by this Act, shall only be (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of used or disclosed by persons who obtain, col- (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall lect, or maintain such information as a busi- (i); develop procedures and guidelines for execu- ness or government practice, for the purpose (B) by inserting ‘‘and’’ at the end of clause tive agency use. of facilitating such communications, or with (ii); and (1) The procedures shall be compatible with the prior affirmative consent of the person (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- about whom the information pertains. ing new clause: natures as may be generally used in com- SEC. 9. APPLICATION WITH OTHER LAWS. ‘‘(iii) the value of electronic commerce merce and industry and by State govern- Nothing in this title shall apply to the De- transacted with,’’; and ments, based upon consultation with appro- partment of the Treasury or the Internal (3) by adding at the end the following new priate private sector and State government Revenue Service, to the extent that— subsection: standard setting bodies. (1) it involves the administration of the in- ‘‘(d) ELECTRONIC COMMERCE.—For purposes (2) Such procedures shall not inappropri- ternal revenue laws; and of this section, the term ‘electronic com- ately favor one industry or technology. (2) it conflicts with any provision of the In- merce’ has the meaning given that term in (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and section 104(3) of the Internet Tax Freedom able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue Act.’’. forts shall be made to keep the information Code of 1986. SEC. 203. DECLARATION THAT THE INTERNET submitted intact. SEC. 10. DEFINITIONS. SHOULD BE FREE OF FOREIGN TAR- (4) Successful submission of an electronic For purposes of this Act: IFFS, TRADE BARRIERS, AND OTHER form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- RESTRICTIONS. (5) In accordance with all other sections of tive agency’’ has the meaning given that (a) IN GENERAL.— It is the sense of Con- the Act, to the extent feasible and appro- term in section 105 of title 5, United States gress that the President should seek bilat- priate, and described in a written finding, an Code. eral, regional, and multilateral agreements agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term to remove barriers to global electronic com- cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of merce through the World Trade Organiza- lar form, shall take all steps necessary to en- signing an electronic message that— tion, the Organization for Economic Co- sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- operation and Development, the Trans-At- natures are made available for submitting lar person as the source of such electronic lantic Economic Partnership, the Asia Pa- such forms. message; and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11759 (B) indicates such person’s approval of the (A) a first and last name; lects personal information from children or information contained in such electronic (B) a home or other physical address in- the operator of a website or online service message. cluding street name and name of a city or that has actual knowledge that it is collect- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; ing personal information from a child— terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; (i) to provide notice on the website of what vey’’ include documents produced by an (D) a telephone number; information is collected from children by the agency to facilitate interaction between an (E) a Social Security number; operator, how the operator uses such infor- agency and non-government persons. (F) any other identifier that the Commis- mation, and the operator’s disclosure prac- TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- tices for such information; and PROTECTION line contracting of a specific individual; or (ii) to obtain verifiable parental consent (G) information concerning the child or the for the collection, use, or disclosure of per- SEC. 201. SHORT TITLE. parents of that child that the website col- sonal information from children; This title may be cited as the ‘‘Children’s lects online from the child and combines (B) require the operator to provide, upon Online Privacy Protection Act of 1999’’. with an identifier described in this para- request of a parent under this subparagraph SEC. 202. DEFINITIONS. graph. whose child has provided personal informa- In this title: (9) VERIFIABLE PARENTAL CONSENT.—The tion to that website or online service, upon (1) CHILD.—the term ‘‘child’’ means an in- term ‘‘verifiable parental consent’’ means proper identification of that parent, to such dividual under the age of 13. any reasonable effort (taking into consider- parent— (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- (i) a description of the specific types of (A) means any person who operates a quest for authorization for future collection personal information collected from the website located on the Internet or an online use, and disclosure described in the notice, child by that operator; service and who collects or maintains per- to ensure that a parent of a child receives (ii) the opportunity at any time to refuse sonal information from or about the users of notice of the operator’s personal information to permit the operator’s further use or main- or visitors to such website or online service, collection, use, and disclosure practices, and tenance in retrievable form, or future online or on whose behalf such information is col- authorizes the collection, use, and disclo- collection, of personal information from that lected or maintained, where such website or sure, as applicable, of personal information child; and online service is operated for commercial and the subsequent use of that information (iii) notwithstanding any other provision purposes, including any person offering prod- before that information is collected from of law, a means that is reasonable under the ucts or services for sale through that website that child. circumstances for the parent to obtain any or online service, involving commerce— (10) WEBSITE OR ONLINE SERVICE DIRECTED personal information collected from that (i) among the several States or with 1 or TO CHILDREN.— child; more foreign nations; (C) prohibit conditioning a child’s partici- (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or in the District of Columbia, or between any line service directed to children’’ means— another activity on the child disclosing more such territory and— (i) A commercial website or online service personal information than is reasonably nec- (I) another such territory; or that is targeted to children; or (II) any State or foreign nation; or (ii) that portion of a commercial website essary to participate in such activity; and (iii) between the District of Columbia and or online service that is targeted to children. (D) require the operator of such a website any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or or online service to establish and maintain (B) does not include any non-profit entity online service, or a portion of a commercial reasonable procedures to protect the con- that would otherwise be exempt from cov- website or online service, shall not be fidentiality, security, and integrity of per- erage under section 5 of the Federal Trade deemed directed to children solely for refer- sonal information collected from children. Commission Act (15 U.S.C. 45). ring or linking to a commercial website or (2) WHEN CONSENT NOT REQUIRED.—The reg- (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using ulations shall provide that verifiable paren- means the Federal Trade Commission. information location tools, including a direc- tal consent under paragraph (1)(A)(ii) is not (4) DISCLOSURE.—The term ‘‘disclosure’’ tory, index, reference, pointer, or hypertext required in the case of— means, with respect to personal informa- link. (A) online contact information collected tion— (11) PERSON.—The term ‘‘person’’ means from a child that is used only to respond di- (A) the release of personal information col- any individual, partnership, corporation, rectly on a one-time basis to a specific re- lected from a child in identifiable form by an trust, estate, cooperative, association, or quest from the child and is not used to re- operator for any purpose, except where such other entity. contact the child and is not maintained in information is provided to a person other (12) ONLINE CONTACT INFORMATION.—The retrievable form by the operator; than the operator who provides support for term ‘‘online contact information’’ means an (B) a request for the name or online con- the internal operations of the website and e-mail address or another substantially simi- tact information of a parent or child that is does not disclose or use that information for lar identifier that permits direct contact used for the sole purpose of obtaining paren- any other purpose; and with a person online. tal consent or providing notice under this (B) making personal information collected SEC. 203. REGULATION OF UNFAIR AND DECEP- section and where such information is not from a child by a website or online service TIVE ACTS AND PRACTICES IN CON- maintained in retrievable form by the opera- directed to children or with actual knowl- NECTION WITH THE COLLECTION tor if parental consent is not obtained after edge that such information was collected AND USE OF PERSONAL INFORMA- a reasonable time; from a child, publicly available in identifi- TION FROM AND ABOUT CHILDREN (C) online contact information collected able form, by any means including by a pub- ON THE INTERNET. from a child that is used only to respond lic posting, through the Internet, or (A) ACTS PROHIBITED.— more than once directly to a specific request through— (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact (i) a home page of a website; ator of a website or online service directed to the child beyond the scope of that request— (ii) a pen pal service; children, or any operator that has actual (i) if, before any additional response after (iii) an electronic mail service; knowledge that it is collecting personal in- the initial response to the child, the operator (iv) a message board; or formation from a child, to collect personal uses reasonable efforts to provide a parent (v) a chat room. information from a child in a manner that notice of the online contact information col- (5) FEDERAL AGENCY.—The term ‘‘Federal violates the regulations prescribed under lected from the child, the purposes for which agency’’ means an agency, as that term is subsection (b). it is to be used, and an opportunity for the defined in section 551(1) of title 5, United (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no States Code. Notwithstanding paragraph (1), neither an further use of the information and that it (6) INTERNET.—The term ‘‘Internet’’ means operator of such a website or online service not be maintained in retrievable form; or collectively the myriad of computer and nor the operator’s agent shall be held to be (ii) without notice to the parent in such telecommunications facilities, including liable under any Federal or State law for any circumstances as the Commission may deter- equipment and operating software, which disclosure made in good faith and following mine are appropriate, taking into consider- comprise the interconnected world-wide net- reasonable procedures in responding to a re- ation the benefits to the child of access to work of networks that employ the Trans- quest for disclosure of personal information information and services, and risks to the se- mission Control Protocol/Internet Protocol, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or any predecessor or successor protocols to of a child. tions promulgated under this subsection; such protocol, to communicate information (b) REGULATIONS.— (D) the name of the child and online con- of all kinds by wire or radio. (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably (7) PARENT.—The term ‘‘parent’’ includes a the date of the enactment of this Act, the necessary to protect the safety of a child legal guardian. Commission shall promulgate under section participant on the site)— (8) PERSONAL INFORMATION.—The term 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting ‘‘personal information’’ means individually that— such safety; identifiable information about an individual (A) require the operator of any website or (ii) not used to recontact the child or for collected online, including— online service directed to children that col- any other purpose; and S11760 CONGRESSIONAL RECORD — SENATE October 7, 1998 (iii) not disclosed on the site, lieve that an interest of the residents of that Commission under the Federal Trade Com- if the operator uses reasonable efforts to pro- State has been or is threatened or adversely mission Act (15 U.S.C. 41 et seq.). vide a parent notice of the name and online affected by the engagement of any person in (b) PROVISIONS.—Compliance with the re- contact information collected from the a practice that violates any regulation of the quirements imposed under this title shall be child, the purposes for which it is to be used, Commission prescribed under section 203(b), enforced under— (1) section 8 of the Federal Deposit Insur- and an opportunity for the parent to request the State, as parens patriae, may bring a ance Act (12 U.S.C. 1818), in the case of— that the operator make no further use of the civil action on behalf of the residents of the State in a district court of the United States (A) national banks, and Federal branches information and that it not be maintained in and Federal agencies of foreign banks, by the retrievable form; or of appropriate jurisdiction to— (A) enjoin that practice; Office of the Comptroller of the Currency; (E) the collection, use, or dissemination of (B) enforce compliance with the regula- (B) member banks of the Federal Reserve such information by the operator of such a tion; System (other than national banks), website or online service necessary— (C) obtain damage, restitution, or other branches and agencies of foreign banks (i) to protect the security or integrity of compensation on behalf of residents of the (other than Federal branches, Federal agen- its website; State; or cies, and insured State branches of foreign (ii) to take precautions against liability; (D) obtain such other relief as the court banks), commercial lending companies (iii) to respond to judicial process; or may consider to be appropriate. owned or controlled by foreign banks, and (iv) to the extent permitted under other (2) NOTICE.— organizations operating under section 25 or provisions of law, to provide information to (A) IN GENERAL.—Before filing an action 25(a) of the Federal Reserve Act (12 U.S.C. law enforcement agencies or for an inves- under paragraph (1), the attorney general of 601 et seq. and 611 et. seq.), by the Board; and tigation on a matter related to public safety. the State involved shall provide to the Com- (C) banks insured by the Federal Deposit (3) TERMINATION OF SERVICE.—The regula- mission— Insurance Corporation (other than members tions shall permit the operator of a website (i) written notice of that action; and of the Federal Reserve System) and insured or an online service to terminate service pro- (ii) a copy of the complaint for that action. State branches of foreign banks, by the vided to a child whose parent has refused, (B) EXEMPTION.— Board of Directors of the Federal Deposit In- under the regulations prescribed under para- (i) IN GENERAL.—Subparagraph (A) shall surance Corporation; not apply with respect to the filing of an ac- graph (1)(B)(ii), to permit the operator’s fur- (2) section 8 of the Federal Deposit Insur- tion by an attorney general of a State under ther use or maintenance in retrievable form, ance Act (12 U.S.C. 1818), by the Director of this subsection, if the attorney general de- or future online collection, of personal infor- the Office of Thrift Supervision, in the case termines that it is not feasible to provide the mation from that child. of a savings association the deposits of which notice described in that subparagraph before (c) ENFORCEMENT.—Subject to sections 204 are insured by the Federal Deposit Insurance the filing of the action. and 206, a violation of a regulation pre- Corporation; (ii) NOTIFICATION.—In an action described (3) the Federal Credit Union Act (12 U.S.C. scribed under subsection (a) shall be treated in clause (i), the attorney general of a State as a violation of a rule defining an unfair or 1751 et seq.) by the National Credit Union shall provide notice and a copy of the com- Administration Board with respect to any deceptive act or practice prescribed under plaint to the Commission at the same time section 18(a)(1)(B) of the Federal Trade Com- Federal credit union; as the attorney general files the action. (4) part A of subtitle VII of title 49, United mission Act (15 U.S.C. 57a(a)(1)(B)). (b) INTERVENTION.— States Code, by the Secretary of Transpor- (d) INCONSISTENT STATE LAW.—No State or (1) IN GENERAL.—On receiving notice under tation with respect to any air carrier or for- local government may impose any liability subsection (a)(2), the Commission shall have eign air carrier subject to that part; for commercial activities or actions by oper- the right to intervene in the action that is (5) the Packers and Stockyards Act, 1921 (7 ators in interstate or foreign commerce in the subject of the notice. U.S.C. 181 et. seq.) (except as provided in sec- connection with an activity or action de- (2) EFFECT OF INTERVENTION.—If the Com- tion 406 of that Act (7 U.S.C. 226, 227)), by the scribed in this title that is inconsistent with mission intervenes in an action under sub- Secretary of Agriculture with respect to any the treatment of those activities or actions section (a), it shall have the right— activities subject to that Act; and under this section. (A) to be heard with respect to any matter (6) the Farm Credit Act of 1971 (12 U.S.C. SEC. 204. SAFE HARBORS. that arises in that action; and (2001 et seq.) by the Farm Credit Administra- (B) to file a petition for appeal. (a) GUIDELINES.—An operator may satisfy tion with respect to any Federal land bank, (3) AMICUS CURIAE.—Upon application to the requirements of regulations issued under Federal land bank association, Federal inter- the court, a person whose self-regulatory section 203(b) by following a set of self-regu- mediate credit bank, or production credit as- guidelines have been approved by the Com- latory guidelines, issued by representatives sociation. mission and are relied upon as a defense by of the marketing or online industries, or by (c) EXERCISE OF CERTAIN POWERS.—For the any defendant to a proceeding under this sec- purpose of the exercise by any agency re- other persons, approved under subsection (b). tion may file amicus curiae in that proceed- NCENTIVES.— ferred to in subsection (a) of its powers under (b) I ing. ELF REGULATORY INCENTIVES any Act referred to in that subsection, a vio- (1) S - .—In pre- (c) CONSTRUCTION.—For purposes of bring- scribing regulations under section 203, the lation of any requirement imposed under ing any civil action under subsection (a), this title shall be deemed to be a violation of Commission shall provide incentives for self- nothing in this title shall be construed to regulation by operators to implement the a requirement imposed under that Act. In prevent an attorney general of a State from addition to its powers under any provision of protections afforded children under the regu- exercising the powers conferred on the attor- latory requirements described in subsection law specifically referred to in subsection (a), ney general by the laws of that State to— each of the agencies referred to in that sub- (b) of that section. (1) conduct investigations; section may exercise, for the purpose of en- (2) DEEMED COMPLIANCE.—Such incentives (2) administer oaths or affirmations; or forcing compliance with any requirement shall include provisions for ensuring that a (3) compel the attendance of witnesses or imposed under this title, any other authority person will be deemed to be in compliance the production of documentary and other conferred on it by law. with the requirements of the regulations evidence. (d) ACTIONS BY THE COMMISSION.—The Com- (d) ACTIONS BY THE COMMISSION.—In any under section 203 if that person complies mission shall prevent any person from vio- case in which an action is instituted by or on with guidelines that, after notice and com- lating a rule of the Commission under sec- behalf of the Commission for violation of ment, are approved by the Commission upon tion 203 in the same manner, by the same any regulation prescribed under section 293, making a determination that the guidelines means, and with the same jurisdiction, pow- no State may, during the pendency of that meet the requirements of the regulations ers, and duties as though all applicable action, institute an action under subsection issued under section 203. terms and provisions of the Federal Trade (a) against any defendant named in the com- (3) EXPEDITED RESPONSE TO REQUESTS.—The Commission Act (15 U.S.C. 41 et seq.) were plaint in that action for violation of that Commission shall act upon requests for safe incorporated into and made a part of this regulation. harbor treatment within 180 days of the fil- title. Any entity that violates such rule ing of the request, and shall set forth in (e) VENUE; SERVICE OF PROCESS.— (1) VENUE.—Any action brought under sub- shall be subject to the penalties and entitled writing its conclusions with regard to such to the privileges and immunities provided in requests. section (a) may be brought in the district court of the United States that meets appli- the Federal Trade Commission Act in the (c) APPEALS.—Final action by the Commis- cable requirements relating to venue under same manner, by the same means, and with sion on a request for approval of guidelines, the same jurisdiction, power, and duties as or the failure to act within 180 days on a re- section 1391 of title 28, United States Code. (2) SERVICE OF PROCESS.—In an action though all applicable terms and provisions of quest for approval of guidelines, submitted brought under subsection (a), process may be the Federal Trade Commission Act were in- under subsection (b) may be appealed to a served in any district in which the defend- corporated into and made a part of this title. district court of the United States of appro- ant— (e) EFFECT ON OTHER LAWS.—Nothing con- priate jurisdiction as provided for in section (A) is an inhabitant; or tained in the Act shall be construed to limit 706 of title 5, United States Code. (B) may be found. the authority of the Commission under any SEC. 205. ACTIONS BY STATES. SEC. 206. ADMINISTRATION AND APPLICABILITY other provisions of law. (a) IN GENERAL.— OF ACT. SEC. 207. REVIEW. (1) CIVIL ACTIONS.—In any case in which the (a) IN GENERAL.—Except as otherwise pro- (a) IN GENERAL.—Not later than 5 years attorney general of a State has reason to be- vided, this title shall be enforced by the after the effective date of the regulations October 7, 1998 CONGRESSIONAL RECORD — SENATE S11761 initially issued under section 203, the Com- (ii) how the imposition of such barriers services, or information accomplished mission shall— will affect United States consumers, the through other means, unless the rate is (1) review the implementation of this title, competitiveness of United States citizens lower as part of a phase-out of the tax over including the effect of the implementation of providing property, goods, services, or infor- not more than a 5-year period; or this title on practices relating to the collec- mation in foreign markets, and the growth (C) imposes an obligation to collect or pay tion and disclosure of information relating and maturing of the Internet; the tax on a different person or entity than to children, children’s ability to obtain ac- (B) an examination of the collection and in the case of transactions involving the cess to information of their choice online, administration of consumption taxes on same or similar property, goods, services, or and on the availability of websites directed interstate commerce in other countries and information accomplished through other to children; and the United States, and the impact of such means. (2) prepare and submit to Congress a report collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term on the results of the review under paragraph an examination of the relationship between ‘‘electronic commerce’’ means any trans- (1). the collection and administration of such action conducted over the Internet or SEC. 208. EFFECTIVE DATE. taxes when the transaction uses the Internet through Internet access, comprising the sale, Sections 203(a), 205, and 206 of this title and when it does not; lease, license, offer, or delivery of property, take effect on the later of— (C) an examination of the impact of the goods, services, or information, whether or (1) the date that is 18 months after the date Internet and Internet access (particularly of enactment of this Act; or not for consideration, and includes the provi- voice transmission) on the revenue base for sion of Internet access. (2) the date on which the Commission rules taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means on the first application for safe harbor treat- ternal Revenue Code of 1986; ment under section 204 if the Commission the combination of computer facilities and (D) an examination of— electromagnetic transmission media, and re- does not rule on the first such application (i) the efforts of State and local govern- lated equipment and software, comprising within one year after the date of enactment ments to collect sales and use taxes owed on the interconnected worldwide network of of this Act, but in no case later than the date purchases from interstate sellers, the advan- computer networks that employ the Trans- that is 30 months after the date of enact- tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, ment of this Act.’’ and local governments to require such sellers or any predecessor or successor protocol, to to collect and remit such taxes, particularly AMENDMENT NO. 3768 transmit information. with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet Strike ‘‘days after the date of the enact- level of contacts sufficient to permit a State access’’ means a service that enables users to ment of this Act. or local government to impose such taxes on access content, information, electronic mail, (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; or other services offered over the Internet, mission shall not affect its powers, but shall (ii) model State legislation relating to tax- be filled in the same manner as the original ation of transactions using the Internet and and may also include access to proprietary appointment. Internet access, including uniform terminol- content, information, and other services as (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, part of a package of services offered to con- The Commission may accept, use, and dis- and other activities that may be subject to sumers. Such term does not include tele- pose of gifts or grants of services or prop- State and local taxation, procedural struc- communications services. erty, both real and personal, for purposes of tures and mechanisms applicable to such (6) MULTIPLE TAX.— aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution (A) IN GENERAL.—The term ‘‘multiple tax’’ mission. Gifts or grants not used at the expi- of disputes between States regarding matters means any tax that is imposed by one State ration of the Commission shall be returned of multiple taxation; and or political subdivision thereof on the same to the donor or grantor. (iii) ways to simplify the interstate admin- or essentially the same electronic commerce (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate that is also subject to another tax imposed shall have reasonable access to materials, re- commerce, including a review of the need for by another State or political subdivision sources, data, and other information from a single or uniform tax registration, single thereof (whether or not at the same rate or the Department of Justice, the Department or uniform tax returns, simplified remit- on the same basis), without a credit (for ex- of Commerce, the Department of State, the tance requirements, simplified administra- ample, a resale exemption certificate) for Department of the Treasury, and the Office tive procedures, or the need for an independ- taxes paid in other jurisdictions. of the United States Trade Representative. ent third party collection system; and (B) EXCEPTION.—Such term shall not in- The Commission shall also have reasonable (E) the examination of ways to simplify clude a sales or use tax imposed by a State access to use the facilities of any such De- Federal and State and local taxes imposed on and 1 or more political subdivisions thereof partment or Office for purposes of conduct- the provision of telecommunications serv- on the same electronic commerce or a tax on ing meetings. ices. persons engaged in electronic commerce (e) SUNSET.—The Commission shall termi- SEC. 103. REPORT. which also may have been subject to a sales nate 18 months after the date of the enact- or use tax thereon. ment of this Act. Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- mission shall constitute a quorum for con- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- ducting the business of the Commission. under this title. No finding or recommenda- tion, distribution, or other use of tangible (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- personal property or services as may be de- days in advance and shall be open to the pub- bers of the Commission serving at the time fined by laws imposing such tax and which is lic. the finding or recommendation is made. measured by the amount of the sales price or other charge for such property or service. (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. mission shall provide opportunities for rep- For the purposes of this title: (7) STATE.—The term ‘‘State’’ means any of resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means the several States, the District of Columbia, groups, consumer groups, and State and any tax on electronic commerce expressly or any commonwealth, territory, or posses- local government officials to testify. imposed on or measured by the volume of sion of the United States. (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- (8) TAX.— may adopt other rules as needed. cally, or the volume of digital information (A) IN GENERAL.—The term ‘‘tax’’ means— (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, (i) any levy, fee, or charge imposed under (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the governmental authority by any govern- conduct a thorough study of Federal, State provision of telecommunications services. mental entity; or and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- (ii) the imposition of or obligation to col- tariff treatment of transactions using the criminatory tax’’ means any tax imposed by lect and to remit to a governmental entity Internet and Internet access and other com- a State or political subdivision thereof on any such levy, fee, or charge imposed by a parable interstate or international sales ac- electronic commerce that— governmental entity. tivities. (A) is not generally imposed and legally (B) EXCEPTION.—Such term shall not in- (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political clude any franchise fees or similar fees im- may include in the study under subsection subdivision on transactions involving the posed by a State or local franchising author- (a)— same or similar property, goods, services, or ity, pursuant to section 622 or 653 of the (A) an examination of— information accomplished through other Communications Act of 1934 (47 U.S.C. 542, (i) barriers imposed in foreign markets on means; 573). United States providers of property, goods, (B) is not generally imposed and legally (9) TELECOMMUNICATIONS SERVICES.—The services, or information engaged in elec- collectible at the same rate by such State or term ‘‘telecommunications services’’ has the tronic commerce and on United States pro- such political subdivision on transactions in- meaning given such term in section 3(46) of viders of telecommunications services; and volving the same or similar property, goods, the Communications Act of 1934 (47 U.S.C. S11762 CONGRESSIONAL RECORD — SENATE October 7, 1998

153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes the provisions of this Act, the Director of ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- the Office of Management and Budget shall Revenue Code of 1986). merce’’ has the meaning given that term in develop procedures and guidelines for execu- TITLE II—OTHER PROVISIONS section 104(3). tive agency use to permit employer elec- SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. tronic storage and filing of forms containing SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to information pertaining to employees. TAXES. expand the duty of any person to collect or SEC. 6. STUDY. It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- In order to fulfill the responsibility to ad- eral taxes similar to the taxes described in diately before the date of the enactment of minister the functions assigned under chap- section 101(a) should be enacted with respect this Act. ter 35 of title 44, United States Code, the to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. Clinger-Cohen Act of 1996 (P.L. 104–106), and the moratorium provided in such section. Nothing in this Act shall limit or other- the provisions of this Act, the Director of SEC. 202. NATIONAL TRADE ESTIMATE. wise affect the implementation of the Tele- the Office of Management and Budget, shall Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– conduct an ongoing study of paperwork re- U.S.C. 2241) is amended— 104) or the amendments made by such Act. duction and electronic commerce, the im- (1) in subsection (a)(1)— pact on individual privacy, and the security SECTION 1. SHORT TITLE. (A) in subparagraph (A)— and authenticity of transactions due to the This Act may be cited as the ‘‘Government (i) by striking ‘‘and’’ at the end of clause use of electronic signatures pursuant to this Paperwork Elimination Act.’’ (i); Act, and shall report the findings to Con- (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- gress. (ii); and MATION TECHNOLOGY. Section 3504(a)(1)(B)(vi) of title 44, United SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (iii) by inserting after clause (ii) the fol- ELECTRONIC RECORDS. States Code, is amended to read as follows: lowing new clause: Electronic records submitted or main- ‘‘(vi) the acquisition and use of informa- ‘‘(iii) United States electronic commerce,’’; tained in accordance with agency procedures tion technology, including the use of alter- and and guidelines established pursuant to this native information technologies (such as the (B) in subparagraph (C)— title, or electronic signatures or other forms use of electronic submission, maintenance, (i) by striking ‘‘and’’ at the end of clause of electronic authentication used in accord- or disclosure of information) to substitute (i); ance with such procedures and guidelines, for paper, and the use and acceptance of elec- (ii) by inserting ‘‘and’’ at the end of clause shall not be denied legal effect, validity or tronic signatures.’’. (ii); enforceability because they are in electronic (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. form. lowing new clause: (a) Within 18 months after enactment of SEC. 8. DISCLOSURE OF INFORMATION. ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility Except as provided by law, information electronic commerce,’’; and to administer the functions assigned under collected in the provision of electronic signa- (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the ture services for communications with an after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency, as provided by this Act, shall only be (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of used or disclosed by persons who obtain, col- (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall lect, or maintain such information as a busi- (i); develop procedures and guidelines for execu- ness or government practice, for the purpose (B) by inserting ‘‘and’’ at the end of clause tive agency use. of facilitating such communications, or with (ii); and (1) The procedures shall be compatible with the prior affirmative consent of the person (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- about whom the information pertains. ing new clause: natures as may be generally used in com- ‘‘(iii) the value of electronic commerce merce and industry and by State govern- SEC. 9. APPLICATION WITH OTHER LAWS. transacted with,’’; and ments, based upon consultation with appro- Nothing in this title shall apply to the De- (3) by adding at the end the following new priate private sector and State government partment of the Treasury or the Internal subsection: standard setting bodies. Revenue Service, to the extent that— (1) it involves the administration of the in- ‘‘(d) ELECTRONIC COMMERCE.—For purposes (2) Such procedures shall not inappropri- ternal revenue laws; and of this section, the term ‘electronic com- ately favor one industry or technology. (2) it conflicts with any provision of the In- merce’ has the meaning given that term in (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and section 104(3) of the Internet Tax Freedom able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue Act.’’. forts shall be made to keep the information Code of 1986. SEC. 203. DECLARATION THAT THE INTERNET submitted intact. SHOULD BE FREE OF FOREIGN TAR- (4) Successful submission of an electronic SEC. 10. DEFINITIONS. IFFS, TRADE BARRIERS, AND OTHER form shall be electronically acknowledged. For purposes of this Act: RESTRICTIONS. (5) In accordance with all other sections of (1) EXECUTIVE AGENCY.—The term ‘‘execu- (a) IN GENERAL.— It is the sense of Con- the Act, to the extent feasible and appro- tive agency’’ has the meaning given that gress that the President should seek bilat- priate, and described in a written finding, an term in section 105 of title 5, United States eral, regional, and multilateral agreements agency, when it expects to receive electroni- Code. to remove barriers to global electronic com- cally 50,000 or more submittals of a particu- (2) ELECTRONIC SIGNATURE.—The term merce through the World Trade Organiza- lar form, shall take all steps necessary to en- ‘‘electronic signature’’ means a method of tion, the Organization for Economic Co- sure that multiple formats of electronic sig- signing an electronic message that— operation and Development, the Trans-At- (A) identifies and authenticates a particu- lantic Economic Partnership, the Asia Pa- natures are made available for submitting such forms. lar person as the source of such electronic cific Economic Cooperation forum, the Free message; and Trade Area of the America, the North Amer- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the RECTOR OF THE OFFICE OF MAN- ican Free Trade Agreement, and other appro- information contained in such electronic priate venues. AGEMENT AND BUDGET. In order to fulfill the responsibility to ad- message. (b) NEGOTIATING OBJECTIVES.—The nego- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The tiating objectives of the United States shall minister the functions assigned under chap- ter 35 of title 44, United States Code, the terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- be— vey’’ include documents produced by an (1) to assure that electronic commerce is Clinger-Cohen Act of 1996 (P.L. 104–106), and the provisions of this Act, the Director of agency to facilitate interaction between an free from— agency and non-government persons. (A) tariff and nontariff barriers; the Office of Management and Budget shall (B) burdensome and discriminatory regula- ensure that, within five years of the date of TITLE II—CHILDREN’S ONLINE PRIVACY tion and standards; and enactment of this Act, executive agencies PROTECTION (C) discriminatory taxation; and provide for the optional use of electronic SEC. 201. SHORT TITLE. (2) to accelerate the growth of electronic maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s commerce by expanding market access op- formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. portunities for— native information technology to substitute SEC. 202. DEFINITIONS. (A) the development of telecommuni- for paper, and the use and acceptance of elec- In this title: cations infrastructure; tronic signatures where practicable. (1) CHILD.—the term ‘‘child’’ means an in- (B) the procurement of telecommuni- SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. cations equipment; Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— (C) the provision of Internet access and in order to fulfill the responsibility to ad- (A) means any person who operates a telecommunications services; and minister the functions assigned under chap- website located on the Internet or an online (D) the exchange of goods, services, and ter 35 of title 44, United States Code, the service and who collects or maintains per- digitalized information. Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of October 7, 1998 CONGRESSIONAL RECORD — SENATE S11763 or visitors to such website or online service, notice of the operator’s personal information tenance in retrievable form, or future online or on whose behalf such information is col- collection, use, and disclosure practices, and collection, of personal information from that lected or maintained, where such website or authorizes the collection, use, and disclo- child; and online service is operated for commercial sure, as applicable, of personal information (iii) notwithstanding any other provision purposes, including any person offering prod- and the subsequent use of that information of law, a means that is reasonable under the ucts or services for sale through that website before that information is collected from circumstances for the parent to obtain any or online service, involving commerce— that child. personal information collected from that (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED child; more foreign nations; TO CHILDREN.— (C) prohibit conditioning a child’s partici- (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or in the District of Columbia, or between any line service directed to children’’ means— another activity on the child disclosing more such territory and— (i) A commercial website or online service personal information than is reasonably nec- (I) another such territory; or that is targeted to children; or essary to participate in such activity; and (II) any State or foreign nation; or (ii) that portion of a commercial website (D) require the operator of such a website (iii) between the District of Columbia and or online service that is targeted to children. or online service to establish and maintain any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- (B) does not include any non-profit entity online service, or a portion of a commercial fidentiality, security, and integrity of per- that would otherwise be exempt from cov- website or online service, shall not be sonal information collected from children. deemed directed to children solely for refer- erage under section 5 of the Federal Trade (2) WHEN CONSENT NOT REQUIRED.—The reg- Commission Act (15 U.S.C. 45). ring or linking to a commercial website or ulations shall provide that verifiable paren- (3) COMMISSION.—The term ‘‘Commission’’ online service directed to children by using tal consent under paragraph (1)(A)(ii) is not means the Federal Trade Commission. information location tools, including a direc- required in the case of— (4) DISCLOSURE.—The term ‘‘disclosure’’ tory, index, reference, pointer, or hypertext (A) online contact information collected means, with respect to personal informa- link. from a child that is used only to respond di- (11) PERSON.—The term ‘‘person’’ means tion— rectly on a one-time basis to a specific re- any individual, partnership, corporation, (A) the release of personal information col- quest from the child and is not used to re- trust, estate, cooperative, association, or lected from a child in identifiable form by an contact the child and is not maintained in other entity. operator for any purpose, except where such retrievable form by the operator; (12) ONLINE CONTACT INFORMATION.—The information is provided to a person other (B) a request for the name or online con- term ‘‘online contact information’’ means an than the operator who provides support for tact information of a parent or child that is e-mail address or another substantially simi- the internal operations of the website and used for the sole purpose of obtaining paren- lar identifier that permits direct contact does not disclose or use that information for tal consent or providing notice under this with a person online. any other purpose; and section and where such information is not (B) making personal information collected SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- TIVE ACTS AND PRACTICES IN CON- from a child by a website or online service tor if parental consent is not obtained after directed to children or with actual knowl- NECTION WITH THE COLLECTION AND USE OF PERSONAL INFORMA- a reasonable time; edge that such information was collected TION FROM AND ABOUT CHILDREN (C) online contact information collected from a child, publicly available in identifi- ON THE INTERNET. from a child that is used only to respond able form, by any means including by a pub- (A) ACTS PROHIBITED.— more than once directly to a specific request lic posting, through the Internet, or (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact through— ator of a website or online service directed to the child beyond the scope of that request— (i) a home page of a website; children, or any operator that has actual (i) if, before any additional response after (ii) a pen pal service; knowledge that it is collecting personal in- the initial response to the child, the operator (iii) an electronic mail service; formation from a child, to collect personal uses reasonable efforts to provide a parent (iv) a message board; or information from a child in a manner that notice of the online contact information col- (v) a chat room. violates the regulations prescribed under lected from the child, the purposes for which (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). it is to be used, and an opportunity for the agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an further use of the information and that it States Code. operator of such a website or online service not be maintained in retrievable form; or (6) INTERNET.—The term ‘‘Internet’’ means nor the operator’s agent shall be held to be (ii) without notice to the parent in such collectively the myriad of computer and liable under any Federal or State law for any circumstances as the Commission may deter- telecommunications facilities, including disclosure made in good faith and following mine are appropriate, taking into consider- equipment and operating software, which reasonable procedures in responding to a re- ation the benefits to the child of access to comprise the interconnected world-wide net- quest for disclosure of personal information information and services, and risks to the se- work of networks that employ the Trans- under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- mission Control Protocol/Internet Protocol, of a child. tions promulgated under this subsection; or any predecessor or successor protocols to (b) REGULATIONS.— (D) the name of the child and online con- such protocol, to communicate information (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably of all kinds by wire or radio. the date of the enactment of this Act, the necessary to protect the safety of a child (7) PARENT.—The term ‘‘parent’’ includes a Commission shall promulgate under section participant on the site)— legal guardian. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting (8) PERSONAL INFORMATION.—The term that— such safety; ‘‘personal information’’ means individually (A) require the operator of any website or (ii) not used to recontact the child or for identifiable information about an individual online service directed to children that col- any other purpose; and collected online, including— lects personal information from children or (iii) not disclosed on the site, (A) a first and last name; the operator of a website or online service (B) a home or other physical address in- that has actual knowledge that it is collect- if the operator uses reasonable efforts to pro- cluding street name and name of a city or ing personal information from a child— vide a parent notice of the name and online town; (i) to provide notice on the website of what contact information collected from the (C) an e-mail address; information is collected from children by the child, the purposes for which it is to be used, (D) a telephone number; operator, how the operator uses such infor- and an opportunity for the parent to request (E) a Social Security number; mation, and the operator’s disclosure prac- that the operator make no further use of the (F) any other identifier that the Commis- tices for such information; and information and that it not be maintained in sion determines permits the physical or on- (ii) to obtain verifiable parental consent retrievable form; or line contracting of a specific individual; or for the collection, use, or disclosure of per- (E) the collection, use, or dissemination of (G) information concerning the child or the sonal information from children; such information by the operator of such a parents of that child that the website col- (B) require the operator to provide, upon website or online service necessary— lects online from the child and combines request of a parent under this subparagraph (i) to protect the security or integrity of with an identifier described in this para- whose child has provided personal informa- its website; graph. tion to that website or online service, upon (ii) to take precautions against liability; (9) VERIFIABLE PARENTAL CONSENT.—The proper identification of that parent, to such (iii) to respond to judicial process; or term ‘‘verifiable parental consent’’ means parent— (iv) to the extent permitted under other any reasonable effort (taking into consider- (i) a description of the specific types of provisions of law, to provide information to ation available technology), including a re- personal information collected from the law enforcement agencies or for an inves- quest for authorization for future collection child by that operator; tigation on a matter related to public safety. use, and disclosure described in the notice, (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- to ensure that a parent of a child receives to permit the operator’s further use or main- tions shall permit the operator of a website S11764 CONGRESSIONAL RECORD — SENATE October 7, 1998 or an online service to terminate service pro- (i) written notice of that action; and (C) banks insured by the Federal Deposit vided to a child whose parent has refused, (ii) a copy of the complaint for that action. Insurance Corporation (other than members under the regulations prescribed under para- (B) EXEMPTION.— of the Federal Reserve System) and insured graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall State branches of foreign banks, by the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- Board of Directors of the Federal Deposit In- or future online collection, of personal infor- tion by an attorney general of a State under surance Corporation; mation from that child. this subsection, if the attorney general de- (2) section 8 of the Federal Deposit Insur- (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the ance Act (12 U.S.C. 1818), by the Director of and 206, a violation of a regulation pre- notice described in that subparagraph before the Office of Thrift Supervision, in the case scribed under subsection (a) shall be treated the filing of the action. of a savings association the deposits of which as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described are insured by the Federal Deposit Insurance deceptive act or practice prescribed under in clause (i), the attorney general of a State Corporation; section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (3) the Federal Credit Union Act (12 U.S.C. mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time 1751 et seq.) by the National Credit Union (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. Administration Board with respect to any local government may impose any liability (b) INTERVENTION.— Federal credit union; for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under (4) part A of subtitle VII of title 49, United ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have States Code, by the Secretary of Transpor- connection with an activity or action de- the right to intervene in the action that is tation with respect to any air carrier or for- scribed in this title that is inconsistent with the subject of the notice. eign air carrier subject to that part; (2) EFFECT OF INTERVENTION.—If the Com- the treatment of those activities or actions (5) the Packers and Stockyards Act, 1921 (7 mission intervenes in an action under sub- under this section. U.S.C. 181 et. seq.) (except as provided in sec- section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the SEC. 204. SAFE HARBORS. (A) to be heard with respect to any matter Secretary of Agriculture with respect to any (a) GUIDELINES.—An operator may satisfy that arises in that action; and activities subject to that Act; and the requirements of regulations issued under (B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- latory guidelines, issued by representatives the court, a person whose self-regulatory tion with respect to any Federal land bank, of the marketing or online industries, or by guidelines have been approved by the Com- Federal land bank association, Federal inter- other persons, approved under subsection (b). mission and are relied upon as a defense by mediate credit bank, or production credit as- (b) INCENTIVES.— any defendant to a proceeding under this sec- sociation. (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the scribing regulations under section 203, the ing. purpose of the exercise by any agency re- Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under regulation by operators to implement the ing any civil action under subsection (a), any Act referred to in that subsection, a vio- protections afforded children under the regu- nothing in this title shall be construed to lation of any requirement imposed under latory requirements described in subsection prevent an attorney general of a State from this title shall be deemed to be a violation of (b) of that section. exercising the powers conferred on the attor- a requirement imposed under that Act. In (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— addition to its powers under any provision of shall include provisions for ensuring that a (1) conduct investigations; law specifically referred to in subsection (a), (2) administer oaths or affirmations; or person will be deemed to be in compliance each of the agencies referred to in that sub- (3) compel the attendance of witnesses or with the requirements of the regulations section may exercise, for the purpose of en- the production of documentary and other under section 203 if that person complies forcing compliance with any requirement evidence. with guidelines that, after notice and com- imposed under this title, any other authority ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any case in which an action is instituted by or on conferred on it by law. making a determination that the guidelines (d) ACTIONS BY THE COMMISSION.—The Com- behalf of the Commission for violation of meet the requirements of the regulations mission shall prevent any person from vio- any regulation prescribed under section 293, issued under section 203. lating a rule of the Commission under sec- no State may, during the pendency of that (3) EXPEDITED RESPONSE TO REQUESTS.—The tion 203 in the same manner, by the same action, institute an action under subsection Commission shall act upon requests for safe means, and with the same jurisdiction, pow- (a) against any defendant named in the com- harbor treatment within 180 days of the fil- ers, and duties as though all applicable plaint in that action for violation of that ing of the request, and shall set forth in terms and provisions of the Federal Trade regulation. writing its conclusions with regard to such Commission Act (15 U.S.C. 41 et seq.) were requests. (e) VENUE; SERVICE OF PROCESS.— (1) VENUE.—Any action brought under sub- incorporated into and made a part of this (c) APPEALS.—Final action by the Commis- section (a) may be brought in the district title. Any entity that violates such rule sion on a request for approval of guidelines, shall be subject to the penalties and entitled or the failure to act within 180 days on a re- court of the United States that meets appli- cable requirements relating to venue under to the privileges and immunities provided in quest for approval of guidelines, submitted the Federal Trade Commission Act in the under subsection (b) may be appealed to a section 1391 of title 28, United States Code. (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with district court of the United States of appro- brought under subsection (a), process may be the same jurisdiction, power, and duties as priate jurisdiction as provided for in section served in any district in which the defend- though all applicable terms and provisions of 706 of title 5, United States Code. ant— the Federal Trade Commission Act were in- SEC. 205. ACTIONS BY STATES. (A) is an inhabitant; or corporated into and made a part of this title. (a) IN GENERAL.— (B) may be found. (e) EFFECT ON OTHER LAWS.—Nothing con- (1) CIVIL ACTIONS.—In any case in which the SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit attorney general of a State has reason to be- OF ACT. the authority of the Commission under any lieve that an interest of the residents of that (a) IN GENERAL.—Except as otherwise pro- other provisions of law. State has been or is threatened or adversely vided, this title shall be enforced by the SEC. 207. REVIEW. affected by the engagement of any person in Commission under the Federal Trade Com- (a) IN GENERAL.—Not later than 5 years a practice that violates any regulation of the mission Act (15 U.S.C. 41 et seq.). after the effective date of the regulations Commission prescribed under section 203(b), (b) PROVISIONS.—Compliance with the re- initially issued under section 203, the Com- the State, as parens patriae, may bring a quirements imposed under this title shall be mission shall— civil action on behalf of the residents of the enforced under— (1) review the implementation of this title, State in a district court of the United States (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of of appropriate jurisdiction to— ance Act (12 U.S.C. 1818), in the case of— this title on practices relating to the collec- (A) enjoin that practice; (A) national banks, and Federal branches tion and disclosure of information relating (B) enforce compliance with the regula- and Federal agencies of foreign banks, by the to children, children’s ability to obtain ac- tion; Office of the Comptroller of the Currency; cess to information of their choice online, (C) obtain damage, restitution, or other (B) member banks of the Federal Reserve and on the availability of websites directed compensation on behalf of residents of the System (other than national banks), to children; and State; or branches and agencies of foreign banks (2) prepare and submit to Congress a report (D) obtain such other relief as the court (other than Federal branches, Federal agen- on the results of the review under paragraph may consider to be appropriate. cies, and insured State branches of foreign (1). (2) NOTICE.— banks), commercial lending companies SEC. 208. EFFECTIVE DATE. (A) IN GENERAL.—Before filing an action owned or controlled by foreign banks, and Sections 203(a), 205, and 206 of this title under paragraph (1), the attorney general of organizations operating under section 25 or take effect on the later of— the State involved shall provide to the Com- 25(a) of the Federal Reserve Act (12 U.S.C. (1) the date that is 18 months after the date mission— 601 et seq. and 611 et. seq.), by the Board; and of enactment of this Act; or October 7, 1998 CONGRESSIONAL RECORD — SENATE S11765 (2) the date on which the Commission rules (D) an examination of— electromagnetic transmission media, and re- on the first application for safe harbor treat- (i) the efforts of State and local govern- lated equipment and software, comprising ment under section 204 if the Commission ments to collect sales and use taxes owed on the interconnected worldwide network of does not rule on the first such application purchases from interstate sellers, the advan- computer networks that employ the Trans- within one year after the date of enactment tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, of this Act, but in no case later than the date and local governments to require such sellers or any predecessor or successor protocol, to that is 30 months after the date of enact- to collect and remit such taxes, particularly transmit information. ment of this Act.’’, and insert in lieu thereof: with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet ‘‘days after the date of the enactment of this level of contacts sufficient to permit a State access’’ means a service that enables users to Act. or local government to impose such taxes on access content, information, electronic mail, (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; or other services offered over the Internet, mission shall not affect its powers, but shall (ii) model State legislation relating to tax- and may also include access to proprietary be filled in the same manner as the original ation of transactions using the Internet and content, information, and other services as appointment. Internet access, including uniform terminol- part of a package of services offered to con- (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, sumers. Such term does not include tele- The Commission may accept, use, and dis- and other activities that may be subject to communications services. pose of gifts or grants of services or prop- State and local taxation, procedural struc- (6) MULTIPLE TAX.— erty, both real and personal, for purposes of tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution means any tax that is imposed by one State mission. Gifts or grants not used at the expi- of disputes between States regarding matters or political subdivision thereof on the same ration of the Commission shall be returned of multiple taxation; and or essentially the same electronic commerce to the donor or grantor. (iii) ways to simplify the interstate admin- that is also subject to another tax imposed (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate by another State or political subdivision shall have reasonable access to materials, re- commerce, including a review of the need for thereof (whether or not at the same rate or sources, data, and other information from a single or uniform tax registration, single on the same basis), without a credit (for ex- the Department of Justice, the Department or uniform tax returns, simplified remit- ample, a resale exemption certificate) for of Commerce, the Department of State, the tance requirements, simplified administra- taxes paid in other jurisdictions. Department of the Treasury, and the Office tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- of the United States Trade Representative. ent third party collection system; and clude a sales or use tax imposed by a State The Commission shall also have reasonable (E) the examination of ways to simplify and 1 or more political subdivisions thereof access to use the facilities of any such De- Federal and State and local taxes imposed on on the same electronic commerce or a tax on partment or Office for purposes of conduct- the provision of telecommunications serv- persons engaged in electronic commerce ing meetings. ices. which also may have been subject to a sales (e) SUNSET.—The Commission shall termi- or use tax thereon. nate 19 months after the date of the enact- SEC. 103. REPORT. (C) SALES OR USE TAX.—For purposes of ment of this Act. Not later than 18 months after the date of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (1) QUORUM.—Ten members of the Commis- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- sion shall constitute a quorum for conduct- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- ing the business of the Commission. under this title. No finding or recommenda- tion, distribution, or other use of tangible (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless personal property or services as may be de- Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is days in advance and shall be open to the pub- bers of the Commission serving at the time measured by the amount of the sales price or lic. the finding or recommendation is made. other charge for such property or service. (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of mission shall provide opportunities for rep- For the purposes of this title: the several States, the District of Columbia, resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- groups, consumer groups, and State and any tax on electronic commerce expressly sion of the United States. local government officials to testify. imposed on or measured by the volume of (8) TAX.— (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— may adopt other rules as needed. cally, or the volume of digital information (i) any levy, fee, or charge imposed under (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, governmental authority by any govern- (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the mental entity; or conduct a thorough study of Federal, State provision of telecommunications services. (ii) the imposition of or obligation to col- and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- lect and to remit to a governmental entity tariff treatment of transactions using the criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a Internet and Internet access and other com- a State or political subdivision thereof on governmental entity. parable interstate or international sales ac- electronic commerce that— (B) EXCEPTION.—Such term shall not in- tivities. (A) is not generally imposed and legally clude any franchise fees or similar fees im- (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political posed by a State or local franchising author- may include in the study under subsection subdivision on transactions involving the ity, pursuant to section 622 or 653 of the (a)— same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, (A) an examination of— information accomplished through other 573). (i) barriers imposed in foreign markets on means; (9) TELECOMMUNICATIONS SERVICES.—The United States providers of property, goods, (B) is not generally imposed and legally term ‘‘telecommunications services’’ has the services, or information engaged in elec- collectible at the same rate by such State or meaning given such term in section 3(46) of tronic commerce and on United States pro- such political subdivision on transactions in- the Communications Act of 1934 (47 U.S.C. viders of telecommunications services; and volving the same or similar property, goods, 153(46)) and includes communications serv- (ii) how the imposition of such barriers services, or information accomplished ices (as defined in section 4251 of the Internal will affect United States consumers, the through other means, unless the rate is Revenue Code of 1986). competitiveness of United States citizens lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS providing property, goods, services, or infor- not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET mation in foreign markets, and the growth (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL and maturing of the Internet; the tax on a different person or entity than TAXES. (B) an examination of the collection and in the case of transactions involving the It is the sense of Congress that no new Fed- administration of consumption taxes on same or similar property, goods, services, or eral taxes similar to the taxes described in interstate commerce in other countries and information accomplished through other section 101(a) should be enacted with respect the United States, and the impact of such means. to the Internet and Internet access during collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. an examination of the relationship between ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. the collection and administration of such action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 taxes when the transaction uses the Internet through Internet access, comprising the sale, U.S.C. 2241) is amended— and when it does not; lease, license, offer, or delivery of property, (1) in subsection (a)(1)— (C) an examination of the impact of the goods, services, or information, whether or (A) in subparagraph (A)— Internet and Internet access (particularly not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause voice transmission) on the revenue base for sion of Internet access. (i); taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause ternal Revenue Code of 1986; the combination of computer facilities and (ii); and S11766 CONGRESSIONAL RECORD — SENATE October 7, 1998 (iii) by inserting after clause (ii) the fol- ‘‘(vi) the acquisition and use of informa- and guidelines established pursuant to this lowing new clause: tion technology, including the use of alter- title, or electronic signatures or other forms ‘‘(iii) United States electronic commerce,’’; native information technologies (such as the of electronic authentication used in accord- and use of electronic submission, maintenance, ance with such procedures and guidelines, (B) in subparagraph (C)— or disclosure of information) to substitute shall not be denied legal effect, validity or (i) by striking ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- enforceability because they are in electronic (i); tronic signatures.’’. form. (ii) by inserting ‘‘and’’ at the end of clause SEC. 3. PROCEDURES. SEC. 8. DISCLOSURE OF INFORMATION. (ii); (a) Within 18 months after enactment of Except as provided by law, information (iii) by inserting after clause (ii) the fol- this Act, in order to fulfill the responsibility collected in the provision of electronic signa- lowing new clause: to administer the functions assigned under ture services for communications with an ‘‘(iii) the value of additional United States chapter 35 of title 44, United States Code, the agency, as provided by this Act, shall only be electronic commerce,’’; and Clinger-Cohen Act of 1996 (P.L. 104–106), and used or disclosed by persons who obtain, col- (iv) by inserting ‘‘or transacted with,’’ the provisions of this Act, the Director of lect, or maintain such information as a busi- after ‘‘or invested in’’; the Office of Management and Budget shall ness or government practice, for the purpose (2) in subsection (a)(2)(E)— develop procedures and guidelines for execu- of facilitating such communications, or with (A) by striking ‘‘and’’ at the end of clause tive agency use. the prior affirmative consent of the person (i); (1) The procedures shall be compatible with about whom the information pertains. (B) by inserting ‘‘and’’ at the end of clause standards and technology for electronic sig- SEC. 9. APPLICATION WITH OTHER LAWS. (ii); and natures as may be generally used in com- Nothing in this title shall apply to the De- (C) by inserting after clause (ii) the follow- merce and industry and by State govern- partment of the Treasury or the Internal ing new clause: ments, based upon consultation with appro- ‘‘(iii) the value of electronic commerce Revenue Service, to the extent that— priate private sector and State government (1) it involves the administration of the in- transacted with,’’; and standard setting bodies. ternal revenue laws; and (3) by adding at the end the following new (2) Such procedures shall not inappropri- (2) it conflicts with any provision of the In- subsection: ately favor one industry or technology. ternal Revenue Service Restructuring and ‘‘(d) ELECTRONIC COMMERCE.—For purposes (3) An electronic signature shall be as reli- of this section, the term ‘electronic com- able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue merce’ has the meaning given that term in forts shall be made to keep the information Code of 1986. section 104(3) of the Internet Tax Freedom submitted intact. SEC. 10. DEFINITIONS. Act.’’. (4) Successful submission of an electronic For purposes of this Act: SEC. 203. DECLARATION THAT THE INTERNET form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- SHOULD BE FREE OF FOREIGN TAR- (5) In accordance with all other sections of tive agency’’ has the meaning given that IFFS, TRADE BARRIERS, AND OTHER the Act, to the extent feasible and appro- term in section 105 of title 5, United States RESTRICTIONS. priate, and described in a written finding, an Code. (a) IN GENERAL.— It is the sense of Con- agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term gress that the President should seek bilat- cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of eral, regional, and multilateral agreements lar form, shall take all steps necessary to en- signing an electronic message that— to remove barriers to global electronic com- sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- merce through the World Trade Organiza- natures are made available for submitting lar person as the source of such electronic tion, the Organization for Economic Co- such forms. message; and operation and Development, the Trans-At- (B) indicates such person’s approval of the lantic Economic Partnership, the Asia Pa- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- RECTOR OF THE OFFICE OF MAN- information contained in such electronic cific Economic Cooperation forum, the Free AGEMENT AND BUDGET. message. Trade Area of the America, the North Amer- In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The ican Free Trade Agreement, and other appro- minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- priate venues. ter 35 of title 44, United States Code, the vey’’ include documents produced by an (b) NEGOTIATING OBJECTIVES.—The nego- Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an tiating objectives of the United States shall the provisions of this Act, the Director of agency and non-government persons. be— the Office of Management and Budget shall (1) to assure that electronic commerce is TITLE II—CHILDREN’S ONLINE PRIVACY ensure that, within five years of the date of free from— PROTECTION (A) tariff and nontariff barriers; enactment of this Act, executive agencies SEC. 201. SHORT TITLE. (B) burdensome and discriminatory regula- provide for the optional use of electronic This title may be cited as the ‘‘Children’s tion and standards; and maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. formation where practicable, as an alter- (C) discriminatory taxation; and SEC. 202. DEFINITIONS. native information technology to substitute (2) to accelerate the growth of electronic In this title: for paper, and the use and acceptance of elec- commerce by expanding market access op- (1) CHILD.—the term ‘‘child’’ means an in- tronic signatures where practicable. portunities for— dividual under the age of 13. (A) the development of telecommuni- SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— cations infrastructure; Within 18 months of enactment of this Act, (A) means any person who operates a (B) the procurement of telecommuni- in order to fulfill the responsibility to ad- website located on the Internet or an online cations equipment; minister the functions assigned under chap- service and who collects or maintains per- (C) the provision of Internet access and ter 35 of title 44, United States Code, the sonal information from or about the users of telecommunications services; and Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, (D) the exchange of goods, services, and the provisions of this Act, the Director of or on whose behalf such information is col- digitalized information. the Office of Management and Budget shall lected or maintained, where such website or (c) ELECTRONIC COMMERCE.—For purposes develop procedures and guidelines for execu- online service is operated for commercial of this section, the term ‘‘electronic com- tive agency use to permit employer elec- purposes, including any person offering prod- merce’’ has the meaning given that term in tronic storage and filing of forms containing ucts or services for sale through that website section 104(3). information pertaining to employees. or online service, involving commerce— SEC. 204. NO EXPANSION OF TAX AUTHORITY. SEC. 6. STUDY. (i) among the several States or with 1 or Nothing in this Act shall be construed to In order to fulfill the responsibility to ad- more foreign nations; expand the duty of any person to collect or minister the functions assigned under chap- (ii) in any territory of the United States or pay taxes beyond that which existed imme- ter 35 of title 44, United States Code, the in the District of Columbia, or between any diately before the date of the enactment of Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— this Act. the provisions of this Act, the Director of (I) another such territory; or SEC. 205. PRESERVATION OF AUTHORITY. the Office of Management and Budget, shall (II) any State or foreign nation; or Nothing in this Act shall limit or other- conduct an ongoing study of paperwork re- (iii) between the District of Columbia and wise affect the implementation of the Tele- duction and electronic commerce, the im- any State, territory, or foreign nation; but communications Act of 1996 (Public Law 104– pact on individual privacy, and the security (B) does not include any non-profit entity 104) or the amendments made by such Act. and authenticity of transactions due to the that would otherwise be exempt from cov- SECTION 1. SHORT TITLE. use of electronic signatures pursuant to this erage under section 5 of the Federal Trade This Act may be cited as the ‘‘Government Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). Paperwork Elimination Act.’’ gress. (3) COMMISSION.—The term ‘‘Commission’’ SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. MATION TECHNOLOGY. ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ Section 3504(a)(1)(B)(vi) of title 44, United Electronic records submitted or main- means, with respect to personal informa- States Code, is amended to read as follows: tained in accordance with agency procedures tion— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11767 (A) the release of personal information col- trust, estate, cooperative, association, or quest from the child and is not used to re- lected from a child in identifiable form by an other entity. contact the child and is not maintained in operator for any purpose, except where such (12) ONLINE CONTACT INFORMATION.—The retrievable form by the operator; information is provided to a person other term ‘‘online contact information’’ means an (B) a request for the name or online con- than the operator who provides support for e-mail address or another substantially simi- tact information of a parent or child that is the internal operations of the website and lar identifier that permits direct contact used for the sole purpose of obtaining paren- does not disclose or use that information for with a person online. tal consent or providing notice under this any other purpose; and SEC. 203. REGULATION OF UNFAIR AND DECEP- section and where such information is not (B) making personal information collected TIVE ACTS AND PRACTICES IN CON- maintained in retrievable form by the opera- from a child by a website or online service NECTION WITH THE COLLECTION tor if parental consent is not obtained after directed to children or with actual knowl- AND USE OF PERSONAL INFORMA- a reasonable time; edge that such information was collected TION FROM AND ABOUT CHILDREN (C) online contact information collected from a child, publicly available in identifi- ON THE INTERNET. from a child that is used only to respond able form, by any means including by a pub- (A) ACTS PROHIBITED.— more than once directly to a specific request (1) IN GENERAL.—It is unlawful for an oper- lic posting, through the Internet, or from the child and is not used to recontact ator of a website or online service directed to through— the child beyond the scope of that request— (i) a home page of a website; children, or any operator that has actual (i) if, before any additional response after (ii) a pen pal service; knowledge that it is collecting personal in- the initial response to the child, the operator (iii) an electronic mail service; formation from a child, to collect personal uses reasonable efforts to provide a parent (iv) a message board; or information from a child in a manner that notice of the online contact information col- (v) a chat room. violates the regulations prescribed under lected from the child, the purposes for which (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). it is to be used, and an opportunity for the agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an further use of the information and that it States Code. operator of such a website or online service not be maintained in retrievable form; or (6) INTERNET.—The term ‘‘Internet’’ means nor the operator’s agent shall be held to be (ii) without notice to the parent in such collectively the myriad of computer and liable under any Federal or State law for any circumstances as the Commission may deter- telecommunications facilities, including disclosure made in good faith and following mine are appropriate, taking into consider- equipment and operating software, which reasonable procedures in responding to a re- ation the benefits to the child of access to comprise the interconnected world-wide net- quest for disclosure of personal information information and services, and risks to the se- work of networks that employ the Trans- under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- mission Control Protocol/Internet Protocol, of a child. tions promulgated under this subsection; or any predecessor or successor protocols to (b) REGULATIONS.— (D) the name of the child and online con- such protocol, to communicate information (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably of all kinds by wire or radio. the date of the enactment of this Act, the necessary to protect the safety of a child (7) PARENT.—The term ‘‘parent’’ includes a Commission shall promulgate under section participant on the site)— legal guardian. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting (8) PERSONAL INFORMATION.—The term that— such safety; ‘‘personal information’’ means individually (A) require the operator of any website or (ii) not used to recontact the child or for identifiable information about an individual online service directed to children that col- any other purpose; and collected online, including— lects personal information from children or (iii) not disclosed on the site, (A) a first and last name; the operator of a website or online service (B) a home or other physical address in- that has actual knowledge that it is collect- if the operator uses reasonable efforts to pro- cluding street name and name of a city or ing personal information from a child— vide a parent notice of the name and online town; (i) to provide notice on the website of what contact information collected from the (C) an e-mail address; information is collected from children by the child, the purposes for which it is to be used, (D) a telephone number; operator, how the operator uses such infor- and an opportunity for the parent to request (E) a Social Security number; mation, and the operator’s disclosure prac- that the operator make no further use of the (F) any other identifier that the Commis- information and that it not be maintained in sion determines permits the physical or on- tices for such information; and (ii) to obtain verifiable parental consent retrievable form; or line contracting of a specific individual; or (E) the collection, use, or dissemination of (G) information concerning the child or the for the collection, use, or disclosure of per- sonal information from children; such information by the operator of such a parents of that child that the website col- website or online service necessary— lects online from the child and combines (B) require the operator to provide, upon request of a parent under this subparagraph (i) to protect the security or integrity of with an identifier described in this para- its website; graph. whose child has provided personal informa- tion to that website or online service, upon (ii) to take precautions against liability; (9) VERIFIABLE PARENTAL CONSENT.—The (iii) to respond to judicial process; or term ‘‘verifiable parental consent’’ means proper identification of that parent, to such parent— (iv) to the extent permitted under other any reasonable effort (taking into consider- provisions of law, to provide information to ation available technology), including a re- (i) a description of the specific types of personal information collected from the law enforcement agencies or for an inves- quest for authorization for future collection tigation on a matter related to public safety. use, and disclosure described in the notice, child by that operator; (3) TERMINATION OF SERVICE.—The regula- to ensure that a parent of a child receives (ii) the opportunity at any time to refuse to permit the operator’s further use or main- tions shall permit the operator of a website notice of the operator’s personal information or an online service to terminate service pro- collection, use, and disclosure practices, and tenance in retrievable form, or future online collection, of personal information from that vided to a child whose parent has refused, authorizes the collection, use, and disclo- under the regulations prescribed under para- sure, as applicable, of personal information child; and (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- and the subsequent use of that information ther use or maintenance in retrievable form, before that information is collected from of law, a means that is reasonable under the circumstances for the parent to obtain any or future online collection, of personal infor- that child. mation from that child. (10) WEBSITE OR ONLINE SERVICE DIRECTED personal information collected from that (c) ENFORCEMENT.—Subject to sections 204 TO CHILDREN.— child; and 206, a violation of a regulation pre- (A) IN GENERAL.—The term ‘‘website or on- (C) prohibit conditioning a child’s partici- scribed under subsection (a) shall be treated line service directed to children’’ means— pation in a game, the offering of a prize, or (i) A commercial website or online service another activity on the child disclosing more as a violation of a rule defining an unfair or that is targeted to children; or personal information than is reasonably nec- deceptive act or practice prescribed under (ii) that portion of a commercial website essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- or online service that is targeted to children. (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). (B) LIMITATION.—A commercial website or or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or online service, or a portion of a commercial reasonable procedures to protect the con- local government may impose any liability website or online service, shall not be fidentiality, security, and integrity of per- for commercial activities or actions by oper- deemed directed to children solely for refer- sonal information collected from children. ators in interstate or foreign commerce in ring or linking to a commercial website or (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- online service directed to children by using ulations shall provide that verifiable paren- scribed in this title that is inconsistent with information location tools, including a direc- tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions tory, index, reference, pointer, or hypertext required in the case of— under this section. link. (A) online contact information collected SEC. 204. SAFE HARBORS. (11) PERSON.—The term ‘‘person’’ means from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy any individual, partnership, corporation, rectly on a one-time basis to a specific re- the requirements of regulations issued under S11768 CONGRESSIONAL RECORD — SENATE October 7, 1998 section 203(b) by following a set of self-regu- (B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. latory guidelines, issued by representatives (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- of the marketing or online industries, or by the court, a person whose self-regulatory tion with respect to any Federal land bank, other persons, approved under subsection (b). guidelines have been approved by the Com- Federal land bank association, Federal inter- (b) INCENTIVES.— mission and are relied upon as a defense by mediate credit bank, or production credit as- (1) SELF-REGULATORY INCENTIVES.—In pre- any defendant to a proceeding under this sec- sociation. scribing regulations under section 203, the tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the Commission shall provide incentives for self- ing. purpose of the exercise by any agency re- regulation by operators to implement the (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under protections afforded children under the regu- ing any civil action under subsection (a), any Act referred to in that subsection, a vio- latory requirements described in subsection nothing in this title shall be construed to lation of any requirement imposed under (b) of that section. prevent an attorney general of a State from this title shall be deemed to be a violation of (2) DEEMED COMPLIANCE.—Such incentives exercising the powers conferred on the attor- a requirement imposed under that Act. In shall include provisions for ensuring that a ney general by the laws of that State to— addition to its powers under any provision of person will be deemed to be in compliance (1) conduct investigations; law specifically referred to in subsection (a), with the requirements of the regulations (2) administer oaths or affirmations; or each of the agencies referred to in that sub- under section 203 if that person complies (3) compel the attendance of witnesses or section may exercise, for the purpose of en- with guidelines that, after notice and com- the production of documentary and other forcing compliance with any requirement ment, are approved by the Commission upon evidence. imposed under this title, any other authority (d) ACTIONS BY THE COMMISSION.—In any making a determination that the guidelines conferred on it by law. case in which an action is instituted by or on meet the requirements of the regulations (d) ACTIONS BY THE COMMISSION.—The Com- behalf of the Commission for violation of issued under section 203. mission shall prevent any person from vio- any regulation prescribed under section 293, (3) EXPEDITED RESPONSE TO REQUESTS.—The lating a rule of the Commission under sec- no State may, during the pendency of that Commission shall act upon requests for safe tion 203 in the same manner, by the same action, institute an action under subsection harbor treatment within 180 days of the fil- means, and with the same jurisdiction, pow- (a) against any defendant named in the com- ing of the request, and shall set forth in ers, and duties as though all applicable plaint in that action for violation of that writing its conclusions with regard to such terms and provisions of the Federal Trade regulation. requests. Commission Act (15 U.S.C. 41 et seq.) were (e) VENUE; SERVICE OF PROCESS.— incorporated into and made a part of this (c) APPEALS.—Final action by the Commis- (1) VENUE.—Any action brought under sub- sion on a request for approval of guidelines, section (a) may be brought in the district title. Any entity that violates such rule or the failure to act within 180 days on a re- court of the United States that meets appli- shall be subject to the penalties and entitled quest for approval of guidelines, submitted cable requirements relating to venue under to the privileges and immunities provided in under subsection (b) may be appealed to a section 1391 of title 28, United States Code. the Federal Trade Commission Act in the district court of the United States of appro- (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with priate jurisdiction as provided for in section brought under subsection (a), process may be the same jurisdiction, power, and duties as 706 of title 5, United States Code. served in any district in which the defend- though all applicable terms and provisions of SEC. 205. ACTIONS BY STATES. ant— the Federal Trade Commission Act were in- (a) IN GENERAL.— (A) is an inhabitant; or corporated into and made a part of this title. FFECT ON THER AWS (1) CIVIL ACTIONS.—In any case in which the (B) may be found. (e) E O L .—Nothing con- attorney general of a State has reason to be- SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit lieve that an interest of the residents of that OF ACT. the authority of the Commission under any State has been or is threatened or adversely (a) IN GENERAL.—Except as otherwise pro- other provisions of law. affected by the engagement of any person in vided, this title shall be enforced by the SEC. 207. REVIEW. a practice that violates any regulation of the Commission under the Federal Trade Com- (a) IN GENERAL.—Not later than 5 years Commission prescribed under section 203(b), mission Act (15 U.S.C. 41 et seq.). after the effective date of the regulations the State, as parens patriae, may bring a (b) PROVISIONS.—Compliance with the re- initially issued under section 203, the Com- civil action on behalf of the residents of the quirements imposed under this title shall be mission shall— State in a district court of the United States enforced under— (1) review the implementation of this title, (1) section 8 of the Federal Deposit Insur- of appropriate jurisdiction to— including the effect of the implementation of ance Act (12 U.S.C. 1818), in the case of— (A) enjoin that practice; this title on practices relating to the collec- (A) national banks, and Federal branches (B) enforce compliance with the regula- tion and disclosure of information relating and Federal agencies of foreign banks, by the tion; to children, children’s ability to obtain ac- Office of the Comptroller of the Currency; (C) obtain damage, restitution, or other cess to information of their choice online, (B) member banks of the Federal Reserve and on the availability of websites directed compensation on behalf of residents of the System (other than national banks), State; or to children; and branches and agencies of foreign banks (2) prepare and submit to Congress a report (D) obtain such other relief as the court (other than Federal branches, Federal agen- may consider to be appropriate. on the results of the review under paragraph cies, and insured State branches of foreign (1). (2) NOTICE.— banks), commercial lending companies SEC. 208. EFFECTIVE DATE. (A) IN GENERAL.—Before filing an action owned or controlled by foreign banks, and Sections 203(a), 205, and 206 of this title under paragraph (1), the attorney general of organizations operating under section 25 or take effect on the later of— the State involved shall provide to the Com- 25(a) of the Federal Reserve Act (12 U.S.C. (1) the date that is 18 months after the date mission— 601 et seq. and 611 et. seq.), by the Board; and (i) written notice of that action; and (C) banks insured by the Federal Deposit of enactment of this Act; or (2) the date on which the Commission rules (ii) a copy of the complaint for that action. Insurance Corporation (other than members on the first application for safe harbor treat- (B) EXEMPTION.— of the Federal Reserve System) and insured ment under section 204 if the Commission (i) IN GENERAL.—Subparagraph (A) shall State branches of foreign banks, by the does not rule on the first such application not apply with respect to the filing of an ac- Board of Directors of the Federal Deposit In- within one year after the date of enactment tion by an attorney general of a State under surance Corporation; this subsection, if the attorney general de- (2) section 8 of the Federal Deposit Insur- of this Act, but in no case later than the date termines that it is not feasible to provide the ance Act (12 U.S.C. 1818), by the Director of that is 30 months after the date of enact- notice described in that subparagraph before the Office of Thrift Supervision, in the case ment of this Act.’’ the filing of the action. of a savings association the deposits of which (ii) NOTIFICATION.—In an action described are insured by the Federal Deposit Insurance AMENDMENT NO. 3769 in clause (i), the attorney general of a State Corporation; Strike ‘‘days after the date of the enact- shall provide notice and a copy of the com- (3) the Federal Credit Union Act (12 U.S.C. ment of this Act. plaint to the Commission at the same time 1751 et seq.) by the National Credit Union (3) VACANCIES.—Any vacancy in the Com- as the attorney general files the action. Administration Board with respect to any mission shall not affect its powers, but shall (b) INTERVENTION.— Federal credit union; be filled in the same manner as the original (1) IN GENERAL.—On receiving notice under (4) part A of subtitle VII of title 49, United appointment. subsection (a)(2), the Commission shall have States Code, by the Secretary of Transpor- (c) ACCEPTANCE OF GIFTS AND GRANTS.— the right to intervene in the action that is tation with respect to any air carrier or for- The Commission may accept, use, and dis- the subject of the notice. eign air carrier subject to that part; pose of gifts or grants of services or prop- (2) EFFECT OF INTERVENTION.—If the Com- (5) the Packers and Stockyards Act, 1921 (7 erty, both real and personal, for purposes of mission intervenes in an action under sub- U.S.C. 181 et. seq.) (except as provided in sec- aiding or facilitating the work of the Com- section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the mission. Gifts or grants not used at the expi- (A) to be heard with respect to any matter Secretary of Agriculture with respect to any ration of the Commission shall be returned that arises in that action; and activities subject to that Act; and to the donor or grantor. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11769

(d) OTHER RESOURCES.—The Commission (iii) ways to simplify the interstate admin- that is also subject to another tax imposed shall have reasonable access to materials, re- istration of sales and use taxes on interstate by another State or political subdivision sources, data, and other information from commerce, including a review of the need for thereof (whether or not at the same rate or the Department of Justice, the Department a single or uniform tax registration, single on the same basis), without a credit (for ex- of Commerce, the Department of State, the or uniform tax returns, simplified remit- ample, a resale exemption certificate) for Department of the Treasury, and the Office tance requirements, simplified administra- taxes paid in other jurisdictions. of the United States Trade Representative. tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- The Commission shall also have reasonable ent third party collection system; and clude a sales or use tax imposed by a State access to use the facilities of any such De- (E) the examination of ways to simplify and 1 or more political subdivisions thereof partment or Office for purposes of conduct- Federal and State and local taxes imposed on on the same electronic commerce or a tax on ing meetings. the provision of telecommunications serv- persons engaged in electronic commerce (e) SUNSET.—The Commission shall termi- ices. which also may have been subject to a sales nate 18 months after the date of the enact- SEC. 103. REPORT. or use tax thereon. ment of this Act. Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- mission shall constitute a quorum for con- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- ducting the business of the Commission. under this title. No finding or recommenda- tion, distribution, or other use of tangible personal property or services as may be de- (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is days in advance and shall be open to the pub- bers of the Commission serving at the time measured by the amount of the sales price or lic. the finding or recommendation is made. other charge for such property or service. (7) STATE.—The term ‘‘State’’ means any of (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. the several States, the District of Columbia, mission shall provide opportunities for rep- For the purposes of this title: or any commonwealth, territory, or posses- resentatives of the general public, taxpayer IT TAX.—The term ‘‘bit tax’’ means (1) B sion of the United States. groups, consumer groups, and State and any tax on electronic commerce expressly (8) TAX.— local government officials to testify. imposed on or measured by the volume of (A) IN GENERAL.—The term ‘‘tax’’ means— (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- (i) any levy, fee, or charge imposed under may adopt other rules as needed. cally, or the volume of digital information governmental authority by any govern- (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, mental entity; or (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the (ii) the imposition of or obligation to col- conduct a thorough study of Federal, State provision of telecommunications services. lect and to remit to a governmental entity and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- any such levy, fee, or charge imposed by a tariff treatment of transactions using the criminatory tax’’ means any tax imposed by governmental entity. Internet and Internet access and other com- a State or political subdivision thereof on (B) EXCEPTION.—Such term shall not in- parable interstate or international sales ac- electronic commerce that— clude any franchise fees or similar fees im- tivities. (A) is not generally imposed and legally posed by a State or local franchising author- (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political ity, pursuant to section 622 or 653 of the may include in the study under subsection subdivision on transactions involving the Communications Act of 1934 (47 U.S.C. 542, (a)— same or similar property, goods, services, or 573). (A) an examination of— information accomplished through other (9) TELECOMMUNICATIONS SERVICES.—The (i) barriers imposed in foreign markets on means; term ‘‘telecommunications services’’ has the United States providers of property, goods, (B) is not generally imposed and legally meaning given such term in section 3(46) of services, or information engaged in elec- collectible at the same rate by such State or the Communications Act of 1934 (47 U.S.C. tronic commerce and on United States pro- such political subdivision on transactions in- 153(46)) and includes communications serv- viders of telecommunications services; and volving the same or similar property, goods, ices (as defined in section 4251 of the Internal (ii) how the imposition of such barriers services, or information accomplished Revenue Code of 1986). will affect United States consumers, the through other means, unless the rate is TITLE II—OTHER PROVISIONS competitiveness of United States citizens lower as part of a phase-out of the tax over SEC. 201. DECLARATION THAT INTERNET providing property, goods, services, or infor- not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL mation in foreign markets, and the growth (C) imposes an obligation to collect or pay TAXES. and maturing of the Internet; the tax on a different person or entity than It is the sense of Congress that no new Fed- (B) an examination of the collection and in the case of transactions involving the eral taxes similar to the taxes described in administration of consumption taxes on same or similar property, goods, services, or section 101(a) should be enacted with respect interstate commerce in other countries and information accomplished through other to the Internet and Internet access during the United States, and the impact of such means. the moratorium provided in such section. collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. an examination of the relationship between ‘‘electronic commerce’’ means any trans- Section 181 of the Trade Act of 1974 (19 the collection and administration of such action conducted over the Internet or U.S.C. 2241) is amended— taxes when the transaction uses the Internet through Internet access, comprising the sale, (1) in subsection (a)(1)— and when it does not; lease, license, offer, or delivery of property, (A) in subparagraph (A)— (C) an examination of the impact of the goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause Internet and Internet access (particularly not for consideration, and includes the provi- (i); voice transmission) on the revenue base for sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (ii); and ternal Revenue Code of 1986; the combination of computer facilities and (iii) by inserting after clause (ii) the fol- (D) an examination of— electromagnetic transmission media, and re- lowing new clause: (i) the efforts of State and local govern- lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; ments to collect sales and use taxes owed on the interconnected worldwide network of and purchases from interstate sellers, the advan- computer networks that employ the Trans- (B) in subparagraph (C)— tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause and local governments to require such sellers or any predecessor or successor protocol, to (i); to collect and remit such taxes, particularly transmit information. (ii) by inserting ‘‘and’’ at the end of clause with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (ii); level of contacts sufficient to permit a State access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- or local government to impose such taxes on access content, information, electronic mail, lowing new clause: such interstate commerce; or other services offered over the Internet, ‘‘(iii) the value of additional United States (ii) model State legislation relating to tax- and may also include access to proprietary electronic commerce,’’; and ation of transactions using the Internet and content, information, and other services as (iv) by inserting ‘‘or transacted with,’’ Internet access, including uniform terminol- part of a package of services offered to con- after ‘‘or invested in’’; ogy, definitions of the transactions, services, sumers. Such term does not include tele- (2) in subsection (a)(2)(E)— and other activities that may be subject to communications services. (A) by striking ‘‘and’’ at the end of clause State and local taxation, procedural struc- (6) MULTIPLE TAX.— (i); tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (B) by inserting ‘‘and’’ at the end of clause taxation, and a mechanism for the resolution means any tax that is imposed by one State (ii); and of disputes between States regarding matters or political subdivision thereof on the same (C) by inserting after clause (ii) the follow- of multiple taxation; and or essentially the same electronic commerce ing new clause: S11770 CONGRESSIONAL RECORD — SENATE October 7, 1998 ‘‘(iii) the value of electronic commerce natures as may be generally used in com- SEC. 9. APPLICATION WITH OTHER LAWS. transacted with,’’; and merce and industry and by State govern- Nothing in this title shall apply to the De- (3) by adding at the end the following new ments, based upon consultation with appro- partment of the Treasury or the Internal subsection: priate private sector and State government Revenue Service, to the extent that— ‘‘(d) ELECTRONIC COMMERCE.—For purposes standard setting bodies. (1) it involves the administration of the in- of this section, the term ‘electronic com- (2) Such procedures shall not inappropri- ternal revenue laws; and merce’ has the meaning given that term in ately favor one industry or technology. (2) it conflicts with any provision of the In- section 104(3) of the Internet Tax Freedom (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and Act.’’. able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue SEC. 203. DECLARATION THAT THE INTERNET forts shall be made to keep the information Code of 1986. SHOULD BE FREE OF FOREIGN TAR- submitted intact. SEC. 10. DEFINITIONS. IFFS, TRADE BARRIERS, AND OTHER (4) Successful submission of an electronic For purposes of this Act: RESTRICTIONS. form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- (a) IN GENERAL.— It is the sense of Con- (5) In accordance with all other sections of tive agency’’ has the meaning given that gress that the President should seek bilat- the Act, to the extent feasible and appro- term in section 105 of title 5, United States eral, regional, and multilateral agreements priate, and described in a written finding, an Code. to remove barriers to global electronic com- agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term merce through the World Trade Organiza- cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of tion, the Organization for Economic Co- lar form, shall take all steps necessary to en- signing an electronic message that— operation and Development, the Trans-At- sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- lantic Economic Partnership, the Asia Pa- natures are made available for submitting lar person as the source of such electronic cific Economic Cooperation forum, the Free such forms. message; and Trade Area of the America, the North Amer- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the ican Free Trade Agreement, and other appro- RECTOR OF THE OFFICE OF MAN- information contained in such electronic priate venues. AGEMENT AND BUDGET. message. (b) NEGOTIATING OBJECTIVES.—The nego- In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The tiating objectives of the United States shall minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- be— ter 35 of title 44, United States Code, the vey’’ include documents produced by an (1) to assure that electronic commerce is Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an free from— the provisions of this Act, the Director of agency and non-government persons. (A) tariff and nontariff barriers; the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY (B) burdensome and discriminatory regula- ensure that, within five years of the date of PROTECTION tion and standards; and enactment of this Act, executive agencies (C) discriminatory taxation; and provide for the optional use of electronic SEC. 201. SHORT TITLE. (2) to accelerate the growth of electronic maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s commerce by expanding market access op- formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. portunities for— native information technology to substitute SEC. 202. DEFINITIONS. (A) the development of telecommuni- for paper, and the use and acceptance of elec- In this title: cations infrastructure; tronic signatures where practicable. (1) CHILD.—the term ‘‘child’’ means an in- (B) the procurement of telecommuni- SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. cations equipment; Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— (C) the provision of Internet access and in order to fulfill the responsibility to ad- (A) means any person who operates a telecommunications services; and minister the functions assigned under chap- website located on the Internet or an online (D) the exchange of goods, services, and ter 35 of title 44, United States Code, the service and who collects or maintains per- digitalized information. Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of (c) ELECTRONIC COMMERCE.—For purposes the provisions of this Act, the Director of or visitors to such website or online service, of this section, the term ‘‘electronic com- the Office of Management and Budget shall or on whose behalf such information is col- merce’’ has the meaning given that term in develop procedures and guidelines for execu- lected or maintained, where such website or section 104(3). tive agency use to permit employer elec- online service is operated for commercial SEC. 204. NO EXPANSION OF TAX AUTHORITY. tronic storage and filing of forms containing purposes, including any person offering prod- Nothing in this Act shall be construed to information pertaining to employees. ucts or services for sale through that website or online service, involving commerce— expand the duty of any person to collect or SEC. 6. STUDY. (i) among the several States or with 1 or pay taxes beyond that which existed imme- In order to fulfill the responsibility to ad- more foreign nations; diately before the date of the enactment of minister the functions assigned under chap- (ii) in any territory of the United States or this Act. ter 35 of title 44, United States Code, the in the District of Columbia, or between any SEC. 205. PRESERVATION OF AUTHORITY. Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— Nothing in this Act shall limit or other- the provisions of this Act, the Director of wise affect the implementation of the Tele- (I) another such territory; or the Office of Management and Budget, shall (II) any State or foreign nation; or communications Act of 1996 (Public Law 104– conduct an ongoing study of paperwork re- 104) or the amendments made by such Act. (iii) between the District of Columbia and duction and electronic commerce, the im- any State, territory, or foreign nation; but AMENDMENT NO. 3678 pact on individual privacy, and the security (B) does not include any non-profit entity SECTION 1. SHORT TITLE. and authenticity of transactions due to the that would otherwise be exempt from cov- This Act may be cited as the ‘‘Government use of electronic signatures pursuant to this erage under section 5 of the Federal Trade Paperwork Elimination Act.’’ Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- gress. (3) COMMISSION.—The term ‘‘Commission’’ MATION TECHNOLOGY. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. Section 3504(a)(1)(B)(vi) of title 44, United ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ States Code, is amended to read as follows: Electronic records submitted or main- means, with respect to personal informa- ‘‘(vi) the acquisition and use of informa- tained in accordance with agency procedures tion— tion technology, including the use of alter- and guidelines established pursuant to this (A) the release of personal information col- native information technologies (such as the title, or electronic signatures or other forms lected from a child in identifiable form by an use of electronic submission, maintenance, of electronic authentication used in accord- operator for any purpose, except where such or disclosure of information) to substitute ance with such procedures and guidelines, information is provided to a person other for paper, and the use and acceptance of elec- shall not be denied legal effect, validity or than the operator who provides support for tronic signatures.’’. enforceability because they are in electronic the internal operations of the website and SEC. 3. PROCEDURES. form. does not disclose or use that information for (a) Within 18 months after enactment of SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and this Act, in order to fulfill the responsibility Except as provided by law, information (B) making personal information collected to administer the functions assigned under collected in the provision of electronic signa- from a child by a website or online service chapter 35 of title 44, United States Code, the ture services for communications with an directed to children or with actual knowl- Clinger-Cohen Act of 1996 (P.L. 104–106), and agency, as provided by this Act, shall only be edge that such information was collected the provisions of this Act, the Director of used or disclosed by persons who obtain, col- from a child, publicly available in identifi- the Office of Management and Budget shall lect, or maintain such information as a busi- able form, by any means including by a pub- develop procedures and guidelines for execu- ness or government practice, for the purpose lic posting, through the Internet, or tive agency use. of facilitating such communications, or with through— (1) The procedures shall be compatible with the prior affirmative consent of the person (i) a home page of a website; standards and technology for electronic sig- about whom the information pertains. (ii) a pen pal service; October 7, 1998 CONGRESSIONAL RECORD — SENATE S11771 (iii) an electronic mail service; knowledge that it is collecting personal in- uses reasonable efforts to provide a parent (iv) a message board; or formation from a child, to collect personal notice of the online contact information col- (v) a chat room. information from a child in a manner that lected from the child, the purposes for which (5) FEDERAL AGENCY.—The term ‘‘Federal violates the regulations prescribed under it is to be used, and an opportunity for the agency’’ means an agency, as that term is subsection (b). parent to request that the operator make no defined in section 551(1) of title 5, United (2) DISCLOSURE TO PARENT PROTECTED.— further use of the information and that it States Code. Notwithstanding paragraph (1), neither an not be maintained in retrievable form; or (6) INTERNET.—The term ‘‘Internet’’ means operator of such a website or online service (ii) without notice to the parent in such collectively the myriad of computer and nor the operator’s agent shall be held to be circumstances as the Commission may deter- telecommunications facilities, including liable under any Federal or State law for any mine are appropriate, taking into consider- equipment and operating software, which disclosure made in good faith and following ation the benefits to the child of access to comprise the interconnected world-wide net- reasonable procedures in responding to a re- information and services, and risks to the se- work of networks that employ the Trans- quest for disclosure of personal information curity and privacy of the child, in regula- mission Control Protocol/Internet Protocol, under subsection (b)(1)(B)(iii) to the parent tions promulgated under this subsection; or any predecessor or successor protocols to of a child. (D) the name of the child and online con- such protocol, to communicate information (b) REGULATIONS.— tact information (to the extent reasonably of all kinds by wire or radio. (1) IN GENERAL.—Not later than 1 year after necessary to protect the safety of a child (7) PARENT.—The term ‘‘parent’’ includes a the date of the enactment of this Act, the participant on the site)— legal guardian. Commission shall promulgate under section (i) used only for the purpose of protecting (8) PERSONAL INFORMATION.—The term 553 of title 5, United States Code, regulations such safety; ‘‘personal information’’ means individually that— (ii) not used to recontact the child or for identifiable information about an individual (A) require the operator of any website or any other purpose; and collected online, including— online service directed to children that col- (iii) not disclosed on the site, (A) a first and last name; lects personal information from children or if the operator uses reasonable efforts to pro- (B) a home or other physical address in- the operator of a website or online service vide a parent notice of the name and online cluding street name and name of a city or that has actual knowledge that it is collect- contact information collected from the town; ing personal information from a child— child, the purposes for which it is to be used, (C) an e-mail address; (i) to provide notice on the website of what and an opportunity for the parent to request (D) a telephone number; information is collected from children by the that the operator make no further use of the (E) a Social Security number; operator, how the operator uses such infor- information and that it not be maintained in (F) any other identifier that the Commis- mation, and the operator’s disclosure prac- retrievable form; or sion determines permits the physical or on- tices for such information; and (E) the collection, use, or dissemination of line contracting of a specific individual; or (ii) to obtain verifiable parental consent such information by the operator of such a (G) information concerning the child or the for the collection, use, or disclosure of per- website or online service necessary— parents of that child that the website col- sonal information from children; (i) to protect the security or integrity of (B) require the operator to provide, upon lects online from the child and combines its website; request of a parent under this subparagraph with an identifier described in this para- (ii) to take precautions against liability; whose child has provided personal informa- graph. (iii) to respond to judicial process; or tion to that website or online service, upon (9) VERIFIABLE PARENTAL CONSENT.—The (iv) to the extent permitted under other proper identification of that parent, to such term ‘‘verifiable parental consent’’ means provisions of law, to provide information to parent— law enforcement agencies or for an inves- any reasonable effort (taking into consider- (i) a description of the specific types of ation available technology), including a re- tigation on a matter related to public safety. personal information collected from the (3) TERMINATION OF SERVICE.—The regula- quest for authorization for future collection child by that operator; use, and disclosure described in the notice, tions shall permit the operator of a website (ii) the opportunity at any time to refuse or an online service to terminate service pro- to ensure that a parent of a child receives to permit the operator’s further use or main- notice of the operator’s personal information vided to a child whose parent has refused, tenance in retrievable form, or future online under the regulations prescribed under para- collection, use, and disclosure practices, and collection, of personal information from that authorizes the collection, use, and disclo- graph (1)(B)(ii), to permit the operator’s fur- child; and ther use or maintenance in retrievable form, sure, as applicable, of personal information (iii) notwithstanding any other provision or future online collection, of personal infor- and the subsequent use of that information of law, a means that is reasonable under the mation from that child. before that information is collected from circumstances for the parent to obtain any (c) ENFORCEMENT.—Subject to sections 204 that child. personal information collected from that (10) WEBSITE OR ONLINE SERVICE DIRECTED and 206, a violation of a regulation pre- child; scribed under subsection (a) shall be treated TO CHILDREN.— (C) prohibit conditioning a child’s partici- as a violation of a rule defining an unfair or (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or deceptive act or practice prescribed under line service directed to children’’ means— another activity on the child disclosing more section 18(a)(1)(B) of the Federal Trade Com- (i) A commercial website or online service personal information than is reasonably nec- mission Act (15 U.S.C. 57a(a)(1)(B)). that is targeted to children; or essary to participate in such activity; and (d) INCONSISTENT STATE LAW.—No State or (ii) that portion of a commercial website (D) require the operator of such a website local government may impose any liability or online service that is targeted to children. or online service to establish and maintain for commercial activities or actions by oper- (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- ators in interstate or foreign commerce in online service, or a portion of a commercial fidentiality, security, and integrity of per- connection with an activity or action de- website or online service, shall not be sonal information collected from children. deemed directed to children solely for refer- (2) WHEN CONSENT NOT REQUIRED.—The reg- scribed in this title that is inconsistent with ring or linking to a commercial website or ulations shall provide that verifiable paren- the treatment of those activities or actions online service directed to children by using tal consent under paragraph (1)(A)(ii) is not under this section. information location tools, including a direc- required in the case of— SEC. 204. SAFE HARBORS. tory, index, reference, pointer, or hypertext (A) online contact information collected (a) GUIDELINES.—An operator may satisfy link. from a child that is used only to respond di- the requirements of regulations issued under (11) PERSON.—The term ‘‘person’’ means rectly on a one-time basis to a specific re- section 203(b) by following a set of self-regu- any individual, partnership, corporation, quest from the child and is not used to re- latory guidelines, issued by representatives trust, estate, cooperative, association, or contact the child and is not maintained in of the marketing or online industries, or by other entity. retrievable form by the operator; other persons, approved under subsection (b). (12) ONLINE CONTACT INFORMATION.—The (B) a request for the name or online con- (b) INCENTIVES.— term ‘‘online contact information’’ means an tact information of a parent or child that is (1) SELF-REGULATORY INCENTIVES.—In pre- e-mail address or another substantially simi- used for the sole purpose of obtaining paren- scribing regulations under section 203, the lar identifier that permits direct contact tal consent or providing notice under this Commission shall provide incentives for self- with a person online. section and where such information is not regulation by operators to implement the protections afforded children under the regu- SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- TIVE ACTS AND PRACTICES IN CON- tor if parental consent is not obtained after latory requirements described in subsection NECTION WITH THE COLLECTION a reasonable time; (b) of that section. AND USE OF PERSONAL INFORMA- (C) online contact information collected (2) DEEMED COMPLIANCE.—Such incentives TION FROM AND ABOUT CHILDREN from a child that is used only to respond shall include provisions for ensuring that a ON THE INTERNET. more than once directly to a specific request person will be deemed to be in compliance (A) ACTS PROHIBITED.— from the child and is not used to recontact with the requirements of the regulations (1) IN GENERAL.—It is unlawful for an oper- the child beyond the scope of that request— under section 203 if that person complies ator of a website or online service directed to (i) if, before any additional response after with guidelines that, after notice and com- children, or any operator that has actual the initial response to the child, the operator ment, are approved by the Commission upon S11772 CONGRESSIONAL RECORD — SENATE October 7, 1998

making a determination that the guidelines (d) ACTIONS BY THE COMMISSION.—In any imposed under this title, any other authority meet the requirements of the regulations case in which an action is instituted by or on conferred on it by law. issued under section 203. behalf of the Commission for violation of (d) ACTIONS BY THE COMMISSION.—The Com- (3) EXPEDITED RESPONSE TO REQUESTS.—The any regulation prescribed under section 293, mission shall prevent any person from vio- Commission shall act upon requests for safe no State may, during the pendency of that lating a rule of the Commission under sec- harbor treatment within 180 days of the fil- action, institute an action under subsection tion 203 in the same manner, by the same ing of the request, and shall set forth in (a) against any defendant named in the com- means, and with the same jurisdiction, pow- writing its conclusions with regard to such plaint in that action for violation of that ers, and duties as though all applicable requests. regulation. terms and provisions of the Federal Trade (c) APPEALS.—Final action by the Commis- (e) VENUE; SERVICE OF PROCESS.— Commission Act (15 U.S.C. 41 et seq.) were sion on a request for approval of guidelines, (1) VENUE.—Any action brought under sub- incorporated into and made a part of this or the failure to act within 180 days on a re- section (a) may be brought in the district title. Any entity that violates such rule quest for approval of guidelines, submitted court of the United States that meets appli- shall be subject to the penalties and entitled under subsection (b) may be appealed to a cable requirements relating to venue under to the privileges and immunities provided in district court of the United States of appro- section 1391 of title 28, United States Code. the Federal Trade Commission Act in the priate jurisdiction as provided for in section (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with 706 of title 5, United States Code. brought under subsection (a), process may be the same jurisdiction, power, and duties as SEC. 205. ACTIONS BY STATES. served in any district in which the defend- though all applicable terms and provisions of ant— (a) IN GENERAL.— the Federal Trade Commission Act were in- (A) is an inhabitant; or (1) CIVIL ACTIONS.—In any case in which the corporated into and made a part of this title. (B) may be found. attorney general of a State has reason to be- (e) EFFECT ON OTHER LAWS.—Nothing con- lieve that an interest of the residents of that SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit OF ACT. State has been or is threatened or adversely the authority of the Commission under any (a) IN GENERAL.—Except as otherwise pro- affected by the engagement of any person in other provisions of law. vided, this title shall be enforced by the a practice that violates any regulation of the SEC. 207. REVIEW. Commission under the Federal Trade Com- Commission prescribed under section 203(b), (a) IN GENERAL.—Not later than 5 years mission Act (15 U.S.C. 41 et seq.). the State, as parens patriae, may bring a after the effective date of the regulations (b) PROVISIONS.—Compliance with the re- civil action on behalf of the residents of the initially issued under section 203, the Com- quirements imposed under this title shall be State in a district court of the United States mission shall— enforced under— (1) review the implementation of this title, of appropriate jurisdiction to— (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of (A) enjoin that practice; ance Act (12 U.S.C. 1818), in the case of— this title on practices relating to the collec- (B) enforce compliance with the regula- (A) national banks, and Federal branches tion and disclosure of information relating tion; and Federal agencies of foreign banks, by the to children, children’s ability to obtain ac- (C) obtain damage, restitution, or other Office of the Comptroller of the Currency; cess to information of their choice online, compensation on behalf of residents of the (B) member banks of the Federal Reserve and on the availability of websites directed State; or System (other than national banks), to children; and (D) obtain such other relief as the court branches and agencies of foreign banks (2) prepare and submit to Congress a report may consider to be appropriate. (other than Federal branches, Federal agen- on the results of the review under paragraph (2) NOTICE.— cies, and insured State branches of foreign (1). (A) IN GENERAL.—Before filing an action banks), commercial lending companies under paragraph (1), the attorney general of owned or controlled by foreign banks, and SEC. 208. EFFECTIVE DATE. the State involved shall provide to the Com- organizations operating under section 25 or Sections 203(a), 205, and 206 of this title mission— 25(a) of the Federal Reserve Act (12 U.S.C. take effect on the later of— (i) written notice of that action; and 601 et seq. and 611 et. seq.), by the Board; and (1) the date that is 18 months after the date (ii) a copy of the complaint for that action. (C) banks insured by the Federal Deposit of enactment of this Act; or (B) EXEMPTION.— Insurance Corporation (other than members (2) the date on which the Commission rules (i) IN GENERAL.—Subparagraph (A) shall of the Federal Reserve System) and insured on the first application for safe harbor treat- not apply with respect to the filing of an ac- State branches of foreign banks, by the ment under section 204 if the Commission tion by an attorney general of a State under Board of Directors of the Federal Deposit In- does not rule on the first such application this subsection, if the attorney general de- surance Corporation; within one year after the date of enactment termines that it is not feasible to provide the (2) section 8 of the Federal Deposit Insur- of this Act, but in no case later than the date notice described in that subparagraph before ance Act (12 U.S.C. 1818), by the Director of that is 30 months after the date of enact- the filing of the action. the Office of Thrift Supervision, in the case ment of this Act.’’, and insert in lieu thereof: (ii) NOTIFICATION.—In an action described of a savings association the deposits of which ‘‘days after the date of the enactment of this in clause (i), the attorney general of a State are insured by the Federal Deposit Insurance Act. shall provide notice and a copy of the com- Corporation; (3) VACANCIES.—Any vacancy in the Com- plaint to the Commission at the same time (3) the Federal Credit Union Act (12 U.S.C. mission shall not affect its powers, but shall as the attorney general files the action. 1751 et seq.) by the National Credit Union be filled in the same manner as the original (b) INTERVENTION.— Administration Board with respect to any appointment. (1) IN GENERAL.—On receiving notice under Federal credit union; (c) ACCEPTANCE OF GIFTS AND GRANTS.— subsection (a)(2), the Commission shall have (4) part A of subtitle VII of title 49, United The Commission may accept, use, and dis- the right to intervene in the action that is States Code, by the Secretary of Transpor- pose of gifts or grants of services or prop- the subject of the notice. tation with respect to any air carrier or for- erty, both real and personal, for purposes of (2) EFFECT OF INTERVENTION.—If the Com- eign air carrier subject to that part; aiding or facilitating the work of the Com- mission intervenes in an action under sub- (5) the Packers and Stockyards Act, 1921 (7 mission. Gifts or grants not used at the expi- section (a), it shall have the right— U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned (A) to be heard with respect to any matter tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. that arises in that action; and Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission (B) to file a petition for appeal. activities subject to that Act; and shall have reasonable access to materials, re- (3) AMICUS CURIAE.—Upon application to (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from the court, a person whose self-regulatory (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department guidelines have been approved by the Com- tion with respect to any Federal land bank, of Commerce, the Department of State, the mission and are relied upon as a defense by Federal land bank association, Federal inter- Department of the Treasury, and the Office any defendant to a proceeding under this sec- mediate credit bank, or production credit as- of the United States Trade Representative. tion may file amicus curiae in that proceed- sociation. The Commission shall also have reasonable ing. (c) EXERCISE OF CERTAIN POWERS.—For the access to use the facilities of any such De- (c) CONSTRUCTION.—For purposes of bring- purpose of the exercise by any agency re- partment or Office for purposes of conduct- ing any civil action under subsection (a), ferred to in subsection (a) of its powers under ing meetings. nothing in this title shall be construed to any Act referred to in that subsection, a vio- (e) SUNSET.—The Commission shall termi- prevent an attorney general of a State from lation of any requirement imposed under nate 18 months after the date of the enact- exercising the powers conferred on the attor- this title shall be deemed to be a violation of ment of this Act. ney general by the laws of that State to— a requirement imposed under that Act. In (f) RULES OF THE COMMISSION.— (1) conduct investigations; addition to its powers under any provision of (1) QUORUM.—Twelve members of the Com- (2) administer oaths or affirmations; or law specifically referred to in subsection (a), mission shall constitute a quorum for con- (3) compel the attendance of witnesses or each of the agencies referred to in that sub- ducting the business of the Commission. the production of documentary and other section may exercise, for the purpose of en- (2) MEETINGS.—Any meetings held by the evidence. forcing compliance with any requirement Commission shall be duly noticed at least 14 October 7, 1998 CONGRESSIONAL RECORD — SENATE S11773 days in advance and shall be open to the pub- bers of the Commission serving at the time measured by the amount of the sales price or lic. the finding or recommendation is made. other charge for such property or service. (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of mission shall provide opportunities for rep- For the purposes of this title: the several States, the District of Columbia, resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- groups, consumer groups, and State and any tax on electronic commerce expressly sion of the United States. local government officials to testify. imposed on or measured by the volume of (8) TAX.— (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— may adopt other rules as needed. cally, or the volume of digital information (i) any levy, fee, or charge imposed under (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, governmental authority by any govern- (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the mental entity; or conduct a thorough study of Federal, State provision of telecommunications services. (ii) the imposition of or obligation to col- and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- lect and to remit to a governmental entity tariff treatment of transactions using the criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a Internet and Internet access and other com- a State or political subdivision thereof on governmental entity. parable interstate or international sales ac- electronic commerce that— (B) EXCEPTION.—Such term shall not in- tivities. (A) is not generally imposed and legally clude any franchise fees or similar fees im- (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political posed by a State or local franchising author- may include in the study under subsection subdivision on transactions involving the ity, pursuant to section 622 or 653 of the (a)— same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, (A) an examination of— information accomplished through other 573). (i) barriers imposed in foreign markets on means; (9) TELECOMMUNICATIONS SERVICES.—The United States providers of property, goods, (B) is not generally imposed and legally term ‘‘telecommunications services’’ has the services, or information engaged in elec- collectible at the same rate by such State or meaning given such term in section 3(46) of tronic commerce and on United States pro- such political subdivision on transactions in- the Communications Act of 1934 (47 U.S.C. viders of telecommunications services; and volving the same or similar property, goods, 153(46)) and includes communications serv- (ii) how the imposition of such barriers services, or information accomplished ices (as defined in section 4251 of the Internal will affect United States consumers, the through other means, unless the rate is Revenue Code of 1986). competitiveness of United States citizens lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS providing property, goods, services, or infor- not more than a 5-year period; or mation in foreign markets, and the growth (C) imposes an obligation to collect or pay SEC. 201. DECLARATION THAT INTERNET and maturing of the Internet; the tax on a different person or entity than SHOULD BE FREE OF NEW FEDERAL (B) an examination of the collection and in the case of transactions involving the TAXES. administration of consumption taxes on same or similar property, goods, services, or It is the sense of Congress that no new Fed- interstate commerce in other countries and information accomplished through other eral taxes similar to the taxes described in the United States, and the impact of such means. section 101(a) should be enacted with respect collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term to the Internet and Internet access during an examination of the relationship between ‘‘electronic commerce’’ means any trans- the moratorium provided in such section. the collection and administration of such action conducted over the Internet or taxes when the transaction uses the Internet through Internet access, comprising the sale, SEC. 202. NATIONAL TRADE ESTIMATE. and when it does not; lease, license, offer, or delivery of property, Section 181 of the Trade Act of 1974 (19 (C) an examination of the impact of the goods, services, or information, whether or U.S.C. 2241) is amended— Internet and Internet access (particularly not for consideration, and includes the provi- (1) in subsection (a)(1)— voice transmission) on the revenue base for sion of Internet access. (A) in subparagraph (A)— taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (i) by striking ‘‘and’’ at the end of clause ternal Revenue Code of 1986; the combination of computer facilities and (i); (D) an examination of— electromagnetic transmission media, and re- (ii) by inserting ‘‘and’’ at the end of clause (i) the efforts of State and local govern- lated equipment and software, comprising (ii); and ments to collect sales and use taxes owed on the interconnected worldwide network of (iii) by inserting after clause (ii) the fol- purchases from interstate sellers, the advan- computer networks that employ the Trans- lowing new clause: tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, ‘‘(iii) United States electronic commerce,’’; and local governments to require such sellers or any predecessor or successor protocol, to and to collect and remit such taxes, particularly transmit information. (B) in subparagraph (C)— with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (i) by striking ‘‘and’’ at the end of clause level of contacts sufficient to permit a State access’’ means a service that enables users to (i); or local government to impose such taxes on access content, information, electronic mail, (ii) by inserting ‘‘and’’ at the end of clause such interstate commerce; or other services offered over the Internet, (ii); (ii) model State legislation relating to tax- and may also include access to proprietary (iii) by inserting after clause (ii) the fol- ation of transactions using the Internet and content, information, and other services as lowing new clause: Internet access, including uniform terminol- part of a package of services offered to con- ‘‘(iii) the value of additional United States ogy, definitions of the transactions, services, sumers. Such term does not include tele- electronic commerce,’’; and and other activities that may be subject to communications services. (iv) by inserting ‘‘or transacted with,’’ State and local taxation, procedural struc- (6) MULTIPLE TAX.— after ‘‘or invested in’’; tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (2) in subsection (a)(2)(E)— taxation, and a mechanism for the resolution means any tax that is imposed by one State (A) by striking ‘‘and’’ at the end of clause of disputes between States regarding matters or political subdivision thereof on the same (i); of multiple taxation; and or essentially the same electronic commerce (B) by inserting ‘‘and’’ at the end of clause (iii) ways to simplify the interstate admin- that is also subject to another tax imposed (ii); and istration of sales and use taxes on interstate by another State or political subdivision (C) by inserting after clause (ii) the follow- commerce, including a review of the need for thereof (whether or not at the same rate or ing new clause: a single or uniform tax registration, single on the same basis), without a credit (for ex- ‘‘(iii) the value of electronic commerce or uniform tax returns, simplified remit- ample, a resale exemption certificate) for transacted with,’’; and tance requirements, simplified administra- taxes paid in other jurisdictions. (3) by adding at the end the following new tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- subsection: ent third party collection system; and clude a sales or use tax imposed by a State ‘‘(d) ELECTRONIC COMMERCE.—For purposes (E) the examination of ways to simplify and 1 or more political subdivisions thereof of this section, the term ‘electronic com- Federal and State and local taxes imposed on on the same electronic commerce or a tax on merce’ has the meaning given that term in the provision of telecommunications serv- persons engaged in electronic commerce section 104(3) of the Internet Tax Freedom ices. which also may have been subject to a sales Act.’’. SEC. 103. REPORT. or use tax thereon. Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of SEC. 203. DECLARATION THAT THE INTERNET the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use SHOULD BE FREE OF FOREIGN TAR- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- IFFS, TRADE BARRIERS, AND OTHER ing the results of the Commission’s study dent to the sale, purchase, storage, consump- RESTRICTIONS. under this title. No finding or recommenda- tion, distribution, or other use of tangible (a) IN GENERAL.— It is the sense of Con- tion shall be included in the report unless personal property or services as may be de- gress that the President should seek bilat- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is eral, regional, and multilateral agreements S11774 CONGRESSIONAL RECORD — SENATE October 7, 1998 to remove barriers to global electronic com- cally 50,000 or more submittals of a particu- (2) ELECTRONIC SIGNATURE.—The term merce through the World Trade Organiza- lar form, shall take all steps necessary to en- ‘‘electronic signature’’ means a method of tion, the Organization for Economic Co- sure that multiple formats of electronic sig- signing an electronic message that— operation and Development, the Trans-At- natures are made available for submitting (A) identifies and authenticates a particu- lantic Economic Partnership, the Asia Pa- such forms. lar person as the source of such electronic cific Economic Cooperation forum, the Free SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- message; and Trade Area of the America, the North Amer- RECTOR OF THE OFFICE OF MAN- (B) indicates such person’s approval of the ican Free Trade Agreement, and other appro- AGEMENT AND BUDGET. information contained in such electronic priate venues. In order to fulfill the responsibility to ad- message. (b) NEGOTIATING OBJECTIVES.—The nego- minister the functions assigned under chap- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The tiating objectives of the United States shall ter 35 of title 44, United States Code, the terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- be— Clinger-Cohen Act of 1996 (P.L. 104–106), and vey’’ include documents produced by an (1) to assure that electronic commerce is the provisions of this Act, the Director of agency to facilitate interaction between an free from— the Office of Management and Budget shall agency and non-government persons. (A) tariff and nontariff barriers; ensure that, within five years of the date of TITLE II—CHILDREN’S ONLINE PRIVACY (B) burdensome and discriminatory regula- enactment of this Act, executive agencies PROTECTION tion and standards; and provide for the optional use of electronic SEC. 201. SHORT TITLE. (C) discriminatory taxation; and maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s (2) to accelerate the growth of electronic formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. commerce by expanding market access op- native information technology to substitute SEC. 202. DEFINITIONS. portunities for— for paper, and the use and acceptance of elec- In this title: (A) the development of telecommuni- tronic signatures where practicable. (1) CHILD.—the term ‘‘child’’ means an in- cations infrastructure; SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. (B) the procurement of telecommuni- Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— cations equipment; in order to fulfill the responsibility to ad- (A) means any person who operates a (C) the provision of Internet access and minister the functions assigned under chap- website located on the Internet or an online telecommunications services; and ter 35 of title 44, United States Code, the service and who collects or maintains per- (D) the exchange of goods, services, and Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of digitalized information. the provisions of this Act, the Director of or visitors to such website or online service, (c) ELECTRONIC COMMERCE.—For purposes the Office of Management and Budget shall or on whose behalf such information is col- of this section, the term ‘‘electronic com- develop procedures and guidelines for execu- lected or maintained, where such website or merce’’ has the meaning given that term in tive agency use to permit employer elec- online service is operated for commercial section 104(3). tronic storage and filing of forms containing purposes, including any person offering prod- SEC. 204. NO EXPANSION OF TAX AUTHORITY. information pertaining to employees. ucts or services for sale through that website Nothing in this Act shall be construed to SEC. 6. STUDY. or online service, involving commerce— expand the duty of any person to collect or In order to fulfill the responsibility to ad- (i) among the several States or with 1 or pay taxes beyond that which existed imme- minister the functions assigned under chap- more foreign nations; diately before the date of the enactment of ter 35 of title 44, United States Code, the (ii) in any territory of the United States or this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any SEC. 205. PRESERVATION OF AUTHORITY. the provisions of this Act, the Director of such territory and— Nothing in this Act shall limit or other- the Office of Management and Budget, shall (I) another such territory; or (II) any State or foreign nation; or wise affect the implementation of the Tele- conduct an ongoing study of paperwork re- (iii) between the District of Columbia and communications Act of 1996 (Public Law 104– duction and electronic commerce, the im- 104) or the amendments made by such Act. any State, territory, or foreign nation; but pact on individual privacy, and the security (B) does not include any non-profit entity SECTION 1. SHORT TITLE. and authenticity of transactions due to the that would otherwise be exempt from cov- This Act may be cited as the ‘‘Government use of electronic signatures pursuant to this erage under section 5 of the Federal Trade Paperwork Elimination Act.’’ Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- gress. (3) COMMISSION.—The term ‘‘Commission’’ MATION TECHNOLOGY. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. Section 3504(a)(1)(B)(vi) of title 44, United ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ States Code, is amended to read as follows: Electronic records submitted or main- means, with respect to personal informa- ‘‘(vi) the acquisition and use of informa- tained in accordance with agency procedures tion— tion technology, including the use of alter- and guidelines established pursuant to this (A) the release of personal information col- native information technologies (such as the title, or electronic signatures or other forms lected from a child in identifiable form by an use of electronic submission, maintenance, of electronic authentication used in accord- operator for any purpose, except where such or disclosure of information) to substitute ance with such procedures and guidelines, information is provided to a person other for paper, and the use and acceptance of elec- shall not be denied legal effect, validity or than the operator who provides support for tronic signatures.’’. enforceability because they are in electronic the internal operations of the website and SEC. 3. PROCEDURES. form. does not disclose or use that information for (a) Within 18 months after enactment of SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and this Act, in order to fulfill the responsibility Except as provided by law, information (B) making personal information collected to administer the functions assigned under collected in the provision of electronic signa- from a child by a website or online service chapter 35 of title 44, United States Code, the ture services for communications with an directed to children or with actual knowl- Clinger-Cohen Act of 1996 (P.L. 104–106), and agency, as provided by this Act, shall only be edge that such information was collected the provisions of this Act, the Director of used or disclosed by persons who obtain, col- from a child, publicly available in identifi- the Office of Management and Budget shall lect, or maintain such information as a busi- able form, by any means including by a pub- develop procedures and guidelines for execu- ness or government practice, for the purpose lic posting, through the Internet, or tive agency use. of facilitating such communications, or with through— (1) The procedures shall be compatible with the prior affirmative consent of the person (i) a home page of a website; standards and technology for electronic sig- about whom the information pertains. (ii) a pen pal service; natures as may be generally used in com- (iii) an electronic mail service; SEC. 9. APPLICATION WITH OTHER LAWS. merce and industry and by State govern- (iv) a message board; or ments, based upon consultation with appro- Nothing in this title shall apply to the De- (v) a chat room. priate private sector and State government partment of the Treasury or the Internal (5) FEDERAL AGENCY.—The term ‘‘Federal standard setting bodies. Revenue Service, to the extent that— agency’’ means an agency, as that term is (2) Such procedures shall not inappropri- (1) it involves the administration of the in- defined in section 551(1) of title 5, United ately favor one industry or technology. ternal revenue laws; and States Code. (3) An electronic signature shall be as reli- (2) it conflicts with any provision of the In- (6) INTERNET.—The term ‘‘Internet’’ means able as is appropriate for the purpose, and ef- ternal Revenue Service Restructuring and collectively the myriad of computer and forts shall be made to keep the information Reform Act of 1998 or the Internal Revenue telecommunications facilities, including submitted intact. Code of 1986. equipment and operating software, which (4) Successful submission of an electronic SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- form shall be electronically acknowledged. For purposes of this Act: work of networks that employ the Trans- (5) In accordance with all other sections of (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, the Act, to the extent feasible and appro- tive agency’’ has the meaning given that or any predecessor or successor protocols to priate, and described in a written finding, an term in section 105 of title 5, United States such protocol, to communicate information agency, when it expects to receive electroni- Code. of all kinds by wire or radio. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11775

(7) PARENT.—The term ‘‘parent’’ includes a Commission shall promulgate under section (i) used only for the purpose of protecting legal guardian. 553 of title 5, United States Code, regulations such safety; (8) PERSONAL INFORMATION.—The term that— (ii) not used to recontact the child or for ‘‘personal information’’ means individually (A) require the operator of any website or any other purpose; and identifiable information about an individual online service directed to children that col- (iii) not disclosed on the site, collected online, including— lects personal information from children or if the operator uses reasonable efforts to pro- (A) a first and last name; the operator of a website or online service vide a parent notice of the name and online (B) a home or other physical address in- that has actual knowledge that it is collect- contact information collected from the cluding street name and name of a city or ing personal information from a child— child, the purposes for which it is to be used, (i) to provide notice on the website of what town; and an opportunity for the parent to request (C) an e-mail address; information is collected from children by the that the operator make no further use of the (D) a telephone number; operator, how the operator uses such infor- information and that it not be maintained in (E) a Social Security number; mation, and the operator’s disclosure prac- retrievable form; or (F) any other identifier that the Commis- tices for such information; and sion determines permits the physical or on- (ii) to obtain verifiable parental consent (E) the collection, use, or dissemination of line contracting of a specific individual; or for the collection, use, or disclosure of per- such information by the operator of such a (G) information concerning the child or the sonal information from children; website or online service necessary— parents of that child that the website col- (B) require the operator to provide, upon (i) to protect the security or integrity of lects online from the child and combines request of a parent under this subparagraph its website; with an identifier described in this para- whose child has provided personal informa- (ii) to take precautions against liability; graph. tion to that website or online service, upon (iii) to respond to judicial process; or (9) VERIFIABLE PARENTAL CONSENT.—The proper identification of that parent, to such (iv) to the extent permitted under other term ‘‘verifiable parental consent’’ means parent— provisions of law, to provide information to any reasonable effort (taking into consider- (i) a description of the specific types of law enforcement agencies or for an inves- ation available technology), including a re- personal information collected from the tigation on a matter related to public safety. quest for authorization for future collection child by that operator; (3) TERMINATION OF SERVICE.—The regula- use, and disclosure described in the notice, (ii) the opportunity at any time to refuse tions shall permit the operator of a website to ensure that a parent of a child receives to permit the operator’s further use or main- or an online service to terminate service pro- notice of the operator’s personal information tenance in retrievable form, or future online vided to a child whose parent has refused, collection, use, and disclosure practices, and collection, of personal information from that under the regulations prescribed under para- authorizes the collection, use, and disclo- child; and graph (1)(B)(ii), to permit the operator’s fur- sure, as applicable, of personal information (iii) notwithstanding any other provision ther use or maintenance in retrievable form, and the subsequent use of that information of law, a means that is reasonable under the or future online collection, of personal infor- before that information is collected from circumstances for the parent to obtain any mation from that child. that child. personal information collected from that (c) ENFORCEMENT.—Subject to sections 204 (10) WEBSITE OR ONLINE SERVICE DIRECTED child; and 206, a violation of a regulation pre- TO CHILDREN.— (C) prohibit conditioning a child’s partici- scribed under subsection (a) shall be treated (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or as a violation of a rule defining an unfair or line service directed to children’’ means— another activity on the child disclosing more deceptive act or practice prescribed under (i) A commercial website or online service personal information than is reasonably nec- section 18(a)(1)(B) of the Federal Trade Com- that is targeted to children; or essary to participate in such activity; and mission Act (15 U.S.C. 57a(a)(1)(B)). (ii) that portion of a commercial website (D) require the operator of such a website (d) INCONSISTENT STATE LAW.—No State or or online service that is targeted to children. or online service to establish and maintain local government may impose any liability (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- for commercial activities or actions by oper- online service, or a portion of a commercial fidentiality, security, and integrity of per- ators in interstate or foreign commerce in website or online service, shall not be sonal information collected from children. connection with an activity or action de- deemed directed to children solely for refer- (2) WHEN CONSENT NOT REQUIRED.—The reg- scribed in this title that is inconsistent with ring or linking to a commercial website or ulations shall provide that verifiable paren- the treatment of those activities or actions online service directed to children by using tal consent under paragraph (1)(A)(ii) is not under this section. information location tools, including a direc- required in the case of— SEC. 204. SAFE HARBORS. (A) online contact information collected tory, index, reference, pointer, or hypertext (a) GUIDELINES.—An operator may satisfy from a child that is used only to respond di- link. the requirements of regulations issued under rectly on a one-time basis to a specific re- (11) PERSON.—The term ‘‘person’’ means section 203(b) by following a set of self-regu- quest from the child and is not used to re- any individual, partnership, corporation, latory guidelines, issued by representatives contact the child and is not maintained in trust, estate, cooperative, association, or of the marketing or online industries, or by retrievable form by the operator; other entity. other persons, approved under subsection (b). (12) ONLINE CONTACT INFORMATION.—The (B) a request for the name or online con- tact information of a parent or child that is (b) INCENTIVES.— term ‘‘online contact information’’ means an (1) SELF-REGULATORY INCENTIVES.—In pre- e-mail address or another substantially simi- used for the sole purpose of obtaining paren- tal consent or providing notice under this scribing regulations under section 203, the lar identifier that permits direct contact Commission shall provide incentives for self- with a person online. section and where such information is not maintained in retrievable form by the opera- regulation by operators to implement the SEC. 203. REGULATION OF UNFAIR AND DECEP- protections afforded children under the regu- TIVE ACTS AND PRACTICES IN CON- tor if parental consent is not obtained after a reasonable time; latory requirements described in subsection NECTION WITH THE COLLECTION (b) of that section. AND USE OF PERSONAL INFORMA- (C) online contact information collected TION FROM AND ABOUT CHILDREN from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ON THE INTERNET. more than once directly to a specific request shall include provisions for ensuring that a (A) ACTS PROHIBITED.— from the child and is not used to recontact person will be deemed to be in compliance (1) IN GENERAL.—It is unlawful for an oper- the child beyond the scope of that request— with the requirements of the regulations ator of a website or online service directed to (i) if, before any additional response after under section 203 if that person complies children, or any operator that has actual the initial response to the child, the operator with guidelines that, after notice and com- knowledge that it is collecting personal in- uses reasonable efforts to provide a parent ment, are approved by the Commission upon formation from a child, to collect personal notice of the online contact information col- making a determination that the guidelines information from a child in a manner that lected from the child, the purposes for which meet the requirements of the regulations violates the regulations prescribed under it is to be used, and an opportunity for the issued under section 203. subsection (b). parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The (2) DISCLOSURE TO PARENT PROTECTED.— further use of the information and that it Commission shall act upon requests for safe Notwithstanding paragraph (1), neither an not be maintained in retrievable form; or harbor treatment within 180 days of the fil- operator of such a website or online service (ii) without notice to the parent in such ing of the request, and shall set forth in nor the operator’s agent shall be held to be circumstances as the Commission may deter- writing its conclusions with regard to such liable under any Federal or State law for any mine are appropriate, taking into consider- requests. disclosure made in good faith and following ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- reasonable procedures in responding to a re- information and services, and risks to the se- sion on a request for approval of guidelines, quest for disclosure of personal information curity and privacy of the child, in regula- or the failure to act within 180 days on a re- under subsection (b)(1)(B)(iii) to the parent tions promulgated under this subsection; quest for approval of guidelines, submitted of a child. (D) the name of the child and online con- under subsection (b) may be appealed to a (b) REGULATIONS.— tact information (to the extent reasonably district court of the United States of appro- (1) IN GENERAL.—Not later than 1 year after necessary to protect the safety of a child priate jurisdiction as provided for in section the date of the enactment of this Act, the participant on the site)— 706 of title 5, United States Code. S11776 CONGRESSIONAL RECORD — SENATE October 7, 1998

SEC. 205. ACTIONS BY STATES. (A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (a) IN GENERAL.— (B) may be found. tained in the Act shall be construed to limit (1) CIVIL ACTIONS.—In any case in which the SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any attorney general of a State has reason to be- OF ACT. other provisions of law. lieve that an interest of the residents of that (a) IN GENERAL.—Except as otherwise pro- SEC. 207. REVIEW. State has been or is threatened or adversely vided, this title shall be enforced by the (a) IN GENERAL.—Not later than 5 years affected by the engagement of any person in Commission under the Federal Trade Com- after the effective date of the regulations a practice that violates any regulation of the mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- Commission prescribed under section 203(b), (b) PROVISIONS.—Compliance with the re- mission shall— the State, as parens patriae, may bring a quirements imposed under this title shall be (1) review the implementation of this title, civil action on behalf of the residents of the enforced under— including the effect of the implementation of State in a district court of the United States (1) section 8 of the Federal Deposit Insur- this title on practices relating to the collec- of appropriate jurisdiction to— ance Act (12 U.S.C. 1818), in the case of— tion and disclosure of information relating (A) enjoin that practice; (A) national banks, and Federal branches to children, children’s ability to obtain ac- (B) enforce compliance with the regula- and Federal agencies of foreign banks, by the cess to information of their choice online, tion; Office of the Comptroller of the Currency; and on the availability of websites directed (C) obtain damage, restitution, or other (B) member banks of the Federal Reserve to children; and compensation on behalf of residents of the System (other than national banks), (2) prepare and submit to Congress a report State; or branches and agencies of foreign banks on the results of the review under paragraph (D) obtain such other relief as the court (other than Federal branches, Federal agen- (1). may consider to be appropriate. cies, and insured State branches of foreign SEC. 208. EFFECTIVE DATE. (2) NOTICE.— banks), commercial lending companies Sections 203(a), 205, and 206 of this title (A) IN GENERAL.—Before filing an action owned or controlled by foreign banks, and take effect on the later of— under paragraph (1), the attorney general of organizations operating under section 25 or (1) the date that is 18 months after the date the State involved shall provide to the Com- 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or mission— 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules (i) written notice of that action; and (C) banks insured by the Federal Deposit on the first application for safe harbor treat- (ii) a copy of the complaint for that action. Insurance Corporation (other than members ment under section 204 if the Commission (B) EXEMPTION.— of the Federal Reserve System) and insured does not rule on the first such application (i) IN GENERAL.—Subparagraph (A) shall State branches of foreign banks, by the within one year after the date of enactment not apply with respect to the filing of an ac- Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date tion by an attorney general of a State under surance Corporation; that is 30 months after the date of enact- this subsection, if the attorney general de- (2) section 8 of the Federal Deposit Insur- ment of this Act.’’ termines that it is not feasible to provide the ance Act (12 U.S.C. 1818), by the Director of notice described in that subparagraph before the Office of Thrift Supervision, in the case AMENDMENT NO. 3770 the filing of the action. of a savings association the deposits of which Strike ‘‘days after the date of the enact- (ii) NOTIFICATION.—In an action described are insured by the Federal Deposit Insurance ment of this Act. in clause (i), the attorney general of a State Corporation; (3) VACANCIES.—Any vacancy in the Com- shall provide notice and a copy of the com- (3) the Federal Credit Union Act (12 U.S.C. mission shall not affect its powers, but shall plaint to the Commission at the same time 1751 et seq.) by the National Credit Union be filled in the same manner as the original as the attorney general files the action. Administration Board with respect to any appointment. (b) INTERVENTION.— Federal credit union; (c) ACCEPTANCE OF GIFTS AND GRANTS.— (1) IN GENERAL.—On receiving notice under (4) part A of subtitle VII of title 49, United The Commission may accept, use, and dis- subsection (a)(2), the Commission shall have States Code, by the Secretary of Transpor- pose of gifts or grants of services or prop- the right to intervene in the action that is tation with respect to any air carrier or for- erty, both real and personal, for purposes of the subject of the notice. eign air carrier subject to that part; aiding or facilitating the work of the Com- (5) the Packers and Stockyards Act, 1921 (7 (2) EFFECT OF INTERVENTION.—If the Com- mission. Gifts or grants not used at the expi- mission intervenes in an action under sub- U.S.C. 181 et. seq.) (except as provided in sec- ration of the Commission shall be returned section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the to the donor or grantor. (A) to be heard with respect to any matter Secretary of Agriculture with respect to any (d) OTHER RESOURCES.—The Commission that arises in that action; and activities subject to that Act; and shall have reasonable access to materials, re- (B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. sources, data, and other information from (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- the Department of Justice, the Department the court, a person whose self-regulatory tion with respect to any Federal land bank, of Commerce, the Department of State, the guidelines have been approved by the Com- Federal land bank association, Federal inter- Department of the Treasury, and the Office mission and are relied upon as a defense by mediate credit bank, or production credit as- of the United States Trade Representative. any defendant to a proceeding under this sec- sociation. The Commission shall also have reasonable tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the access to use the facilities of any such De- ing. purpose of the exercise by any agency re- partment or Office for purposes of conduct- (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under ing meetings. ing any civil action under subsection (a), any Act referred to in that subsection, a vio- (e) SUNSET.—The Commission shall termi- nothing in this title shall be construed to lation of any requirement imposed under nate 18 months after the date of the enact- prevent an attorney general of a State from this title shall be deemed to be a violation of ment of this Act. exercising the powers conferred on the attor- a requirement imposed under that Act. In (f) RULES OF THE COMMISSION.— ney general by the laws of that State to— addition to its powers under any provision of (1) QUORUM.—Nine members of the Com- (1) conduct investigations; law specifically referred to in subsection (a), mission shall constitute a quorum for con- (2) administer oaths or affirmations; or each of the agencies referred to in that sub- ducting the business of the Commission. (3) compel the attendance of witnesses or section may exercise, for the purpose of en- (2) MEETINGS.—Any meetings held by the the production of documentary and other forcing compliance with any requirement Commission shall be duly noticed at least 14 evidence. imposed under this title, any other authority days in advance and shall be open to the pub- (d) ACTIONS BY THE COMMISSION.—In any conferred on it by law. lic. case in which an action is instituted by or on (d) ACTIONS BY THE COMMISSION.—The Com- (3) OPPORTUNITIES TO TESTIFY.—The Com- behalf of the Commission for violation of mission shall prevent any person from vio- mission shall provide opportunities for rep- any regulation prescribed under section 293, lating a rule of the Commission under sec- resentatives of the general public, taxpayer no State may, during the pendency of that tion 203 in the same manner, by the same groups, consumer groups, and State and action, institute an action under subsection means, and with the same jurisdiction, pow- local government officials to testify. (a) against any defendant named in the com- ers, and duties as though all applicable (4) ADDITIONAL RULES.—The Commission plaint in that action for violation of that terms and provisions of the Federal Trade may adopt other rules as needed. regulation. Commission Act (15 U.S.C. 41 et seq.) were (g) DUTIES OF THE COMMISSION.— (e) VENUE; SERVICE OF PROCESS.— incorporated into and made a part of this (1) IN GENERAL.—The Commission shall (1) VENUE.—Any action brought under sub- title. Any entity that violates such rule conduct a thorough study of Federal, State section (a) may be brought in the district shall be subject to the penalties and entitled and local, and international taxation and court of the United States that meets appli- to the privileges and immunities provided in tariff treatment of transactions using the cable requirements relating to venue under the Federal Trade Commission Act in the Internet and Internet access and other com- section 1391 of title 28, United States Code. same manner, by the same means, and with parable interstate or international sales ac- (2) SERVICE OF PROCESS.—In an action the same jurisdiction, power, and duties as tivities. brought under subsection (a), process may be though all applicable terms and provisions of (2) ISSUES TO BE STUDIED.—The Commission served in any district in which the defend- the Federal Trade Commission Act were in- may include in the study under subsection ant— corporated into and made a part of this title. (a)— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11777

(A) an examination of— information accomplished through other (9) TELECOMMUNICATIONS SERVICES.—The (i) barriers imposed in foreign markets on means; term ‘‘telecommunications services’’ has the United States providers of property, goods, (B) is not generally imposed and legally meaning given such term in section 3(46) of services, or information engaged in elec- collectible at the same rate by such State or the Communications Act of 1934 (47 U.S.C. tronic commerce and on United States pro- such political subdivision on transactions in- 153(46)) and includes communications serv- viders of telecommunications services; and volving the same or similar property, goods, ices (as defined in section 4251 of the Internal (ii) how the imposition of such barriers services, or information accomplished Revenue Code of 1986). will affect United States consumers, the through other means, unless the rate is TITLE II—OTHER PROVISIONS lower as part of a phase-out of the tax over competitiveness of United States citizens SEC. 201. DECLARATION THAT INTERNET providing property, goods, services, or infor- not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL mation in foreign markets, and the growth (C) imposes an obligation to collect or pay TAXES. and maturing of the Internet; the tax on a different person or entity than It is the sense of Congress that no new Fed- (B) an examination of the collection and in the case of transactions involving the eral taxes similar to the taxes described in administration of consumption taxes on same or similar property, goods, services, or section 101(a) should be enacted with respect interstate commerce in other countries and information accomplished through other to the Internet and Internet access during the United States, and the impact of such means. the moratorium provided in such section. collection on the global economy, including (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. an examination of the relationship between ‘‘electronic commerce’’ means any trans- Section 181 of the Trade Act of 1974 (19 the collection and administration of such action conducted over the Internet or U.S.C. 2241) is amended— taxes when the transaction uses the Internet through Internet access, comprising the sale, (1) in subsection (a)(1)— and when it does not; lease, license, offer, or delivery of property, (A) in subparagraph (A)— (C) an examination of the impact of the goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause Internet and Internet access (particularly not for consideration, and includes the provi- (i); voice transmission) on the revenue base for sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (ii); and ternal Revenue Code of 1986; the combination of computer facilities and (iii) by inserting after clause (ii) the fol- (D) an examination of— electromagnetic transmission media, and re- lowing new clause: (i) the efforts of State and local govern- lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; ments to collect sales and use taxes owed on the interconnected worldwide network of and purchases from interstate sellers, the advan- computer networks that employ the Trans- (B) in subparagraph (C)— tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause and local governments to require such sellers or any predecessor or successor protocol, to (i); to collect and remit such taxes, particularly transmit information. (ii) by inserting ‘‘and’’ at the end of clause with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (ii); level of contacts sufficient to permit a State access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- access content, information, electronic mail, or local government to impose such taxes on lowing new clause: or other services offered over the Internet, such interstate commerce; ‘‘(iii) the value of additional United States and may also include access to proprietary (ii) model State legislation relating to tax- electronic commerce,’’; and content, information, and other services as ation of transactions using the Internet and (iv) by inserting ‘‘or transacted with,’’ part of a package of services offered to con- Internet access, including uniform terminol- after ‘‘or invested in’’; sumers. Such term does not include tele- ogy, definitions of the transactions, services, (2) in subsection (a)(2)(E)— communications services. and other activities that may be subject to (A) by striking ‘‘and’’ at the end of clause (6) MULTIPLE TAX.— State and local taxation, procedural struc- (i); (A) IN GENERAL.—The term ‘‘multiple tax’’ tures and mechanisms applicable to such (B) by inserting ‘‘and’’ at the end of clause means any tax that is imposed by one State taxation, and a mechanism for the resolution or political subdivision thereof on the same (ii); and of disputes between States regarding matters or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- of multiple taxation; and that is also subject to another tax imposed ing new clause: (iii) ways to simplify the interstate admin- by another State or political subdivision ‘‘(iii) the value of electronic commerce istration of sales and use taxes on interstate thereof (whether or not at the same rate or transacted with,’’; and commerce, including a review of the need for on the same basis), without a credit (for ex- (3) by adding at the end the following new a single or uniform tax registration, single ample, a resale exemption certificate) for subsection: ‘‘(d) ELECTRONIC COMMERCE.—For purposes or uniform tax returns, simplified remit- taxes paid in other jurisdictions. of this section, the term ‘electronic com- tance requirements, simplified administra- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in tive procedures, or the need for an independ- clude a sales or use tax imposed by a State section 104(3) of the Internet Tax Freedom ent third party collection system; and and 1 or more political subdivisions thereof Act.’’. (E) the examination of ways to simplify on the same electronic commerce or a tax on Federal and State and local taxes imposed on persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF FOREIGN TAR- the provision of telecommunications serv- which also may have been subject to a sales ices. IFFS, TRADE BARRIERS, AND OTHER or use tax thereon. RESTRICTIONS. SEC. 103. REPORT. (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- Not later than 18 months after the date of subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- the enactment of this Act, the Commission tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements shall transmit to Congress a report reflect- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- ing the results of the Commission’s study tion, distribution, or other use of tangible merce through the World Trade Organiza- under this title. No finding or recommenda- personal property or services as may be de- tion, the Organization for Economic Co- tion shall be included in the report unless fined by laws imposing such tax and which is operation and Development, the Trans-At- agreed to by at least two-thirds of the mem- measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- bers of the Commission serving at the time other charge for such property or service. cific Economic Cooperation forum, the Free the finding or recommendation is made. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- SEC. 104. DEFINITIONS. the several States, the District of Columbia, ican Free Trade Agreement, and other appro- For the purposes of this title: or any commonwealth, territory, or posses- priate venues. (1) BIT TAX.—The term ‘‘bit tax’’ means sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- any tax on electronic commerce expressly (8) TAX.— tiating objectives of the United States shall imposed on or measured by the volume of (A) IN GENERAL.—The term ‘‘tax’’ means— be— digital information transmitted electroni- (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is cally, or the volume of digital information governmental authority by any govern- free from— per unit of time transmitted electronically, mental entity; or (A) tariff and nontariff barriers; but does not include taxes imposed on the (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- provision of telecommunications services. lect and to remit to a governmental entity tion and standards; and (2) DISCRIMINATORY TAX.—The term ‘‘dis- any such levy, fee, or charge imposed by a (C) discriminatory taxation; and criminatory tax’’ means any tax imposed by governmental entity. (2) to accelerate the growth of electronic a State or political subdivision thereof on (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- electronic commerce that— clude any franchise fees or similar fees im- portunities for— (A) is not generally imposed and legally posed by a State or local franchising author- (A) the development of telecommuni- collectible by such State or such political ity, pursuant to section 622 or 653 of the cations infrastructure; subdivision on transactions involving the Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- same or similar property, goods, services, or 573). cations equipment; S11778 CONGRESSIONAL RECORD — SENATE October 7, 1998 (C) the provision of Internet access and minister the functions assigned under chap- service and who collects or maintains per- telecommunications services; and ter 35 of title 44, United States Code, the sonal information from or about the users of (D) the exchange of goods, services, and Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, digitalized information. the provisions of this Act, the Director of or on whose behalf such information is col- (c) ELECTRONIC COMMERCE.—For purposes the Office of Management and Budget shall lected or maintained, where such website or of this section, the term ‘‘electronic com- develop procedures and guidelines for execu- online service is operated for commercial merce’’ has the meaning given that term in tive agency use to permit employer elec- purposes, including any person offering prod- section 104(3). tronic storage and filing of forms containing ucts or services for sale through that website SEC. 204. NO EXPANSION OF TAX AUTHORITY. information pertaining to employees. or online service, involving commerce— Nothing in this Act shall be construed to SEC. 6. STUDY. (i) among the several States or with 1 or expand the duty of any person to collect or In order to fulfill the responsibility to ad- more foreign nations; pay taxes beyond that which existed imme- minister the functions assigned under chap- (ii) in any territory of the United States or diately before the date of the enactment of ter 35 of title 44, United States Code, the in the District of Columbia, or between any this Act. Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— SEC. 205. PRESERVATION OF AUTHORITY. the provisions of this Act, the Director of (I) another such territory; or Nothing in this Act shall limit or other- the Office of Management and Budget, shall (II) any State or foreign nation; or wise affect the implementation of the Tele- conduct an ongoing study of paperwork re- (iii) between the District of Columbia and communications Act of 1996 (Public Law 104– duction and electronic commerce, the im- any State, territory, or foreign nation; but 104) or the amendments made by such Act. pact on individual privacy, and the security (B) does not include any non-profit entity that would otherwise be exempt from cov- SECTION 1. SHORT TITLE. and authenticity of transactions due to the erage under section 5 of the Federal Trade This Act may be cited as the ‘‘Government use of electronic signatures pursuant to this Commission Act (15 U.S.C. 45). Paperwork Elimination Act.’’ Act, and shall report the findings to Con- gress. (3) COMMISSION.—The term ‘‘Commission’’ SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- means the Federal Trade Commission. MATION TECHNOLOGY. SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (4) DISCLOSURE.—The term ‘‘disclosure’’ Section 3504(a)(1)(B)(vi) of title 44, United ELECTRONIC RECORDS. Electronic records submitted or main- means, with respect to personal informa- States Code, is amended to read as follows: tion— ‘‘(vi) the acquisition and use of informa- tained in accordance with agency procedures and guidelines established pursuant to this (A) the release of personal information col- tion technology, including the use of alter- lected from a child in identifiable form by an native information technologies (such as the title, or electronic signatures or other forms of electronic authentication used in accord- operator for any purpose, except where such use of electronic submission, maintenance, information is provided to a person other or disclosure of information) to substitute ance with such procedures and guidelines, shall not be denied legal effect, validity or than the operator who provides support for for paper, and the use and acceptance of elec- the internal operations of the website and tronic signatures.’’. enforceability because they are in electronic form. does not disclose or use that information for SEC. 3. PROCEDURES. any other purpose; and SEC. 8. DISCLOSURE OF INFORMATION. (a) Within 18 months after enactment of (B) making personal information collected Except as provided by law, information this Act, in order to fulfill the responsibility from a child by a website or online service collected in the provision of electronic signa- to administer the functions assigned under directed to children or with actual knowl- ture services for communications with an chapter 35 of title 44, United States Code, the edge that such information was collected agency, as provided by this Act, shall only be Clinger-Cohen Act of 1996 (P.L. 104–106), and from a child, publicly available in identifi- used or disclosed by persons who obtain, col- the provisions of this Act, the Director of able form, by any means including by a pub- lect, or maintain such information as a busi- the Office of Management and Budget shall lic posting, through the Internet, or ness or government practice, for the purpose develop procedures and guidelines for execu- through— of facilitating such communications, or with tive agency use. (i) a home page of a website; the prior affirmative consent of the person (1) The procedures shall be compatible with (ii) a pen pal service; standards and technology for electronic sig- about whom the information pertains. (iii) an electronic mail service; natures as may be generally used in com- SEC. 9. APPLICATION WITH OTHER LAWS. (iv) a message board; or merce and industry and by State govern- Nothing in this title shall apply to the De- (v) a chat room. ments, based upon consultation with appro- partment of the Treasury or the Internal (5) FEDERAL AGENCY.—The term ‘‘Federal priate private sector and State government Revenue Service, to the extent that— agency’’ means an agency, as that term is standard setting bodies. (1) it involves the administration of the in- defined in section 551(1) of title 5, United (2) Such procedures shall not inappropri- ternal revenue laws; and States Code. (2) it conflicts with any provision of the In- ately favor one industry or technology. (6) INTERNET.—The term ‘‘Internet’’ means (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and collectively the myriad of computer and able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue telecommunications facilities, including forts shall be made to keep the information Code of 1986. equipment and operating software, which submitted intact. SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- (4) Successful submission of an electronic For purposes of this Act: work of networks that employ the Trans- form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, (5) In accordance with all other sections of tive agency’’ has the meaning given that or any predecessor or successor protocols to the Act, to the extent feasible and appro- term in section 105 of title 5, United States such protocol, to communicate information priate, and described in a written finding, an Code. of all kinds by wire or radio. (2) ELECTRONIC SIGNATURE.—The term agency, when it expects to receive electroni- (7) PARENT.—The term ‘‘parent’’ includes a cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of legal guardian. signing an electronic message that— lar form, shall take all steps necessary to en- (8) PERSONAL INFORMATION.—The term (A) identifies and authenticates a particu- sure that multiple formats of electronic sig- ‘‘personal information’’ means individually lar person as the source of such electronic natures are made available for submitting identifiable information about an individual message; and such forms. collected online, including— (B) indicates such person’s approval of the SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (A) a first and last name; information contained in such electronic RECTOR OF THE OFFICE OF MAN- (B) a home or other physical address in- message. AGEMENT AND BUDGET. cluding street name and name of a city or (3) FORM, QUESTIONNAIRE, OR SURVEY.—The In order to fulfill the responsibility to ad- town; terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- minister the functions assigned under chap- (C) an e-mail address; vey’’ include documents produced by an ter 35 of title 44, United States Code, the (D) a telephone number; agency to facilitate interaction between an Clinger-Cohen Act of 1996 (P.L. 104–106), and (E) a Social Security number; the provisions of this Act, the Director of agency and non-government persons. (F) any other identifier that the Commis- the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY sion determines permits the physical or on- ensure that, within five years of the date of PROTECTION line contracting of a specific individual; or enactment of this Act, executive agencies SEC. 201. SHORT TITLE. (G) information concerning the child or the provide for the optional use of electronic This title may be cited as the ‘‘Children’s parents of that child that the website col- maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. lects online from the child and combines formation where practicable, as an alter- SEC. 202. DEFINITIONS. with an identifier described in this para- native information technology to substitute In this title: graph. for paper, and the use and acceptance of elec- (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The tronic signatures where practicable. dividual under the age of 13. term ‘‘verifiable parental consent’’ means SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- Within 18 months of enactment of this Act, (A) means any person who operates a ation available technology), including a re- in order to fulfill the responsibility to ad- website located on the Internet or an online quest for authorization for future collection October 7, 1998 CONGRESSIONAL RECORD — SENATE S11779

use, and disclosure described in the notice, (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- to ensure that a parent of a child receives to permit the operator’s further use or main- tions shall permit the operator of a website notice of the operator’s personal information tenance in retrievable form, or future online or an online service to terminate service pro- collection, use, and disclosure practices, and collection, of personal information from that vided to a child whose parent has refused, authorizes the collection, use, and disclo- child; and under the regulations prescribed under para- sure, as applicable, of personal information (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- and the subsequent use of that information of law, a means that is reasonable under the ther use or maintenance in retrievable form, before that information is collected from circumstances for the parent to obtain any or future online collection, of personal infor- that child. personal information collected from that mation from that child. (10) WEBSITE OR ONLINE SERVICE DIRECTED child; (c) ENFORCEMENT.—Subject to sections 204 TO CHILDREN.— (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- (A) IN GENERAL.—The term ‘‘website or on- pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated line service directed to children’’ means— another activity on the child disclosing more as a violation of a rule defining an unfair or (i) A commercial website or online service personal information than is reasonably nec- deceptive act or practice prescribed under that is targeted to children; or essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- (ii) that portion of a commercial website (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). or online service that is targeted to children. or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or (B) LIMITATION.—A commercial website or reasonable procedures to protect the con- local government may impose any liability online service, or a portion of a commercial fidentiality, security, and integrity of per- for commercial activities or actions by oper- website or online service, shall not be sonal information collected from children. ators in interstate or foreign commerce in deemed directed to children solely for refer- (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- ring or linking to a commercial website or ulations shall provide that verifiable paren- scribed in this title that is inconsistent with online service directed to children by using tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions information location tools, including a direc- required in the case of— under this section. tory, index, reference, pointer, or hypertext (A) online contact information collected SEC. 204. SAFE HARBORS. link. from a child that is used only to respond di- (11) PERSON.—The term ‘‘person’’ means (a) GUIDELINES.—An operator may satisfy rectly on a one-time basis to a specific re- any individual, partnership, corporation, the requirements of regulations issued under quest from the child and is not used to re- trust, estate, cooperative, association, or section 203(b) by following a set of self-regu- contact the child and is not maintained in other entity. latory guidelines, issued by representatives retrievable form by the operator; (12) ONLINE CONTACT INFORMATION.—The of the marketing or online industries, or by (B) a request for the name or online con- term ‘‘online contact information’’ means an other persons, approved under subsection (b). tact information of a parent or child that is e-mail address or another substantially simi- (b) INCENTIVES.— used for the sole purpose of obtaining paren- lar identifier that permits direct contact (1) SELF-REGULATORY INCENTIVES.—In pre- tal consent or providing notice under this with a person online. scribing regulations under section 203, the section and where such information is not Commission shall provide incentives for self- SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- TIVE ACTS AND PRACTICES IN CON- regulation by operators to implement the NECTION WITH THE COLLECTION tor if parental consent is not obtained after protections afforded children under the regu- AND USE OF PERSONAL INFORMA- a reasonable time; latory requirements described in subsection TION FROM AND ABOUT CHILDREN (C) online contact information collected (b) of that section. ON THE INTERNET. from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (A) ACTS PROHIBITED.— more than once directly to a specific request shall include provisions for ensuring that a (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. that— such safety; (A) require the operator of any website or (a) IN GENERAL.— (ii) not used to recontact the child or for online service directed to children that col- (1) CIVIL ACTIONS.—In any case in which the any other purpose; and lects personal information from children or attorney general of a State has reason to be- (iii) not disclosed on the site, the operator of a website or online service lieve that an interest of the residents of that that has actual knowledge that it is collect- if the operator uses reasonable efforts to pro- State has been or is threatened or adversely ing personal information from a child— vide a parent notice of the name and online affected by the engagement of any person in (i) to provide notice on the website of what contact information collected from the a practice that violates any regulation of the information is collected from children by the child, the purposes for which it is to be used, Commission prescribed under section 203(b), operator, how the operator uses such infor- and an opportunity for the parent to request the State, as parens patriae, may bring a mation, and the operator’s disclosure prac- that the operator make no further use of the civil action on behalf of the residents of the tices for such information; and information and that it not be maintained in State in a district court of the United States (ii) to obtain verifiable parental consent retrievable form; or of appropriate jurisdiction to— for the collection, use, or disclosure of per- (E) the collection, use, or dissemination of (A) enjoin that practice; sonal information from children; such information by the operator of such a (B) enforce compliance with the regula- (B) require the operator to provide, upon website or online service necessary— tion; request of a parent under this subparagraph (i) to protect the security or integrity of (C) obtain damage, restitution, or other whose child has provided personal informa- its website; compensation on behalf of residents of the tion to that website or online service, upon (ii) to take precautions against liability; State; or proper identification of that parent, to such (iii) to respond to judicial process; or (D) obtain such other relief as the court parent— (iv) to the extent permitted under other may consider to be appropriate. (i) a description of the specific types of provisions of law, to provide information to (2) NOTICE.— personal information collected from the law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action child by that operator; tigation on a matter related to public safety. under paragraph (1), the attorney general of S11780 CONGRESSIONAL RECORD — SENATE October 7, 1998 the State involved shall provide to the Com- organizations operating under section 25 or (1) the date that is 18 months after the date mission— 25(a) of the Federal Reserve Act (12 U.S.C. of enactment of this Act; or (i) written notice of that action; and 601 et seq. and 611 et. seq.), by the Board; and (2) the date on which the Commission rules (ii) a copy of the complaint for that action. (C) banks insured by the Federal Deposit on the first application for safe harbor treat- (B) EXEMPTION.— Insurance Corporation (other than members ment under section 204 if the Commission (i) IN GENERAL.—Subparagraph (A) shall of the Federal Reserve System) and insured does not rule on the first such application not apply with respect to the filing of an ac- State branches of foreign banks, by the within one year after the date of enactment tion by an attorney general of a State under Board of Directors of the Federal Deposit In- of this Act, but in no case later than the date this subsection, if the attorney general de- surance Corporation; that is 30 months after the date of enact- termines that it is not feasible to provide the (2) section 8 of the Federal Deposit Insur- ment of this Act.’’, and insert in lieu thereof: notice described in that subparagraph before ance Act (12 U.S.C. 1818), by the Director of ‘‘days after the date of the enactment of this the filing of the action. the Office of Thrift Supervision, in the case Act. (ii) NOTIFICATION.—In an action described of a savings association the deposits of which (3) VACANCIES.—Any vacancy in the Com- in clause (i), the attorney general of a State are insured by the Federal Deposit Insurance mission shall not affect its powers, but shall shall provide notice and a copy of the com- Corporation; be filled in the same manner as the original plaint to the Commission at the same time (3) the Federal Credit Union Act (12 U.S.C. appointment. as the attorney general files the action. 1751 et seq.) by the National Credit Union (c) ACCEPTANCE OF GIFTS AND GRANTS.— (b) INTERVENTION.— Administration Board with respect to any The Commission may accept, use, and dis- (1) IN GENERAL.—On receiving notice under Federal credit union; pose of gifts or grants of services or prop- subsection (a)(2), the Commission shall have (4) part A of subtitle VII of title 49, United erty, both real and personal, for purposes of the right to intervene in the action that is States Code, by the Secretary of Transpor- aiding or facilitating the work of the Com- the subject of the notice. tation with respect to any air carrier or for- mission. Gifts or grants not used at the expi- (2) EFFECT OF INTERVENTION.—If the Com- eign air carrier subject to that part; ration of the Commission shall be returned mission intervenes in an action under sub- (5) the Packers and Stockyards Act, 1921 (7 to the donor or grantor. section (a), it shall have the right— U.S.C. 181 et. seq.) (except as provided in sec- (d) OTHER RESOURCES.—The Commission (A) to be heard with respect to any matter tion 406 of that Act (7 U.S.C. 226, 227)), by the shall have reasonable access to materials, re- that arises in that action; and Secretary of Agriculture with respect to any sources, data, and other information from (B) to file a petition for appeal. activities subject to that Act; and the Department of Justice, the Department (6) the Farm Credit Act of 1971 (12 U.S.C. (3) AMICUS CURIAE.—Upon application to of Commerce, the Department of State, the (2001 et seq.) by the Farm Credit Administra- the court, a person whose self-regulatory Department of the Treasury, and the Office tion with respect to any Federal land bank, guidelines have been approved by the Com- of the United States Trade Representative. Federal land bank association, Federal inter- mission and are relied upon as a defense by The Commission shall also have reasonable mediate credit bank, or production credit as- any defendant to a proceeding under this sec- access to use the facilities of any such De- sociation. tion may file amicus curiae in that proceed- partment or Office for purposes of conduct- (c) EXERCISE OF CERTAIN POWERS.—For the ing. purpose of the exercise by any agency re- ing meetings. (e) SUNSET.—The Commission shall termi- (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under nate 18 months after the date of the enact- ing any civil action under subsection (a), any Act referred to in that subsection, a vio- ment of this Act. nothing in this title shall be construed to lation of any requirement imposed under (f) RULES OF THE COMMISSION.— prevent an attorney general of a State from this title shall be deemed to be a violation of (1) QUORUM.—Eleven members of the Com- exercising the powers conferred on the attor- a requirement imposed under that Act. In mission shall constitute a quorum for con- ney general by the laws of that State to— addition to its powers under any provision of ducting the business of the Commission. (1) conduct investigations; law specifically referred to in subsection (a), (2) MEETINGS.—Any meetings held by the (2) administer oaths or affirmations; or each of the agencies referred to in that sub- Commission shall be duly noticed at least 14 (3) compel the attendance of witnesses or section may exercise, for the purpose of en- days in advance and shall be open to the pub- the production of documentary and other forcing compliance with any requirement lic. evidence. imposed under this title, any other authority (3) OPPORTUNITIES TO TESTIFY.—The Com- (d) ACTIONS BY THE COMMISSION.—In any conferred on it by law. case in which an action is instituted by or on (d) ACTIONS BY THE COMMISSION.—The Com- mission shall provide opportunities for rep- behalf of the Commission for violation of mission shall prevent any person from vio- resentatives of the general public, taxpayer any regulation prescribed under section 293, lating a rule of the Commission under sec- groups, consumer groups, and State and no State may, during the pendency of that tion 203 in the same manner, by the same local government officials to testify. action, institute an action under subsection means, and with the same jurisdiction, pow- (4) ADDITIONAL RULES.—The Commission (a) against any defendant named in the com- ers, and duties as though all applicable may adopt other rules as needed. plaint in that action for violation of that terms and provisions of the Federal Trade (g) DUTIES OF THE COMMISSION.— regulation. Commission Act (15 U.S.C. 41 et seq.) were (1) IN GENERAL.—The Commission shall (e) VENUE; SERVICE OF PROCESS.— incorporated into and made a part of this conduct a thorough study of Federal, State (1) VENUE.—Any action brought under sub- title. Any entity that violates such rule and local, and international taxation and section (a) may be brought in the district shall be subject to the penalties and entitled tariff treatment of transactions using the court of the United States that meets appli- to the privileges and immunities provided in Internet and Internet access and other com- cable requirements relating to venue under the Federal Trade Commission Act in the parable interstate or international sales ac- section 1391 of title 28, United States Code. same manner, by the same means, and with tivities. (2) SERVICE OF PROCESS.—In an action the same jurisdiction, power, and duties as (2) ISSUES TO BE STUDIED.—The Commission brought under subsection (a), process may be though all applicable terms and provisions of may include in the study under subsection served in any district in which the defend- the Federal Trade Commission Act were in- (a)— ant— corporated into and made a part of this title. (A) an examination of— (A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (i) barriers imposed in foreign markets on (B) may be found. tained in the Act shall be construed to limit United States providers of property, goods, SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any services, or information engaged in elec- OF ACT. other provisions of law. tronic commerce and on United States pro- (a) IN GENERAL.—Except as otherwise pro- SEC. 207. REVIEW. viders of telecommunications services; and vided, this title shall be enforced by the (a) IN GENERAL.—Not later than 5 years (ii) how the imposition of such barriers Commission under the Federal Trade Com- after the effective date of the regulations will affect United States consumers, the mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- competitiveness of United States citizens (b) PROVISIONS.—Compliance with the re- mission shall— providing property, goods, services, or infor- quirements imposed under this title shall be (1) review the implementation of this title, mation in foreign markets, and the growth enforced under— including the effect of the implementation of and maturing of the Internet; (1) section 8 of the Federal Deposit Insur- this title on practices relating to the collec- (B) an examination of the collection and ance Act (12 U.S.C. 1818), in the case of— tion and disclosure of information relating administration of consumption taxes on (A) national banks, and Federal branches to children, children’s ability to obtain ac- interstate commerce in other countries and and Federal agencies of foreign banks, by the cess to information of their choice online, the United States, and the impact of such Office of the Comptroller of the Currency; and on the availability of websites directed collection on the global economy, including (B) member banks of the Federal Reserve to children; and an examination of the relationship between System (other than national banks), (2) prepare and submit to Congress a report the collection and administration of such branches and agencies of foreign banks on the results of the review under paragraph taxes when the transaction uses the Internet (other than Federal branches, Federal agen- (1). and when it does not; cies, and insured State branches of foreign SEC. 208. EFFECTIVE DATE. (C) an examination of the impact of the banks), commercial lending companies Sections 203(a), 205, and 206 of this title Internet and Internet access (particularly owned or controlled by foreign banks, and take effect on the later of— voice transmission) on the revenue base for October 7, 1998 CONGRESSIONAL RECORD — SENATE S11781

taxes imposed under section 4251 of the In- (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause ternal Revenue Code of 1986; the combination of computer facilities and (ii); and (D) an examination of— electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- (i) the efforts of State and local govern- lated equipment and software, comprising lowing new clause: ments to collect sales and use taxes owed on the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; purchases from interstate sellers, the advan- computer networks that employ the Trans- and tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— and local governments to require such sellers or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause to collect and remit such taxes, particularly transmit information. (i); with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause level of contacts sufficient to permit a State access’’ means a service that enables users to (ii); or local government to impose such taxes on access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- such interstate commerce; or other services offered over the Internet, lowing new clause: (ii) model State legislation relating to tax- and may also include access to proprietary ‘‘(iii) the value of additional United States ation of transactions using the Internet and content, information, and other services as electronic commerce,’’; and Internet access, including uniform terminol- part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ ogy, definitions of the transactions, services, sumers. Such term does not include tele- after ‘‘or invested in’’; and other activities that may be subject to communications services. (2) in subsection (a)(2)(E)— State and local taxation, procedural struc- (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); taxation, and a mechanism for the resolution means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause of disputes between States regarding matters or political subdivision thereof on the same (ii); and of multiple taxation; and or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- (iii) ways to simplify the interstate admin- that is also subject to another tax imposed ing new clause: istration of sales and use taxes on interstate by another State or political subdivision ‘‘(iii) the value of electronic commerce commerce, including a review of the need for thereof (whether or not at the same rate or transacted with,’’; and a single or uniform tax registration, single on the same basis), without a credit (for ex- (3) by adding at the end the following new or uniform tax returns, simplified remit- ample, a resale exemption certificate) for subsection: tance requirements, simplified administra- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- of this section, the term ‘electronic com- ent third party collection system; and clude a sales or use tax imposed by a State merce’ has the meaning given that term in (E) the examination of ways to simplify and 1 or more political subdivisions thereof section 104(3) of the Internet Tax Freedom Federal and State and local taxes imposed on on the same electronic commerce or a tax on Act.’’. the provision of telecommunications serv- persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET ices. which also may have been subject to a sales SHOULD BE FREE OF FOREIGN TAR- SEC. 103. REPORT. or use tax thereon. IFFS, TRADE BARRIERS, AND OTHER Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of RESTRICTIONS. the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use (a) IN GENERAL.— It is the sense of Con- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- gress that the President should seek bilat- ing the results of the Commission’s study dent to the sale, purchase, storage, consump- eral, regional, and multilateral agreements under this title. No finding or recommenda- tion, distribution, or other use of tangible to remove barriers to global electronic com- tion shall be included in the report unless personal property or services as may be de- merce through the World Trade Organiza- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is tion, the Organization for Economic Co- bers of the Commission serving at the time measured by the amount of the sales price or operation and Development, the Trans-At- the finding or recommendation is made. other charge for such property or service. lantic Economic Partnership, the Asia Pa- cific Economic Cooperation forum, the Free SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- For the purposes of this title: the several States, the District of Columbia, ican Free Trade Agreement, and other appro- (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- priate venues. any tax on electronic commerce expressly sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- imposed on or measured by the volume of (8) TAX.— tiating objectives of the United States shall digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— be— cally, or the volume of digital information (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is per unit of time transmitted electronically, governmental authority by any govern- free from— but does not include taxes imposed on the mental entity; or (A) tariff and nontariff barriers; provision of telecommunications services. (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- (2) DISCRIMINATORY TAX.—The term ‘‘dis- lect and to remit to a governmental entity tion and standards; and criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a (C) discriminatory taxation; and a State or political subdivision thereof on governmental entity. (2) to accelerate the growth of electronic electronic commerce that— (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- (A) is not generally imposed and legally clude any franchise fees or similar fees im- portunities for— collectible by such State or such political posed by a State or local franchising author- (A) the development of telecommuni- subdivision on transactions involving the ity, pursuant to section 622 or 653 of the cations infrastructure; same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- information accomplished through other 573). cations equipment; means; (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and (B) is not generally imposed and legally term ‘‘telecommunications services’’ has the telecommunications services; and collectible at the same rate by such State or meaning given such term in section 3(46) of (D) the exchange of goods, services, and such political subdivision on transactions in- the Communications Act of 1934 (47 U.S.C. digitalized information. volving the same or similar property, goods, 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes services, or information accomplished ices (as defined in section 4251 of the Internal Revenue Code of 1986). of this section, the term ‘‘electronic com- through other means, unless the rate is merce’’ has the meaning given that term in TITLE II—OTHER PROVISIONS lower as part of a phase-out of the tax over section 104(3). not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL the tax on a different person or entity than TAXES. Nothing in this Act shall be construed to in the case of transactions involving the It is the sense of Congress that no new Fed- expand the duty of any person to collect or same or similar property, goods, services, or eral taxes similar to the taxes described in pay taxes beyond that which existed imme- information accomplished through other section 101(a) should be enacted with respect diately before the date of the enactment of means. to the Internet and Internet access during this Act. (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. SEC. 205. PRESERVATION OF AUTHORITY. ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. Nothing in this Act shall limit or other- action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 wise affect the implementation of the Tele- through Internet access, comprising the sale, U.S.C. 2241) is amended— communications Act of 1996 (Public Law 104– lease, license, offer, or delivery of property, (1) in subsection (a)(1)— 104) or the amendments made by such Act. goods, services, or information, whether or (A) in subparagraph (A)— SECTION 1. SHORT TITLE. not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government sion of Internet access. (i); Paperwork Elimination Act.’’ S11782 CONGRESSIONAL RECORD — SENATE October 7, 1998

SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF (3) COMMISSION.—The term ‘‘Commission’’ MATION TECHNOLOGY. ELECTRONIC RECORDS. means the Federal Trade Commission. Section 3504(a)(1)(B)(vi) of title 44, United Electronic records submitted or main- (4) DISCLOSURE.—The term ‘‘disclosure’’ States Code, is amended to read as follows: tained in accordance with agency procedures means, with respect to personal informa- ‘‘(vi) the acquisition and use of informa- and guidelines established pursuant to this tion— tion technology, including the use of alter- title, or electronic signatures or other forms (A) the release of personal information col- native information technologies (such as the of electronic authentication used in accord- lected from a child in identifiable form by an use of electronic submission, maintenance, ance with such procedures and guidelines, operator for any purpose, except where such or disclosure of information) to substitute shall not be denied legal effect, validity or information is provided to a person other for paper, and the use and acceptance of elec- enforceability because they are in electronic than the operator who provides support for tronic signatures.’’. form. the internal operations of the website and SEC. 3. PROCEDURES. SEC. 8. DISCLOSURE OF INFORMATION. does not disclose or use that information for (a) Within 18 months after enactment of Except as provided by law, information any other purpose; and this Act, in order to fulfill the responsibility collected in the provision of electronic signa- (B) making personal information collected to administer the functions assigned under ture services for communications with an from a child by a website or online service chapter 35 of title 44, United States Code, the agency, as provided by this Act, shall only be directed to children or with actual knowl- Clinger-Cohen Act of 1996 (P.L. 104–106), and used or disclosed by persons who obtain, col- edge that such information was collected the provisions of this Act, the Director of lect, or maintain such information as a busi- from a child, publicly available in identifi- the Office of Management and Budget shall ness or government practice, for the purpose able form, by any means including by a pub- develop procedures and guidelines for execu- of facilitating such communications, or with lic posting, through the Internet, or tive agency use. the prior affirmative consent of the person through— (1) The procedures shall be compatible with about whom the information pertains. (i) a home page of a website; standards and technology for electronic sig- (ii) a pen pal service; SEC. 9. APPLICATION WITH OTHER LAWS. natures as may be generally used in com- (iii) an electronic mail service; merce and industry and by State govern- Nothing in this title shall apply to the De- (iv) a message board; or ments, based upon consultation with appro- partment of the Treasury or the Internal (v) a chat room. priate private sector and State government Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal standard setting bodies. (1) it involves the administration of the in- agency’’ means an agency, as that term is (2) Such procedures shall not inappropri- ternal revenue laws; and defined in section 551(1) of title 5, United ately favor one industry or technology. (2) it conflicts with any provision of the In- States Code. (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and forts shall be made to keep the information Code of 1986. telecommunications facilities, including submitted intact. SEC. 10. DEFINITIONS. equipment and operating software, which (4) Successful submission of an electronic For purposes of this Act: comprise the interconnected world-wide net- form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- work of networks that employ the Trans- (5) In accordance with all other sections of tive agency’’ has the meaning given that mission Control Protocol/Internet Protocol, the Act, to the extent feasible and appro- term in section 105 of title 5, United States or any predecessor or successor protocols to priate, and described in a written finding, an Code. such protocol, to communicate information agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a lar form, shall take all steps necessary to en- signing an electronic message that— legal guardian. sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term natures are made available for submitting lar person as the source of such electronic ‘‘personal information’’ means individually such forms. message; and identifiable information about an individual SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the collected online, including— RECTOR OF THE OFFICE OF MAN- information contained in such electronic (A) a first and last name; AGEMENT AND BUDGET. message. (B) a home or other physical address in- In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; ter 35 of title 44, United States Code, the vey’’ include documents produced by an (C) an e-mail address; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an (D) a telephone number; the provisions of this Act, the Director of agency and non-government persons. (E) a Social Security number; the Office of Management and Budget shall (F) any other identifier that the Commis- ensure that, within five years of the date of TITLE II—CHILDREN’S ONLINE PRIVACY PROTECTION sion determines permits the physical or on- enactment of this Act, executive agencies line contracting of a specific individual; or provide for the optional use of electronic SEC. 201. SHORT TITLE. (G) information concerning the child or the maintenance, submission, or disclosure of in- This title may be cited as the ‘‘Children’s parents of that child that the website col- formation where practicable, as an alter- Online Privacy Protection Act of 1999’’. lects online from the child and combines native information technology to substitute SEC. 202. DEFINITIONS. with an identifier described in this para- for paper, and the use and acceptance of elec- In this title: graph. tronic signatures where practicable. (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The SEC. 5. ELECTRONIC STORAGE OF FORMS. dividual under the age of 13. term ‘‘verifiable parental consent’’ means Within 18 months of enactment of this Act, (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- in order to fulfill the responsibility to ad- (A) means any person who operates a ation available technology), including a re- minister the functions assigned under chap- website located on the Internet or an online quest for authorization for future collection ter 35 of title 44, United States Code, the service and who collects or maintains per- use, and disclosure described in the notice, Clinger-Cohen Act of 1996 (P.L. 104–106), and sonal information from or about the users of to ensure that a parent of a child receives the provisions of this Act, the Director of or visitors to such website or online service, notice of the operator’s personal information the Office of Management and Budget shall or on whose behalf such information is col- collection, use, and disclosure practices, and develop procedures and guidelines for execu- lected or maintained, where such website or authorizes the collection, use, and disclo- tive agency use to permit employer elec- online service is operated for commercial sure, as applicable, of personal information tronic storage and filing of forms containing purposes, including any person offering prod- and the subsequent use of that information information pertaining to employees. ucts or services for sale through that website before that information is collected from SEC. 6. STUDY. or online service, involving commerce— that child. In order to fulfill the responsibility to ad- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED minister the functions assigned under chap- more foreign nations; TO CHILDREN.— ter 35 of title 44, United States Code, the (ii) in any territory of the United States or (A) IN GENERAL.—The term ‘‘website or on- Clinger-Cohen Act of 1996 (P.L. 104–106), and in the District of Columbia, or between any line service directed to children’’ means— the provisions of this Act, the Director of such territory and— (i) A commercial website or online service the Office of Management and Budget, shall (I) another such territory; or that is targeted to children; or conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (ii) that portion of a commercial website duction and electronic commerce, the im- (iii) between the District of Columbia and or online service that is targeted to children. pact on individual privacy, and the security any State, territory, or foreign nation; but (B) LIMITATION.—A commercial website or and authenticity of transactions due to the (B) does not include any non-profit entity online service, or a portion of a commercial use of electronic signatures pursuant to this that would otherwise be exempt from cov- website or online service, shall not be Act, and shall report the findings to Con- erage under section 5 of the Federal Trade deemed directed to children solely for refer- gress. Commission Act (15 U.S.C. 45). ring or linking to a commercial website or October 7, 1998 CONGRESSIONAL RECORD — SENATE S11783 online service directed to children by using tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions information location tools, including a direc- required in the case of— under this section. tory, index, reference, pointer, or hypertext (A) online contact information collected SEC. 204. SAFE HARBORS. link. from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy (11) PERSON.—The term ‘‘person’’ means rectly on a one-time basis to a specific re- the requirements of regulations issued under any individual, partnership, corporation, quest from the child and is not used to re- section 203(b) by following a set of self-regu- trust, estate, cooperative, association, or contact the child and is not maintained in latory guidelines, issued by representatives other entity. retrievable form by the operator; of the marketing or online industries, or by (12) ONLINE CONTACT INFORMATION.—The (B) a request for the name or online con- other persons, approved under subsection (b). term ‘‘online contact information’’ means an tact information of a parent or child that is (b) INCENTIVES.— e-mail address or another substantially simi- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- lar identifier that permits direct contact tal consent or providing notice under this scribing regulations under section 203, the with a person online. section and where such information is not Commission shall provide incentives for self- SEC. 203. REGULATION OF UNFAIR AND DECEP- maintained in retrievable form by the opera- regulation by operators to implement the TIVE ACTS AND PRACTICES IN CON- tor if parental consent is not obtained after protections afforded children under the regu- NECTION WITH THE COLLECTION a reasonable time; latory requirements described in subsection AND USE OF PERSONAL INFORMA- (C) online contact information collected TION FROM AND ABOUT CHILDREN (b) of that section. ON THE INTERNET. from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (A) ACTS PROHIBITED.— more than once directly to a specific request shall include provisions for ensuring that a (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. that— such safety; (a) IN GENERAL.— (A) require the operator of any website or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the online service directed to children that col- any other purpose; and attorney general of a State has reason to be- lects personal information from children or (iii) not disclosed on the site, lieve that an interest of the residents of that the operator of a website or online service if the operator uses reasonable efforts to pro- State has been or is threatened or adversely that has actual knowledge that it is collect- vide a parent notice of the name and online affected by the engagement of any person in ing personal information from a child— contact information collected from the a practice that violates any regulation of the (i) to provide notice on the website of what child, the purposes for which it is to be used, Commission prescribed under section 203(b), information is collected from children by the and an opportunity for the parent to request the State, as parens patriae, may bring a operator, how the operator uses such infor- that the operator make no further use of the civil action on behalf of the residents of the mation, and the operator’s disclosure prac- information and that it not be maintained in State in a district court of the United States tices for such information; and retrievable form; or (ii) to obtain verifiable parental consent of appropriate jurisdiction to— (E) the collection, use, or dissemination of for the collection, use, or disclosure of per- (A) enjoin that practice; such information by the operator of such a sonal information from children; (B) enforce compliance with the regula- website or online service necessary— (B) require the operator to provide, upon tion; (i) to protect the security or integrity of request of a parent under this subparagraph (C) obtain damage, restitution, or other its website; whose child has provided personal informa- compensation on behalf of residents of the (ii) to take precautions against liability; tion to that website or online service, upon State; or (iii) to respond to judicial process; or proper identification of that parent, to such (D) obtain such other relief as the court (iv) to the extent permitted under other parent— may consider to be appropriate. (i) a description of the specific types of provisions of law, to provide information to (2) NOTICE.— personal information collected from the law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action child by that operator; tigation on a matter related to public safety. under paragraph (1), the attorney general of (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- to permit the operator’s further use or main- tions shall permit the operator of a website mission— tenance in retrievable form, or future online or an online service to terminate service pro- (i) written notice of that action; and collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. S11784 CONGRESSIONAL RECORD — SENATE October 7, 1998

(2) EFFECT OF INTERVENTION.—If the Com- (5) the Packers and Stockyards Act, 1921 (7 AMENDMENT NO. 3771 mission intervenes in an action under sub- U.S.C. 181 et. seq.) (except as provided in sec- Strike all and insert the following sub- section (a), it shall have the right— tion 406 of that Act (7 U.S.C. 226, 227)), by the stitute: (A) to be heard with respect to any matter Secretary of Agriculture with respect to any On page 17, beginning with line 18, strike that arises in that action; and activities subject to that Act; and through line 21 on page 19 and insert the fol- (B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. lowing: (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- (a) ESTABLISHMENT OF COMMISSION.—There the court, a person whose self-regulatory tion with respect to any Federal land bank, is established a commission to be known as guidelines have been approved by the Com- Federal land bank association, Federal inter- the Advisory Commission on Electronic mission and are relied upon as a defense by mediate credit bank, or production credit as- Commerce (in this title referred to as the any defendant to a proceeding under this sec- sociation. ‘‘Commission’’). The Commission shall— tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the (1) be composed of 19 members appointed in ing. purpose of the exercise by any agency re- accordance with subsection (b), including the (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under chairperson selected by the members of the ing any civil action under subsection (a), any Act referred to in that subsection, a vio- Commission from among themselves; and nothing in this title shall be construed to lation of any requirement imposed under (2) conduct its business in accordance with prevent an attorney general of a State from this title shall be deemed to be a violation of the provisions of this title. exercising the powers conferred on the attor- a requirement imposed under that Act. In (b) MEMBERSHIP.— ney general by the laws of that State to— addition to its powers under any provision of (1) IN GENERAL.—The Commissioners shall (1) conduct investigations; law specifically referred to in subsection (a), serve for the life of the Commission. The (2) administer oaths or affirmations; or each of the agencies referred to in that sub- membership of the Commission shall be as (3) compel the attendance of witnesses or follows: the production of documentary and other section may exercise, for the purpose of en- forcing compliance with any requirement (A) 3 representatives from the Federal Gov- evidence. ernment, comprised of the Secretary of Com- (d) ACTIONS BY THE COMMISSION.—In any imposed under this title, any other authority conferred on it by law. merce, the Secretary of the Treasury, and case in which an action is instituted by or on the United States Trade Representative (or behalf of the Commission for violation of (d) ACTIONS BY THE COMMISSION.—The Com- mission shall prevent any person from vio- their respective delegates). any regulation prescribed under section 293, (B) 8 representatives from State and local no State may, during the pendency of that lating a rule of the Commission under sec- tion 203 in the same manner, by the same governments (one such representative shall action, institute an action under subsection be from a State or local government that (a) against any defendant named in the com- means, and with the same jurisdiction, pow- ers, and duties as though all applicable does not impose a sales tax). plaint in that action for violation of that (C) 8 representatives of the electronic com- terms and provisions of the Federal Trade regulation. merce industry (including small business), Commission Act (15 U.S.C. 41 et seq.) were (e) VENUE; SERVICE OF PROCESS.— telecommunications carriers, local retail incorporated into and made a part of this (1) VENUE.—Any action brought under sub- businesses, and consumer groups, comprised title. Any entity that violates such rule section (a) may be brought in the district of— court of the United States that meets appli- shall be subject to the penalties and entitled (i) 5 individuals appointed by the Majority cable requirements relating to venue under to the privileges and immunities provided in Leader of the Senate; section 1391 of title 28, United States Code. the Federal Trade Commission Act in the (ii) 3 individuals appointed by the Minority (2) SERVICE OF PROCESS.—In an action same manner, by the same means, and with Leader of the Senate; brought under subsection (a), process may be the same jurisdiction, power, and duties as (iii) 5 individuals appointed by the Speaker served in any district in which the defend- though all applicable terms and provisions of of the House of Representatives; and ant— the Federal Trade Commission Act were in- (iv) 3 individuals appointed by the Minor- (A) is an inhabitant; or corporated into and made a part of this title. ity Leader of the House of Representatives. (B) may be found. (e) EFFECT ON OTHER LAWS.—Nothing con- SEC. 206. ADMINISTRATION AND APPLICABILITY tained in the Act shall be construed to limit AMENDMENT NO. 3772 OF ACT. the authority of the Commission under any On page 3, strike lines 7 through 23 and in- (a) IN GENERAL.—Except as otherwise pro- other provisions of law. sert the following: vided, this title shall be enforced by the SEC. 207. REVIEW. (i) the ability to access a site on a remote Commission under the Federal Trade Com- (a) IN GENERAL.—Not later than 5 years seller’s computer server is considered a fac- mission Act (15 U.S.C. 41 et seq.). after the effective date of the regulations tor in determining a remote seller’s tax col- (b) PROVISIONS.—Compliance with the re- initially issued under section 203, the Com- lection obligation; or quirements imposed under this title shall be mission shall— (ii) a provider of Internet access service or enforced under— (1) review the implementation of this title, online services is deemed to be the agent of (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of a remote seller for determining tax collec- ance Act (12 U.S.C. 1818), in the case of— (A) national banks, and Federal branches this title on practices relating to the collec- tion obligations as a result of— (I) the display of a remote seller’s informa- and Federal agencies of foreign banks, by the tion and disclosure of information relating tion or content on the computer server of a Office of the Comptroller of the Currency; to children, children’s ability to obtain ac- (B) member banks of the Federal Reserve cess to information of their choice online, provider of Internet access service or online System (other than national banks), and on the availability of websites directed services; or (II) the processing of orders through the branches and agencies of foreign banks to children; and computer server of a provider of Internet ac- (other than Federal branches, Federal agen- (2) prepare and submit to Congress a report cess service or on-line services. cies, and insured State branches of foreign on the results of the review under paragraph banks), commercial lending companies (1). owned or controlled by foreign banks, and SEC. 208. EFFECTIVE DATE. MCCAIN AMENDMENT NO. 3773 organizations operating under section 25 or Sections 203(a), 205, and 206 of this title (Ordered to lie on the table.) 25(a) of the Federal Reserve Act (12 U.S.C. take effect on the later of— Mr. MCCAIN submitted an amend- 601 et seq. and 611 et. seq.), by the Board; and (1) the date that is 18 months after the date ment intended to be proposed by him (C) banks insured by the Federal Deposit of enactment of this Act; or Insurance Corporation (other than members (2) the date on which the Commission rules to amendment No. 3719 submitted by of the Federal Reserve System) and insured on the first application for safe harbor treat- him to the bill, S. 442, supra; as follows: State branches of foreign banks, by the ment under section 204 if the Commission On page 3, after line 23, insert the follow- Board of Directors of the Federal Deposit In- does not rule on the first such application ing: surance Corporation; within one year after the date of enactment (2A) TAX THAT WAS GENERALLY IMPOSED (2) section 8 of the Federal Deposit Insur- of this Act, but in no case later than the date AND ACTUALLY ENFORCED.—The term ‘‘tax ance Act (12 U.S.C. 1818), by the Director of that is 30 months after the date of enact- that was generally imposed and actually en- the Office of Thrift Supervision, in the case ment of this Act.’’ forced’’ means a tax— of a savings association the deposits of which (A) that was authorized by statute price to are insured by the Federal Deposit Insurance October 1, 1998; and Corporation; McCAIN AMENDMENTS NOS. 3771– (B) with respect to which the appropriate (3) the Federal Credit Union Act (12 U.S.C. 3772 state administrative agency provided clear 1751 et seq.) by the National Credit Union (Ordered to lie on the table.) notice that the tax was being interpreted to Administration Board with respect to any Mr. McCAIN submitted two amend- apply to Internet access services and which Federal credit union; provided the taxable entity with a reason- (4) part A of subtitle VII of title 49, United ments intended to be proposed by him able opportunity to be aware that such tax States Code, by the Secretary of Transpor- to amendment No. 3722 submitted by would apply to them, such as a rule or a pub- tation with respect to any air carrier or for- him to the bill, S. 442, supra; as fol- lic proclamation by such State administra- eign air carrier subject to that part; lows: tive agency or a public disclosure by such October 7, 1998 CONGRESSIONAL RECORD — SENATE S11785 agency of the fact that the State in question Commerce, the Secretary of State, the Sec- tronic commerce and on United States pro- had previously assessed such a tax or was ap- retary of the Treasury, and the United viders of telecommunications services; and plying its tax to charges for Internet access. States Trade Representative, or their respec- (ii) how the imposition of such barriers tive representatives. will affect United States consumers, the WYDEN AMENDMENT NO. 3774 (B) Six representatives from State and competitiveness of United States citizens local governments comprised of— providing property, goods, services, or infor- (Ordered to lie on the table.) (i) two representatives appointed by the mation in foreign markets, and the growth Mr. WYDEN submitted an amend- Majority Leader of the Senate; and maturing of the Internet; ment intended to be proposed by him (ii) one representative appointed by the (B) an examination of the collection and to amendment No. 3719 submitted by Minority Leader of the Senate; administration of consumption taxes on Mr. MCCAIN to the bill, S. 442, supra; as (iii) two representatives appointed by the interstate commerce in other countries and follows: Speaker of the House of Representatives; and the United States, and the impact of such (iv) one representative appointed by the collection on the global economy, including On page 2, after line 14, add the following: Minority Leader of the House of Representa- an examination of the relationship between (d) DEFINITIONS.—For the purposes of this tives. the collection and administration of such section, a tax has been ‘‘generally imposed (C) Six representatives of the electronic in- taxes when the transaction uses the Internet and actually enforced’’ if, prior to October 1, dustry and consumer groups comprised of— and when it does not; 1998— (i) two representatives appointed by the (C) an examination of the impact of the (1) the tax was authorized by statute; and Majority Leader of the Senate; Internet and Internet access (particularly (2) a provider of Internet access service had (ii) one representative appointed by the voice transmission) on the revenue base for been given a reasonable opportunity to know Minority Leader of the Senate; taxes imposed under section 4251 of the In- by virtue of a rule or other public proclama- (iii) two representatives appointed by the ternal Revenue Code of 1986; tion made by the appropriate administrative Speaker of the House of Representatives; and (D) an examination of— agency of the state that the tax— (iv) one representative appointed by the (i) the efforts of State and local govern- (A) had been interpreted to apply to Inter- Minority Leader of the House of Representa- ments to collect sales and use taxes owed on net access services; tives. purchases from interstate sellers, the advan- (B) had been applied to Internet access (2) APPOINTMENTS.—Appointments to the tages and disadvantages of authorizing State services; and Commission shall be made not later than 45 and local governments to require such sellers (C) had been assessed to charges for Inter- days after the date of the enactment of this to collect and remit such taxes, particularly net access. Act. The chairperson shall be selected not with respect to electronic commerce, and the later than 60 days after the date of the enact- level of contacts sufficient to permit a State SHELBY AMENDMENT NO. 3775 ment of this Act. or local government to impose such taxes on (Ordered to lie on the table.) (3) VACANCIES.—Any vacancy in the Com- such interstate commerce; Mr. SHELBY submitted an amend- mission shall not affect its powers, but shall (ii) model State legislation relating to tax- be filled in the same manner as the original ation of transactions using the Internet and ment intended to be proposed by him appointment. Internet access, including uniform terminol- to amendment No. 3686 submitted by (c) ACCEPTANCE OF GIFTS AND GRANTS.— ogy, definitions of the transactions, services, Mr. SHELBY to the bill, S. 442, supra; as The Commission may accept, use, and dis- and other activities that may be subject to follows: pose of gifts or grants of services or prop- State and local taxation, procedural struc- In lieu of the language to be inserted, in- erty, both real and personal, for purposes of tures and mechanisms applicable to such sert the following, aiding or facilitating the work of the Com- taxation, and a mechanism for the resolution mission. Gifts or grants not used at the expi- of disputes between States regarding matters SECTION 1. SHORT TITLE. ration of the Commission shall be returned of multiple taxation; and This Act may be cited as the ‘‘Internet Tax to the donor or grantor. (iii) ways to simplify the interstate admin- Freedom Act’’. (d) OTHER RESOURCES.—The Commission istration of sales and use taxes on interstate TITLE I—MORATORIUM ON CERTAIN shall have reasonable access to materials, re- commerce, including a review of the need for TAXES sources, data, and other information from a single or uniform tax registration, single SEC. 101. MORATORIUM. the Department of Justice, the Department or uniform tax returns, simplified remit- of Commerce, the Department of State, the (a) MORATORIUM.—No State or political tance requirements, simplified administra- Department of the Treasury, and the Office subdivision thereof shall impose any of the tive procedures, or the need for an independ- of the United States Trade Representative. following taxes on transactions occurring ent third party collection system; and The Commission shall also have reasonable during the period beginning on July 29, 1998, (E) the examination of ways to simplify access to use the facilities of any such De- and ending 4 years after the date of the en- Federal and State and local taxes imposed on partment or Office for purposes of conduct- actment of this Act: the provision of telecommunications serv- ing meetings. ices. (1) Taxes on Internet access. (e) SUNSET.—The Commission shall termi- (2) Bit taxes. nate 18 months after the date of the enact- SEC. 103. REPORT. (3) Multiple or discriminatory taxes on ment of this Act. Not later than 18 months after the date of electronic commerce. (f) RULES OF THE COMMISSION.— the enactment of this Act, the Commission (b) APPLICATION OF MORATORIUM.—Sub- (1) QUORUM.—Nine members of the Com- shall transmit to Congress a report reflect- section (a) shall not apply with respect to mission shall constitute a quorum for con- ing the results of the Commission’s study the provision of Internet access that is of- ducting the business of the Commission. under this title. No finding or recommenda- fered for sale as part of a package of services (2) MEETINGS.—Any meetings held by the tion shall be included in the report unless that includes services other than Internet Commission shall be duly noticed at least 14 agreed to by at least two-thirds of the mem- access, unless the service provider separately days in advance and shall be open to the pub- bers of the Commission serving at the time states that portion of the billing that applies lic. the finding or recommendation is made. to such services on the user’s bill. (3) OPPORTUNITIES TO TESTIFY.—The Com- SEC. 104. DEFINITIONS. SEC. 102. ADVISORY COMMISSION ON ELEC- mission shall provide opportunities for rep- For the purposes of this title: TRONIC COMMERCE. resentatives of the general public, taxpayer (1) BIT TAX.—The term ‘‘bit tax’’ means (a) ESTABLISHMENT OF COMMISSION.—There groups, consumer groups, and State and any tax on electronic commerce expressly is established a commission to be known as local government officials to testify. imposed on or measured by the volume of the Advisory Commission on Electronic (4) ADDITIONAL RULES.—The Commission digital information transmitted electroni- Commerce (in this title referred to as the may adopt other rules as needed. cally, or the volume of digital information ‘‘Commission’’). The Commission shall— (g) DUTIES OF THE COMMISSION.— per unit of time transmitted electronically, (1) be composed of 16 members appointed in (1) IN GENERAL.—The Commission shall but does not include taxes imposed on the accordance with subsection (b), including the conduct a thorough study of Federal, State provision of telecommunications services. chairperson who shall be selected by the and local, and international taxation and (2) DISCRIMINATORY TAX.—The term ‘‘dis- members of the Commission from among tariff treatment of transactions using the criminatory tax’’ means any tax imposed by themselves; and Internet and Internet access and other com- a State or political subdivision thereof on (2) conduct its business in accordance with parable interstate or international sales ac- electronic commerce that— the provisions of this title. tivities. (A) is not generally imposed and legally (b) MEMBERSHIP.— (2) ISSUES TO BE STUDIED.—The Commission collectible by such State or such political (1) IN GENERAL.—The Commissioners shall may include in the study under subsection subdivision on transactions involving the serve for the life of the Commission. The (a)— same or similar property, goods, services, or membership of the Commission shall be as (A) an examination of— information accomplished through other follows: (i) barriers imposed in foreign markets on means; (A) Four representatives from the Federal United States providers of property, goods, (B) is not generally imposed and legally Government comprised of the Secretary of services, or information engaged in elec- collectible at the same rate by such State or S11786 CONGRESSIONAL RECORD — SENATE October 7, 1998

such political subdivision on transactions in- 153(46)) and includes communications serv- (c) ELECTRONIC COMMERCE.—For purposes volving the same or similar property, goods, ices (as defined in section 4251 of the Internal of this section, the term ‘‘electronic com- services, or information accomplished Revenue Code of 1986). merce’’ has the meaning given that term in through other means, unless the rate is TITLE II—OTHER PROVISIONS section 104(3). lower as part of a phase-out of the tax over SEC. 201. DECLARATION THAT INTERNET SEC. 204. NO EXPANSION OF TAX AUTHORITY. not more than a 5-year period; or SHOULD BE FREE OF NEW FEDERAL Nothing in this Act shall be construed to (C) imposes an obligation to collect or pay TAXES. expand the duty of any person to collect or the tax on a different person or entity than It is the sense of Congress that no new Fed- pay taxes beyond that which existed imme- in the case of transactions involving the eral taxes similar to the taxes described in diately before the date of the enactment of same or similar property, goods, services, or section 101(a) should be enacted with respect this Act. information accomplished through other to the Internet and Internet access during SEC. 205. PRESERVATION OF AUTHORITY. means. the moratorium provided in such section. Nothing in this Act shall limit or other- (3) ELECTRONIC COMMERCE.—The term SEC. 202. NATIONAL TRADE ESTIMATE. ‘‘electronic commerce’’ means any trans- wise affect the implementation of the Tele- Section 181 of the Trade Act of 1974 (19 communications Act of 1996 (Public Law 104– action conducted over the Internet or U.S.C. 2241) is amended— 104) or the amendments made by such Act. through Internet access, comprising the sale, (1) in subsection (a)(1)— lease, license, offer, or delivery of property, (A) in subparagraph (A)— SECTION 1. SHORT TITLE. goods, services, or information, whether or (i) by striking ‘‘and’’ at the end of clause This Act may be cited as the ‘‘Government not for consideration, and includes the provi- (i); Paperwork Elimination Act.’’ sion of Internet access. (ii) by inserting ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- (4) INTERNET.—The term ‘‘Internet’’ means (ii); and MATION TECHNOLOGY. the combination of computer facilities and (iii) by inserting after clause (ii) the fol- Section 3504(a)(1)(B)(vi) of title 44, United electromagnetic transmission media, and re- lowing new clause: States Code, is amended to read as follows: lated equipment and software, comprising ‘‘(iii) United States electronic commerce,’’; ‘‘(vi) the acquisition and use of informa- the interconnected worldwide network of and tion technology, including the use of alter- computer networks that employ the Trans- (B) in subparagraph (C)— native information technologies (such as the mission Control Protocol/Internet Protocol, (i) by striking ‘‘and’’ at the end of clause use of electronic submission, maintenance, or any predecessor or successor protocol, to (i); or disclosure of information) to substitute transmit information. (ii) by inserting ‘‘and’’ at the end of clause for paper, and the use and acceptance of elec- (5) INTERNET ACCESS.—The term ‘‘Internet (ii); tronic signatures.’’. access’’ means a service that enables users to (iii) by inserting after clause (ii) the fol- SEC. 3. PROCEDURES. access content, information, electronic mail, lowing new clause: (a) Within 18 months after enactment of or other services offered over the Internet, ‘‘(iii) the value of additional United States this Act, in order to fulfill the responsibility and may also include access to proprietary electronic commerce,’’; and to administer the functions assigned under content, information, and other services as (iv) by inserting ‘‘or transacted with,’’ chapter 35 of title 44, United States Code, the part of a package of services offered to con- after ‘‘or invested in’’; Clinger-Cohen Act of 1996 (P.L. 104–106), and sumers. Such term does not include tele- (2) in subsection (a)(2)(E)— the provisions of this Act, the Director of communications services. (A) by striking ‘‘and’’ at the end of clause the Office of Management and Budget shall (6) MULTIPLE TAX.— (i); develop procedures and guidelines for execu- (A) IN GENERAL.—The term ‘‘multiple tax’’ (B) by inserting ‘‘and’’ at the end of clause tive agency use. means any tax that is imposed by one State (ii); and (1) The procedures shall be compatible with or political subdivision thereof on the same (C) by inserting after clause (ii) the follow- standards and technology for electronic sig- or essentially the same electronic commerce ing new clause: natures as may be generally used in com- that is also subject to another tax imposed ‘‘(iii) the value of electronic commerce merce and industry and by State govern- by another State or political subdivision thereof (whether or not at the same rate or transacted with,’’; and ments, based upon consultation with appro- on the same basis), without a credit (for ex- (3) by adding at the end the following new priate private sector and State government ample, a resale exemption certificate) for subsection: standard setting bodies. ‘‘(d) ELECTRONIC COMMERCE.—For purposes taxes paid in other jurisdictions. (2) Such procedures shall not inappropri- of this section, the term ‘electronic com- ately favor one industry or technology. (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in clude a sales or use tax imposed by a State (3) An electronic signature shall be as reli- section 104(3) of the Internet Tax Freedom and 1 or more political subdivisions thereof able as is appropriate for the purpose, and ef- Act.’’. on the same electronic commerce or a tax on forts shall be made to keep the information persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET submitted intact. SHOULD BE FREE OF FOREIGN TAR- (4) Successful submission of an electronic which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER or use tax thereon. form shall be electronically acknowledged. RESTRICTIONS. (5) In accordance with all other sections of (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- the Act, to the extent feasible and appro- subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- priate, and described in a written finding, an tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements agency, when it expects to receive electroni- dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- cally 50,000 or more submittals of a particu- tion, distribution, or other use of tangible merce through the World Trade Organiza- lar form, shall take all steps necessary to en- personal property or services as may be de- tion, the Organization for Economic Co- fined by laws imposing such tax and which is operation and Development, the Trans-At- sure that multiple formats of electronic sig- measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- natures are made available for submitting other charge for such property or service. cific Economic Cooperation forum, the Free such forms. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- the several States, the District of Columbia, ican Free Trade Agreement, and other appro- RECTOR OF THE OFFICE OF MAN- or any commonwealth, territory, or posses- priate venues. AGEMENT AND BUDGET. sion of the United States. (b) NEGOTIATING OBJECTIVES.—The nego- In order to fulfill the responsibility to ad- (8) TAX.— tiating objectives of the United States shall minister the functions assigned under chap- (A) IN GENERAL.—The term ‘‘tax’’ means— be— ter 35 of title 44, United States Code, the (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is Clinger-Cohen Act of 1996 (P.L. 104–106), and governmental authority by any govern- free from— the provisions of this Act, the Director of mental entity; or (A) tariff and nontariff barriers; the Office of Management and Budget shall (ii) the imposition of or obligation to col- (B) burdensome and discriminatory regula- ensure that, within five years of the date of lect and to remit to a governmental entity tion and standards; and enactment of this Act, executive agencies any such levy, fee, or charge imposed by a (C) discriminatory taxation; and provide for the optional use of electronic governmental entity. (2) to accelerate the growth of electronic maintenance, submission, or disclosure of in- (B) EXCEPTION.—Such term shall not in- commerce by expanding market access op- formation where practicable, as an alter- clude any franchise fees or similar fees im- portunities for— native information technology to substitute posed by a State or local franchising author- (A) the development of telecommuni- for paper, and the use and acceptance of elec- ity, pursuant to section 622 or 653 of the cations infrastructure; tronic signatures where practicable. Communications Act of 1934 (47 U.S.C. 542, (B) the procurement of telecommuni- SEC. 5. ELECTRONIC STORAGE OF FORMS. 573). cations equipment; Within 18 months of enactment of this Act, (9) TELECOMMUNICATIONS SERVICES.—The (C) the provision of Internet access and in order to fulfill the responsibility to ad- term ‘‘telecommunications services’’ has the telecommunications services; and minister the functions assigned under chap- meaning given such term in section 3(46) of (D) the exchange of goods, services, and ter 35 of title 44, United States Code, the the Communications Act of 1934 (47 U.S.C. digitalized information. Clinger-Cohen Act of 1996 (P.L. 104–106), and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11787 the provisions of this Act, the Director of or visitors to such website or online service, notice of the operator’s personal information the Office of Management and Budget shall or on whose behalf such information is col- collection, use, and disclosure practices, and develop procedures and guidelines for execu- lected or maintained, where such website or authorizes the collection, use, and disclo- tive agency use to permit employer elec- online service is operated for commercial sure, as applicable, of personal information tronic storage and filing of forms containing purposes, including any person offering prod- and the subsequent use of that information information pertaining to employees. ucts or services for sale through that website before that information is collected from SEC. 6. STUDY. or online service, involving commerce— that child. In order to fulfill the responsibility to ad- (i) among the several States or with 1 or (10) WEBSITE OR ONLINE SERVICE DIRECTED minister the functions assigned under chap- more foreign nations; TO CHILDREN.— (A) IN GENERAL.—The term ‘‘website or on- ter 35 of title 44, United States Code, the (ii) in any territory of the United States or in the District of Columbia, or between any line service directed to children’’ means— Clinger-Cohen Act of 1996 (P.L. 104–106), and (i) A commercial website or online service the provisions of this Act, the Director of such territory and— (I) another such territory; or that is targeted to children; or the Office of Management and Budget, shall (ii) that portion of a commercial website conduct an ongoing study of paperwork re- (II) any State or foreign nation; or (iii) between the District of Columbia and or online service that is targeted to children. duction and electronic commerce, the im- (B) LIMITATION.—A commercial website or any State, territory, or foreign nation; but pact on individual privacy, and the security online service, or a portion of a commercial and authenticity of transactions due to the (B) does not include any non-profit entity that would otherwise be exempt from cov- website or online service, shall not be use of electronic signatures pursuant to this deemed directed to children solely for refer- erage under section 5 of the Federal Trade Act, and shall report the findings to Con- ring or linking to a commercial website or Commission Act (15 U.S.C. 45). gress. online service directed to children by using (3) COMMISSION.—The term ‘‘Commission’’ SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF information location tools, including a direc- means the Federal Trade Commission. ELECTRONIC RECORDS. tory, index, reference, pointer, or hypertext (4) DISCLOSURE.—The term ‘‘disclosure’’ Electronic records submitted or main- link. means, with respect to personal informa- tained in accordance with agency procedures (11) PERSON.—The term ‘‘person’’ means tion— and guidelines established pursuant to this any individual, partnership, corporation, (A) the release of personal information col- title, or electronic signatures or other forms trust, estate, cooperative, association, or lected from a child in identifiable form by an of electronic authentication used in accord- other entity. operator for any purpose, except where such ance with such procedures and guidelines, (12) ONLINE CONTACT INFORMATION.—The information is provided to a person other shall not be denied legal effect, validity or term ‘‘online contact information’’ means an than the operator who provides support for enforceability because they are in electronic e-mail address or another substantially simi- the internal operations of the website and form. lar identifier that permits direct contact does not disclose or use that information for SEC. 8. DISCLOSURE OF INFORMATION. with a person online. any other purpose; and SEC. 203. REGULATION OF UNFAIR AND DECEP- Except as provided by law, information (B) making personal information collected collected in the provision of electronic signa- TIVE ACTS AND PRACTICES IN CON- from a child by a website or online service NECTION WITH THE COLLECTION ture services for communications with an directed to children or with actual knowl- AND USE OF PERSONAL INFORMA- agency, as provided by this Act, shall only be edge that such information was collected TION FROM AND ABOUT CHILDREN used or disclosed by persons who obtain, col- from a child, publicly available in identifi- ON THE INTERNET. lect, or maintain such information as a busi- able form, by any means including by a pub- (A) ACTS PROHIBITED.— ness or government practice, for the purpose lic posting, through the Internet, or (1) IN GENERAL.—It is unlawful for an oper- of facilitating such communications, or with through— ator of a website or online service directed to the prior affirmative consent of the person (i) a home page of a website; children, or any operator that has actual about whom the information pertains. (ii) a pen pal service; knowledge that it is collecting personal in- SEC. 9. APPLICATION WITH OTHER LAWS. (iii) an electronic mail service; formation from a child, to collect personal Nothing in this title shall apply to the De- (iv) a message board; or information from a child in a manner that partment of the Treasury or the Internal (v) a chat room. violates the regulations prescribed under Revenue Service, to the extent that— (5) FEDERAL AGENCY.—The term ‘‘Federal subsection (b). (1) it involves the administration of the in- agency’’ means an agency, as that term is (2) DISCLOSURE TO PARENT PROTECTED.— ternal revenue laws; and defined in section 551(1) of title 5, United Notwithstanding paragraph (1), neither an (2) it conflicts with any provision of the In- States Code. operator of such a website or online service nor the operator’s agent shall be held to be ternal Revenue Service Restructuring and (6) INTERNET.—The term ‘‘Internet’’ means Reform Act of 1998 or the Internal Revenue collectively the myriad of computer and liable under any Federal or State law for any disclosure made in good faith and following Code of 1986. telecommunications facilities, including reasonable procedures in responding to a re- equipment and operating software, which SEC. 10. DEFINITIONS. quest for disclosure of personal information comprise the interconnected world-wide net- For purposes of this Act: under subsection (b)(1)(B)(iii) to the parent work of networks that employ the Trans- (1) EXECUTIVE AGENCY.—The term ‘‘execu- of a child. mission Control Protocol/Internet Protocol, tive agency’’ has the meaning given that (b) REGULATIONS.— term in section 105 of title 5, United States or any predecessor or successor protocols to (1) IN GENERAL.—Not later than 1 year after Code. such protocol, to communicate information the date of the enactment of this Act, the (2) ELECTRONIC SIGNATURE.—The term of all kinds by wire or radio. Commission shall promulgate under section ‘‘electronic signature’’ means a method of (7) PARENT.—The term ‘‘parent’’ includes a 553 of title 5, United States Code, regulations signing an electronic message that— legal guardian. that— (A) identifies and authenticates a particu- (8) PERSONAL INFORMATION.—The term (A) require the operator of any website or lar person as the source of such electronic ‘‘personal information’’ means individually online service directed to children that col- message; and identifiable information about an individual lects personal information from children or (B) indicates such person’s approval of the collected online, including— the operator of a website or online service information contained in such electronic (A) a first and last name; that has actual knowledge that it is collect- message. (B) a home or other physical address in- ing personal information from a child— (3) FORM, QUESTIONNAIRE, OR SURVEY.—The cluding street name and name of a city or (i) to provide notice on the website of what terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- town; information is collected from children by the vey’’ include documents produced by an (C) an e-mail address; operator, how the operator uses such infor- agency to facilitate interaction between an (D) a telephone number; mation, and the operator’s disclosure prac- agency and non-government persons. (E) a Social Security number; tices for such information; and (F) any other identifier that the Commis- TITLE II—CHILDREN’S ONLINE PRIVACY (ii) to obtain verifiable parental consent sion determines permits the physical or on- PROTECTION for the collection, use, or disclosure of per- line contracting of a specific individual; or sonal information from children; SEC. 201. SHORT TITLE. (G) information concerning the child or the (B) require the operator to provide, upon This title may be cited as the ‘‘Children’s parents of that child that the website col- request of a parent under this subparagraph Online Privacy Protection Act of 1999’’. lects online from the child and combines whose child has provided personal informa- SEC. 202. DEFINITIONS. with an identifier described in this para- tion to that website or online service, upon In this title: graph. proper identification of that parent, to such (1) CHILD.—the term ‘‘child’’ means an in- (9) VERIFIABLE PARENTAL CONSENT.—The parent— dividual under the age of 13. term ‘‘verifiable parental consent’’ means (i) a description of the specific types of (2) OPERATOR.—The term ‘‘operator’’— any reasonable effort (taking into consider- personal information collected from the (A) means any person who operates a ation available technology), including a re- child by that operator; website located on the Internet or an online quest for authorization for future collection (ii) the opportunity at any time to refuse service and who collects or maintains per- use, and disclosure described in the notice, to permit the operator’s further use or main- sonal information from or about the users of to ensure that a parent of a child receives tenance in retrievable form, or future online S11788 CONGRESSIONAL RECORD — SENATE October 7, 1998 collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- (A) online contact information collected SEC. 204. SAFE HARBORS. section (a), it shall have the right— (A) to be heard with respect to any matter from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy that arises in that action; and rectly on a one-time basis to a specific re- the requirements of regulations issued under (B) to file a petition for appeal. quest from the child and is not used to re- section 203(b) by following a set of self-regu- (3) AMICUS CURIAE.—Upon application to contact the child and is not maintained in latory guidelines, issued by representatives the court, a person whose self-regulatory retrievable form by the operator; of the marketing or online industries, or by guidelines have been approved by the Com- (B) a request for the name or online con- other persons, approved under subsection (b). mission and are relied upon as a defense by tact information of a parent or child that is (b) INCENTIVES.— any defendant to a proceeding under this sec- used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- tion may file amicus curiae in that proceed- tal consent or providing notice under this scribing regulations under section 203, the ing. section and where such information is not Commission shall provide incentives for self- (c) CONSTRUCTION.—For purposes of bring- maintained in retrievable form by the opera- regulation by operators to implement the ing any civil action under subsection (a), tor if parental consent is not obtained after protections afforded children under the regu- nothing in this title shall be construed to a reasonable time; latory requirements described in subsection prevent an attorney general of a State from (C) online contact information collected (b) of that section. exercising the powers conferred on the attor- from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives ney general by the laws of that State to— more than once directly to a specific request shall include provisions for ensuring that a from the child and is not used to recontact (1) conduct investigations; person will be deemed to be in compliance (2) administer oaths or affirmations; or the child beyond the scope of that request— with the requirements of the regulations (3) compel the attendance of witnesses or (i) if, before any additional response after under section 203 if that person complies the production of documentary and other the initial response to the child, the operator with guidelines that, after notice and com- evidence. uses reasonable efforts to provide a parent ment, are approved by the Commission upon (d) ACTIONS BY THE COMMISSION.—In any notice of the online contact information col- making a determination that the guidelines case in which an action is instituted by or on lected from the child, the purposes for which meet the requirements of the regulations behalf of the Commission for violation of it is to be used, and an opportunity for the issued under section 203. any regulation prescribed under section 293, parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The no State may, during the pendency of that further use of the information and that it Commission shall act upon requests for safe action, institute an action under subsection not be maintained in retrievable form; or harbor treatment within 180 days of the fil- (a) against any defendant named in the com- (ii) without notice to the parent in such ing of the request, and shall set forth in plaint in that action for violation of that circumstances as the Commission may deter- writing its conclusions with regard to such regulation. mine are appropriate, taking into consider- requests. (e) VENUE; SERVICE OF PROCESS.— ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- (1) VENUE.—Any action brought under sub- information and services, and risks to the se- sion on a request for approval of guidelines, section (a) may be brought in the district curity and privacy of the child, in regula- or the failure to act within 180 days on a re- court of the United States that meets appli- tions promulgated under this subsection; quest for approval of guidelines, submitted cable requirements relating to venue under (D) the name of the child and online con- under subsection (b) may be appealed to a section 1391 of title 28, United States Code. tact information (to the extent reasonably district court of the United States of appro- (2) SERVICE OF PROCESS.—In an action necessary to protect the safety of a child priate jurisdiction as provided for in section brought under subsection (a), process may be participant on the site)— 706 of title 5, United States Code. served in any district in which the defend- (i) used only for the purpose of protecting SEC. 205. ACTIONS BY STATES. ant— such safety; (a) IN GENERAL.— (A) is an inhabitant; or (ii) not used to recontact the child or for (1) CIVIL ACTIONS.—In any case in which the (B) may be found. any other purpose; and attorney general of a State has reason to be- SEC. 206. ADMINISTRATION AND APPLICABILITY (iii) not disclosed on the site, lieve that an interest of the residents of that OF ACT. if the operator uses reasonable efforts to pro- State has been or is threatened or adversely (a) IN GENERAL.—Except as otherwise pro- vide a parent notice of the name and online affected by the engagement of any person in vided, this title shall be enforced by the contact information collected from the a practice that violates any regulation of the Commission under the Federal Trade Com- child, the purposes for which it is to be used, Commission prescribed under section 203(b), mission Act (15 U.S.C. 41 et seq.). and an opportunity for the parent to request the State, as parens patriae, may bring a (b) PROVISIONS.—Compliance with the re- that the operator make no further use of the civil action on behalf of the residents of the quirements imposed under this title shall be information and that it not be maintained in State in a district court of the United States enforced under— retrievable form; or of appropriate jurisdiction to— (1) section 8 of the Federal Deposit Insur- (E) the collection, use, or dissemination of (A) enjoin that practice; ance Act (12 U.S.C. 1818), in the case of— such information by the operator of such a (B) enforce compliance with the regula- (A) national banks, and Federal branches website or online service necessary— tion; and Federal agencies of foreign banks, by the (i) to protect the security or integrity of (C) obtain damage, restitution, or other Office of the Comptroller of the Currency; its website; compensation on behalf of residents of the (B) member banks of the Federal Reserve (ii) to take precautions against liability; State; or System (other than national banks), (iii) to respond to judicial process; or (D) obtain such other relief as the court branches and agencies of foreign banks (iv) to the extent permitted under other may consider to be appropriate. (other than Federal branches, Federal agen- provisions of law, to provide information to (2) NOTICE.— cies, and insured State branches of foreign law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action banks), commercial lending companies tigation on a matter related to public safety. under paragraph (1), the attorney general of owned or controlled by foreign banks, and (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- organizations operating under section 25 or tions shall permit the operator of a website mission— 25(a) of the Federal Reserve Act (12 U.S.C. or an online service to terminate service pro- (i) written notice of that action; and 601 et seq. and 611 et. seq.), by the Board; and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11789 (C) banks insured by the Federal Deposit (2) the date on which the Commission rules (iv) one representative appointed by the Insurance Corporation (other than members on the first application for safe harbor treat- Minority Leader of the House of Representa- of the Federal Reserve System) and insured ment under section 204 if the Commission tives. State branches of foreign banks, by the does not rule on the first such application (2) APPOINTMENTS.—Appointments to the Board of Directors of the Federal Deposit In- within one year after the date of enactment Commission shall be made not later than 45 surance Corporation; of this Act, but in no case later than the date days after the date of the enactment of this (2) section 8 of the Federal Deposit Insur- that is 30 months after the date of enact- Act. The chairperson shall be selected not ance Act (12 U.S.C. 1818), by the Director of ment of this Act. later than 60 days after the date of the enact- the Office of Thrift Supervision, in the case ment of this Act. of a savings association the deposits of which SHELBY AMENDMENT NO. 3776 (3) VACANCIES.—Any vacancy in the Com- are insured by the Federal Deposit Insurance mission shall not affect its powers, but shall Corporation; (Ordered to lie on the table.) be filled in the same manner as the original (3) the Federal Credit Union Act (12 U.S.C. Mr. SHELBY submitted an amend- appointment. 1751 et seq.) by the National Credit Union ment intended to be proposed by him (c) ACCEPTANCE OF GIFTS AND GRANTS.— Administration Board with respect to any to amendment No. 3685 submitted by The Commission may accept, use, and dis- Federal credit union; Mr. SHELBY to the bill, S. 442, supra; as pose of gifts or grants of services or prop- (4) part A of subtitle VII of title 49, United follows: erty, both real and personal, for purposes of States Code, by the Secretary of Transpor- In lieu of the language to be inserted, in- aiding or facilitating the work of the Com- tation with respect to any air carrier or for- sert the following, mission. Gifts or grants not used at the expi- eign air carrier subject to that part; SECTION 1. SHORT TITLE. ration of the Commission shall be returned (5) the Packers and Stockyards Act, 1921 (7 to the donor or grantor. U.S.C. 181 et. seq.) (except as provided in sec- This Act may be cited as the ‘‘Internet Tax Freedom Act’’. (d) OTHER RESOURCES.—The Commission tion 406 of that Act (7 U.S.C. 226, 227)), by the shall have reasonable access to materials, re- Secretary of Agriculture with respect to any TITLE I—MORATORIUM ON CERTAIN sources, data, and other information from activities subject to that Act; and TAXES the Department of Justice, the Department (6) the Farm Credit Act of 1971 (12 U.S.C. SEC. 101. MORATORIUM. of Commerce, the Department of State, the (2001 et seq.) by the Farm Credit Administra- (a) MORATORIUM.—No State or political Department of the Treasury, and the Office tion with respect to any Federal land bank, subdivision thereof shall impose any of the of the United States Trade Representative. Federal land bank association, Federal inter- following taxes on transactions occurring The Commission shall also have reasonable mediate credit bank, or production credit as- during the period beginning on July 29, 1998, access to use the facilities of any such De- sociation. and ending 3 years after the date of the en- partment or Office for purposes of conduct- (c) EXERCISE OF CERTAIN POWERS.—For the actment of this Act: purpose of the exercise by any agency re- (1) Taxes on Internet access. ing meetings. ferred to in subsection (a) of its powers under (2) Bit taxes. (e) SUNSET.—The Commission shall termi- any Act referred to in that subsection, a vio- (3) Multiple or discriminatory taxes on nate 18 months after the date of the enact- lation of any requirement imposed under electronic commerce. ment of this Act. this title shall be deemed to be a violation of (b) APPLICATION OF MORATORIUM.—Sub- (f) RULES OF THE COMMISSION.— a requirement imposed under that Act. In section (a) shall not apply with respect to (1) QUORUM.—Nine members of the Com- addition to its powers under any provision of the provision of Internet access that is of- mission shall constitute a quorum for con- law specifically referred to in subsection (a), fered for sale as part of a package of services ducting the business of the Commission. each of the agencies referred to in that sub- that includes services other than Internet (2) MEETINGS.—Any meetings held by the section may exercise, for the purpose of en- access, unless the service provider separately Commission shall be duly noticed at least 14 forcing compliance with any requirement states that portion of the billing that applies days in advance and shall be open to the pub- imposed under this title, any other authority to such services on the user’s bill. lic. conferred on it by law. SEC. 102. ADVISORY COMMISSION ON ELEC- (3) OPPORTUNITIES TO TESTIFY.—The Com- (d) ACTIONS BY THE COMMISSION.—The Com- TRONIC COMMERCE. mission shall provide opportunities for rep- mission shall prevent any person from vio- (a) ESTABLISHMENT OF COMMISSION.—There resentatives of the general public, taxpayer lating a rule of the Commission under sec- is established a commission to be known as groups, consumer groups, and State and tion 203 in the same manner, by the same the Advisory Commission on Electronic local government officials to testify. means, and with the same jurisdiction, pow- Commerce (in this title referred to as the (4) ADDITIONAL RULES.—The Commission ers, and duties as though all applicable ‘‘Commission’’). The Commission shall— may adopt other rules as needed. terms and provisions of the Federal Trade (1) be composed of 16 members appointed in (g) DUTIES OF THE COMMISSION.— Commission Act (15 U.S.C. 41 et seq.) were accordance with subsection (b), including the (1) IN GENERAL.—The Commission shall incorporated into and made a part of this chairperson who shall be selected by the conduct a thorough study of Federal, State title. Any entity that violates such rule members of the Commission from among and local, and international taxation and shall be subject to the penalties and entitled themselves; and tariff treatment of transactions using the to the privileges and immunities provided in (2) conduct its business in accordance with Internet and Internet access and other com- the Federal Trade Commission Act in the the provisions of this title. parable interstate or international sales ac- same manner, by the same means, and with (b) MEMBERSHIP.— tivities. the same jurisdiction, power, and duties as (1) IN GENERAL.—The Commissioners shall (2) ISSUES TO BE STUDIED.—The Commission though all applicable terms and provisions of serve for the life of the Commission. The may include in the study under subsection the Federal Trade Commission Act were in- membership of the Commission shall be as (a)— corporated into and made a part of this title. follows: (A) an examination of— (e) EFFECT ON OTHER LAWS.—Nothing con- (A) Four representatives from the Federal (i) barriers imposed in foreign markets on tained in the Act shall be construed to limit Government comprised of the Secretary of United States providers of property, goods, the authority of the Commission under any Commerce, the Secretary of State, the Sec- services, or information engaged in elec- other provisions of law. retary of the Treasury, and the United tronic commerce and on United States pro- SEC. 207. REVIEW. States Trade Representative, or their respec- viders of telecommunications services; and (a) IN GENERAL.—Not later than 5 years tive representatives. (ii) how the imposition of such barriers after the effective date of the regulations (B) Six representatives from State and will affect United States consumers, the initially issued under section 203, the Com- local governments comprised of— competitiveness of United States citizens mission shall— (i) two representatives appointed by the providing property, goods, services, or infor- (1) review the implementation of this title, Majority Leader of the Senate; mation in foreign markets, and the growth including the effect of the implementation of (ii) one representative appointed by the and maturing of the Internet; this title on practices relating to the collec- Minority Leader of the Senate; (B) an examination of the collection and tion and disclosure of information relating (iii) two representatives appointed by the administration of consumption taxes on to children, children’s ability to obtain ac- Speaker of the House of Representatives; and interstate commerce in other countries and cess to information of their choice online, (iv) one representative appointed by the the United States, and the impact of such and on the availability of websites directed Minority Leader of the House of Representa- collection on the global economy, including to children; and tives. an examination of the relationship between (2) prepare and submit to Congress a report (C) Six representatives of the electronic in- the collection and administration of such on the results of the review under paragraph dustry and consumer groups comprised of— taxes when the transaction uses the Internet (1). (i) two representatives appointed by the and when it does not; SEC. 208. EFFECTIVE DATE. Majority Leader of the Senate; (C) an examination of the impact of the Sections 203(a), 205, and 206 of this title (ii) one representative appointed by the Internet and Internet access (particularly take effect on the later of— Minority Leader of the Senate; voice transmission) on the revenue base for (1) the date that is 18 months after the date (iii) two representatives appointed by the taxes imposed under section 4251 of the In- of enactment of this Act; or Speaker of the House of Representatives; and ternal Revenue Code of 1986; S11790 CONGRESSIONAL RECORD — SENATE October 7, 1998 (D) an examination of— electromagnetic transmission media, and re- (iii) by inserting after clause (ii) the fol- (i) the efforts of State and local govern- lated equipment and software, comprising lowing new clause: ments to collect sales and use taxes owed on the interconnected worldwide network of ‘‘(iii) United States electronic commerce,’’; purchases from interstate sellers, the advan- computer networks that employ the Trans- and tages and disadvantages of authorizing State mission Control Protocol/Internet Protocol, (B) in subparagraph (C)— and local governments to require such sellers or any predecessor or successor protocol, to (i) by striking ‘‘and’’ at the end of clause to collect and remit such taxes, particularly transmit information. (i); with respect to electronic commerce, and the (5) INTERNET ACCESS.—The term ‘‘Internet (ii) by inserting ‘‘and’’ at the end of clause level of contacts sufficient to permit a State access’’ means a service that enables users to (ii); or local government to impose such taxes on access content, information, electronic mail, (iii) by inserting after clause (ii) the fol- such interstate commerce; or other services offered over the Internet, lowing new clause: (ii) model State legislation relating to tax- and may also include access to proprietary ‘‘(iii) the value of additional United States ation of transactions using the Internet and content, information, and other services as electronic commerce,’’; and Internet access, including uniform terminol- part of a package of services offered to con- (iv) by inserting ‘‘or transacted with,’’ ogy, definitions of the transactions, services, sumers. Such term does not include tele- after ‘‘or invested in’’; and other activities that may be subject to communications services. (2) in subsection (a)(2)(E)— State and local taxation, procedural struc- (6) MULTIPLE TAX.— (A) by striking ‘‘and’’ at the end of clause tures and mechanisms applicable to such (A) IN GENERAL.—The term ‘‘multiple tax’’ (i); taxation, and a mechanism for the resolution means any tax that is imposed by one State (B) by inserting ‘‘and’’ at the end of clause of disputes between States regarding matters or political subdivision thereof on the same (ii); and of multiple taxation; and or essentially the same electronic commerce (C) by inserting after clause (ii) the follow- (iii) ways to simplify the interstate admin- that is also subject to another tax imposed ing new clause: istration of sales and use taxes on interstate by another State or political subdivision ‘‘(iii) the value of electronic commerce commerce, including a review of the need for thereof (whether or not at the same rate or transacted with,’’; and a single or uniform tax registration, single on the same basis), without a credit (for ex- (3) by adding at the end the following new or uniform tax returns, simplified remit- ample, a resale exemption certificate) for subsection: tance requirements, simplified administra- taxes paid in other jurisdictions. ‘‘(d) ELECTRONIC COMMERCE.—For purposes of this section, the term ‘electronic com- tive procedures, or the need for an independ- (B) EXCEPTION.—Such term shall not in- merce’ has the meaning given that term in ent third party collection system; and clude a sales or use tax imposed by a State section 104(3) of the Internet Tax Freedom (E) the examination of ways to simplify and 1 or more political subdivisions thereof Act.’’. Federal and State and local taxes imposed on on the same electronic commerce or a tax on the provision of telecommunications serv- persons engaged in electronic commerce SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF FOREIGN TAR- ices. which also may have been subject to a sales IFFS, TRADE BARRIERS, AND OTHER SEC. 103. REPORT. or use tax thereon. RESTRICTIONS. Not later than 18 months after the date of (C) SALES OR USE TAX.—For purposes of (a) IN GENERAL.— It is the sense of Con- the enactment of this Act, the Commission subparagraph (B), the term ‘‘sales or use gress that the President should seek bilat- shall transmit to Congress a report reflect- tax’’ means a tax that is imposed on or inci- eral, regional, and multilateral agreements ing the results of the Commission’s study dent to the sale, purchase, storage, consump- to remove barriers to global electronic com- under this title. No finding or recommenda- tion, distribution, or other use of tangible merce through the World Trade Organiza- tion shall be included in the report unless personal property or services as may be de- tion, the Organization for Economic Co- agreed to by at least two-thirds of the mem- fined by laws imposing such tax and which is operation and Development, the Trans-At- bers of the Commission serving at the time measured by the amount of the sales price or lantic Economic Partnership, the Asia Pa- the finding or recommendation is made. other charge for such property or service. cific Economic Cooperation forum, the Free SEC. 104. DEFINITIONS. (7) STATE.—The term ‘‘State’’ means any of Trade Area of the America, the North Amer- For the purposes of this title: the several States, the District of Columbia, ican Free Trade Agreement, and other appro- priate venues. (1) BIT TAX.—The term ‘‘bit tax’’ means or any commonwealth, territory, or posses- (b) NEGOTIATING OBJECTIVES.—The nego- any tax on electronic commerce expressly sion of the United States. tiating objectives of the United States shall imposed on or measured by the volume of (8) TAX.— be— digital information transmitted electroni- (A) IN GENERAL.—The term ‘‘tax’’ means— (i) any levy, fee, or charge imposed under (1) to assure that electronic commerce is cally, or the volume of digital information free from— per unit of time transmitted electronically, governmental authority by any govern- mental entity; or (A) tariff and nontariff barriers; but does not include taxes imposed on the (B) burdensome and discriminatory regula- provision of telecommunications services. (ii) the imposition of or obligation to col- lect and to remit to a governmental entity tion and standards; and (2) DISCRIMINATORY TAX.—The term ‘‘dis- (C) discriminatory taxation; and criminatory tax’’ means any tax imposed by any such levy, fee, or charge imposed by a governmental entity. (2) to accelerate the growth of electronic a State or political subdivision thereof on commerce by expanding market access op- electronic commerce that— (B) EXCEPTION.—Such term shall not in- clude any franchise fees or similar fees im- portunities for— (A) is not generally imposed and legally (A) the development of telecommuni- collectible by such State or such political posed by a State or local franchising author- ity, pursuant to section 622 or 653 of the cations infrastructure; subdivision on transactions involving the (B) the procurement of telecommuni- same or similar property, goods, services, or Communications Act of 1934 (47 U.S.C. 542, 573). cations equipment; information accomplished through other (C) the provision of Internet access and means; (9) TELECOMMUNICATIONS SERVICES.—The term ‘‘telecommunications services’’ has the telecommunications services; and (B) is not generally imposed and legally (D) the exchange of goods, services, and collectible at the same rate by such State or meaning given such term in section 3(46) of the Communications Act of 1934 (47 U.S.C. digitalized information. such political subdivision on transactions in- (c) ELECTRONIC COMMERCE.—For purposes 153(46)) and includes communications serv- volving the same or similar property, goods, of this section, the term ‘‘electronic com- services, or information accomplished ices (as defined in section 4251 of the Internal merce’’ has the meaning given that term in through other means, unless the rate is Revenue Code of 1986). section 104(3). lower as part of a phase-out of the tax over TITLE II—OTHER PROVISIONS SEC. 204. NO EXPANSION OF TAX AUTHORITY. not more than a 5-year period; or SEC. 201. DECLARATION THAT INTERNET Nothing in this Act shall be construed to (C) imposes an obligation to collect or pay SHOULD BE FREE OF NEW FEDERAL expand the duty of any person to collect or the tax on a different person or entity than TAXES. pay taxes beyond that which existed imme- in the case of transactions involving the It is the sense of Congress that no new Fed- diately before the date of the enactment of same or similar property, goods, services, or eral taxes similar to the taxes described in this Act. information accomplished through other section 101(a) should be enacted with respect SEC. 205. PRESERVATION OF AUTHORITY. means. to the Internet and Internet access during Nothing in this Act shall limit or other- (3) ELECTRONIC COMMERCE.—The term the moratorium provided in such section. wise affect the implementation of the Tele- ‘‘electronic commerce’’ means any trans- SEC. 202. NATIONAL TRADE ESTIMATE. communications Act of 1996 (Public Law 104– action conducted over the Internet or Section 181 of the Trade Act of 1974 (19 104) or the amendments made by such Act. through Internet access, comprising the sale, U.S.C. 2241) is amended— SECTION 1. SHORT TITLE. lease, license, offer, or delivery of property, (1) in subsection (a)(1)— This Act may be cited as the ‘‘Government goods, services, or information, whether or (A) in subparagraph (A)— Paperwork Elimination Act.’’ not for consideration, and includes the provi- (i) by striking ‘‘and’’ at the end of clause SEC. 2. DIRECTION AND OVERSIGHT OF INFOR- sion of Internet access. (i); MATION TECHNOLOGY. (4) INTERNET.—The term ‘‘Internet’’ means (ii) by inserting ‘‘and’’ at the end of clause Section 3504(a)(1)(B)(vi) of title 44, United the combination of computer facilities and (ii); and States Code, is amended to read as follows: October 7, 1998 CONGRESSIONAL RECORD — SENATE S11791 ‘‘(vi) the acquisition and use of informa- and guidelines established pursuant to this (A) the release of personal information col- tion technology, including the use of alter- title, or electronic signatures or other forms lected from a child in identifiable form by an native information technologies (such as the of electronic authentication used in accord- operator for any purpose, except where such use of electronic submission, maintenance, ance with such procedures and guidelines, information is provided to a person other or disclosure of information) to substitute shall not be denied legal effect, validity or than the operator who provides support for for paper, and the use and acceptance of elec- enforceability because they are in electronic the internal operations of the website and tronic signatures.’’. form. does not disclose or use that information for SEC. 3. PROCEDURES. SEC. 8. DISCLOSURE OF INFORMATION. any other purpose; and (a) Within 18 months after enactment of Except as provided by law, information (B) making personal information collected this Act, in order to fulfill the responsibility collected in the provision of electronic signa- from a child by a website or online service to administer the functions assigned under ture services for communications with an directed to children or with actual knowl- chapter 35 of title 44, United States Code, the agency, as provided by this Act, shall only be edge that such information was collected Clinger-Cohen Act of 1996 (P.L. 104–106), and used or disclosed by persons who obtain, col- from a child, publicly available in identifi- the provisions of this Act, the Director of lect, or maintain such information as a busi- able form, by any means including by a pub- the Office of Management and Budget shall ness or government practice, for the purpose lic posting, through the Internet, or develop procedures and guidelines for execu- of facilitating such communications, or with through— tive agency use. the prior affirmative consent of the person (i) a home page of a website; (1) The procedures shall be compatible with about whom the information pertains. (ii) a pen pal service; standards and technology for electronic sig- (iii) an electronic mail service; SEC. 9. APPLICATION WITH OTHER LAWS. natures as may be generally used in com- (iv) a message board; or Nothing in this title shall apply to the De- merce and industry and by State govern- (v) a chat room. partment of the Treasury or the Internal ments, based upon consultation with appro- (5) FEDERAL AGENCY.—The term ‘‘Federal Revenue Service, to the extent that— priate private sector and State government agency’’ means an agency, as that term is (1) it involves the administration of the in- defined in section 551(1) of title 5, United standard setting bodies. ternal revenue laws; and (2) Such procedures shall not inappropri- States Code. (2) it conflicts with any provision of the In- ately favor one industry or technology. (6) INTERNET.—The term ‘‘Internet’’ means (3) An electronic signature shall be as reli- ternal Revenue Service Restructuring and collectively the myriad of computer and able as is appropriate for the purpose, and ef- Reform Act of 1998 or the Internal Revenue telecommunications facilities, including forts shall be made to keep the information Code of 1986. equipment and operating software, which submitted intact. SEC. 10. DEFINITIONS. comprise the interconnected world-wide net- (4) Successful submission of an electronic For purposes of this Act: work of networks that employ the Trans- form shall be electronically acknowledged. (1) EXECUTIVE AGENCY.—The term ‘‘execu- mission Control Protocol/Internet Protocol, (5) In accordance with all other sections of tive agency’’ has the meaning given that or any predecessor or successor protocols to the Act, to the extent feasible and appro- term in section 105 of title 5, United States such protocol, to communicate information priate, and described in a written finding, an Code. of all kinds by wire or radio. agency, when it expects to receive electroni- (2) ELECTRONIC SIGNATURE.—The term (7) PARENT.—The term ‘‘parent’’ includes a cally 50,000 or more submittals of a particu- ‘‘electronic signature’’ means a method of legal guardian. lar form, shall take all steps necessary to en- signing an electronic message that— (8) PERSONAL INFORMATION.—The term sure that multiple formats of electronic sig- (A) identifies and authenticates a particu- ‘‘personal information’’ means individually natures are made available for submitting lar person as the source of such electronic identifiable information about an individual such forms. message; and collected online, including— SEC. 4. AUTHORITY AND FUNCTIONS OF THE DI- (B) indicates such person’s approval of the (A) a first and last name; RECTOR OF THE OFFICE OF MAN- information contained in such electronic (B) a home or other physical address in- AGEMENT AND BUDGET. message. cluding street name and name of a city or In order to fulfill the responsibility to ad- (3) FORM, QUESTIONNAIRE, OR SURVEY.—The town; minister the functions assigned under chap- terms ‘‘form’’, ‘‘questionnaire’’, and ‘‘sur- (C) an e-mail address; ter 35 of title 44, United States Code, the vey’’ include documents produced by an (D) a telephone number; Clinger-Cohen Act of 1996 (P.L. 104–106), and agency to facilitate interaction between an (E) a Social Security number; the provisions of this Act, the Director of agency and non-government persons. (F) any other identifier that the Commis- sion determines permits the physical or on- the Office of Management and Budget shall TITLE II—CHILDREN’S ONLINE PRIVACY ensure that, within five years of the date of line contracting of a specific individual; or PROTECTION (G) information concerning the child or the enactment of this Act, executive agencies SEC. 201. SHORT TITLE. parents of that child that the website col- provide for the optional use of electronic This title may be cited as the ‘‘Children’s lects online from the child and combines maintenance, submission, or disclosure of in- Online Privacy Protection Act of 1999’’. with an identifier described in this para- formation where practicable, as an alter- SEC. 202. DEFINITIONS. graph. native information technology to substitute In this title: (9) VERIFIABLE PARENTAL CONSENT.—The for paper, and the use and acceptance of elec- (1) CHILD.—the term ‘‘child’’ means an in- term ‘‘verifiable parental consent’’ means tronic signatures where practicable. dividual under the age of 13. any reasonable effort (taking into consider- SEC. 5. ELECTRONIC STORAGE OF FORMS. (2) OPERATOR.—The term ‘‘operator’’— ation available technology), including a re- Within 18 months of enactment of this Act, (A) means any person who operates a quest for authorization for future collection in order to fulfill the responsibility to ad- website located on the Internet or an online use, and disclosure described in the notice, minister the functions assigned under chap- service and who collects or maintains per- to ensure that a parent of a child receives ter 35 of title 44, United States Code, the sonal information from or about the users of notice of the operator’s personal information Clinger-Cohen Act of 1996 (P.L. 104–106), and or visitors to such website or online service, collection, use, and disclosure practices, and the provisions of this Act, the Director of or on whose behalf such information is col- authorizes the collection, use, and disclo- the Office of Management and Budget shall lected or maintained, where such website or sure, as applicable, of personal information develop procedures and guidelines for execu- online service is operated for commercial and the subsequent use of that information tive agency use to permit employer elec- purposes, including any person offering prod- before that information is collected from tronic storage and filing of forms containing ucts or services for sale through that website that child. information pertaining to employees. or online service, involving commerce— (10) WEBSITE OR ONLINE SERVICE DIRECTED SEC. 6. STUDY. (i) among the several States or with 1 or TO CHILDREN.— In order to fulfill the responsibility to ad- more foreign nations; (A) IN GENERAL.—The term ‘‘website or on- minister the functions assigned under chap- (ii) in any territory of the United States or line service directed to children’’ means— ter 35 of title 44, United States Code, the in the District of Columbia, or between any (i) A commercial website or online service Clinger-Cohen Act of 1996 (P.L. 104–106), and such territory and— that is targeted to children; or the provisions of this Act, the Director of (I) another such territory; or (ii) that portion of a commercial website the Office of Management and Budget, shall (II) any State or foreign nation; or or online service that is targeted to children. conduct an ongoing study of paperwork re- (iii) between the District of Columbia and (B) LIMITATION.—A commercial website or duction and electronic commerce, the im- any State, territory, or foreign nation; but online service, or a portion of a commercial pact on individual privacy, and the security (B) does not include any non-profit entity website or online service, shall not be and authenticity of transactions due to the that would otherwise be exempt from cov- deemed directed to children solely for refer- use of electronic signatures pursuant to this erage under section 5 of the Federal Trade ring or linking to a commercial website or Act, and shall report the findings to Con- Commission Act (15 U.S.C. 45). online service directed to children by using gress. (3) COMMISSION.—The term ‘‘Commission’’ information location tools, including a direc- SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF means the Federal Trade Commission. tory, index, reference, pointer, or hypertext ELECTRONIC RECORDS. (4) DISCLOSURE.—The term ‘‘disclosure’’ link. Electronic records submitted or main- means, with respect to personal informa- (11) PERSON.—The term ‘‘person’’ means tained in accordance with agency procedures tion— any individual, partnership, corporation, S11792 CONGRESSIONAL RECORD — SENATE October 7, 1998 trust, estate, cooperative, association, or quest from the child and is not used to re- section 203(b) by following a set of self-regu- other entity. contact the child and is not maintained in latory guidelines, issued by representatives (12) ONLINE CONTACT INFORMATION.—The retrievable form by the operator; of the marketing or online industries, or by term ‘‘online contact information’’ means an (B) a request for the name or online con- other persons, approved under subsection (b). e-mail address or another substantially simi- tact information of a parent or child that is (b) INCENTIVES.— lar identifier that permits direct contact used for the sole purpose of obtaining paren- (1) SELF-REGULATORY INCENTIVES.—In pre- with a person online. tal consent or providing notice under this scribing regulations under section 203, the SEC. 203. REGULATION OF UNFAIR AND DECEP- section and where such information is not Commission shall provide incentives for self- TIVE ACTS AND PRACTICES IN CON- maintained in retrievable form by the opera- regulation by operators to implement the NECTION WITH THE COLLECTION tor if parental consent is not obtained after protections afforded children under the regu- AND USE OF PERSONAL INFORMA- a reasonable time; latory requirements described in subsection TION FROM AND ABOUT CHILDREN (C) online contact information collected (b) of that section. ON THE INTERNET. from a child that is used only to respond (2) DEEMED COMPLIANCE.—Such incentives (A) ACTS PROHIBITED.— more than once directly to a specific request shall include provisions for ensuring that a (1) IN GENERAL.—It is unlawful for an oper- from the child and is not used to recontact person will be deemed to be in compliance ator of a website or online service directed to the child beyond the scope of that request— with the requirements of the regulations children, or any operator that has actual (i) if, before any additional response after under section 203 if that person complies knowledge that it is collecting personal in- the initial response to the child, the operator with guidelines that, after notice and com- formation from a child, to collect personal uses reasonable efforts to provide a parent ment, are approved by the Commission upon information from a child in a manner that notice of the online contact information col- making a determination that the guidelines violates the regulations prescribed under lected from the child, the purposes for which meet the requirements of the regulations subsection (b). it is to be used, and an opportunity for the issued under section 203. (2) DISCLOSURE TO PARENT PROTECTED.— parent to request that the operator make no (3) EXPEDITED RESPONSE TO REQUESTS.—The Notwithstanding paragraph (1), neither an further use of the information and that it Commission shall act upon requests for safe operator of such a website or online service not be maintained in retrievable form; or harbor treatment within 180 days of the fil- nor the operator’s agent shall be held to be (ii) without notice to the parent in such ing of the request, and shall set forth in liable under any Federal or State law for any circumstances as the Commission may deter- writing its conclusions with regard to such disclosure made in good faith and following mine are appropriate, taking into consider- requests. reasonable procedures in responding to a re- ation the benefits to the child of access to (c) APPEALS.—Final action by the Commis- quest for disclosure of personal information information and services, and risks to the se- sion on a request for approval of guidelines, under subsection (b)(1)(B)(iii) to the parent curity and privacy of the child, in regula- or the failure to act within 180 days on a re- of a child. tions promulgated under this subsection; quest for approval of guidelines, submitted (b) REGULATIONS.— (D) the name of the child and online con- under subsection (b) may be appealed to a (1) IN GENERAL.—Not later than 1 year after tact information (to the extent reasonably district court of the United States of appro- the date of the enactment of this Act, the necessary to protect the safety of a child priate jurisdiction as provided for in section Commission shall promulgate under section participant on the site)— 706 of title 5, United States Code. 553 of title 5, United States Code, regulations (i) used only for the purpose of protecting that— SEC. 205. ACTIONS BY STATES. such safety; (A) require the operator of any website or (a) IN GENERAL.— (ii) not used to recontact the child or for online service directed to children that col- (1) CIVIL ACTIONS.—In any case in which the any other purpose; and lects personal information from children or attorney general of a State has reason to be- (iii) not disclosed on the site, the operator of a website or online service lieve that an interest of the residents of that that has actual knowledge that it is collect- if the operator uses reasonable efforts to pro- State has been or is threatened or adversely ing personal information from a child— vide a parent notice of the name and online affected by the engagement of any person in (i) to provide notice on the website of what contact information collected from the a practice that violates any regulation of the information is collected from children by the child, the purposes for which it is to be used, Commission prescribed under section 203(b), operator, how the operator uses such infor- and an opportunity for the parent to request the State, as parens patriae, may bring a mation, and the operator’s disclosure prac- that the operator make no further use of the civil action on behalf of the residents of the tices for such information; and information and that it not be maintained in State in a district court of the United States (ii) to obtain verifiable parental consent retrievable form; or of appropriate jurisdiction to— for the collection, use, or disclosure of per- (E) the collection, use, or dissemination of (A) enjoin that practice; sonal information from children; such information by the operator of such a (B) enforce compliance with the regula- (B) require the operator to provide, upon website or online service necessary— tion; request of a parent under this subparagraph (i) to protect the security or integrity of (C) obtain damage, restitution, or other whose child has provided personal informa- its website; compensation on behalf of residents of the tion to that website or online service, upon (ii) to take precautions against liability; State; or proper identification of that parent, to such (iii) to respond to judicial process; or (D) obtain such other relief as the court parent— (iv) to the extent permitted under other may consider to be appropriate. (i) a description of the specific types of provisions of law, to provide information to (2) NOTICE.— personal information collected from the law enforcement agencies or for an inves- (A) IN GENERAL.—Before filing an action child by that operator; tigation on a matter related to public safety. under paragraph (1), the attorney general of (ii) the opportunity at any time to refuse (3) TERMINATION OF SERVICE.—The regula- the State involved shall provide to the Com- to permit the operator’s further use or main- tions shall permit the operator of a website mission— tenance in retrievable form, or future online or an online service to terminate service pro- (i) written notice of that action; and collection, of personal information from that vided to a child whose parent has refused, (ii) a copy of the complaint for that action. child; and under the regulations prescribed under para- (B) EXEMPTION.— (iii) notwithstanding any other provision graph (1)(B)(ii), to permit the operator’s fur- (i) IN GENERAL.—Subparagraph (A) shall of law, a means that is reasonable under the ther use or maintenance in retrievable form, not apply with respect to the filing of an ac- circumstances for the parent to obtain any or future online collection, of personal infor- tion by an attorney general of a State under personal information collected from that mation from that child. this subsection, if the attorney general de- child; (c) ENFORCEMENT.—Subject to sections 204 termines that it is not feasible to provide the (C) prohibit conditioning a child’s partici- and 206, a violation of a regulation pre- notice described in that subparagraph before pation in a game, the offering of a prize, or scribed under subsection (a) shall be treated the filing of the action. another activity on the child disclosing more as a violation of a rule defining an unfair or (ii) NOTIFICATION.—In an action described personal information than is reasonably nec- deceptive act or practice prescribed under in clause (i), the attorney general of a State essary to participate in such activity; and section 18(a)(1)(B) of the Federal Trade Com- shall provide notice and a copy of the com- (D) require the operator of such a website mission Act (15 U.S.C. 57a(a)(1)(B)). plaint to the Commission at the same time or online service to establish and maintain (d) INCONSISTENT STATE LAW.—No State or as the attorney general files the action. reasonable procedures to protect the con- local government may impose any liability (b) INTERVENTION.— fidentiality, security, and integrity of per- for commercial activities or actions by oper- (1) IN GENERAL.—On receiving notice under sonal information collected from children. ators in interstate or foreign commerce in subsection (a)(2), the Commission shall have (2) WHEN CONSENT NOT REQUIRED.—The reg- connection with an activity or action de- the right to intervene in the action that is ulations shall provide that verifiable paren- scribed in this title that is inconsistent with the subject of the notice. tal consent under paragraph (1)(A)(ii) is not the treatment of those activities or actions (2) EFFECT OF INTERVENTION.—If the Com- required in the case of— under this section. mission intervenes in an action under sub- (A) online contact information collected SEC. 204. SAFE HARBORS. section (a), it shall have the right— from a child that is used only to respond di- (a) GUIDELINES.—An operator may satisfy (A) to be heard with respect to any matter rectly on a one-time basis to a specific re- the requirements of regulations issued under that arises in that action; and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11793

(B) to file a petition for appeal. (6) the Farm Credit Act of 1971 (12 U.S.C. ‘‘( ) PRESERVATION OF STATE AND LOCAL (3) AMICUS CURIAE.—Upon application to (2001 et seq.) by the Farm Credit Administra- TAXING AUTHORITY.—Except as provided in the court, a person whose self-regulatory tion with respect to any Federal land bank, this section, nothing in this Act shall be con- guidelines have been approved by the Com- Federal land bank association, Federal inter- strued to modify, impair, or supersede, or au- mission and are relied upon as a defense by mediate credit bank, or production credit as- thorize the modification, impairment, or su- any defendant to a proceeding under this sec- sociation. perseding of, any State or local law pertain- tion may file amicus curiae in that proceed- (c) EXERCISE OF CERTAIN POWERS.—For the ing to taxation that is otherwise permissible ing. purpose of the exercise by any agency re- by or under the Constitution of the United (c) CONSTRUCTION.—For purposes of bring- ferred to in subsection (a) of its powers under States or other Federal law and in effect on ing any civil action under subsection (a), any Act referred to in that subsection, a vio- the date of enactment of this Act. nothing in this title shall be construed to lation of any requirement imposed under ( ) LIABILITIES AND PENDING CASES.— prevent an attorney general of a State from this title shall be deemed to be a violation of Nothing in this Act affects liability for taxes exercising the powers conferred on the attor- a requirement imposed under that Act. In accrued and enforced before the date of en- ney general by the laws of that State to— addition to its powers under any provision of actment of this Act, nor does this Act affect (1) conduct investigations; law specifically referred to in subsection (a), ongoing litigation relating to such taxes.’’ (2) administer oaths or affirmations; or each of the agencies referred to in that sub- (3) compel the attendance of witnesses or section may exercise, for the purpose of en- the production of documentary and other forcing compliance with any requirement DORGAN AMENDMENT NO. 3779 evidence. imposed under this title, any other authority (Ordered to lie on the table.) (d) ACTIONS BY THE COMMISSION.—In any conferred on it by law. Mr. DORGAN submitted an amend- case in which an action is instituted by or on (d) ACTIONS BY THE COMMISSION.—The Com- behalf of the Commission for violation of mission shall prevent any person from vio- ment intended to be proposed by him any regulation prescribed under section 293, lating a rule of the Commission under sec- to amendment No. 3719 submitted by no State may, during the pendency of that tion 203 in the same manner, by the same Mr. SHELBY to the bill, S. 442, supra; as action, institute an action under subsection means, and with the same jurisdiction, pow- follows: (a) against any defendant named in the com- ers, and duties as though all applicable On page 2, after line 14, add the following: plaint in that action for violation of that terms and provisions of the Federal Trade (d) DEFINITIONS.—For the purposes of this regulation. Commission Act (15 U.S.C. 41 et seq.) were section, a tax has been ‘‘generally imposed (e) VENUE; SERVICE OF PROCESS.— incorporated into and made a part of this and actually enforced’’ if— (1) VENUE.—Any action brought under sub- title. Any entity that violates such rule (1) a tax was authorized by statute prior to section (a) may be brought in the district shall be subject to the penalties and entitled court of the United States that meets appli- October 1, 1998; and to the privileges and immunities provided in (2) provider of Internet access services had cable requirements relating to venue under the Federal Trade Commission Act in the section 1391 of title 28, United States Code. a reasonable opportunity to know by virtue same manner, by the same means, and with of a rule or other public proclamation made (2) SERVICE OF PROCESS.—In an action the same jurisdiction, power, and duties as brought under subsection (a), process may be by the appropriate administration agency of though all applicable terms and provisions of the state or political subdivision thereof, served in any district in which the defend- the Federal Trade Commission Act were in- ant— that such agency had, prior to October 1, corporated into and made a part of this title. 1998— (A) is an inhabitant; or (e) EFFECT ON OTHER LAWS.—Nothing con- (B) may be found. (A) interpreted such tax to apply to Inter- tained in the Act shall be construed to limit net access services: SEC. 206. ADMINISTRATION AND APPLICABILITY the authority of the Commission under any OF ACT. (B) applied such tax to Internet access other provisions of law. (a) IN GENERAL.—Except as otherwise pro- services; or vided, this title shall be enforced by the SEC. 207. REVIEW. (C) assessed such tax to charges for Inter- (a) IN GENERAL.—Not later than 5 years Commission under the Federal Trade Com- net access. after the effective date of the regulations mission Act (15 U.S.C. 41 et seq.). initially issued under section 203, the Com- (b) PROVISIONS.—Compliance with the re- DODD AMENDMENT NO. 3780 quirements imposed under this title shall be mission shall— (1) review the implementation of this title, enforced under— Mr. DODD proposed an amendment (1) section 8 of the Federal Deposit Insur- including the effect of the implementation of this title on practices relating to the collec- to the bill, S. 442, supra; as follows: ance Act (12 U.S.C. 1818), in the case of— At the end of the amendment, add: (A) national banks, and Federal branches tion and disclosure of information relating (d) ADDITIONAL EXCEPTION TO MORATO- and Federal agencies of foreign banks, by the to children, children’s ability to obtain ac- RIUM.— Office of the Comptroller of the Currency; cess to information of their choice online, (B) member banks of the Federal Reserve and on the availability of websites directed (1) IN GENERAL.—Subsection (a) shall also System (other than national banks), to children; and not apply with respect to an Internet access branches and agencies of foreign banks (2) prepare and submit to Congress a report provider, unless, at the time of entering into (other than Federal branches, Federal agen- on the results of the review under paragraph an agreement with a customer for the provi- cies, and insured State branches of foreign (1). sion of Internet access services, such pro- banks), commercial lending companies SEC. 208. EFFECTIVE DATE. vider offers such customer (either for a fee or owned or controlled by foreign banks, and Sections 203(a), 205, and 206 of this title at no charge) screening software that is de- organizations operating under section 25 or take effect on the later of— signed to permit the customer to limit ac- 25(a) of the Federal Reserve Act (12 U.S.C. (1) the date that is 18 months after the date cess to material on the Internet that is 601 et seq. and 611 et. seq.), by the Board; and of enactment of this Act; or harmful to minors. (C) banks insured by the Federal Deposit (2) the date on which the Commission rules (2) DEFINITIONS.—In this subsection: Insurance Corporation (other than members on the first application for safe harbor treat- (A) INTERNET ACCESS PROVIDER.—The term of the Federal Reserve System) and insured ment under section 204 if the Commission ‘Internet access provider’ means a person en- State branches of foreign banks, by the does not rule on the first such application gaged in the business of providing a com- Board of Directors of the Federal Deposit In- within one year after the date of enactment puter and communications facility through surance Corporation; of this Act, but in no case later than the date which a customer may obtain access to the (2) section 8 of the Federal Deposit Insur- that is 30 months after the date of enact- Internet, but does not include a common car- ance Act (12 U.S.C. 1818), by the Director of ment of this Act. rier to the extent that it provides only tele- the Office of Thrift Supervision, in the case communications services. of a savings association the deposits of which ENZI AMENDMENTS NOS. 3777–3778 (B) INTERNET ACCESS SERVICES.—The term are insured by the Federal Deposit Insurance ‘Internet access services’ means the provi- (Ordered to lie on the table.) sion of computer and communications serv- Corporation; Mr. ENZI submitted two amendments (3) the Federal Credit Union Act (12 U.S.C. ices through which a customer using a com- 1751 et seq.) by the National Credit Union intended to be proposed by him to the puter and a modem or other communications Administration Board with respect to any bill, S. 442, supra; as follows: device may obtain access to the Internet, but Federal credit union; AMENDMENT NO. 3777 does not include telecommunications serv- (4) part A of subtitle VII of title 49, United On page llll, line llll of the ices provided by a common carrier. States Code, by the Secretary of Transpor- amendment strike ‘‘llll’’ and insert the (C) SCREENING SOFTWARE.—The term tation with respect to any air carrier or for- following: ‘‘including at least one who rep- ‘‘screening software’’ means software that is eign air carrier subject to that part; resents a State that does not impose an in- designed to permit a person to limit access (5) the Packers and Stockyards Act, 1921 (7 come tax’’. to material on the Internet that is harmful U.S.C. 181 et. seq.) (except as provided in sec- to minors. tion 406 of that Act (7 U.S.C. 226, 227)), by the On page llll, line llll, of the (3) APPLICABILITY.—Paragraph (1) shall Secretary of Agriculture with respect to any amendment, strike ‘‘llll’’ and insert the apply to agreements for the provision of activities subject to that Act; and following: Internet access services entered into on or S11794 CONGRESSIONAL RECORD — SENATE October 7, 1998 after the date that is 6 months after the date (B) by striking ‘‘one hundred’’ and insert- (ii) by striking ‘‘(as amended by subsection of enactment of this Act. ing ‘‘120’’; and (a) of this section)’’; and (4) in subsection (e) in the first sentence— (iii) by striking ‘‘effective date of this sec- DODD AMENDMENT NO. 3781 (A) by striking ‘‘seventy-five’’ and insert- tion’’ each place it appears and inserting ‘‘ef- ing ‘‘95’’; fective date of the Sonny Bono Copyright (Ordered to lie on the table.) (B) by striking ‘‘one hundred’’ and insert- Term Extension Act’’; and Mr. DODD submitted an amendment ing ‘‘120’’; and (B) in subsection (g)(2) in the second sen- intended to be proposed to the bill, S. (C) by striking ‘‘fifty’’ each place it ap- tence by inserting before the period the fol- 442, supra; as follows: pears and inserting ‘‘70’’. lowing: ‘‘, except each reference to forty- (c) DURATION OF COPYRIGHT: WORKS CRE- seven years in such provisions shall be At the end of the amendment, add: ATED BUT NOT PUBLISHED OR COPYRIGHTED deemed to be 67 years’’. SEC. ll. EXCEPTION TO MORATORIUM. BEFORE JANUARY 1, 1978.—Section 303 of title (a) IN GENERAL.—Section 101(a) shall not 17, United States Code, is amended in the SEC. 103. TERMINATION OF TRANSFERS AND LI- apply with respect to an Internet access pro- second sentence by striking ‘‘December 31, CENSES COVERING EXTENDED RE- NEWAL TERM. vider, unless, at the time of entering into an 2027’’ and inserting ‘‘December 31, 2047’’. agreement with a customer for the provision (d) DURATION OF COPYRIGHT: SUBSISTING Sections 203(a)(2) and 304(c)(2) of title 17, of Internet access services, such provider of- COPYRIGHTS.— United States Code, are each amended— fers such customer (either for a fee or at no (1) IN GENERAL.—Section 304 of title 17, (1) by striking ‘‘by his widow or her wid- charge) screening software that is designed United States Code, is amended— ower and his or her children or grand- to permit the customer to limit access to (A) in subsection (a)— children’’; and material on the Internet that is harmful to (i) in paragraph (1)— (2) by inserting after subparagraph (C) the minors. (I) in subparagraph (B) by striking ‘‘47’’ following: (b) DEFINITIONS.—In this section: and inserting ‘‘67’’; and ‘‘(D) In the event that the author’s widow (1) INTERNET ACCESS PROVIDER.—The term (II) in subparagraph (C) by striking ‘‘47’’ or widower, children, and grandchildren are ‘‘Internet access provider’’ means a person and inserting ‘‘67’’; not living, the author’s executor, adminis- engaged in the business of providing a com- (ii) in paragraph (2)— trator, personal representative, or trustee puter and communications facility through (I) in subparagraph (A) by striking ‘‘47’’ shall own the author’s entire termination in- which a customer may obtain access to the and inserting ‘‘67’’; and terest.’’. Internet, but does not include a common car- (II) in subparagraph (B) by striking ‘‘47’’ SEC. 104. REPRODUCTION BY LIBRARIES AND AR- rier to the extent that it provides only tele- and inserting ‘‘67’’; and CHIVES. communications services. (iii) in paragraph (3)— (2) INTERNET ACCESS SERVICES.—The term (I) in subparagraph (A)(i) by striking ‘‘47’’ Section 108 of title 17, United States Code, ‘‘Internet access services’’ means the provi- and inserting ‘‘67’’; and is amended— sion of computer and communications serv- (II) in subparagraph (B) by striking ‘‘47’’ (1) by redesignating subsection (h) as sub- ices through which a customer using a com- and inserting ‘‘67’’; section (i); and puter and a modem or other communications (B) by amending subsection (b) to read as (2) by inserting after subsection (g) the fol- device may obtain access to the Internet, but follows: lowing: does not include telecommunications serv- ‘‘(b) COPYRIGHTS IN THEIR RENEWAL TERM ‘‘(h)(1) For purposes of this section, during ices provided by a common carrier. AT THE TIME OF THE EFFECTIVE DATE OF THE the last 20 years of any term of copyright of (3) SCREENING SOFTWARE.—The term SONNY BONO COPYRIGHT TERM EXTENSION a published work, a library or archives, in- ‘‘screening software’’ means software that is ACT.—Any copyright still in its renewal term cluding a nonprofit educational institution designed to permit a person to limit access at the time that the Sonny Bono Copyright that functions as such, may reproduce, dis- to material on the Internet that is harmful Term Extension Act becomes effective shall tribute, display, or perform in facsimile or to minors. have a copyright term of 95 years from the digital form a copy or phonorecord of such (c) APPLICABILITY.—Subsection (a) shall date copyright was originally secured.’’; work, or portions thereof, for purposes of apply to agreements for the provision of (C) in subsection (c)(4)(A) in the first sen- preservation, scholarship, or research, if Internet access services entered into on or tence by inserting ‘‘or, in the case of a ter- such library or archives has first determined, after the date that is 6 months after the date mination under subsection (d), within the on the basis of a reasonable investigation, of enactment of this Act. five-year period specified by subsection that none of the conditions set forth in sub- (d)(2),’’ after ‘‘specified by clause (3) of this f paragraphs (A), (B), and (C) of paragraph (2) subsection,’’; and apply. COPYRIGHT TERM EXTENSION ACT (D) by adding at the end the following new ‘‘(2) No reproduction, distribution, display, OF 1998 subsection: ‘‘(d) TERMINATION RIGHTS PROVIDED IN SUB- or performance is authorized under this sub- SECTION (c) WHICH HAVE EXPIRED ON OR BE- section if— FORE THE EFFECTIVE DATE OF THE SONNY ‘‘(A) the work is subject to normal com- HATCH AMENDMENT NO. 3782 BONO COPYRIGHT TERM EXTENSION ACT.—In mercial exploitation; Mr. LOTT (for Mr. HATCH) proposed the case of any copyright other than a work ‘‘(B) a copy or phonorecord of the work can an amendment to the bill (S. 505) to made for hire, subsisting in its renewal term be obtained at a reasonable price; or on the effective date of the Sonny Bono ‘‘(C) the copyright owner or its agent pro- amend the provisions of title 17, United vides notice pursuant to regulations promul- States Code, with respect to the dura- Copyright Term Extension Act for which the termination right provided in subsection (c) gated by the Register of Copyrights that ei- tion of copyright, and for other pur- has expired by such date, where the author ther of the conditions set forth in subpara- poses; as follows: or owner of the termination right has not graphs (A) and (B) applies. Strike all after the enacting clause and in- previously exercised such termination right, ‘‘(3) The exemption provided in this sub- sert the following: the exclusive or nonexclusive grant of a section does not apply to any subsequent TITLE I—COPYRIGHT TERM EXTENSION transfer or license of the renewal copyright uses by users other than such library or ar- or any right under it, executed before Janu- chives.’’. SEC. 101. SHORT TITLE. ary 1, 1978, by any of the persons designated This title may be referred to as the ‘‘Sonny in subsection (a)(1)(C) of this section, other SEC. 105. VOLUNTARY NEGOTIATION REGARDING Bono Copyright Term Extension Act’’. than by will, is subject to termination under DIVISION OF ROYALTIES. SEC. 102. DURATION OF COPYRIGHT PROVISIONS. the following conditions: It is the sense of the Congress that copy- (a) PREEMPTION WITH RESPECT TO OTHER ‘‘(1) The conditions specified in subsection right owners of audiovisual works for which LAWS.—Section 301(c) of title 17, United (c)(1), (2), (4), (5), and (6) of this section apply the term of copyright protection is extended States Code, is amended by striking ‘‘Feb- to terminations of the last 20 years of copy- by the amendments made by this title, and ruary 15, 2047’’ each place it appears and in- right term as provided by the amendments the screenwriters, directors, and performers serting ‘‘February 15, 2067’’. made by the Sonny Bono Copyright Term of those audiovisual works, should negotiate (b) DURATION OF COPYRIGHT: WORKS CRE- Extension Act. in good faith in an effort to reach a vol- ATED ON OR AFTER JANUARY 1, 1978.—Section ‘‘(2) Termination of the grant may be ef- untary agreement or voluntary agreements 302 of title 17, United States Code, is amend- fected at any time during a period of 5 years with respect to the establishment of a fund ed— beginning at the end of 75 years from the or other mechanism for the amount of remu- (1) in subsection (a) by striking ‘‘fifty’’ and date copyright was originally secured.’’. neration to be divided among the parties for inserting ‘‘70’’; (2) COPYRIGHT AMENDMENTS ACT OF 1992.— the exploitation of those audiovisual works. (2) in subsection (b) by striking ‘‘fifty’’ and Section 102 of the Copyright Amendments inserting ‘‘70’’; Act of 1992 (Public Law 102–307; 106 Stat. 266; SEC. 106. EFFECTIVE DATE. (3) in subsection (c) in the first sentence— 17 U.S.C. 304 note) is amended— This title and the amendments made by (A) by striking ‘‘seventy-five’’ and insert- (A) in subsection (c)— this title shall take effect on the date of the ing ‘‘95’’; and (i) by striking ‘‘47’’ and inserting ‘‘67’’; enactment of this Act. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11795 TITLE II—MUSIC LICENSING EXEMPTION ‘‘(v) the transmission or retransmission is righted musical compositions in the rep- FOR FOOD SERVICE OR DRINKING ES- licensed by the copyright owner of the work ertoire of the performing rights society by TABLISHMENTS so publicly performed or displayed;’’; and paying an interim license rate or fee into an SEC. 201. SHORT TITLE. (2) by adding after paragraph (10) the fol- interest bearing escrow account with the This title may be cited as the ‘‘Fairness In lowing: clerk of the court, subject to retroactive ad- Music Licensing Act of 1998.’’ ‘‘The exemptions provided under paragraph justment when a final rate or fee has been SEC. 202. EXEMPTIONS. (5) shall not be taken into account in any ad- determined, in an amount equal to the indus- (a) EXEMPTIONS FOR CERTAIN ESTABLISH- ministrative, judicial, or other governmental try rate, or, in the absence of an industry MENTS.—Section 110 of title 17, United States proceeding to set or adjust the royalties pay- rate, the amount of the most recent license Code is amended— able to copyright owners for the public per- rate or fee agreed to by the parties. (1) in paragraph (5)— formance or display of their works. Royal- ‘‘(6) Any decision rendered in such proceed- (A) by striking ‘‘(5)’’ and inserting ‘‘(5)(A) ties payable to copyright owners for any ing by a special master or magistrate judge except as provided in subparagraph (B),’’; public performance or display of their works named under paragraph (3) shall be reviewed and other than such performances or displays as by the judge of the court with jurisdiction (B) by adding at the end the following: are exempted under paragraph (5) shall not over the consent decree governing the per- ‘‘(B) communication by an establishment be diminished in any respect as a result of forming rights society. Such proceeding, in- of a transmission or retransmission embody- such exemption’’. cluding such review, shall be concluded with- ing a performance or display of a nondra- (b) EXEMPTION RELATING TO PROMOTION.— in 6 months after its commencement. matic musical work intended to be received Section 110(7) of title 17, United States Code, ‘‘(7) Any such final determination shall be by the general public, originated by a radio is amended by inserting ‘‘or of the audio- binding only as to the individual proprietor or television broadcast station licensed as visual or other devices utilized in such per- commencing the proceeding, and shall not be such by the Federal Communications Com- formance,’’ after ‘‘phonorecords of the applicable to any other proprietor or any mission, or, if an audiovisual transmission, work,’’. other performing rights society, and the per- by a cable system or satellite carrier, if— SEC. 203. LICENSING BY PERFORMING RIGHTS forming rights society shall be relieved of ‘‘(i) in the case of an establishment other SOCIETIES. any obligation of nondiscrimination among than a food service or drinking establish- (a) IN GENERAL.—Chapter 5 of title 17, similarly situated music users that may be ment, either the establishment in which the United States Code, is amended by adding at imposed by the consent decree governing its communication occurs has less than 2000 the end the following: operations. gross square feet of space (excluding space ‘‘§ 512. Determination of reasonable license ‘‘(8) An individual proprietor may not used for customer parking and for no other fees for individual proprietors bring more than one proceeding provided for purpose), or the establishment in which the ‘‘In the case of any performing rights soci- in this section for the determination of a communication occurs has 2000 or more gross ety subject to a consent decree which pro- reasonable license rate or fee under any li- square feet of space (excluding space used for vides for the determination of reasonable li- cense agreement with respect to any one per- customer parking and for no other purpose) cense rates or fees to be charged by the per- forming rights society. and— forming rights society, notwithstanding the ‘‘(9) For purposes of this section, the term ‘‘(I) if the performance is by audio means provisions of that consent decree, an individ- ‘industry rate’ means the license fee a per- only, the performance is communicated by ual proprietor who owns or operates fewer forming rights society has agreed to with, or means of a total of not more than 6 loud- than 7 non-publicly traded establishments in which has been determined by the court for, speakers, of which not more than 4 loud- which nondramatic musical works are per- a significant segment of the music user in- speakers are located in any 1 room or adjoin- formed publicly and who claims that any li- dustry to which the individual proprietor be- ing outdoor space; or cense agreement offered by that performing longs.’’. ‘‘(II) if the performance or display is by rights society is unreasonable in its license (b) TECHNICAL AND CONFORMING AMEND- audiovisual means, any visual portion of the rate or fee as to that individual proprietor, MENT.—The table of sections for chapter 5 of performance or display is communicated by shall be entitled to determination of a rea- title 17, United States Code, is amended by means of a total of not more than 4 audio- sonable license rate or fee as follows: adding after the item relating to section 511 visual devices, of which not more than one the following: audiovisual device is located in any 1 room, ‘‘(1) The individual proprietor may com- and no such audiovisual device has a diago- mence such proceeding for determination of ‘‘512.Determination of reasonable license fees nal screen size greater than 55 inches, and a reasonable license rate or fee by filing an for individual proprietors.’’. any audio portion of the performance or dis- application in the applicable district court SEC. 204. PENALTIES. under paragraph (2) that a rate disagreement play is communicated by means of a total of Section 504 of title 17, United States Code, exists and by serving a copy of the applica- not more than 6 loudspeakers, of which not is amended by adding at the end the follow- tion on the performing rights society. Such more than 4 loudspeakers are located in any ing: 1 room or adjoining outdoor space; proceeding shall commence in the applicable district court within 90 days after the service ‘‘(d) ADDITIONAL DAMAGES IN CERTAIN ‘‘(ii) in the case of a food service or drink- CASES.—In any case in which the court finds ing establishment, either the establishment of such copy, except that such 90-day re- quirement shall be subject to the adminis- that a defendant proprietor of an establish- in which the communication occurs has less ment who claims as a defense that its activi- than 3750 gross square feet of space (exclud- trative requirements of the court. ‘‘(2) The proceeding under paragraph (1) ties were exempt under section 110(5) did not ing space used for customer parking and for have reasonable grounds to believe that its no other purpose), or the establishment in shall be held, at the individual proprietor’s election, in the judicial district of the dis- use of a copyrighted work was exempt under which the communication occurs has 3750 such section, the plaintiff shall be entitled gross square feet of space or more (excluding trict court with jurisdiction over the appli- cable consent decree or in that place of hold- to, in addition to any award of damages space used for customer parking and for no under this section, an additional award of other purpose) and— ing court of a district court that is the seat of the Federal circuit (other than the Court two times the amount of the license fee that ‘‘(I) if the performance is by audio means the proprietor of the establishment con- only, the performance is communicated by of Appeals for the Federal Circuit) in which cerned should have paid the plaintiff for such means of a total of not more than 6 loud- the proprietor’s establishment is located. use during the preceding period of up to 3 speakers, of which not more than 4 loud- ‘‘(3) Such proceeding shall be held before years.’’. speakers are located in any 1 room or adjoin- the judge of the court with jurisdiction over ing outdoor space; or the consent decree governing the performing SEC. 205. DEFINITIONS. ‘‘(II) if the performance or display is by rights society. At the discretion of the court, Section 101 of title 17, United States Code, audiovisual means, any visual portion of the the proceeding shall be held before a special is amended— performance or display is communicated by master or magistrate judge appointed by (1) by inserting after the definition of ‘‘dis- means of a total of not more than 4 audio- such judge. Should that consent decree pro- play’’ the following: visual devices, of which not more than one vide for the appointment of an advisor or ad- ‘‘An ‘establishment’ is a store, shop, or any audiovisual device is located in any 1 room, visors to the court for any purpose, any such similar place of business open to the general and no such audiovisual device has a diago- advisor shall be the special master so named public for the primary purpose of selling nal screen size greater than 55 inches, and by the court. goods or services in which the majority of any audio portion of the performance or dis- ‘‘(4) In any such proceeding, the industry the gross square feet of space that is nonresi- play is communicated by means of a total of rate shall be presumed to have been reason- dential is used for that purpose, and in which not more than 6 loudspeakers, of which not able at the time it was agreed to or deter- nondramatic musical works are performed more than 4 loudspeakers are located in any mined by the court. Such presumption shall publicly. 1 room or adjoining outdoor space; in no way affect a determination of whether ‘‘A ‘food service or drinking establishment’ ‘‘(iii) no direct charge is made to see or the rate is being correctly applied to the in- is a restaurant, inn, bar, tavern, or any other hear the transmission or retransmission; dividual proprietor. similar place of business in which the public ‘‘(iv) the transmission or retransmission is ‘‘(5) Pending the completion of such pro- or patrons assemble for the primary purpose not further transmitted beyond the estab- ceeding, the individual proprietor shall have of being served food or drink, in which the lishment where it is received; and the right to perform publicly the copy- majority of the gross square feet of space S11796 CONGRESSIONAL RECORD — SENATE October 7, 1998 that is nonresidential is used for that pur- Page 6, line 17, strike ‘‘2071(b)’’ and sub- On page 2, line 3, strike ‘‘1997’’ and insert pose, and in which nondramatic musical stitute ‘‘2071(a)’’. ‘‘1998.’’ works are performed publicly.’’; Page 8, line 1, strike ‘‘SEC. 5’’ and sub- On page 6, line 1, strike ‘‘has’’ and insert (2) by inserting after the definition of stitute ‘‘SEC. 6’’. ‘‘and a plan for a water conservation pro- ‘‘fixed’’ the following: Page 9, line 12, strike ‘‘action’’ and sub- gram have.’’ ‘‘The ‘gross square feet of space’ of an es- stitute ‘‘program.’’ f tablishment means the entire interior space Page 9, line 13, strike ‘‘section 906’’ and of that establishment, and any adjoining substitute ‘‘Title IX.’’ AUTHORITY FOR COMMITTEES TO outdoor space used to serve patrons, whether Page 9, lines 14 and 15, strike ‘‘100–102’’ and MEET on a seasonal basis or otherwise.’’; substitute ‘‘100–702.’’ COMMITTEE ON BANKING, HOUSING, AND URBAN (3) by inserting after the definition of ‘‘per- Page 9, line 15, strike ‘‘as in effect prior to AFFAIRS form’’ the following: the date of its repeal’’ and substitute ‘‘as Mr. MCCAIN. Mr. President, I ask ‘‘A ‘performing rights society’ is an asso- amended by Section 1 of Public Law 105–53.’’ unanimous consent that the Commit- ciation, corporation, or other entity that li- Page 13, line 10, after ‘‘arbitrators’’ insert censes the public performance of nondra- ‘‘and other neutral.’’ tee on Banking, Housing, and Urban Affairs be authorized to meet during matic musical works on behalf of copyright f owners of such works, such as the American the session of the Senate on Wednes- Society of Composers, Authors and Publish- CHEYENNE RIVER SIOUX TRIBE day, October 7, 1998, to conduct a hear- ers (ASCAP), Broadcast Music, Inc. (BMI), EQUITABLE COMPENSATION ACT ing of the following nominee: Ira G. and SESAC, Inc.’’; and Peppercorn, of Indiana, to be Director (4) by inserting after the definition of ‘‘pic- of the Office of Multifamily Housing torial, graphic and sculptural works’’ the fol- CAMPBELL AMENDMENT NO. 3785 Assistance Restructuring. lowing: The PRESIDING OFFICER. Without ‘‘A ‘proprietor’ is an individual, corpora- (Ordered to lie on the table.) objection, it is so ordered. tion, partnership, or other entity, as the case Mr. CAMPBELL submitted an COMMITTEE ON ENVIRONMENT AND PUBLIC may be, that owns an establishment, or a amendment intended to be proposed to food service or drinking establishment, ex- WORKS the bill (S. 1905) to provide for equi- Mr. MCCAIN. Mr. PRESIDENT. I ask cept that no owner or operator of a radio or table compensation for the Cheyenne television station licensed by the Federal unanimous consent that the full Com- Communications Commission, cable system River Sioux Tribe, and for other pur- mittee on Environment and Public or satellite carrier, cable or satellite carrier poses; as follows: Works be granted permission to con- service or programmer, provider of online On page 23, strike all of subsection 5(b) on duct a hearing to receive testimony services or network access or the operator of lines 1 through 3, and redesignate subsection from Isadore Rosenthal, nominated by facilities therefor, telecommunications com- (c) on line 4 as subsection (b). the President to be a Member of the pany, or any other such audio or audiovisual f Chemical Safety and Hazard Investiga- service or programmer now known or as may tion Board; and William Clifford be developed in the future, commercial sub- FALL RIVER WATER USERS DIS- scription music service, or owner or operator Smith, nominated by the President to TRICT RURAL WATER SYSTEM be a Member of the Mississippi River of any other transmission service, shall ACT OF 1998 under any circumstances be deemed to be a Commission, Wednesday, October 7, proprietor.’’. 9:30 a.m., Hearing Room (SD–406). THE PRESIDING OFFICER. Without SEC. 206. CONSTRUCTION OF TITLE. DASCHLE (AND JOHNSON) Except as otherwise provided in this title, objection, it is so ordered. AMENDMENT NO. 3786 nothing in this title shall be construed to re- COMMITTEE ON FOREIGN RELATIONS lieve any performing rights society of any Mr. MCCAIN (for Mr. DASCHLE for Mr. MCCAIN. Mr. President, I ask obligation under any State or local statute, himself and Mr. JOHNSON) proposed an unanimous consent tha the Committee ordinance, or law, or consent decree or other amendment to the bill (S. 744) to au- on Foreign Relations be authorized to court order governing its operation, as such thorize the construction of the Fall meet during the session of the Senate statute, ordinance, law, decree, or order is in on Wednesday, October 7, 1998 at 10:00 effect on the date of the enactment of this River Water Users District Rural Act, as it may be amended after such date, Water System and authorize financial a. to hold a hearing. or as it may be issued or agreed to after such assistance to the Fall River Water THE PRESIDING OFFICER. Without date. Users District, a non-profit corpora- objection, it is so ordered. SEC. 207. EFFECTIVE DATE. tion, in the planning and construction COMMITTEE ON GOVERNMENTAL AFFAIRS This title and the amendments made by of the water supply system, and for Mr. MCCAIN. Mr. President, I ask this title shall take effect 90 days after the other purposes, as follows: unanimous consent on behalf of the date of the enactment of this Act. On page 2, line 3, strike ‘‘1997’’ and insert Governmental Affairs Committee to f ‘‘1998.’’ meet on Wednesday, October 7, 1998, at On page 6, line 3, strike ‘‘has’’ and insert 10:00 a.m. for a hearing on the nomina- INTERNET TAX FREEDOM ACT ‘‘and plan for a water conservation program tions of Dana Covington to be Commis- here.’’ sioner, Postal Rate Commission, and On page 9, line 2, strike ‘‘80’’ and insert Ed Gleiman to be Commissioner, Post- MCCAIN (AND WYDEN) ‘‘70.’’ al Rate Commission. AMENDMENT NO. 3783 On page 9, line 11, strike ‘‘20’’ and insert THE PRESIDING OFFICER. Without Mr. MCCAIN (for himself and Mr. ‘‘30.’’ objection, it is so ordered. WYDEN) proposed an amendment to the f COMMITTEE ON INDIAN AFFAIRS bill, S. 442, supra; as follows: Mr. MCCAIN. Mr. President, I ask PERKINS COUNTY RURAL WATER unanimous consent that the Senate On line 5, strike ‘‘3’’ and insert ‘‘4’’. SYSTEM ACT OF 1998 f Committee on Indian Affairs be author- ized to meet during the session of the ALTERNATIVE DISPUTE Senate on Wednesday, October 7, 1998 DASCHLE (AND JOHNSON) RESOLUTION ACT OF 1998 at 9:30 a.m. to conduct a hearing on AMENDMENT NO. 3787 H.R. 1833, to amend the Indian Self-De- Mr. MCCAIN (for Mr. DASCHLE for termination and Education Assistance GRASSLEY (AND DURBIN) himself and Mr. JOHNSON) proposed an Act to provide for further Self-Govern- AMENDMENT NO. 3784 amendment to the bill (S. 2117) to au- ance for Indian tribes. The hearing will Mr. MCCAIN (for Mr. GRASSLEY for thorize the construction of the Perkins be held in room 485 of the Russell Sen- himself and Mr. DURBIN) proposed an County Rural Water System and au- ate Office Building. amendment to the bill (H.R. 3528) to thorize financial assistance to the Per- The PRESIDING OFFICER. Without amend title 28, United States Code, kins County Rural Water System, Inc., objection, it is so ordered. with respect to the use of alternative a nonprofit corporation, in the plan- COMMITTEE ON THE JUDICIARY dispute resolution processes in United ning and construction of the water sup- Mr. MCCAIN. Mr. President, I ask States district courts, and for other ply system, and for other purposes; as unanimous consent that the Commit- purposes; as follows: follows: tee on the Judiciary be authorized to October 7, 1998 CONGRESSIONAL RECORD — SENATE S11797 meet during the session of the Senate in our modern era. Kimbel Oelke’s Deeply involved in the community, Mr. on Wednesday, October 7, 1998 at 2:00 commitment to community journalism Oelke led the efforts to establish the Dun- p.m. in room 226 of the Senate Dirksen will leave a legacy of service for future dalk Library, the Dundalk Chamber of Com- merce, the Dundalk Association of Busi- Office Building to hold a hearing on: generations both in and out of Dun- nesses and the Greater Dundalk Sports Hall ‘‘Judicial Nominations.’’ dalk. of Fame. The PRESIDING OFFICER. Without I extend my most sincere sympathies Mr. Oelke, a soft-spoken man who had a objection, it is so ordered. to his wife Mary, their three sons and penchant for green eyeshades and big King COMMITTEE ON THE JUDICIARY seven daughters, and to all the family Edward cigars, was born in Louisville, Ky. When he was seven, his family moved to Mr. MCCAIN. Mr. President, I ask and friends of Kimbel Oelke. Mr. Presi- Dundalk, when his father was transferred unanimous consent that the Commit- dent, I ask that two articles celebrat- ing Kimbel Oelke’s life be printed in there by American Standard, the maker of tee on the Judiciary be authorized to plumbing fixtures. meet during the session of the Senate the RECORD. The 1935 graduate of Sparrows Point High on Wednesday, October 7, 1998 imme- The articles follow: School once dreamed of becoming a major- diately following the 2:00 Hearing in [From the Sun, Aug. 4, 1998] league baseball player, but his hitting failed room 226 of the Senate Hart Office KIMBEL E. OELKE, 80, LONGTIME PUBLISHER OF him. In 1938, he became sports editor of the DUNDALK EAGLE AND COMMUNITY BOOSTER Community Press. Building to hold a hearing on: ‘‘A Re- ‘‘When I was in high school, I had two am- (By Fred Rasmussen) view of the Radiation Exposure Com- bitions: To be a baseball player and to be a pensation Act.’’ Kimbel E. Oelke, publisher of the Dundalk newsman,’’ he told the Dundalk Eagle on the The PRESIDING OFFICER. Without Eagle, died Sunday of a heart attack while newspaper’s 25th anniversary. objection, it is so ordered. attending Mass at St. Rita Roman Catholic After serving with the Navy in the Pacific Church in Dundalk. He was 80. during World War II, he returned to the SPECIAL COMMITTEE ON THE YEAR 2000 Mr. Oelke, a well-known figure in eastern Press and was promoted to editor. TECHNOLOGY PROBLEM Baltimore County, was a seasoned newspaper Studying at night, he earned a law degree Mr. MCCAIN. Mr. President, I ask reporter and editor when the unthinkable from the University of Baltimore Law unanimous consent that the Special happened one day. School. Committee on the Year 2000 Tech- He woke up one morning and noticed his Services will be held at 8:30 p.m. today at nology Problem be permitted to meet name missing from the mastheads of Dun- the Duda-Ruck Funeral Home of Dundalk, on October 7, 1998, at 9:30 a.m. for the dalk’s Community Press and the Eastern 7922 Wise Ave. Beacon, where he had worked for 31 years. He is survived by his wife, the former Mary purpose of conducting a hearing. He had complained when the newspapers Georgina Jarboe, whom he married in 1946; The PRESIDING OFFICER. Without began expanding and turning away from three sons, Timothy Oelke of New Freedom, objection, it is so ordered. local news coverage, and the owner, Strom- Pa., James A. Oelke of Corpus Christi and SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT berg Publications, demoted him to advertis- Andrew P. Oelke of Seattle; seven other MANAGEMENT, RESTRUCTURING AND THE DIS- ing manager of the Essex Times, another of daughters, Kim E. Boone of Dundalk, Bar- TRICT OF COLUMBIA the chain’s newspapers. bara E. Oelke of Monkton, Elizabeth A. Mr. MCCAIN. Mr. President, I ask Disgruntled, he quit. He was in his early Oelke of Fawn Grove, Pa., Mary Jane Oelke unanimous consent on behalf of the 50s and had a wife and 11 children to support. of White Marsh, Suzanne C. Oelke of Seattle, He and his wife took a gamble. They took Amy K. Christensen of Upperco and Kerry A. Governmental Affairs Subcommittee their savings and started their own news- Raszewski of Monkton; a sister, Virginia on Oversight of Government Manage- paper. Becker of Dundalk; 16 grandchildren; and ment, Restructuring and the District The Dundalk Eagle, a tabloid, arrived on four great-grandchildren. of Columbia to meet on Wednesday, Oc- May 15, 1969. Its slogan was ‘‘Of The People, tober 7, 1998, at 2:00 p.m. for a hearing By The People, For The People.’’ [From the Dundalk Eagle, Aug. 13, 1998] on ‘‘Are Military Adultery Standards In a front-page editorial, Mr. Oelke wrote, FAMILY, FRIENDS BID LAST GOODBYE TO ‘‘I am firmly convinced that there is a need Changing: What Are the Implications?’’ KIMBEL OELKE for a paper in the greater Dundalk area con- (By Terri Narrell Mause) The PRESIDING OFFICER. Without tinually cognizant of the needs and desires of objection, it is so ordered. The St. Rita Catholic Church parish priest the people and the local businesses.’’ explained that God has a purpose for each f The paper sold for 10 cents a copy and sub- person’s life, and praised Kimbel Oelke for scriptions were $1 a year. It has grown from ADDITIONAL STATEMENTS fulfilling what he was ‘‘called to do.’’ 500 subscribers to a paid circulation of 24,000 But it was three of Oelke’s daughters who and a staff of 20. painted the most vivid picture of the news- For many years, Mr. Oelke wrote most of TRIBUTE TO KIMBEL E. OELKE paper publisher during the Mass of Christian the newspaper copy and was a familiar figure burial for their father Aug. 5. The Mass was ∑ Mr. SARBANES. Mr. President, I rise in courtrooms, police stations and led by the Rev. William Remmel of St. today to honor the memory of Kimbel firehouses. Tipsters kept his phones ringing. Rita’s, assisted by the Rev. Joseph Cornely, The paper was homespun and covered Dun- who works with Trinity Missions in Califor- E. Oelke, publisher of the Dundalk dalk and its environs in great detail. Mr. Eagle—a homespun and pioneering pub- nia, and Deacon Albert Chesnavage. Oelke’s appetite for Dundalk minutiae was Oelke, the founder and publisher of The lication committed to covering the insatiable. Dundalk Eagle, died Aug. 2 while attending local news stories that directly affect One of the Mr. Oelke’s space-saving tricks, St. Rita’s with his wife. He was 80 years old. the daily lives of the citizens of the which gave his newspaper a particularly dis- In emotional and eloquent testimonials, greater Dundalk area. Once sold for 10 tinguishing if not unusual look, was his use the three women recalled their father as a cents to 500 subscribers and written en- of ampersands—‘‘&’’—instead of the word man devoted to his family and dedicated to ‘‘and’’ in copy. bringing out the best in others. tirely by Mr. Oelke at its founding in ‘‘The Eagle is more family-like than at 1969, the Dundalk Eagle is now cir- Deborah Cornely, Oelke’s second daughter most places,’’ said Wayne Laufert, who was and managing editor of The Eagle, told the culated to 24,000 people by a staff of hired as a reporter in 1986 and was named story of how her father taught her to ride a twenty. editor in 1996. bike. Oelke’s commitment to the commu- ‘‘That’s due to the personalities of Mr. and Oelke transformed the bicycle into a simu- nity extended beyond his distribution Mrs. O. Most of us think of them as grand- lated airplane, complete with painted wings of the newspaper to include his partici- parents. They treated a group of 20 or more and a tail, finishing it the evening before the pation in the creation of the Dundalk people to Christmas dinner every year and then-4-year-old was to ride it in Dundalk’s hosted summer parties where we ate crabs 4th of July parade. Library, the Dundalk Chamber of Com- and played softball.’’ ‘‘The only problem was that I’d never rid- merce, the Dundalk Association of Mr. Laufert described Mr. Oelke as ‘‘a very den a two-wheeler before,’’ Cornely said in Businesses and the Greater Dundalk warm person’’ who had ‘‘difficulty saying her eulogy. Sports Hall of Fame. ‘no’ to people. He was very accommodating So on that evening, her father removed the From the age of seven when he first and it was one of his most endearing quali- training wheels from the bike, steadied it as moved to Baltimore, Oelke had jour- ties.’’ she climbed aboard and assured her she could nalistic ambitions. I think all would Deborah I. Cornely of Dundalk, a daughter do it. and the paper’s managing editor, said, ‘‘He After she had ridden some distance, con- agree that the realization of his dream was the kind of man who was very humble. fident her father was still holding on, she has not only enriched the lives of thou- He never bragged about his accomplish- looked back to see him, ‘‘standing all smiles sands of his readers, but conveyed a ments, but most of all tried to give everyone & applause, way back at my point of depar- sense of community too often missing an even break.’’ ture.’’ S11798 CONGRESSIONAL RECORD — SENATE October 7, 1998 ‘‘He’d sent me off alone, and through his ‘‘Community newspapers throughout the floor and the desks when he came in, shook encouragement, his insistence that I was up world should take a chapter from him, be- his head, took the paintbrush out of my hand to the task, I’d accomplished something on cause he knew how to run a community and sat me down in front of a typewriter in- my own that I didn’t think I could do,’’ newspaper. stead, saying this was where I belonged. A Cornely said. ‘‘That was one of the first of ‘‘He would look you in the eye, shake your professional painter finished the job right, many cherished memories I have of my fa- hand with a firm handshake and say, ‘Good and I haven’t held a paintbrush in my hand ther helping me overcome my fears & suc- luck.’ That’s how I want to remember him.’’ since. ceed in life.’’ Mason first met Oelke when he organized a Early on, Scoop showed me one of the ben- The next day, the newly trained bicyclist group that tried to pinpoint and expose ex- efits of being a reporter. It was the first year collected a blue ribbon for the bicycle divi- cessive government spending. Oelke, Mason that the Baltimore Orioles were in the major sion from then-Gov. Theodore McKeldin. says, always supported the group by printing leagues, and we went to a couple of games Elizabeth Oelke, her parents’ fifth child, its findings in The Eagle. using our press passes. next recited the publisher’s favorite poem, ‘‘I recognize—and I’m sure a lot of people During my high school year between the William Henley’s Invictus, as she remem- will recognize—that an institution has two summers I worked for Scoop, I attended bered her father as a journalistic poet, an passed on,’’ Mason said. ‘‘I’m sure when St. Saturday matinees at the old Hilltop Thea- ‘‘adman’’ who appreciated the power and Peter meets and interviews Mr. Oelke, he’ll ter in Baltimore, where big-name stars came beauty of language. appoint him editor-in-chief of heaven’s week- weekly for live productions. Each week I The poem was one Oelke knew by heart ly.’’ would interview the star and write a column and recited with ‘‘precision, gusto and con- WORKING FOR OELKE MEANT COVERING POLICE on the theater’s activities that Scoop ran in viction,’’ applying it to his own life and en- BEAT, PAINTING OFFICE The Community Press. Then, after I finished college and was couraging his family to do the same, Eliza- The following was written by Gaitherburg drafted, the Army sent me back to Dundalk beth Oelke told the mourners at St. Rita’s. resident Stuart Gorin, who got his start in to Fort Holabird in 1962. When I stopped in to ‘‘I am the master of my fate, I am the cap- newspapers as a 14-year-old hired by Kilmel say hello, Scoop told me that his night court tain of my soul,’’ she said, reciting the final Oelke, the Eagle founder who died Aug. 2. lines of the poem. ‘‘And if that was the only As a writer with the U.S. Information reporter had just left, and if I wanted the job think my father had given me, that would Agency focusing on aspects of U.S. foreign for old time’s sake it was mine. So while I have been enough. But he gave us so much policy, I am a long way from Dundalk, Md., was a soldier, every Monday night I would more.’’ where many years ago Kimbel Oelke gave me cover the court session and leave my stories In a final family tribute, Amy Oelke, the my start in journalism. in the office for him to pick up the next day. ninth of her parents’ 11 children, remem- He was a customer in my late father’s There were occasional phone calls after bered how her father fostered independence store, the old Stansbury Food Center, where that assignment, but years passed before I and self-confidence in his children with en- I was a 14-year-old reluctantly helping out saw Scoop again. Helen Delich Bentley was couragement and praise. She specifically re- while dreaming of becoming a newspaper re- still in Congress and running for re-election called his use of the word ‘‘best.’’ porter. Scoop—he was always Scoop to me, in 1986, and I came to Dundalk during one of ‘‘Every Thanksgiving, we had the best tur- never Mr. Oelke—nearly bowled me over her campaign stops to write an article. I got key we’d ever had,’’ she said. ‘‘Mom was the when, after murmured conversations with together with Scoop for lunch and we had a best woman in the world. And he always my parents, he offered me a summer job as a wonderful afternoon reminiscing. Regret- made us all feel like the best. But he never cub reporter for The Community Press and tably, that was the last time I saw him. Besides writing for USIA, I’ve worked for acted like he or his family was better than Baltimore Countian in 1953 for the princely newspapers and wire services not only in the anyone else. sum of $6 a week. ‘‘I was blessed—and we all were—with the Scoop took me under his wing and taught United States but also in Europe and Asia. best father.’’ me how to be a reporter: how to write in It’s been a satisfying career that all started FINAL FAREWELLS newspaper style, how to ask questions, how with the Dundalk Community Press. Thanks, Scoop. I’m going to miss you. After the service, family members and to be fair. When a citizen has a complaint friends joined a procession down Merritt against the city council, write it, he said, LETTER WRITERS RECALL FOUNDER OF ‘‘EAGLE’’ Boulevard to Sacred Heart of Jesus Ceme- but be sure to get the council’s side in the Condolences sent to The Eagle upon the tery of German Hill Road. story, too. death of the paper’s founder, Kimbel Oelke, Under a sunny, clear sky with a soft breeze It wasn’t always easy, but it sure was ex- included the following letters: accompanying the priest’s brief words of citing. When he gave me my first byline, on Kimbel Oelke contributed more to our comfort, several of Oelke’s friends took one a story about the family of a little boy in a community than most of us know. His tenac- last opportunity to remember the man. coma, I felt on top of the world. ity and vision gave Dundalk a weekly re- Some remembered his love of golf. Part of my job, Scoop said, was to cover minder of who we are as individuals and as a ‘‘He’ll be playing that big golf course in the police beat. We went to the police sta- community. His paper is our family album. heaven,’’ said former Baltimore County tion, where he introduced me to the desk ser- His legacy is our deep sense of community. councilman Don Mason of Eastwood. geant. Every day I would gather material His life is our measure of what it means to Oelke’s son-in-law Donald Cornely (a neph- from the police blotter for stories, and I be a good man. ew of the priest who assisted in the service) thought I was becoming a seasoned profes- Kimbel, I am certain you are reading this pulled from his pocket a handful of orange sional. But the next week, a new officer was from heaven. You left an undeniable and golf tees imprinted with ‘‘The Dundalk on the desk, and when I explained my mis- meaningful mark on Dundalk and on so Eagle, Published Weekly, Read Daily,’’ and sion he brushed me aside and told me to go many of us who had the fortune of knowing told about golfing with the publisher. home to my mother. Crushed, I trudged back you.—Michael Galiazzo, Rainflower Path, ‘‘The first time he took me golfing—he was to the office and informed Scoop, who roared Sparks, Md. a very patient man, because I’m not very with laughter and then took me back to the We at Sparrows Point send our deepest good at the game—he handed me a couple of station and smilingly declared that yes, I sympathy to all of you upon the death of Mr. these,’’ Cornely recalled. ‘‘After teeing off really was his reporter and needed to see the Oelke. He was a universal citizen, a true the first time, I started to pick up the tee, blotter. friend of businesses and the community. but he wouldn’t let me. He told me to leave But that embarrassment was nothing com- We recall his unconditional support of it there, and he took some more from his pared to what Scoop put me through for an Bethlehem Steel and his wholehearted, self- pocket, leaving them across the course as we interview with the winner of a local beauty less help in a grassroots campaign against walked. pageant. Get all of the details, and don’t for- steel imports. His help was crucially needed ‘‘He knew other golfers would pick up the get her measurements, he admonished. Back at a critical time in our history, and he came tees to use themselves, and The Eagle would in the 1950s, this was considered routine, but through with flying colors. get publicity. He did that wherever we not for a red-faced 14-year-old who had to ap- There were many other times when his ad- played—New York, Pennsylvania and other proach a ‘‘grownup’’ 18-year-old. What I fi- vice, counsel and friendship were sought, and states—no matter how far away we were nally decided to do was type out a list of he was there for us, as he was for everyone in from Dundalk.’’ questions for her, asking her the vital statis- the community. He will be missed by all Oelke was buried in his golf shoes with his tics in the middle of the list. I rang her door- whose lives he touched.—The letter was favorite putter lying along-side him. bell, identified myself as a reporter for the signed by Sparrows Point Division president Others attending the graveside service re- Community Press, handed her the list, and Duane R. Dunham and 15 other company offi- called his contributions to the community asked her to please fill it out. When I admit- cials. and his passion for community news. ted to Scoop how I obtained the information, As always, Baltimore Sun reporter Fred Kenneth C. Coldwell Sr., publisher of the he again roared with laughter. Rasmussen had outdone himself in his mag- Avenue newspapers, said Oelke encouraged One time he didn’t laugh. He needed the nificent obituary of a truly great man, the and helped him when he first entered the newspaper office painted, and I said I could late Kimbel E. Oelke of Dundalk, founder newspaper business 25 years ago. do it on a Saturday morning. Of course I and publisher of The Eagle. ‘‘He was a great guy and a great friend,’’ knew how, I said. I had completed half of the That having been said, nevertheless, Mr. Coldwell said at the graveside service Aug. 5. ceiling in blotchy streaks with drops on the Rasmussen overlooked or did not know some October 7, 1998 CONGRESSIONAL RECORD — SENATE S11799 remarkable events about this man’s epic In March 1988, Mike McGinty as- ample of how well our military leaders saga of life which I was present to witness by sumed command of the 10th Tactical represent the best interests of our men virtue of my relation to both him and his Fighter Wing at the Royal Air Force and women in uniform. community. I first me him in 1974 while handling public Station in Alconbury, England. During Also a dedicated family man, Mike relations for Patrick T. Welsh’s House of a time of great change in world affairs, and his wife, Karen, are the proud par- Delegates campaign and later, in 1978, for the Lt Gen McGinty worked diligently to ents of a daughter, Shannon, and a son, same man’s state Senate campaign. Today, maintain and solidify local host nation Tim. In addition to flying, their inter- Mr. Welsh is President of The Eastern Balti- relations while simultaneously enhanc- ests include bird watching and photog- more Area Chamber of Commerce. None of ing quality of life support for service raphy. his successes would have happened without members assigned to his command. As During his distinguished career, the the fair coverage of Mr. Oelke and The a result of Lt Gen McGinty’s vision and general has earned some of our nation’s Eagle—and the same is true of every other dedication to his troops he established candidate for public office from that time to highest honors: the Distinguished Serv- this. Alconbury’s first-ever Family Support ice Medal twice, the Legion of Merit In 1984, when I worked at Dundalk Commu- Center. twice, the Distinguished Flying Cross nity College and the entire collegiate com- As commander of the Air Force Mili- with device, the Meritorious Service munity harnessed its abilities and energies tary Personnel Center, and more re- Medal four times, and the Air Medal to re-employ area residents, Mr. Oelke was cently as the Air Force’s Deputy Chief ten times, along with the Air Force there as well, and when I had occasion to run of Staff for Personnel, Lt Gen McGinty Commendation Medal and numerous for the office of Congress of the United led the Air Force through a period of campaign and service medals. States in 1982, 1984 and 1988, I got a fair hear- great challenge and change. During his ing from him each and every time. Lt Gen Mike McGinty’s vision, lead- Thus, he was, is and remains my ideal of tenure, Mike moved Air Force person- ership and dedication will have a last- what a newspaper publisher should be: fair, nel systems into the ‘‘electronic era.’’ ing positive impact on the Air Force faithful and true. I am not surprised that he He expertly managed significant and the nation. As he embarks upon his died in church in the arms of the Lord and drawdowns of both military and civil- retirement, I wish him continued suc- the family that loved him. I, too, shall miss ian personnel while simultaneously cess in all that he and Karen pursue. him.—Blaine Taylor, Joppa Road, Towson. meeting the expanded personnel re- Please accept our most sincere wishes re- Those of us in Congress, and the men garding Mr. Oelke’s death. Hopefully his quirements resulting from increased and women of our Air Force, will great- family, friends, and the staff at The Eagle deployments. A constant advocate for ly miss him.∑ are doing well. Air Force people, he led the way in f I am new to the Baltimore area, so I obvi- working difficult issues in the rated ously have no previous knowledge of Mr. force management, recruiting, reten- REMOVING HOLD ON H.R. 2610, A Oelke and the paper. However, your staff tion, and transition assistance arenas. BILL TO REAUTHORIZE THE OF- should know that his story and the related Lt Gen McGinty worked to meet FICE OF NATIONAL DRUG CON- story of the newspaper is a great one. He changing Air Force needs by expanding TROL POLICY sounds like he was a good person with his head and heart in the right place. It is great the role of Department of the Air Force ∑ Mr. WYDEN. Mr. President, as you when the good guys win! civilians in Air Force personnel man- know, I believe that the Senate custom Anyway, just know that I was personally agement. He increased career broaden- of placing holds on legislation should moved by learning about Mr. Oelke’s life. I ing opportunities for Air Force civil- be practiced in public. In that spirit, I will look to learn more in upcoming issues of ians through developmental positions rise today to remove the hold I placed your paper. Keep up the (his) great work at the Air Staff, the Air Force Person- on H.R. 2610, a bill to reauthorize the over there at The Eagle.—Paul Kin, The nel Center, and major command head- Office of National Drug Control Policy. writer is a community relations director rep- resenting Bradley-Ashton-Dabrowski-Mat- quarters. He established the first-ever I do not object to Senate consideration thews Funeral Homes. Air Force Civilian Executive Matters of this legislation.∑ f Office, introducing policies and oper- f ations that ensure training and devel- RECOGNITION OF THE 50TH THANKING LIEUTENANT GENERAL opment of senior civilians that par- UNITED WAY TORCH DRIVE MICHAEL D. MCGINTY FOR HIS allels their military counterparts. His LIFE LONG CAREER IN THE AIR efforts in this arena clearly enhance ∑ Mr. LEVIN. Mr. President, I rise FORCE force stability. today to call my colleagues’ attention ∑ Mr. KEMPTHORNE. Mr. President, Most importantly, Lt Gen McGinty’s to a remarkable example of community over the last 33 years, Lt Gen Michael career has been based on his commitment taking place in my home D. McGinty has served as an exemplary unfaltering support of Air Force peo- state of Michigan this fall, the United Air Force officer. His career-long ef- ple. His philosophy has been that ‘‘the Way Torch Drive. This year will mark forts to provide quality support to all strength of the Air Force lies in it’s the 50th United Way Torch Drive in the members of the Air Force and their members.’’ He remains a strong advo- metropolitan Detroit. families serve as a benchmark for cate for ongoing quality of life initia- The Torch Drive was officially other military services and leave a tives, enhanced family support serv- kicked off in 1949 by General Mark lasting and positive legacy of Air Force ices, career mentoring, and leadership Clark with a goal of raising $8,550,000. personnel policy and practice. by example. Many people doubted that this goal Lt Gen Mike McGinty entered the I have personally known Mike could be reached. During that period of Air Force as a distinguished graduate McGinty for several years as both a time, similar fundraising campaigns in of the University of Minnesota Reserve colleague and a friend. We have worked other cities were falling short of their Officer Training Corps program. In his together to improve our nation’s Air goals. However, the people of the De- early days as an Air Force pilot, Lt Force by addressing the critical people troit area proved the skeptics wrong, Gen McGinty flew the F–4 and logged issues we face: retaining our key quali- contributing almost $9.3 million to the over 115 combat missions in Southeast fied and experienced Air Force profes- Torch Drive in three weeks. The metro- Asia, including 100 missions over North sionals, improving the quality of life politan Detroit Torch Drive was the Vietnam. for our families, enhancing our recruit- first such drive in the country, and its As his Air Force career progressed, ing efforts, and placing our pay and success has been a model for cities Lt Gen McGinty gained vast experience benefits programs where they should be throughout the country. both as an pilot and as a personnel ex- to take care of those who guard and de- The Detroit Torch Drive has been pert. He earned the rating of Command fend our nation. Mike has led the way helped by local and nationally recog- Pilot with more than 3,500 flight hours in this effort, a performance char- nized Americans from every walk of in a variety of aircraft, including the acteristic of his entire career. The men life. Business leaders like Max Fisher F–4, A–10, C–21 and T–39. He also in- and women of the Air Force, as well as and Lee Iacocca have lent their time vested 19 years of his career working a our entire nation, owe him a debt of and talents to the Drive. Entertainers broad range of Air Force personnel gratitude. I recall his candor and wis- like Jackie Gleason, Audrey Hepburn issues. dom during testimony as a shining ex- and the Supremes have donated time as S11800 CONGRESSIONAL RECORD — SENATE October 7, 1998 well. National and local media stars, Donovan knew better than anyone how Meg, was that we adjourn our practice ses- from Walter Cronkite to J.P. McCarthy to help a nominee navigate the shoals sion and re-convene at Chuck E. Cheese. It is have made themselves available to of the confirmation process in the Sen- typical that, when the hour of the party help. And sports stars, from Hockey ate. drew near, Meg excused herself, and did not ask but told her new boss, that she was head- Hall of Fame player Gordie Howe to On Saturday, Secretary Albright de- ing for Chuck E. Cheese. current Detroit Pistons star Grant livered the eulogy at Meg’s funeral. When he was Secretary of State, George Hill, pitch in as needed. But as impres- Her heartfelt words aptly captured the Marshall used to tell his staff ‘‘don’t fight sive as this list of famous people is, many sides of Meg Donovan—a devoted the problem, decide it, then take action.’’ I United Way representatives will tell wife and mother, a dedicated and pas- suspect he would have liked Meg a lot be- you that it is the dedication and heart sionate government servant, and a cause, all her life, Meg was a doer. of the people of metropolitan Detroit woman whose zest for life was bound- Like quite a few others, she came to Wash- ington committed to the fight for tolerance which make the Torch Drive a success less. and respect for basic human rights for all year after year. Thanks to them, the Mr. President, I would like to take people. What set her apart is that she could United Way is able to support more this opportunity to extend my sincere still make that claim after having worked than 130 agencies in metropolitan De- sympathies to Meg’s family. I also ask here 25 years. troit, providing assistance to people in that Secretary Albright’s eulogy for Whether at the Helsinki Commission, or need and solutions to long term prob- Meg be printed in the RECORD. the House Committee on International Rela- tions, or the Department of State, Meg was lems like homelessness, substance EULOGY FOR MEG DONOVAN abuse, hunger and mental illness. one of the good guys. She could out-talk By Secretary of State Madeleine Albright anyone, but talk isn’t what she was after. Mr. President, I have many reasons Father D’Silva; Duffy, Colin, Emma, Liam, She wanted change. to be proud to be a Detroiter. One of Mr. Daniel Donovan, Patrick, Paula, Mary She wanted Soviet Jews to be able to exer- the strongest reasons for my pride is Ellen, and other members of Meg Donovan’s cise their right to emigrate. She wanted Ti- the generosity and warm-heartedness family; colleagues, friends and acquaint- betans to be able to preserve their heritage. of my neighbors. I hope my colleagues ances of Meg: She wanted prisoners of conscience to will join me in thanking the tens of There are times when it seems more fitting breathe the air of freedom. She wanted thousands of people who have made the just to stammer with emotion than to speak women to have the power to make choices with finely turned phrases. annual United Way Torch Drive such that would determine the course of their It does not seem fair; it is not fair that lives. an overwhelming success over the past Heaven, which already has so much, now has Above all, she wanted to draw on and draw 50 years, and in looking forward to the so much more. And that we here on Earth, out the best in America: the America that next 50 years of giving help and hope to who need so much, have lost someone who is would use its resources and power to help people in need in metropolitan De- irreplaceable in our hearts. others achieve the blessings we all too often troit.∑ This we know. Meg could not pass from one take for granted. world to the other without changing both. f These were her ideals, but Meg was more We are crushed with grief. But the scrip- than a dreamer. No one was more effective IN MEMORY OF MEG DONOVAN tures say that those who mourn are blessed than she at creating the coalitions, marshal- for they shall be comforted; and we are com- ∑ Mr. KERRY. Mr. President, last ing the arguments and devising the strate- forted by the knowledge that, somewhere up gies that would yield concrete results. Thursday, Meg Donovan, Deputy As- above, God is getting an earful on human One of Meg’s big problems was that she sistant Secretary of State for Legisla- rights. knew the system better and played it better tive Affairs, passed away after a pain- I did not become acquainted with Meg than anyone else. So, whenever we found ful struggle with cancer. Her death, far Donovan until I went to the State Depart- ourselves in a real legislative mess, which too early at age 47, has dimmed the ment in 1993. Like her, I was a mother of was not more than three or four times a light for all those who loved and knew three, including twins. I felt I understood week, we turned to Meg to help get us out. better than some others might the choices her: her husband, Stephen Duffy, her Around the Department and earlier in her and challenges she faced. But many of you years on Capitol Hill, Meg’s energy and wis- three children Colin, Liam and Emma, knew her longer and more intimately than I. dom added sparkle to every meeting. When her father, Daniel Donovan, her sisters, I cannot capture her personality or her ca- she spoke, people listened. When she lis- Paula and Mary Ellen, her brother, reer in full. tened, people chose their words with care. Patrick, and her many friends and col- To me, if there is one word that sums up She was thoughtful and patient with those leagues in Washington. Meg, it is ‘‘completeness.’’ who, by virtue of experience or ability, need- Meg was a Washington veteran, hav- There are others in this town who are ed her help. She brought out the best in oth- ing worked in the nongovernmental af- smart and good at their jobs; others with a ers; just as she demanded the best from her- commitment to causes that are right and self. fair community for the National Con- just; others who bargain shrewdly and hard; ference on Soviet Jewry, in the Con- In our collective mind’s eye, we can still others with a warm and wonderful sense of see her striding purposefully down a hall gress for nearly twenty years, and humor; others who understand the obliga- with her arms full of folders, trailed by some most recently in the Department of tions of friendship; others who are devoted hapless Ambassadorial nominee whose future State. Through all those years she has and loving to their families; others who have had been entrusted to Meg’s capable hands. consistently been an advocate for the the discipline to live their faith. We see her, hugely pregnant, maneuvering downtrodden, for those who live in There may even be others with Christmas around swivel chairs and outthrust elbows on countries where the basic human rights sweaters that light up and play jingle bells. the cramped dais of the House International But rarely have the elements of true char- and freedoms which we take for grant- Relations Committee. acter been so artfully mixed as they were in We see her serious and firm, forearms ed are denied. They could have had no Meg Donovan. Van Gogh is arriving in Wash- chopping the air for emphasis, persuading us better champion than Meg Donovan. ington; but a human masterpiece is gone. with eloquence and passion that doing the Meg was invaluable to me and my When I was designated by President Clin- right thing is also the smart thing. staff during the years that I served as ton to serve as Secretary of State, I did what We see her relaxing at an office party, gold Chairman of the International Oper- my predecessor, Warren Christopher, did. I bracelets flashing, surrounded by flowers ations Subcommittee, which had juris- turned to the person with the best instincts from her garden, a cherub’s face aglow with diction over the authorization bill for in Washington on how to deal with our health and life, and her 100 megawatt smile friends on Capitol Hill. That was Meg. We the State Department, USIA and the turned on full. began preparing in December. We see her where she most belonged, with international broadcasting agencies. Now, naturally, I thought the President Duffy, her partner of 24 years, and with their When we needed information, she en- had made a brilliant choice for the job, but children. sured that we got it. She was an articu- I had to wonder, as we went along in prac- And as we see her, we also hear that inimi- late advocate for the Administration’s tice, and Meg corrected and improved upon table laugh, which was not exactly musical, positions and an effective deal maker my every answer on every subject, whether but which conveyed a love and enjoyment of when the time was right. And as Sec- there was anyone more qualified to be Sec- living that somehow makes what happened retary of State Albright, former Sec- retary of State than she. even harder to believe and accept. Of course, that being December, the birth- Meg knew the impermanence of life. She retary of State Christopher, and all day of the twins came along. And naturally, lost her mother to cancer and a sister to cys- those who have been confirmed as Am- Liam and Emma didn’t understand why their tic fibrosis. So she made the most of every bassadors during the Clinton Adminis- mother couldn’t promise to attend the party. single day. tration’s tenure will tell you, Meg Their proposal, passed on and advocated by The poet, William Blake, wrote that: October 7, 1998 CONGRESSIONAL RECORD — SENATE S11801 He who binds himself to a joy only in this program but to these also wish to salute the other campuses Does the winged life destroy young people for a lifetime. Over the and offices which make the effort to But he who kisses the joy as it flies years the following offices have been give quality to this endeavor. Finally Lives in eternity’s sunrise. No force, not even life itself, could bind gracious host learning sites for the to say well done to these outstanding Meg Donovan or ground her flight. She was South Carolina Semester in Washing- students in hopes we will enjoy their only 47. But, in that time, her gifts to those ton fellows: Senator STROM THURMOND, contributions to society from positions of us who are gathered here and to those Senator FRITZ HOLLINGS, Congressman of leadership in the years to come.∑ from around the world who have benefited FLOYD SPENCE, Congressman JOHN directly or indirectly from her commitment, SPRATT, Congressman JIM CLYBURN, f were full and rich. Congressman BOB INGLIS, Congressman This morning, as she looks down upon us, LINDSEY GRAHAM, Congressman SAN- I know that she would expect us to cry and RECOGNITION OF EVELYN DUKES FORD, Congressman ED WHITFIELD, Con- that, if she could, she would herself hand us the tissues. But she would also want us to be gressman CLIFF STEARNS, former Con- ∑ Mr. LEVIN. Mr. President, I rise thankful for our time together, and to dedi- gressman Butler Derrick, former Con- today to recognize a true urban innova- cate ourselves to improving our own lives by gressman Robin Tallon, former Con- tor, a woman who has devoted her ‘‘re- helping others. gresswoman Liz Patterson, former Con- tirement’’ years to solving the many We are sad today, but our sorrow is accom- gressman Arthur Ravenel, the Senate challenges that confront urban commu- panied by the abundance of joy in the memo- Commerce Committee, the White nities across the nation, Ms. Evelyn ries we share, the life we celebrate and the House, the Department of Education, Dukes. love that surrounds us. the Department of Veterans Affairs, May that joy melt, over time, the clouds of The urban community of north- our grief. May Meg’s family, especially, draw the Corporation for National and Com- eastern Detroit has greatly benefitted comfort from our affection and from the munity Service, the Office of the from the work of Ms. Evelyn Dukes. deep respect we held for her. United States Trade Representative, Her involvement with urban and neigh- And may Meg Donovan rest in peace, for the South Carolina State Washington borhood renewal began with the we will never, never forget her.∑ Office, Barron Birrell and the Amer- ‘‘Adopt-A-Park’’ program. In her f ican Council of Life Insurance. neighborhood, Ms. Dukes daily ob- The participants during the 1997–1998 UNIVERSITY OF SOUTH CAROLINA served gangs, drug users, and loiterers academic year further enhanced the INTERNS frequenting a parcel of land that was reputation of the program for reliable, formerly a small community park, but ∑ Mr. HOLLINGS. Mr. President, the diligent and intelligent contributions had become a symbol of fear and apa- South Carolina Semester in Washing- to their workplace. These students, thy. Fortunately, Ms. Dukes did not ton Program, hosted by the Institute of their university, hometown and place- view Brookins Park in the same man- Public Affairs at the University of ment include for the Fall 1997 semes- ner. As an organizer for numerous South Carolina, provides outstanding ter: Mary Borowiec, USC Columbia, Co- Block Clubs and Neighborhood Watch Honors College students at the state’s lumbia, S.C., Congressman LINDSEY Groups, Ms. Dukes saw the area as an public universities an invaluable op- GRAHAM; Cara Carter, USC Columbia, opportunity to bring the community portunity to work as fellows in Con- Spartanburg, S.C., Congressman MARK together and reclaim a vital rec- gress, the Administration and in the SANFORD; Katherine Graham, USC Co- reational park. By calling on organiza- private sector while pursuing an aca- lumbia, Charleston, S.C., Office of the tions from the city’s Park and Recre- demically rigorous program of study United States Trade Representative; ation Department to the Detroit Pis- and examination in Washington, D.C. Scott Harris, Lander University, ton Basketball Organization, Ms. This program joins a number of other Batesburg, S.C., Congressman JOHN Dukes’ vision for Brookins Park be- prestigious offerings sponsored by SPRATT, Kim Hartwell, USC Columbia, came a reality. Today the land is used many of the finest colleges and univer- Lexington, Kentucky, the White House; by community residents for picnics, re- sities from across the Nation. Not only Charlene Miller, USC Columbia, Lan- unions, and birthday parties, and Ms. do these fellows assist in taking care of caster, Pennsylvania, Senator HOL- Dukes is on to her next project, Skin- the business of the Nation, providing a LINGS; John Sallee, USC Columbia, ner Park. tremendous service to Congress, the Lexington, Kentucky, U.S. Department Ms. Dukes is also involved in her Agencies and the entities supporting of Education; Beth Sims, Winthrop neighborhood organization and is an them, by doing so these exemplary University, Darlington, S.C., Congress- active member in the Citizen Band young people represent the best for the man BOB INGLIS; Amber Stamegna, Radio Patrol organization. While on future of government at the local, city, USC Columbia, Mount Pleasant, S.C., patrol, she documents dangerous situa- county, state, regional, national and Barron Birrell. international levels. For the Spring 1998 semester, the tions and possible criminal actions. As the South Carolina Semester in participants include: Heather Brooks, Evelyn is President of the Ninth Pre- Washington completes its seventh USC Columbia, Charlotte, North Caro- cinct Community Relations Board and is very involved in the City Wide year, the program continues to dem- lina, Congressman JOHN SPRATT; onstrate that these students and the Derham Cole, USC Columbia, Roundtable, an organization of Detroit leaders who meet on a regular basis to campuses they represent are some of Spartanburg, S.C., Congressman BOB discuss issues and solutions involving the finest in the country. To date stu- INGLIS; Ryan Lindsay, USC Columbia, dents have participated from USC Co- Clemson, S.C., American Council of public service, safety, and awareness. lumbia, Clemson University, the Col- Life Insurance; Anne Knight, USC Co- At 73, Evelyn Dukes’ personal com- lege of Charleston, the Citadel, South lumbia, Columbia, S.C., Congressman mitment to her neighborhood and city Carolina State University, University JIM CLYBURN; Amy Milligan, College of are an inspiration to everyone. She is South Carolina Aiken, Winthrop Uni- Charleston, Mount Pleasant, S.C., Con- truly a model for community involve- versity, Lander University and the gressman FLOYD SPENCE; Becky ment, and her efforts and achievements University of South Carolina Lan- Sibilia, Clemson University, Bridge- clearly set Ms. Dukes apart as an ex- caster. For the Fall of 1998, the pro- water, New Jersey, Senator STROM emplary citizen. She has been honored gram will add its first student from THURMOND; Josh Staveley-O’Carroll, by being selected as only one of seven Coastal Carolina University. Certainly Clemson University, Charleston, S.C., people in the country to receive the few states can demonstrate a more Senate Commerce Committee. National Crime Prevention Council’s comprehensive involvement from its Mr. President, I wish to commend the Ameritech Award of Excellence in higher education community. Institute of Public Affairs at the Uni- Crime Prevention. The offices which participate are es- versity of South Carolina for imple- I know my colleagues join me in con- sential to the quality of the program. menting and coordinating such a fine gratulating Ms. Evelyn Dukes on re- The time spent by professional staff in program. Dr. Doug Dobson and Dr. Wil- ceiving this award and thanking her the office setting mentoring these stu- liam Mould have been instrumental in for the stalwart dedication she has dents is a contribution to success; not the successful tenure of this offering. I shown to improving her community.∑ S11802 CONGRESSIONAL RECORD — SENATE October 7, 1998 ANTI-NEPOTISM BILL evant case law, and of prominent legal to pursue other career opportunities. ∑ Mr. KYL. Mr. President, I rise in sup- treatises makes it clear that the bill is He will be sorely missed and not easily port of S. 1892, the judicial anti-nepo- constitutional. Indeed, a March 31, 1998 replaced. tism bill. report on the bill by the American Law Mike’s excellent assistance and in- Section 458 of 28 U.S.C. reads: ‘‘No Division of the Congressional Research valuable experience made my transi- person shall be appointed to or em- Service has concluded that ‘‘[a]fter tion from being Georgia’s Secretary of ployed in any office or duty in any consideration of the text of the Con- State to a United States Senator and a court who is related by affinity or con- stitution, the precedents, and the his- member of the Senate’s Armed Serv- sanguinity within the degree of first torical practice, we believe it to be es- ices Committee smooth and successful. cousin to any justice or judge of such tablished that Congress has the author- He serves as a positive example to us court.’’ There is some debate about the ity to fix this and other qualifications all—a good person who is committed to interpretation of section 458. Some for the office of judges of Article III his family and to continually improv- hold the view that the statute means courts. . . .’’ The Constitution is, in ing himself. While working full-time what it says—no person related to a fact, silent on what lower courts there for Senator Nunn and then myself, judge of a court may be appointed to were to be, their composition and juris- Mike has attended law school in the that same court. But some hold a con- diction, and their powers. Inasmuch as evening while still finding quality time trary view. Indeed, in a 1995 memo by the Constitution ‘‘delineated only the to devote to his lovely wife Allyson and Richard Shiffrin of the Office of Legal great outlines of the judicial power their beautiful daughter Catherine. Counsel, although the OLC conceded . . ., leaving the details to Congress, Now in his final year of law school at that the statutory language appears to .. . ‘‘[t]he distribution and appropriate Georgetown, Mike has decided to leave restrict presidential appointments to exercise of the judicial power must . .. Capitol Hill to pursue a career in the offices or duties In federal courts, the be made by laws passed by Congress. law profession. I wish him well in all of OLC argued that the statute only ap- .. .’’ Rhode Island v. Massachusetts, 12 his future endeavors and I know that plies to judges hiring or appointing Pet. (37 U.S.) 657, 721 (1838). he will have a lifetime of many more persons to the courts. Many scholars The public policy behind Section 458 accomplishments and shining mo- disagree with this view and with the and S. 1892 is clear: For the public to ments. Although Mike’s invaluable other memoranda issued by the Admin- maintain a sufficient level of con- contribution to my staff will be greatly istration. Finally, there is also dis- fidence in the integrity and impartial- missed, his daily presence in our lives agreement as to whether section 458 ity of its public institutions, those in- will be missed even more. Mike, thank applies to appointments where a judge stitutions must strive not only to you for your years of service to me and has taken senior status is a ‘‘judge of avoid circumstances in which actual the people of the great State of Geor- such court.’’ impropriety could arise among public gia—I am very proud of all you do. You For future judicial nominees, the Ad- servants, but to avoid all cir- truly are a great American!∑ ministration and the Senate must un- cumstances that create even the re- f derstand the criteria required for Arti- mote appearance of impropriety. Hav- cle III judicial appointments. S. 1892 ing close family members serve on the NOTICE OF INTENTION TO MOVE maintains the current prohibition on same court would create an appearance TO SUSPEND THE RULES of impropriety. Of all the relationships relatives of judges being appointed to ∑ Mr. MCCAIN. Mr. President, I hereby or employed in any job of the court, that one judge could have to another— give notice in writing of my intention such as for example, positions as clerks for example, former law partners or to move to suspend the provisions of and bailiffs. members of the same bench for 20 Rule 22 requiring that the following S. 1892 amends 28 U.S.C. 458 to clarify years—a familial relationship is one amendment be germane: that no person may be appointed to be that is certain to automatically cause AMENDMENT NO. 3711 a judge of a court if that person is re- a litigant to question the impartiality lated within the degree of first cousin of a judge. (Purpose: To define what is meant by the Litigants must have complete con- term ‘‘discriminatory tax’’ as used in the to any judge, including a judge retired bill) in senior status of that ‘‘same court.’’ fidence that federal judges will be ob- jective and impartial while on the On page 26, beginning with line 3, strike Under the bill, ‘‘same court’’ means, in through line 5 on page 27 and insert the fol- the case of a district court, any court bench. The institutional integrity of lowing: of the same single judicial district; Federal courts requires scrupulous pro- (2) DISCRIMINATORY TAX.—The term ‘‘dis- and, in the case of a court of appeals, tection of public confidence in the judi- criminatory tax’’ means— the court of appeals of a single judicial cial process. Preventing close family (A) any tax imposed by a State or political district. members from serving on the same subdivision thereof on electronic commerce For example, a person may not be a court is a small price to pay to avoid a that— member of the Federal District Court potential diminution of credibility and (i) is not generally imposed and legally col- impartiality of the Judiciary, one of lectible by such State or such political sub- in Arizona if a related person is already division on transactions involving similar a member of the Federal District Court the Nation’s most hallowed institu- property, goods, services, or information ac- in Arizona, but related persons may tions.∑ complished through other means; serve simultaneously on federal dis- f (ii) is not generally imposed and legally trict courts in Arizona and New Mex- collectible at the same rate by such State or TRIBUTE TO MICHAEL J. ico. Additionally, related persons may such political subdivision on transactions in- WILLIAMS serve simultaneously on the Northern volving similar property, goods, services, or and Eastern Federal District Courts in ∑ Mr. CLELAND. Mr. President, I rise information accomplished through other today to pay tribute to an invaluable means, unless the rate is lower as part of a California. A person may not be a phase-out of the tax over not more than a 5- member of the 2nd Circuit if a related member of my staff, Mike Williams, who has served as my Military Legisla- year period; person is a member of that circuit, but (iii) imposes an obligation to collect or pay related persons may serve on the 2nd tive Assistant since I arrived in the the tax on a different person or entity than and the 7th Circuits simultaneously. Senate in January 1997. Mike joined in the case of transactions involving similar It is important to Note that this act my staff after serving a great Amer- property, goods, services, or information ac- does not apply to the Supreme Court. ican and one of Georgia’s most honored complished through other means; The act takes effect on the date of and beloved Senators, Senator Sam (v) establishes a classification of Internet enactment and applies only to an indi- Nunn, where he began as an intern access service providers or online service vidual whose nomination is submitted while attending Georgia Tech and after providers for purposes of establishing a high- graduation quickly became involved in er tax rate to be imposed on such providers to the Senate on or after such date. than the tax rate generally applied to pro- Thus, the bill would not affect the legislative matters, including military viders of similar information services deliv- nomination of William Fletcher. issues. After more than five years of ered through other means; or A thorough study of the constitu- public service, Mike will be leaving my (B) any tax imposed by a State or political tional provisions at issue, of the rel- staff after the 105th Congress adjourns subdivision thereof, if— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11803 (i) the ability to access a site on a remote skills, self-discipline and creative reso- firearms related violence throughout the seller’s out-of-State computer server is con- lution methods. State of Maryland. sidered a factor in determining a remote Mr. President, Bruno Nowicki has The Firearms Investigation Unit was ini- tially tasked with the responsibility of en- seller’s tax collection obligation; or demonstrated time and again his com- (ii) a provider of Internet access service or forcing Maryland’s existing firearms laws online services is deemed to be the agent of mitment to his community. He is truly and, more importantly, identifying the a remote seller for determining tax collec- a person who has touched the lives of source or sources of firearms used in the tion obligations as a result of— thousands of people. I know my col- commission of violent crimes. (I) the display of a remote seller’s informa- leagues join me in wishing Bruno a Through the work of the Firearms Inves- tion or content on the out-of-State computer happy 90th birthday and in commend- tigation Unit and information provided by the Bureau of Alcohol, Tobacco and Fire- server of a provider of Internet access service ing him for his remarkable dedication or online services; or arms the straw purchase was identified as to community service.∑ the major source of crime guns in Maryland, (II) the processing of orders through the even more significant, based upon crime gun out-of-State computer server of a provider of f trace data from the city of Baltimore. The Internet access service or online services. ∑ ONE GUN A MONTH FORUM straw purchase of firearms through multiple f ∑ Mr. LAUTENBERG. Mr. President, sales was determined to be the source of the majority of regulated firearms used in the RECOGNITION OF BRUNO NOWICKI last month I convened a forum to in- commission of violent crime. Let me repeat vestigate the problem of gun-traffick- that the straw purchase of firearms through ∑ Mr. LEVIN. Mr. President, I rise ing. At the forum, we heard from a today to pay tribute to a good friend of multiple sales was determined to be the number of compelling witnesses and I source of the majority of regulated firearms mine and a great leader in my home have been submitting their testimony used in the commission of violent crime. state of Michigan, Bruno Nowicki. On Each multiple straw purchase tells a dra- into the RECORD so that my colleagues October 11, 1998, Bruno’s friends and matic story. I’d like to give you two exam- and the public can benefit from their ples. family will help him celebrate his 90th insights. Taken together, this testi- birthday at a celebration at the Polish 1. The first is that of a 32-year old male mony makes a compelling case for the who was recruited by a drug organization to Century Club. Anti-Gun Trafficking Act, S. 466, which purchase 9 9mm semi-automatic handguns Bruno Nowicki is well known in I introduced earlier this Congress. from a Maryland regulated firearms dealer. Michigan and in his native Poland for Today, I would like to submit the Upon receipt of the handguns from the deal- er, the young man immediately provided his efforts to commemorate and cele- final testimony from this forum, that brate the contributions of Polish peo- them to a member of the hierarchy of the of Captain Thomas Bowers, Director of drug organization who then distributed the ple to the United States and to the the Office of Crime Gun Enforcement world. He has designed monuments to handguns to drug traffickers whom he con- for the Maryland State Police. Two trolled. Within a few weeks, two of the 9mm Polish-American heroes of World War years ago, the Maryland Legislature handguns were used in two separate homi- II and Vietnam and to Revolutionary passed the Gun Violence Act of 1996, cides. 2. A second example is that of a young man War Generals Pulaski and Kosciuszko. which restricted the purchase of hand- Bruno Nowicki has also been a strong who purchased 11 9mm and 45 caliber semi- guns to one in a thirty day period. The automatic handguns from a Maryland regu- supporter of public libraries, and results have already been dramatic. In served on the Board of Governors of the lated firearms dealer. A short time later, the fact, Maryland saw a 78 percent de- same resident returned to the same regu- Detroit Public Library from 1971 until crease in the number of handguns sold lated firearms dealer and purchased 30 more 1994. He melded his interests in pro- as a result of multiple purchases in the semi-automatic handguns. An investigation moting Polish culture and supporting first year after the enactment of this was initiated which revealed that all 41 semi- public libraries by arranging for stat- automatic handguns were smuggled out of law. This means fewer lethal weapons the United States and into the country of Ni- ues, mosaics and busts of prominent supplied to criminals in cities nation- figures in Poland’s history to be dis- geria in violation of both United States and wide. Nigerian law. played in the Detroit Main Library and I hope that my colleagues will work In 1996, through the efforts of Governor the Hamtramck Public Library. Bruno with me to pass this important piece of Glendening, the Maryland legislature passed worked with artist Zygmunt Dousa of legislation. Keeping handguns out of a comprehensive violence reduction initia- the University of Krakow to design the tive entitled, The Gun Violence Act of 1996. the hands of criminals, and reducing This act limited the purchase of a regulated Polish Room of the Ethnic Conference the gun violence across our nation and Study Center at the Wayne State firearm to one in a 30-day period and also re- should be of paramount importance to quired a background check and 7-day waiting University in Detroit. He is a co-found- all. period for secondary sales of regulated fire- er of the Polish Riverfront Festival, Mr. President, I ask that the testi- arms between individuals. (Three charts; reg- which provides assistance to children’s mony of Captain Thomas Bowers be ulated firearm definition, secondary sale def- hospitals in Poland. inition, and secondary sale regs.) printed in the RECORD. Maryland’s one gun a month law limits the I was proud to work with Bruno The testimony follows: Nowicki in 1993–1994 on an issue espe- number of handguns an individual can pur- cially close to his heart, promoting TESTIMONY OF CAPT. THOMAS BOWERS chase to only one during a 30-day period not Senator LAUTENBERG, I am Captain Thom- per calendar month. There are codified pro- chess to students in schools. An avid visions for specific exceptions to the law. chess player who participates in (and as Bowers, Director of the Office of Crime Gun Enforcement for the Maryland State Po- They are enumerated on the chart displayed has won) tournaments in the U.S., Ber- lice. before you. (Two charts; exceptions to one/ muda and Cuba, he believes that the On behalf of Colonel David B. Mitchell, our month and Maryland State Police From 77M skills children develop by learning to superintendent, thank you for the oppor- (multiple purchase). play chess can be applied to everyday tunity to address you today. (1) Residents may apply to the Maryland State Police to be designated as private col- life. A four-year study of school chess The troopers seated behind me represent the subject matter experts in the area of lectors. players confirmed Bruno Nowicki’s be- (2) Residents may purchase two handguns firearms enforcement. lief. The study found that chess helps during a single visit to a licensed gun dealer The Maryland State Police is the point of children build self-confidence and self- if the dealer has offered a second handgun at contact for regulatory and criminal over- a discount when purchased with the first. worth, dramatically improves chil- sight of all regulated firearm purchases in dren’s ability to think rationally, and Under this exception the resident cannot Maryland. In 1966, Maryland initiated an ap- purchase another handgun for 60 days. results in higher grades, especially in plication process to purchase handguns. This (3) Law enforcement agencies and licensed English and Math. Bruno provided me process included a 7-day waiting period and a private security organizations are exempt with important information which I background check. from the multiple purchase law when pur- used in drafting an amendment to the In 1995, Governor Parris N. Glendening, chasing handguns for use by their employees. 1994 Goals 2000: Educate America Act, Lieutenant Governor Kathleen Kennedy (4) Residents may purchase more than one which allows State educational agen- Townsend, and Colonel Mitchell initiated a handgun if they are part of a set or sequen- comprehensive program entitled Operation cies to use certain Title III funds to tial serial numbers as in an accepted collec- Cease-Fire, one element of the cease-fire ini- tor series. promote instruction in chess as a tool tiative was the Maryland State Police Fire- (5) To facilitate the replacement of a fire- for teachers to use to motivate stu- arms Investigation Unit. This unit provides arm that was lost or stolen with documenta- dents to develop critical thinking the ‘‘front line’’ response to the problem of tion from a law enforcement agency. S11804 CONGRESSIONAL RECORD — SENATE October 7, 1998 (6) To facilitate the replacement of a defec- leaving for other assignments, were endary Admiral Hyman Rickover, then tive firearm by the same regulated firearms regularly treated to lunches prepared a Captain, assigned himself the task of dealer with 30 days of purchase. by Michael in their honor. ‘‘Michael building a nuclear submarine. At that (7) Lastly the one gun in 30 days provision knows everyone’’, a co-worker stated. I time, the technology that enabled the does not apply to estate sales. As a result of this legislation, the number think that Michael made it his busi- release of nuclear power was in its in- of firearms acquired through multiple pur- ness to get to know everyone. He would fancy. Just seven years later, the USS chases have reduced significantly. note when someone from our home- Nautilus put to sea under nuclear In addition, and perhaps most telling ef- town of Shrewsbury, Vermont was hos- power. Today the Navy’s nuclear sub- fect, is the drastic decrease in the number of pitalized and he would pay them a marine force is a crown jewel of our guns initially purchased in Maryland that visit. If a person wanted to talk, Mi- Nation’s Defense arsenal. have been recovered as a result of crimes in chael would be there. In the year 2000, the Navy’s Sub- other States. Michael is a religious man who lives marine Force will celebrate its 100th By comparing the one year period prior to the enactment of Maryland’s multiple pur- his faith. His work in the Episcopal anniversary. The Secretary of the Navy chase legislation, which became effective on church in Milton, Vermont kept that has designated the period from Janu- October 1, 1996, with the year following its small community alive for years. ary 2000 through December 2000 for the enactment, you can clearly see the dramatic Along with his wife, Alice, and their commemoration of the Centennial of results (two charts; multiple sales bar chart three children, Michael is and has been the U.S. Submarine Force. The Direc- comparison, and multiple sales graph) very active in Saint Andrews Church in tor of Submarine Warfare, Rear Admi- From October, 1, 1995, to September 30, Colchester, Vermont. His faith has ral Malcolm Fages, and the Submarine 1996, 7,569 handguns were sold in Maryland, helped Michael go the extra mile in the Warfare Division have the responsibil- as a result of multiple purchases. From October 1, 1996, to September 30, 1997, care and comfort of his fellow Ver- ity for overall coordination of com- that number was reduced to 1,618 handguns monters. His sense of humor has added memorative activities with assistance which were sold as a result of multiple pur- sunshine to the lives of those he meets. of the National Commemorative Com- chases, a seventy eight percent (78%) (59% Michael represents the millions of un- mittee for the Centennial of the Sub- difference) reduction in firearms acquired sung heros who care for and comfort marine Force. through multiple purchases. our neighbors, family and friends. I Mr. President, it is the work of the In 1991 Maryland was nationally ranked wish to honor him and his life’s work.∑ National Commemorative Committee second in terms of suppliers of crime guns to f and its chairman, Admiral Hank the city of New York. By 1997, one year after Chiles, that I wish to recognize today. the passage of Maryland’s one gun a month COMMENDING THE WORK OF THE Plans are already underway to observe law, Maryland moved out of the top ten sup- NATIONAL COMMEMORATIVE pliers of crime guns to New York City. the anniversary at appropriate occa- COMMITTEE FOR THE CENTEN- sions throughout the calendar year Maryland is proud of it’s proactive fire- NIAL OF THE SUBMARINE FORCE arms legislation. Our efforts to limit the 2000. The National Commemorative supply of guns to the illegal market without ∑ Mr. WARNER. Mr. President, I rise Committee is planning events and cere- adversely impacting upon law abiding citi- today to pay tribute to the U.S. Navy monies that will provide the oppor- zens are strong and sincere. The multiple Submarine Force as it approaches its tunity for people to observe and experi- purchase allows for the quick acquisition of 100 year anniversary and to commend ence the special world of the U.S. Navy large numbers of regulated firearms by pro- to the work of the National Commemo- scribed individuals. The one gun a month law Submarine Force and to become more in Maryland has shown that it is an effective rative Committee for the Centennial of acquainted with its rich and colorful means of disrupting the illegal diversion of the Submarine Force. history. Proposed events for 2000 in- firearms which are acquired through mul- The submarine force traces its begin- clude the opening of a Smithsonian ex- tiple purchases and will ultimately reduce nings to the spring morning of April 11, hibit, a birthday ball and the unveiling the supply of firearms readily available to 1900. Following demonstration trials of a submarine stamp in Washington, criminals. off Mount Vernon on the Potomac DC, and participation in fleet week Thank you again for the opportunity to ap- River, the Navy agreed to purchase the celebrations throughout the year. pear before you today.∑ submarine boat USS Holland (SS–1). I commend the dedicated effort of the f The USS Holland was named for its in- National Commemorative Committee ventor John Holland. Inventors such as TRIBUTE TO MICHAEL S. DALEY for the Centennial of the Submarine John Holland and Simon Lake had Force and urge my colleagues to sup- ∑ Mr. JEFFORDS. Mr. President, I rise been experimenting in submarine de- port the Committee as they continue today to pay tribute to Michael S. sign during the last decades of the their work planning the centennial Daley who is retiring from over 30 nineteenth century. However, Mr. Hol- events.∑ years as an orderly at Fletcher Allen land was the first to give the sub- f Hospital in Burlington, Vermont. Mi- marine true mobility by using a gaso- chael joined the hospital in the late line engine on the surface and a bat- CELEBRATION OF THE REPUBLIC 1960’s and began his career as a health tery supplying electric motors when OF CHINA’S 87TH ANNIVERSARY care worker. After a few years, he submerged. It was due to the success of NATIONAL DAY thought he would try his luck in Cali- the USS Holland that the Navy pursued ∑ Mr. CLELAND. Mr. President, I rise fornia. He soon realized that Vermont the submarine program. For this rea- today to celebrate the Republic of Chi- was where he wanted to be. He rejoined son, the Submarine Force traditionally na’s 87th Anniversary National Day on the workers at the hospital in October recognized April 11th as the anniver- October 10, 1998. Taiwan has prospered 1970 and continued to be a care giver in sary of its establishment. beyond most people’s wildest dreams every sense of the word. Michael is my Dramatic improvements to the sub- despite its limited resources and vast wife, Liz’s, bother. I can not count the marine have been made since the USS population. The people of the United number of times Vermonters’ have Holland. The diesel engine replaced the States have a special bond with the come up to me to tell me how kind Mi- gasoline engine in 1912. All welded people of Taiwan, who have chael had been to them when they were hulls, allowing submarines to submerge unfalteringly demonstrated to the ill or injured. to much greater depths, were intro- world their commitment to democracy Being an orderly was more than a job duced in the 1930s. Radar and sonar and democratic ideals. Taiwan is a vi- to Michael. It was a vocation. He was were incorporated during World War II. brant, thriving country for the present ever mindful of the importance of med- It is with the introduction of nuclear and a model for the future—a model ical care, however, he never neglected power, however, that the submarine be- characterized by strong economic the soul. Every one of his co-workers came a true submersible—limited in growth and respect for basic human would tell you that Michael brought a endurance only by the needs of its rights and democratic freedoms. sense of humor to everything he did. human crew. Taiwan has been and will continue to He would often bring his lunch to a pa- Earlier this year the Naval Nuclear be an important partner of the United tient’s room and visit during this lunch Propulsion Program celebrated its 50th States, economically, culturally, stra- break. Doctors, new to the O.R. or anniversary. It was in 1948 that the leg- tegically, and politically. May God October 7, 1998 CONGRESSIONAL RECORD — SENATE S11805 bless our friends in Taiwan, including force created by the Anti-Car Theft Act prescribe. This concept was contained President Lee Teng-hui, Vice President of 1992, on whose work this legislation in S. 852, but the language was unclear. Lien Chan and Taipei’s Foreign Min- is based. Industry defenders of the The legislation does not restrict states ister, Dr. Jason Hu, who have done an higher threshold argued that lowering from labeling a car with any term, and excellent job in leading Taiwan down it would hurt, not help, consumers be- prescribing treatment of a car so la- the road of democracy and prosperity. cause it would devalue vehicles even beled with any term, other than the Mr. President, I ask that you join me when there is no legitimate safety-re- very limited list of terms used in the and our colleagues in congratulating lated reason for mandating the disclo- bill. In other words, a state that ac- the Republic of China’s freedom on its sure of prior damage. I understand cepts federal funds for the national 87th Anniversary National Day. I look their point, but don’t agree. Yes, there motor vehicle identification number forward to celebrating this historic is some threshold at which mandatory database, and that does not specifically event annually for many, many years labeling, and the bureaucratic burden state on its titles that it is not comply- to come.∑ that attends it, is more costly than ing with the federal titling standards, f beneficial for both buyers and sellers, must use the definition of ‘‘salvage ve- but I do not believe we have come close hicle’’ and ‘‘nonrepairable vehicle’’ pre- NATIONAL SALVAGE MOTOR to that turning point. scribed in the bill. However, S. 852 per- VEHICLE PROTECTION ACT The attorneys general’s concern that mits that state to label the same vehi- ∑ Mr. GORTON. Mr. President, I rise S. 852 did not provide for sufficient dis- cle with any other term it chooses and today in support of the substitute closure applied not only to the percent imposes any restrictions attendant to amendment to S. 852, the National Sal- of damage threshold, but also to lim- the other label. The amendment clari- vage Motor Vehicle Protection Act of ited scope of the vehicles covered by fies that states that chose to use the 1998. the bill. S. 852 proposed to permit the national labels, including those for The substitute makes a number of ‘‘salvage vehicle’’ label to attach only ‘‘salvage vehicle’’ and ‘‘nonrepairable changes to the Committee-passed bill. to vehicles less than seven years old or vehicle,’’ must not only carry over While not as far reaching as some with more than $7500. While states these labels from other states, but would like, I believe that the changes were free to use any other label they must also carry over any other labels improve a measure that has always had chose for all vehicles, including older another state chooses to affix, and a very laudable intent, but which was vehicles, state attorneys general want- specify the state that so labeled the ve- criticized nevertheless by attorneys ed to be able to use the term ‘‘salvage’’ hicle. general and consumer groups for pre- to describe older vehicles because it is Other modifications specifically per- empting, in some instances, more fa- the term most commonly used today to mit state attorneys general to bring vorable state law and not providing advise of prior damage. The amend- actions on behalf of individuals for vio- consumers with enough information ment to S. 852 permits states to do lations of the Act, and clarify that the about a vehicles’ history. this, and explicitly provides that states Act in no way affects individuals’ abil- As a former Attorney General, I was can use the term ‘‘older model salvage ity to bring private rights of action. In particularly sensitive to these criti- vehicle’’ to label older vehicles. response to concerns that S. 852 pre- cisms, and last Fall I placed a hold on Complaints about the mandatory na- empted state causes of action and cre- the measure with the expectation of fa- ture of S. 852 ran the gamut. Some crit- ated a sole remedy for violations relat- cilitating a consensus between the ics of S. 852, including the Department ing to title labeling and disclosure, the bill’s supporters, the attorneys general, of Transportation, objected to the fact amendment specifically provides that and various consumer advocate groups. that states were not obligated to com- the Act does not preclude any private Regrettably, a consensus of legislation ply with the Act, arguing that states right of action available under state was not to be had. While the changes in could opt out and become regional title law. This provision was intended to the amendment are generally intended washing capitals. Others complained provide assurances that nothing in the to address concerns raised by the attor- that the bill was too prescriptive, and Act restricts individuals, or attorneys neys general and, to some extent, con- did not allow states (the majority of general, from pursuing any claims sumer advocates, neither of these which, until now, do not appear to have under state law, such as claims based groups has endorsed this measure. I re- adopted very consumer-friendly laws) on violations of consumer protection moved my hold on the amendment de- to set the standards for labeling and laws, unfair trade practices, or failures spite this, however, because there is a disclosure. Rather than refight the bat- to disclose the material terms of a con- consensus, of which I am a part, on the tle that led the House to conclude that tract. Curiously, the inclusion of this need for federal legislation regarding a mandate would be unconstitutional, provision, designed to allay concerns salvage and rebuilt vehicles. The bill, and because I was unable to persuade about preemption, appears to have un- as amended, is not perfect. But as my anyone to agree that we should use a reasonable stirred them. Some appear months of trying to broker an agree- big stick as opposed to a carrot ap- to have drawn the illogical and legally ment revealed, ‘‘perfect,’’ even if de- proach, the amendment to S. 852 does unsupported conclusion that any claim fined to mean the best interest of con- not make the labeling system manda- not specifically preserved is implicity sumers, is a subjective term. S. 852, as tory, but incorporates a provision to barred. Let met again try to clarify. amended, is, in my view, and in that of address concerns that opt-out states There is absolutely nothing in the bill over 50 co-sponsors, better than the will become title-washing capitals. The that suggests that the remedies it pro- status quo. amendment to S. 852 makes it a viola- vides (action by attorneys general) are I remain troubled that the attorneys tion of the Act to move vehicles, or ve- exclusive. Simply because the legisla- general and some consumer advocate hicle titles, across state lines for the tion states that private actions are groups do not agree. I am also some- purpose of avoiding the requirements specifically preserved does not mean what baffled by the seemingly studied in the Act. that all other actions are barred or re- misconstruction of the bill, and my Another minor modification to S. 852 stricted in any way. amendment to it by some who continue corrects what I believe was an over- The modification that has drawn to oppose it. sight in S. 852, and makes it a violation criticism even from those consumer Let me explain the changes in the of the Act not to comply with the la- groups whose interests I was attempt- amendment to S. 852. In response to beling and disclosure requirements for ing to advance in my amendment, is complaints that S. 852 set too high a ‘‘flood vehicles.’’ the striking of the criminal penalty damage threshold for designating a ve- Another modification made to S. 852 provisions. This modification was not hicle as ‘‘salvage,’’ the amendment clarifies that states that choose to requested by anyone seeking to avoid lowers the threshold from 80% to the abide by the provisions of the Act must accountability. Rather, I sought to lower of 75% or the percentage thresh- carry over not only the ‘‘salvage vehi- strike the criminal penalties because I old in a state as of the date of enact- cle,’’ ‘‘nonrepairable vehicle,’’ and believe that the criminal sanctions in ment. Seventy-five percent is the ‘‘flood vehicle’’ labels on titles, but S. 852 were inappropriate in most in- threshold recommended by the task also any other disclosure that states stances, and unnecessary in others. As S11806 CONGRESSIONAL RECORD — SENATE October 7, 1998 a general matter, I believe that Con- NAWCA projects across the country. ‘‘(ii) as of the time at which the person gress creates too many federal crimi- This is over three times the amount procures the report or causes the report to nal offenses, when it should leave this contributed by any other conservation be procured the only interaction between the consumer and the person in connection with task to state law. A violation of this organization. In light of the longstand- that employment application has been by bill, such as a failures to make disclo- ing commitment of Ducks Unlimited to mail, telephone, computer, or other similar sures about a vehicle’s history, gen- this project, I believe they should con- means.’’. erally is not the type of violation for tinue to serve on the NAWCA Council— (b) CONDITIONS ON USE FOR ADVERSE AC- which people should be sent to jail. If and I would like to thank Senators TIONS.—Section 604(b)(3) of the Fair Credit the conduct is so egregious that crimi- CHAFEE, KEMPTHORNE, INHOFE and Reporting Act (15 U.S.C. 1681b(b)(3)) is amended to read as follows: nal sanctions are warranted, then ex- HUTCHISON for insuring that the organi- ‘‘(3) CONDITIONS ON USE FOR ADVERSE AC- isting state laws against fraud, theft, zation’s membership on this council TIONS.— and the like are available based on will continue. ‘‘(A) IN GENERAL.—Except as provided in which to prosecute violators. Mr. President, this is a very impor- subparagraph (B), in using a consumer report The change I have just described to tant piece of environmental legisla- for employment purposes, before taking any S. 852 are not extensive. They are, nev- tion, and I urge its adoption.∑ adverse action based in whole or in part on ertheless, important and, in my opin- f the report, the person intending to take such ion, improve a bill that is needed at adverse action shall provide to the consumer CONSUMER REPORTING EMPLOY- to whom the report relates— this time.∑ MENT CLARIFICATION ACT OF ‘‘(i) a copy of the report; and f 1998 ‘‘(ii) a description in writing of the rights NORTH AMERICAN WETLANDS of the consumer under this title, as pre- (The text of (S. 2561), the Consumer scribed by the Federal Trade Commission CONSERVATION ACT, S. 1677 Reporting Employment Clarification under section 609(c)(3). ∑ Mr. DEWINE. Mr. President, I rise Act of 1998, as passed by the Senate on ‘‘(B) APPLICATION BY MAIL, TELEPHONE, COM- today to offer my strong support for October 6, 1998, is as follows:) PUTER, OR OTHER SIMILAR MEANS.— this bill offered by our distinguished S. 2561 ‘‘(i) If a consumer described in subpara- colleague from Rhode Island. I want to graph (C) applies for employment by mail, Be it enacted by the Senate and House of Rep- telephone, computer, or other similar means, thank Senator CHAFEE for all the work resentatives of the United States of America in and if a person who has procured a consumer he has done, and especially his effort to Congress assembled, report on the consumer for employment pur- addressing some of the concerns I had SECTION 1. SHORT TITLE. poses takes adverse action on the employ- about the bill. This Act may be cited as the ‘‘Consumer ment application based in whole or in part The North American Wetlands Con- Reporting Employment Clarification Act of on the report, then the person must provide servation Act, or NAWCA, is a blue- 1998’’. to the consumer to whom the report relates, print for successful environmental pro- SEC. 2. USE OF CONSUMER REPORTS FOR EM- in lieu of the notices required under subpara- PLOYMENT PURPOSES. graph (A) of this section and under section tection—through voluntary coopera- (a) DISCLOSURE TO CONSUMER.—Section 615(a), within 3 business days of taking such tion among government agencies, pri- 604(b)(2) of the Fair Credit Reporting Act (15 action, an oral, written or electronic notifi- vate conservation organizations, and U.S.C. 1681b(b)(2)) is amended to read as fol- cation— landowners. It is a matching fund lows: ‘‘(I) that adverse action has been taken which involves state, federal, and pri- ‘‘(2) DISCLOSURE TO CONSUMER.— based in whole or in part on a consumer re- vate partners in protecting and restor- ‘‘(A) IN GENERAL.—Except as provided in port received from a consumer reporting ing wetlands across the country. subparagraph (B), a person may not procure agency; Mr. President, this is very important a consumer report, or cause a consumer re- ‘‘(II) of the name, address and telephone port to be procured, for employment pur- number of the consumer reporting agency for the environment. Wetlands serve a poses with respect to any consumer, unless— that furnished the consumer report (includ- multitude of purposes. Obviously, they ‘‘(i) a clear and conspicuous disclosure has ing a toll-free telephone number established provide critical habitat and breeding been made in writing to the consumer at any by the agency if the agency compiles and grounds for migratory birds, fish and time before the report is procured or caused maintains files on consumers on a nation- aquatic plants. But their benefit goes to be procured, in a document that consists wide basis); far beyond wildlife habitat. Wetlands solely of the disclosure, that a consumer re- ‘‘(III) that the consumer reporting agency are nature’s sponges—absorbing heavy port may be obtained for employment pur- did not make the decision to take the ad- rains and minimizing the damaging ef- poses; and verse action and is unable to provide to the ‘‘(ii) the consumer has authorized in writ- consumer the specific reasons why the ad- fects of floods and erosion. Wetlands ing (which authorization may be made on verse action was taken; and are also natural filters, trapping and the document referred to in clause (i)) the ‘‘(IV) that the consumer may, upon provid- isolating potentially damaging pollu- procurement of the report by that person. ing proper identification, request a free copy tion and improving the quality of our ‘‘(B) APPLICATION BY MAIL, TELEPHONE, COM- of a report and may dispute with the con- lakes and rivers. PUTER, OR OTHER SIMILAR MEANS.—If a con- sumer reporting agency the accuracy or Since 1990, there have been 9 NAWCA sumer described in subparagraph (C) applies completeness of any information in a report. projects in Ohio which have protected for employment by mail, telephone, com- ‘‘(ii) If, under clause (B)(i)(IV), the con- almost 9,000 acres of critical wetlands. puter, or other similar means, at any time sumer requests a copy of a consumer report before a consumer report is procured or from the person who procured the report, NAWCA has contributed $3.3 million caused to be procured in connection with then, within 3 business days of receiving the towards these projects—and those that application— consumer’s request, together with proper funds were matched by $6.9 million ‘‘(i) the person who procures the consumer identification, the person must send or pro- from groups such as Ducks Unlimited report on the consumer for employment pur- vide to the consumer a copy of a report and and Ohio’s Division of Wildlife. poses shall provide to the consumer, by oral, a copy of the consumer’s rights as prescribed Last summer, I was able to visit one written, or electronic means, notice that a by the Federal Trade Commission under sec- of these projects, Metzger Marsh in consumer report may be obtained for em- tion 609(c)(3). northwest Ohio. I was impressed, not ployment purposes, and a summary of the ‘‘(C) SCOPE.—Subparagraph (B) shall apply consumer’s rights under section 615(a)(3); and to a person procuring a consumer report on only with the beauty and diversity of ‘‘(ii) the consumer shall have consented, a consumer in connection with the consum- the wildlife at this marsh, but also orally, in writing, or electronically to the er’s application for employment only if— with the cooperation among govern- procurement of the report by that person. ‘‘(i) the consumer is applying for a position ment, private agencies, and landowners ‘‘(C) SCOPE.—Subparagraph (B) shall apply over which the Secretary of Transportation that protected this area. to a person procuring a consumer report on has the power to establish qualifications and While there are several partners a consumer in connection with the consum- maximum hours of service pursuant to the working together on this effort, I er’s application for employment only if— provisions of section 31502 of title 49, or a po- would like to mention one organization ‘‘(i) the consumer is applying for a position sition subject to safety regulation by a State in particular. Ducks Unlimited is a na- over which the Secretary of Transportation transportation agency; and has the power to establish qualifications and ‘‘(ii) as of the time at which the person tional nonprofit conservation organiza- maximum hours of service pursuant to the procures the report or causes the report to tion with over 18,000 members in Ohio provisions of section 31502 of title 49, or a po- be procured the only interaction between the alone. It has contributed over $80 mil- sition subject to safety regulation by a State consumer and the person in connection with lion in matching funds to support transportation agency; and that employment application has been by October 7, 1998 CONGRESSIONAL RECORD — SENATE S11807 mail, telephone, computer, or other similar The PRESIDING OFFICER. Objec- The conference report was agreed to. means.’’. tion is heard. f SEC. 3. PROVISION OF SUMMARY OF RIGHTS. f Section 604(b)(1)(B) of the Fair Credit Re- MINTING OF COINS IN COMMEMO- porting Act (15 U.S.C. 1681b(b)(1)(B)) is FREEDOM FROM RELIGIOUS PER- RATION OF THOMAS ALVA EDI- amended by inserting ‘‘, or has previously SECUTION ACT OF 1998—MOTION SON provided,’’ before ‘‘a summary’’. TO PROCEED Mr. McCAIN. I ask unanimous con- SEC. 4. NATIONAL SECURITY INVESTIGATION CONFORMING AMENDMENTS. CLOTURE MOTION sent that the Senate proceed to the im- (a) GOVERNMENT AS END USER.—Section Mr. MCCAIN. I now move to proceed mediate consideration of H.R. 678, 609(a)(3) of the Fair Credit Reporting Act (15 to H.R. 2431, and send a cloture motion which is at the desk. U.S.C. 1681g(a)(3)) is amended by adding at to the desk. The PRESIDING OFFICER. The the end the following: The PRESIDING OFFICER. The clo- clerk will report. ‘‘(C) Subparagraph (A) does not apply if— ture motion, having been presented The assistant legislative clerk read ‘‘(i) the end user is an agency or depart- under rule XXII, the Chair directs the as follows. ment of the United States Government that clerk to read the motion. A bill (H.R. 678) to require the Secretary of procures the report from the person for pur- the Treasury to mint coins in commemora- poses of determining the eligibility of the The assistant legislative clerk read tion of THOMAS Alva Edison and the 125th an- consumer to whom the report relates to re- as follows: niversary of Edison’s invention of the light, ceive access or continued access to classified CLOTURE MOTION and for other purposes. information (as defined in section We, the undersigned Senators, in accord- 604(b)(4)(E)(i)); and ance with the provisions of rule XXII of There being no objection, the Senate ‘‘(ii) the head of the agency or department Standing Rules of the Senate, hereby move proceeded to consider the bill. makes a written finding as prescribed under to bring to a close debate on the motion to Mr. LAUTENBERG. Mr. President, I section 604(b)(4)(A).’’. proceed to Calendar No. 456, H.R. 2431, the re- rise in support of H.R. 678, the ‘‘Thom- (b) NATIONAL SECURITY INVESTIGATIONS.— ligious freedom legislation: as Edison Commemorative Coin Act’’, a Section 613 of the Fair Credit Reporting Act Senators Trent Lott, Don Nickles, bill that directs the Secretary of the (15 U.S.C. 1681k) is amended— Conrad Burns, Robert Bennett, Charles Treasury to mint and issue coins com- (1) by inserting ‘‘(a) IN GENERAL.—’’ before Grassley, Michael Enzi, Bill Frist, memorating Thomas Edison and the ‘‘A consumer’’; and John Ashcroft, Dan Coats Tim Hutch- (2) by adding at the end the following: inson Ben Campbell Craig Thomas, 125th anniversary of the invention of ‘‘(b) EXEMPTION FOR NATIONAL SECURITY IN- James Inhofe, Thad Cochran Jeff Ses- the lightbulb. I am the author of the VESTIGATIONS.—Subsection (a) does not apply sions, and Strom Thurmond Senate version of this bill. In 1928, Con- in the case of an agency or department of the gress saw fit to award to Mr. Edison a United States Government that seeks to ob- Mr. MCCAIN. Mr. President, I ask unanimous consent the mandatory Congressional gold medal ‘‘for the de- tain and use a consumer report for employ- velopment and application of inven- ment purposes, if the head of the agency or quorum under rule XXII be waived. department makes a written finding as pre- The PRESIDING OFFICER. Without tions that have revolutionized civiliza- scribed under section 604(b)(4)(A).’’. objection, it is so ordered. tion in the last century.’’ Mr. Presi- SEC. 5. CIVIL SUITS AND JUDGMENTS. Mr. MCCAIN. For the information of dent, by passing this legislation today, Section 605(a) of the Fair Credit Reporting all Senators, this cloture vote will we have the opportunity to once again Act (15 U.S.C. 1681c(a)) is amended— occur on Friday. All Senators will be honor the memory of one of the world’s (1) in paragraph (2), by striking ‘‘Suits and notified as to the exact time when this greatest inventors by issuing com- Judgments which’’ and inserting ‘‘Civil becomes available. memorative coins bearing Mr. Edison’s suits, civil judgments, and records of arrest likeness. that’’; I now withdraw the motion. The PRESIDING OFFICER. Without Thomas Edison produced more than (2) by striking paragraph (5); 1,300 inventions during the course of (3) in paragraph (6), by inserting ‘‘, other objection, it is so ordered. than records of convictions of crimes’’ after f his lifetime, 1,093 of which were pat- ‘‘of information’’; and ented. These included the incandescent (4) by redesignating paragraph (6) as para- WILLIAM F. GOODLING CHILD NU- lightbulb, the alkaline battery, the graph (5). TRITION REAUTHORIZATION ACT phonograph, the microphone, motion SEC. 6. TECHNICAL AMENDMENTS. OF 1998—CONFERENCE REPORT picture cameras, and stock tickers. He The Fair Credit Reporting Act (15 U.S.C. Mr. MCCAIN. Mr. President, I now was one of America’s greatest inven- 1601 et seq.) is amended— ask unanimous consent the Senate pro- tors, and truly a genius. Formerly (1) in section 603(d)(2)(A)(iii), by striking ceed to the conference report to accom- known as ‘‘The Wizard of Menlo Park’’, ‘‘any communication’’ and inserting ‘‘com- pany H.R. 3874, the Child Nutrition Act he would spend countless hours in his munication’’; labs in New Jersey coming up with (2) in section 603(o)(1), by striking reauthorization. ‘‘(d)(2)(E)’’ and inserting ‘‘(d)(2)(D)’’; The PRESIDING OFFICER. Is there ideas that ultimately made all our (3) in section 603(o)(4), by striking ‘‘or’’ at objection? Without objection, it is so lives much easier. the end and inserting ‘‘and’’; ordered. In 1887, Thomas Edison built his lab (4) in section 604(g), by striking ‘‘or a di- The clerk will report. in West Orange, New Jersey. It was rect marketing transaction’’; The committee of conference on the dis- known as the world’s first ‘‘invention (5) in section 611(a)(7), by striking agreeing votes of the two Houses on the factory’’, where he and his partners in- ‘‘(6)(B)(iv)’’ and inserting ‘‘(6)(B)(iii)’’; and amendment of the Senate to the bill (H.R. vented, built and shipped out numerous (6) in section 621(b), by striking ‘‘or (e)’’. 3874) have agreed to recommend and do rec- products stemming from Edison’s SEC. 7. EFFECTIVE DATE. ommend to their respective Houses this re- work. He saw every failure as a suc- The amendments made by this Act shall be port, signed by all of the conferees. cess. One story is that Thomas Edison deemed to have the same effective date as the amendments made by section 2403 of the The PRESIDING OFFICER. Without failed 10,000 times in his storage bat- Consumer Credit Reporting Reform Act of objection, the Senate will proceed to tery experiments. Instead of being de- 1996 (Public Law 104–208; 110 Stat. 3009–1257). the consideration of the conference re- jected, he said ‘‘Why, I haven’t failed. f port. I’ve just found 10,000 ways that it won’t (The conference report is printed in work.’’ Conversely, in response to re- UNANIMOUS CONSENT REQUEST— the House proceedings of the RECORD of marks about his success, he would say, H.R. 2431 October 6, 1998.) ‘‘Genius is 1% inspiration and 99% per- Mr. MCCAIN. Mr. President, I ask Mr. McCAIN. I ask unanimous con- spiration.’’ It is now proper to honor unanimous consent that the Senate sent the conference report be agreed to, this man who left such a lasting legacy now proceed to the consideration of the motion to reconsider be laid on the with these commemorative coins. Calendar No. 456, H.R. 2431, the reli- table, and any statements relating to Mr. President, not only would these gious freedom bill. the conference report be printed in the coins honor the memory of Thomas Mr. WYDEN. Mr. President, I object RECORD. Edison, they would also raise revenue on behalf of Senators on this side of The PRESIDING OFFICER. Without to support organizations that preserve the aisle. objection, it is so ordered. his legacy. The two New Jersey sites, S11808 CONGRESSIONAL RECORD — SENATE October 7, 1998 the ‘‘invention factory’’ in West Or- ered read a third time and passed, the on the Judiciary, with amendments; as ange, New Jersey and the Edison Me- motion to reconsider be laid upon the follows: morial Tower in Edison, New Jersey, table, and any statements relating to (The parts of the bill intended to be are in need of funding for maintenance the bill be printed in the RECORD. stricken are shown in boldface brack- and repair. Each year, nine thousand The PRESIDING OFFICER. Without ets and the parts of the bill intended to young students visit the West Orange objection, it is so ordered. be inserted are shown in italic. site alone to learn about the great in- The bill (S. 2235) was considered read H.R. 3528 ventor. The proceeds from the sale of the third time and passed, as follows: Be it enacted by the Senate and House of Rep- these coins will help to preserve irre- S. 2235 resentatives of the United States of America in placeable records containing Edison’s Be it enacted by the Senate and House of Rep- Congress assembled, thoughts as well as priceless memora- resentatives of the United States of America in SECTION 1. SHORT TITLE. bilia. This bill, at no cost to the gov- Congress assembled, This Act may be cited as the ‘‘Alternative ernment, would provide the funds nec- SECTION 1. SCHOOL RESOURCE OFFICERS. Dispute Resolution Act of 1998’’. essary to protect these and six other Part Q of title I of the Omnibus Crime Con- SEC. 2. FINDINGS AND DECLARATION OF POLICY. historical sites so that generations of trol and Safe Streets Act of 1968 (42 U.S.C. Congress finds that— school children can continue to visit 3796dd et seq.) is amended— (1) alternative dispute resolution, when sup- them. (1) in section 1701(d)— ported by the bench and bar, and utilizing prop- Mr. President, I introduced similar (A) by redesignating paragraphs (8) erly trained neutrals in a program adequately through (10) as paragraphs (9) through (11), legislation in the 104th Congress as administered by the court, has the potential to respectively; and provide a variety of benefits, including greater well as at the beginning of this Con- (B) by inserting after paragraph (7) the fol- satisfaction of the parties, innovative methods gress. I now urge the passage of H.R. lowing: of resolving disputes, and greater efficiency in 678 so that we may honor the memory ‘‘(8) establish school-based partnerships be- achieving settlements; of Thomas Alva Edison and celebrate tween local law enforcement agencies and (2) certain forms of alternative dispute resolu- the 125th anniversary of the lightbulb local school systems by using school re- tion, including mediation, early neutral evalua- while, at no cost to the government, source officers who operate in and around el- tion, minitrials, and voluntary arbitration, may providing needed funds to important ementary and secondary schools to combat have potential to reduce the large backlog of school-related crime and disorder problems, cases now pending in some federal courts historical sites. gangs, and drug activities;’’; and I urge my colleagues to support this throughout the United States, thereby allowing (2) in section 1709— the courts to process their remaining cases more legislation. (A) by redesignating the first 3 undesig- efficiently; and Mr. MCCAIN. I ask unanimous con- nated paragraphs as paragraphs (1) through (3) the continued growth of Federal appellate sent the bill be considered read a third (3), respectively; and court-annexed mediation programs suggests that time and passed, the motion to recon- (B) by adding at the end the following: this form of alternative dispute resolution can sider be laid on the table, and any ‘‘(4) ‘school resource officer’ means a ca- be equally effective in resolving disputes in the statements relating to the bill be reer law enforcement officer, with sworn au- federal trial courts; therefore, the district courts printed in the RECORD. thority, deployed in community-oriented po- should consider including mediation in their The PRESIDING OFFICER. Without licing, and assigned by the employing police local alternative dispute resolution programs. objection, it is so ordered. department or agency to work in collabora- øSEC. 2.¿ SEC. 3. ALTERNATIVE DISPUTE RESOLU- tion with schools and community-based or- The bill (H.R. 678) was considered TION PROCESSES TO BE AUTHOR- ganizations— IZED IN ALL DISTRICT COURTS. read a third time and passed. ‘‘(A) to address crime and disorder prob- Section 651 of title 28, United States Code, f lems, gangs, and drug activities affecting or is amended to read as follows: UNANIMOUS CONSENT AGREE- occurring in or around an elementary or sec- ‘‘§ 651. Authorization of alternative dispute ondary school; resolution MENT—CONFERENCE REPORT AC- ‘‘(B) to develop or expand crime prevention COMPANYING S. 2206 efforts for students; ‘‘(a) DEFINITION.—For purposes of this chapter, an alternative dispute resolution Mr. MCCAIN. Mr. President, I ask ‘‘(C) to educate likely school-age victims in crime prevention and safety; process includes any process or procedure, unanimous consent that when the Sen- other than an adjudication by a presiding ate considers the conference report ac- ‘‘(D) to develop or expand community jus- tice initiatives for students; judge, in which a neutral third party partici- companying S. 2206, that the reading be ‘‘(E) to train students in conflict resolu- pates to assist in the resolution of issues in waived and that there be 30 minutes for tion, restorative justice, and crime aware- controversy, through processes such as early debate on the conference report with ness; neutral evaluation, mediation, minitrial, the time equally divided and controlled ‘‘(F) to assist in the identification of phys- and arbitration as provided in sections 654 through 658. between Senators JEFFORDS and KEN- ical changes in the environment that may ‘‘(b) AUTHORITY.—Each United States dis- NEDY or their designees, that upon the reduce crime in or around the school; and ‘‘(G) to assist in developing school policy trict court shall authorize, by local rule use or yielding back of time the con- adopted under section ø2071(b)¿ 2071(a), the use ference report be adopted, and the mo- that addresses crime and to recommend pro- cedural changes.’’. of alternative dispute resolution processes in tion to reconsider be laid upon the all civil actions, including adversary pro- table, without intervening action. f ceedings in bankruptcy, in accordance with The PRESIDING OFFICER. Without ALTERNATE DISPUTE RESOLUTION this chapter, except that the use of arbitra- objection, it is so ordered. ACT OF 1998 tion may be authorized only as provided in f section 654. Each United States district Mr. McCAIN. Mr. President, I ask court shall devise and implement its own al- OMNIBUS CRIME CONTROL AND unanimous consent the Senate now ternative dispute resolution program, by SAFE STREETS ACT AMENDMENTS proceed to the consideration of Cal- local rule adopted under section ø2071(b)¿ endar No. 514, H.R. 3528. 2071(a), to encourage and promote the use of Mr. MCCAIN. Mr. President, I ask alternative dispute resolution in its district. unanimous consent the Senate now The PRESIDING OFFICER. The clerk will report. ‘‘(c) EXISTING ALTERNATIVE DISPUTE RESO- proceed to the consideration of Cal- LUTION PROGRAMS.—In those courts where an endar No. 606, S. 2235. The assistant legislative clerk read alternative dispute resolution program is in The PRESIDING OFFICER. Without as follows: place on the date of the enactment of the Al- objection, the clerk will report. A bill (H.R. 3528) to amend title 28 of the ternative Dispute Resolution Act of 1998, the The assistant legislative clerk read United States Code, with respect to the use court shall examine the effectiveness of that as follows: of alternative dispute resolution processes in program and adopt such improvements to the United States district courts, and for the program as are consistent with the pro- A bill (S. 2235) a bill to amend part Q of the other purposes. visions and purposes of this chapter. Omnibus Crime Control and Safe Streets Act ‘‘(d) ADMINISTRATION OF ALTERNATIVE DIS- of 1968 to encourage the use of school re- The PRESIDING OFFICER. Is there PUTE RESOLUTION PROGRAMS.—Each United source officers. objection to the immediate consider- States district court shall designate an em- The Senate proceeded to consider the ation of the bill? ployee, or a judicial officer, who is knowl- bill. There being no objection, the Senate edgeable in alternative dispute resolution Mr. MCCAIN. Mr. President, I ask proceeded to consider the bill which practices and processes to implement, ad- unanimous consent the bill be consid- had been reported from the Committee minister, oversee, and evaluate the court’s October 7, 1998 CONGRESSIONAL RECORD — SENATE S11809 alternative dispute resolution program. Such dispute resolution process should be quali- ‘‘(1) shall take the oath or affirmation de- person may also be responsible for recruit- fied and trained to serve as a neutral in the scribed in section 453; and ing, screening, and training attorneys to appropriate alternative dispute resolution ‘‘(2) shall be subject to the disqualification serve as neutrals and arbitrators in the process. For this purpose, the district court rules under section 455. court’s alternative dispute resolution pro- may use, among others, magistrate judges ‘‘(c) IMMUNITY.—All individuals serving as gram. who have been trained to serve as neutrals in arbitrators in an alternative dispute resolu- ‘‘(e) TITLE 9 NOT AFFECTED.—This chapter alternative dispute resolution processes, pro- tion program under this chapter are perform- shall not affect title 9, United States Code. fessional neutrals from the private sector, ing quasi-judicial functions and are entitled ‘‘(f) PROGRAM SUPPORT.—The Federal Judi- and persons who have been trained to serve to the immunities and protections that the cial Center and the Administrative Office of as neutrals in alternative dispute resolution law accords to persons serving in such capac- the United States Courts are authorized to processes. Until such time as rules are adopt- ity.’’. assist the district courts in the establish- ed under chapter 131 of this title relating to øSEC. 7.¿ SEC. 8. SUBPOENAS. ment and improvement of alternative dis- the disqualification of neutrals, each district Section 656 of title 28, United States Code, pute resolution programs by identifying par- court shall issue rules under section ø2071(b)¿ is amended to read as follows: ticular practices employed in successful pro- 2071(a) relating to the disqualification of ‘‘§ 656. Subpoenas grams and providing additional assistance as neutrals (including, where appropriate, dis- ‘‘Rule 45 of the Federal Rules of Civil Pro- needed and appropriate.’’. qualification under section 455 of this title, cedure (relating to subpoenas) applies to sub- other applicable law, and professional re- øSEC. 3.¿ SEC. 4. JURISDICTION. poenas for the attendance of witnesses and sponsibility standards).’’. Section 652 of title 28, United States Code, the production of documentary evidence at is amended to read as follows: SEC. 5. ACTIONS REFERRED TO ARBITRATION. an arbitration hearing under this chapter.’’. Section 654 of title 28, United States Code, ‘‘§ 652. Jurisdiction øSEC. 8.¿ SEC. 9. ARBITRATION AWARD AND JUDG- is amended to read as follows: ‘‘(a) CONSIDERATION OF ALTERNATIVE DIS- MENT. PUTE RESOLUTION IN APPROPRIATE CASES.— ‘‘§ 654. Arbitration Section 657 of title 28, United States Code, Notwithstanding any provision of law to the ‘‘(a) REFERRAL OF ACTIONS TO ARBITRA- is amended to read as follows: contrary and except as provided in sub- TION.—Notwithstanding any provision of law ‘‘§ 657. Arbitration award and judgment sections (b) and (c), each district court shall, to the contrary and except as provided in øsub- ‘‘(a) FILING AND EFFECT OF ARBITRATION by local rule adopted under section ø2071(b)¿ sections (b) and (c)¿ subsections (a), (b), and (c) of AWARD.—An arbitration award made by an 2071(a), require that litigants in all civil section 652 and subsection (d) of this section, arbitrator under this chapter, along with cases consider the use of an alternative dis- a district court may allow the referral to ar- proof of service of such award on the other pute resolution process at an appropriate bitration of any civil action (including any party by the prevailing party or by the stage in the litigation. Each district court adversary proceeding in bankruptcy) pending plaintiff, shall be filed promptly after the ar- shall provide litigants in all civil cases with before it when the parties consent, except that bitration hearing is concluded with the clerk at least one alternative dispute resolution referral to arbitration may not be made of the district court that referred the case to process, including, but not limited to, medi- where— arbitration. Such award shall be entered as ation, early neutral evaluation, minitrial, ‘‘(1) the action is based on an alleged viola- the judgment of the court after the time has and arbitration as authorized in sections 654 tion of a right secured by the Constitution of expired for requesting a trial de novo. The through 658. Any district court that elects to the United States; judgment so entered shall be subject to the require the use of alternative dispute resolu- ‘‘(2) jurisdiction is based in whole or in same provisions of law and shall have the tion in certain cases may do so only with re- part on section 1343 of this title; or same force and effect as a judgment of the spect to mediation, early neutral evaluation, ‘‘(3) the relief sought consists of money court in a civil action, except that the judg- and, if the parties consent, arbitration. damages in an amount greater than $150,000. ment shall not be subject to review in any ‘‘(b) ACTIONS EXEMPTED FROM CONSIDER- ‘‘(b) SAFEGUARDS IN CONSENT CASES.—Until other court by appeal or otherwise. ATION OF ALTERNATIVE DISPUTE RESOLU- such time as rules are adopted under chapter ‘‘(b) SEALING OF ARBITRATION AWARD.—The TION.—Each district court may exempt from 131 of this title relating to procedures de- district court shall provide, by local rule the requirements of this section specific scribed in this subsection, the district court adopted under section ø2071(b)¿ 2071(a), that cases or categories of cases in which use of shall, by local rule adopted under section the contents of any arbitration award made alternative dispute resolution would not be ø2071(b)¿ 2071(a), establish procedures to ensure under this chapter shall not be made known appropriate. In defining these exemptions, that any civil action in which arbitration by to any judge who might be assigned to the each district court shall consult with mem- consent is allowed under subsection (a)— case until the district court has entered final bers of the bar, including the United States ‘‘(1) consent to arbitration is freely and judgment in the action or the action has oth- Attorney for that district. knowingly obtained; and erwise terminated. ‘‘(c) AUTHORITY OF THE ATTORNEY GEN- ‘‘(2) no party or attorney is prejudiced for ‘‘(c) TRIAL DE NOVO OF ARBITRATION ERAL.—Nothing in this section shall alter or refusing to participate in arbitration. AWARDS.— conflict with the authority of the Attorney ‘‘(c) PRESUMPTIONS.—For purposes of sub- ‘‘(1) TIME FOR FILING DEMAND.—Within 30 General to conduct litigation on behalf of section (a)(3), a district court may presume days after the filing of an arbitration award the United States, with the authority of any damages are not in excess of $150,000 unless with a district court under subsection (a), Federal agency authorized to conduct litiga- counsel certifies that damages exceed such any party may file a written demand for a tion in the United States courts, or with any amount. trial de novo in the district court. delegation of litigation authority by the At- ‘‘(d) EXISTING PROGRAMS.—Nothing in this ‘‘(2) ACTION RESTORED TO COURT DOCKET.— torney General. øsection¿ chapter is deemed to affect any action Upon a demand for a trial de novo, the ac- ‘‘(d) CONFIDENTIALITY PROVISIONS.—Until in which arbitration is conducted pursuant tion shall be restored to the docket of the such time as rules are adopted under chapter to section 906 of the Judicial Improvements court and treated for all purposes as if it had 131 of this title providing for the confiden- and Access to Justice Act (Public Law 100– not been referred to arbitration. tiality of alternative dispute resolution 102), as in effect prior to the date of its re- ‘‘(3) EXCLUSION OF EVIDENCE OF ARBITRA- processes under this chapter, each district peal.’’. TION.—The court shall not admit at the trial court shall, by local rule adopted under sec- øSEC. 6.¿ SEC. 7. ARBITRATORS. de novo any evidence that there has been an tion 2071(b), provide for the confidentiality Section 655 of title 28, United States Code, arbitration proceeding, the nature or of the alternative dispute resolution proc- is amended to read as follows: amount of any award, or any other matter esses and to prohibit disclosure of confiden- ‘‘§ 655. Arbitrators concerning the conduct of the arbitration tial dispute resolution communications.’’. proceeding, unless— ‘‘(a) POWERS OF ARBITRATORS.—An arbitra- øSEC. 4.¿ SEC. 5. MEDIATORS AND NEUTRAL EVAL- tor to whom an action is referred under sec- ‘‘(A) the evidence would otherwise be ad- UATORS. tion 654 shall have the power, within the ju- missible in the court under the Federal Section 653 of title 28, United States Code, dicial district of the district court which re- Rules of Evidence; or is amended to read as follows: ferred the action to arbitration— ‘‘(B) the parties have otherwise stipu- ‘‘§ 653. Neutrals ‘‘(1) to conduct arbitration hearings; lated.’’. ‘‘(a) PANEL OF NEUTRALS.—Each district ‘‘(2) to administer oaths and affirmations; øSEC. 9.¿ SEC. 10. COMPENSATION OF ARBITRATORS court that authorizes the use of alternative and AND NEUTRALS. dispute resolution processes shall adopt ap- ‘‘(3) to make awards. Section 658 of title 28, United States Code, is amended to read as follows: propriate processes for making neutrals ‘‘(b) STANDARDS FOR CERTIFICATION.—Each available for use by the parties for each cat- district court that authorizes arbitration ‘‘§ 658. Compensation of arbitrators and egory of process offered. Each district court shall establish standards for the certification neutrals shall promulgate its own procedures and cri- of arbitrators and shall certify arbitrators to ‘‘(a) COMPENSATION.—The district court teria for the selection of neutrals on its pan- perform services in accordance with such shall, subject to regulations approved by the els. standards and this chapter. The standards Judicial Conference of the United States, es- ‘‘(b) QUALIFICATIONS AND TRAINING.—Each shall include provisions requiring that any tablish the amount of compensation, if any, person serving as a neutral in an alternative arbitrator— that each arbitrator or neutral shall receive S11810 CONGRESSIONAL RECORD — SENATE October 7, 1998 for services rendered in each case under this The PRESIDING OFFICER. Without poena and advised the plaintiff that the chapter. objection, it is so ordered. documents he sought were privileged ‘‘(b) TRANSPORTATION ALLOWANCES.—Under The amendment (No. 3784) was agreed by the Speech or Debate Clause, the regulations prescribed by the Director of the Administrative Office of the United States to. plaintiff filed a motion asking the Courts, a district court may reimburse arbi- The committee amendments were court to compel Senator KERRY to trators for actual transportation expenses agreed to. produce the documents. Accordingly, necessarily incurred in the performance of The bill (H.R. 3528) was considered this resolution would authorize the duties under this chapter.’’. read the third time and passed. Senate Legal Counsel to represent Sen- øSEC. 10.¿ SEC. 11. AUTHORIZATION OF APPROPRIA- f ator KERRY in connection with this TIONS. subpoena and to respond to the motion AUTHORIZING THE PRINTING OF There are authorized to be appropriated for to compel. each fiscal year such sums as may be nec- THE ‘‘TESTIMONY FROM THE Mr. MCCAIN. I ask unanimous con- essary to carry out chapter 44 of title 28, HEARINGS OF THE TASK FORCE sent that the resolution be agreed to, United States Code, as amended by this Act. ON ECONOMIC SANCTIONS’’ øSEC. 11.¿ SEC. 12. CONFORMING AMENDMENTS. the preamble be agreed to, the motion Mr. MCCAIN. I ask unanimous con- (a) LIMITATION ON MONEY DAMAGES.—Sec- to reconsider be laid upon the table, tion 901 of the Judicial Improvements and sent the Senate proceed to the imme- and any statements relating to the res- Access to Justice Act (28 U.S.C. 652 note), is diate consideration of S. Res. 289 sub- olution appear in the RECORD. amended by striking subsection (c). mitted earlier by Senator MCCONNELL. The PRESIDING OFFICER. Without (b) OTHER CONFORMING AMENDMENTS.—(1) The PRESIDING OFFICER. Without objection, it is so ordered. The chapter heading for chapter 44 of title objection, the clerk will report. The resolution (S. Res. 290) was 28, United States Code, is amended to read as The assistant legislative clerk read follows: agreed to. as follows: The preamble was agreed to. ‘‘CHAPTER 44—ALTERNATIVE DISPUTE A resolution (S. Res. 289) authorizing the The resolution, with its preamble, RESOLUTION’’. printing of the ‘‘testimony from the hearings reads as follows: (2) The table of contents for chapter 44 of of the task force on economic sanctions.’’ title 28, United States Code, is amended to S. RES. 290 read as follows: The PRESIDING OFFICER. Is there Whereas, Senator John F. Kerry has re- ‘‘Sec. objection to the immediate consider- ceived a subpoena for documents in the case ‘‘651. Authorization of alternative dispute ation of the resolution? of Tyree v. Central Intelligence Agency, et al., resolution. There being no objection, the Senate Case No. 98–CV–11829, now pending in the ‘‘652. Jurisdiction. proceeded to consider the resolution. United States District Court for the District ‘‘653. Neutrals. Mr. MCCAIN. I ask unanimous con- of Massachusetts; ‘‘654. Arbitration. sent the resolution be agreed to and Whereas, pursuant to sections 703(a) and ‘‘655. Arbitrators. 704(a)(2) of the Ethics in Government Act of ‘‘656. Subpoenas. the motion to reconsider be laid upon 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(1), the ‘‘657. Arbitration award and judgment. the table. Senate may direct its counsel to represent ‘‘658. Compensation of arbitrators and The PRESIDING OFFICER. Without Members of the Senate with respect to any neutrals.’’. objection, it is so ordered. subpoena, order, or request for documents re- (3) The item relating to chapter 44 in the The resolution (S. Res. 289) was lating to their official responsibilities; table of chapters for Part III of title 28, agreed to, as follows: Whereas, by the privileges of the Senate of United States Code, is amended to read as the United States and Rule XI of the Stand- S. RES. 289 follows: ing Rules of the Senate, no evidence under Resolved, that the ‘‘Testimony from the ‘‘44. Alternative Dispute Resolution ... 651’’. the control or in the possession of the Senate Hearings of the Task Force on Economic may, by the judicial process, be taken from AMENDMENT NO. 3784 Sanctions’’, be printed as a Senate docu- such control or possession but by permission (Purpose: To make technical modifications ment, and that there be printed 300 addi- of the Senate: Now, therefore, be it regarding the use of alternative dispute tional copies of such document for the use of Resolved, That the Senate Legal Counsel is resolution processes in United States dis- the Task Force on Economic Sanctions at a authorized to represent Senator Kerry in trict courts, and for other purposes) cost not to exceed $16,311. connection with the subpoena served upon Mr. MCCAIN. Mr. President, Senators f him in the case of Tyree v. Central Intelligence GRASSLEY and DURBIN have an amend- Agency, et al. AUTHORIZING REPRESENTATION ment at the desk. I ask for its imme- f diate consideration. BY SENATE LEGAL COUNSEL The PRESIDING OFFICER. The Mr. McCAIN. I ask unanimous con- AUTHORIZING REPRESENTATION clerk will report. sent the Senate proceed to the imme- BY SENATE LEGAL COUNSEL The assistant legislative clerk read diate consideration of S. Res. 290, sub- Mr. MCCAIN. I ask unanimous con- as follows: mitted earlier by Senators LOTT and sent the Senate proceed to the imme- The Senator from Arizona [Mr. MCCAIN], DASCHLE. diate consideration of S. Res. 291, sub- for Mr. GRASSLEY, for himself, and Mr. DUR- The PRESIDING OFFICER. Without mitted earlier by Senators LOTT and BIN, proposes an amendment numbered 3784. objection, the clerk will report. DASCHLE. The amendment follows: The assistant legislative clerk read The PRESIDING OFFICER. Without Page 6, line 17, strike ‘‘2071(b)’’ and sub- as follows: objection, the clerk will report. stitute ‘‘2071(a)’’. A resolution (S. Res. 290) to authorize rep- The assistant legislative clerk read Page 8, line 1, strike ‘‘SEC. 5’’ and sub- resentation by Senate Legal Counsel. as follows: stitute ‘‘SEC. 6’’. Page 9, line 12, strike ‘‘action’’ and sub- The PRESIDING OFFICER. Is there A resolution (S. Res. 291) to authorize rep- stitute ‘‘program’’. objection to the immediate consider- resentation by Senate Legal Counsel. Page 9, line 13, strike ‘‘section 906’’ and ation of the resolution? The PRESIDING OFFICER. Is there substitute ‘‘Title IX’’. There being no objection, the Senate objection to the immediate consider- Page 9, lines 14 and 15, strike ‘‘100–102’’ and proceeded to consider the resolution. ation of the resolution? substitute ‘‘100–702’’. Page 9, line 15, strike ‘‘as in effect prior to Mr. LOTT. Mr. President, this resolu- There being no objection, the Senate the date of its repeal’’ and substitute ‘‘as tion concerns a pro se civil case proceeded to consider the resolution. amended by Section 1 of Public Law 105–53’’. brought against the CIA and other de- Mr. LOTT. Mr. President, this resolu- Page 13, line 10, after ‘‘arbitrators’’ insert fendants by a state prisoner. Last tion concerns a civil action commenced ‘‘and other neutrals’’. month, the plaintiff served a subpoena in the United States District Court for Mr. MCCAIN. I ask unanimous con- for documents upon Senator JOHN F. the District of Columbia on September sent the amendment be agreed to, the KERRY, apparently because of the Sen- 14, 1998, by the District of Columbia committee amendments be agreed to, ator’s former role as Chairman of the and a group of approximately fifty resi- the bill be considered read a third time Subcommittee on Terrorism, Narcotics dents of the District. The action seeks and passed, the motion to reconsider be and International Operations of the a declaratory judgment that residents laid upon the table, and any state- Foreign Relations Committee. After of the District of Columbia have a con- ments appear in the RECORD. Senator KERRY objected to the sub- stitutional right to vote in elections October 7, 1998 CONGRESSIONAL RECORD — SENATE S11811 for Members of the Senate and the There being no objection, the Senate not meet the criteria in H.R. 4655. House of Representatives, and also proceeded to consider the bill. Many barely even exist or have no po- asks the court to ensure that Congress Mr. LOTT. Mr. President, I am litical base. They should not be consid- fashion a remedy for this alleged depri- pleased the Senate is about to act on ered for support. We should also be vation of voting rights. The lead de- H.R. 4655, the Iraq Liberation Act of very careful about considering designa- fendants are the Secretary of Com- 1998. I introduced companion legisla- tion of groups which do not share our merce and the United States, who are tion, S. 2525, last week with 7 co-spon- values or which are simply creations of being represented by the Department sors. Last Friday, the House Inter- external forces or exile politics, such of Justice. national Relations Committee marked as the Iraqi Communist Party or the The complaint also names as defend- up the legislation and made only Iraqi National Accord. ants the Secretary of the Senate, Gary minor, technical changes. On October I appreciate the work we have been Sisco, and the Sergeant at Arms and 5, the House passed H.R. 4655 by an able to do with the Administration on Doorkeeper of the Senate, Greg Casey, overwhelmingly bipartisan vote of 360 this legislation. But we should be very as well as the Clerk and the Sergeant to 38. That vote, and our vote in sev- clear about the designation process. We at Arms of the House of Representa- eral moments, is a strong demonstra- intend to exercise our oversight re- tives, because of their roles in paying tion of Congressional support for a new sponsibility and authority as provided and certifying the election of Members policy toward Iraq—a policy that in section 4(d) and section 5(d). I do not and in controlling access to the two overtly seeks the replacement of Sad- think the Members of Congress, noti- Chambers. dam Hussein’s regime through military fied pursuant to law, will agree to any This resolution authorizes the Senate and political support for the Iraq oppo- designation that we believe does not Legal Counsel to represent the Sec- sition. meet the criteria in section 5 of the retary of the Senate and the Senate The United States has many means Iraq Liberation Act of 1998. Sergeant at Arms in this matter to at its disposal to support the liberation This is an important step. Observers should not misunderstand the Senate’s seek dismissal of the case against of Iraq. At the height of the Cold War, action. Even though this legislation them. The Legal Counsel will argue we support freedom fighters in Asia, will pass without controversy on an that the Senate officers are not proper Africa and Latin America willing to unanimous voice vote, it is a major defendants in this matter. fight and die for a democratic future. step forward in the final conclusion of Mr. MCCAIN. I ask unanimous con- We can and should do the same now in the Persian Gulf war. In 1991, we and sent that the resolution be agreed to, Iraq. our allies shed blood to liberate Ku- the preamble be agreed to, the motion The Clinton Administration regu- wait. Today, we are empowering Iraqis to reconsider be laid upon the table, larly calls for bipartisanship in foreign policy. I support them when I can. to liberate their own country. and any statements relating to the res- Mr. HELMS. Mr. President, I am an olution appear in the RECORD. Today, we see a clear example of a pol- icy that has the broadest possible bi- original co-sponsor of H.R. 4655, the The PRESIDING OFFICER. Without Iraq Liberation Act, for one simple rea- objection, it is so ordered. partisan support. I know the Adminis- tration understands the depth of our son: Saddam Hussein is a threat to the The resolution (S. Res. 291) was United States and a threat to our agreed to. feeling on this issue. I think they are beginning to understand the strategic friends in the Middle East. The preamble was agreed to. This lunatic is bent on building an argument in favor of moving beyond The resolution, with its preamble, arsenal of weapons of mass destruction containment to a policy of ‘‘rollback.’’ reads as follows: with a demonstrable willingness to use Containment is not sustainable. Pres- S. RES. 291 them. For nearly eight years the sure to lift sanctions on Iraq is increas- Whereas, the Secretary of the Senate, Gary United States has stood by and allowed ing—despite Iraq’s seven years of re- Sisco, and the Sergeant at Arms and Door- the U.N. weapons inspections process keeper of the Senate, Gregory S. Casey, have fusal to comply with the terms of the to proceed in defanging Saddam. That been named as defendants in the case of Gulf War cease-fire. Our interests in process is now in the final stages of Clifford Alexander, et al. v. William M. Daley, the Middle East cannot be protected collapse, warning that the U.S. cannot et al., Case No. 1:98CV02187, now pending in with Saddam Hussien in power. Our stand idly by hoping against hope that the United States District Court for the Dis- legislation provides a roadmap to everything will work itself out. trict of Columbia; achieve our objective. Whereas, pursuant to sections 703(a) and We have been told by Scott Ritter This year, Congress has already pro- and others that Saddam can reconsti- 704(a)(2) of the Ethics in Government Act of vided $5 million to support the Iraqi 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(1), the tute his weapons of mass destruction Senate may direct its counsel to represent political opposition. We provided $5 within months. The Washington Post officers of the Senate in civil actions with million to establish Radio Free Iraq. reported only last week that Iraq still respect to their official responsibilities: We will provide additional resources has three nuclear ‘‘implosion de- Now, therefore, be it for political support in the FY 1999 vices’’—in other words, nuclear bombs Resolved, That the Senate Legal Counsel is Foreign Operations Appropriations minus the necessary plutonium or ura- authorized to represent the Secretary of the Act, including $3 million for the Iraqi Senate and the Sergeant at Arms and Door- nium to set them off. The time has National Congress. come to recognize that Saddam Hus- keeper of the Senate in the case of Alexander, Enactment of this bill will go far- et al. v. Daley, et al. sein the man is inextricable from Iraq’s ther. It requires the President to des- drive for weapons of mass destruction. f ignate at least one Iraqi opposition For as long as he and his regime are in ESTABLISHING A PROGRAM TO group to receive U.S. military assist- power, Iraq will remain a mortal SUPPORT A TRANSITION TO DE- ance. It defines eligibility criteria such threat. MOCRACY IN IRAQ a group or groups must meet. Many of This bill will begin the long-overdue us have ideas on how the designation process of ousting Saddam. It will not Mr. McCAIN. I ask unanimous con- process should work. I have repeatedly send in U.S. troops or commit Amer- sent that the Senate now proceed to stated that the Iraqi National Congress ican forces in any way. Rather, it hark- the consideration of H.R. 4655, which is has been effective in the past and can ens back to the successes of the Reagan at the desk. be effective in the future. They rep- doctrine, enlisting the very people who The PRESIDING OFFICER. The resent the broadest possible base of the are suffering most under Saddam’s clerk will report. opposition. There are other groups that yoke to fight the battle against him. The assistant legislative clerk read are currently active inside Iraq: the The bill requires the President to as follows: Patriotic Union of Kurdistan, the designate an Iraqi opposition group or A bill (H.R. 4655) to establish a program to Kurdish Democratic Party and the Su- groups to receive military drawdown support a transition to democracy in Iraq. preme Council for the Islamic Revolu- assistance. The President need not The PRESIDING OFFICER. Is there tion in Iraq. The State Department look far; the Iraqi National Congress objection to the immediate consider- seems to believe there are more than 70 once flourished as an umbrella organi- ation of the bill? opposition groups, many of which do zation for Kurds, Shi’ites and Sunni S11812 CONGRESSIONAL RECORD — SENATE October 7, 1998 Muslims. It should flourish again, but tent new tool to help Iraqis toward this difficulty in discerning the difference between it needs our help. goal, and at the same time advance law enforcement officers and bounty hunters; Mr. President, the people of Iraq, America’s interest in a peaceful and se- (3) the availability of bail as an alternative to through representative organizations cure Middle East. the pretrial detention or unsecured release of criminal defendants is important to the effective such as the INC, the Patriotic Union of This bill, when passed and signed functioning of the criminal justice system; Kurdistan, the Kurdish Democratic into law, is a clear commitment to a (4) the safe and timely return to custody of fu- Party and the Shi’ite SCIRI, have U.S. policy replacing the Saddam Hus- gitives who violate bail contracts is an impor- begged for our help. The day may yet sein regime and replacing it with a tant matter of public safety, as is the return of come when we are dragged back to transition to democracy. This bill is a any other fugitive from justice; Baghdad; I believe that day can be put statement that America refuses to co- (5) bail bond agents are widely regulated by off, perhaps even averted, by helping exist with a regime which has used the States, whereas bounty hunters are largely unregulated; the people of Iraq help themselves. chemical weapons on its own citizens (6) the public safety requires the employment Opponents of this initiative—I and on neighboring countries, which of qualified, well-trained bounty hunters; and shouldn’t call them friends of Sad- has invaded its neighbors twice with- (7) in the course of their duties, bounty hunt- dam—have said that the Iraqi opposi- out provocation, which has still not ac- ers often move in and affect interstate com- tion exists in name only, that they are counted for its atrocities committed in merce. too parochial to come together. They Kuwait, which has fired ballistic mis- SEC. 3. DEFINITIONS. are not entirely wrong—which is why siles into the cities of three of its In this Act— Senator LOTT and Chairman GILMAN neighbors, which is attempting to de- (1) the term ‘‘bail bond agent’’ means any re- (the lead House sponsor) have carefully velop nuclear and biological weapons, tail seller of a bond to secure the release of a crafted the designation requirement in criminal defendant pending judicial proceed- and which has brutalized and terrorized ings, unless such person also is self-employed to H.R. 4655 to insist that only broad- its own citizens for thirty years. I don’t obtain the recovery of any fugitive from justice based, pro-democracy groups be se- see how any democratic country could who has been released on bail; lected by the President to receive accept the existence of such a regime, (2) the term ‘‘bounty hunter’’— drawdown assistance. I would go fur- but this bill says America will not. I (A) means any person whose services are en- ther, and suggest to the President that will be an even prouder American when gaged, either as an independent contractor or as he designate just one group, the Iraqi the refusal, and commitment to mate- an employee of a bounty hunter employer, to ob- National Congress, in which the Kurds, rially help the Iraqi resistance, are tain the recovery of any fugitive from justice who has been released on bail; and the Shi’ites and the Sunnis of Iraq hold U.S. policy. (B) does not include any— membership. The opposition must be Mr. MCCAIN. Mr. President, I ask (i) law enforcement officer acting under color unified, but it may just take the lead- unanimous consent the bill be consid- of law; ership of the United States to bring ered read a third time and passed, the (ii) attorney, accountant, or other profes- them together. motion to reconsider be laid upon the sional licensed under applicable State law; Finally, this bill gives the Congress table, and any statements relating to (iii) employee whose duties are primarily in- oversight over the designation and the bill appear at this point in the ternal audit or credit functions; (iv) person while engaged in the performance drawdown authorities. As Chairman of RECORD. of official duties as a member of the Armed the Foreign Relations Committee, I in- The PRESIDING OFFICER. Without Forces on active duty (as defined in section tend to exercise vigorously that au- objection, it is so ordered. 101(d)(1) of title 10, United States Code); or thority. The White House and the The bill (H.R. 4655) was considered (v) bail bond agent; State Department have indicated that read the third time, and passed. (3) the term ‘‘bounty hunter employer’’— they support this bill. We have a f (A) means any person that— unique opportunity, and I intend to do (i) employs 1 or more bounty hunters; or BOUNTY HUNTER ACCOUNTABIL- (ii) provides, as an independent contractor, everything in my power to ensure that ITY AND QUALITY ASSISTANCE for consideration, the services of 1 or more boun- opportunity is not frittered away. The ACT OF 1998 ty hunters (which may include the services of price of failure is far too high. that person); and Mr. KERREY. Mr. President, I rise to Mr. MCCAIN. I ask unanimous con- (B) does not include any bail bond agent; and urge the passage of H.R. 4655, the Iraq sent that the Senate now proceed to (4) the term ‘‘law enforcement officer’’ means Liberation Act. Thanks to strong lead- consideration of Calendar No. 582, S. a public officer or employee authorized under ership in both Houses of Congress and 1637. applicable Federal or State law to conduct or thanks to the commitment of the Ad- The PRESIDING OFFICER. The engage in the prevention, investigation, pros- clerk will report. ecution, or adjudication of criminal offenses, in- ministration toward the goals we all cluding any public officer or employee engaged share for Iraq and the region, this leg- The assistant legislative clerk read as follows: in corrections, parole, or probation functions, or islation is moving quickly. This is the the recovery of any fugitive from justice. point to state what this legislation is A bill (S. 1637) to expedite State review of criminal records of applicants for bail en- SEC. 4. MODEL GUIDELINES. not, and what it is, from my under- forcement officer employment, and for other (a) IN GENERAL.—Not later than 180 days standing, and why I support it so purposes. after the date of enactment of this Act, the At- torney General shall develop model guidelines strongly. The PRESIDING OFFICER. Is there First, this bill is not, in my view, and for the State control and regulation of persons objection to the immediate consider- instrument to direct U.S. funds and employed or applying for employment as bounty ation of the bill? supplies to any particular Iraqi revolu- hunters. In developing such guidelines, the At- There being no objection, the Senate torney General shall consult with organizations tionary movement. There are Iraqi proceeded to consider the bill which representing— movements now in existence which had been reported from the Committee (1) State and local law enforcement officers; could qualify for designation in accord- on the Judiciary, with an amendment (2) State and local prosecutors; ance with this bill. Other Iraqis not (3) the criminal defense bar; to strike all after the enacting clause (4) bail bond agents; now associated with each other could and inserting in lieu thereof the follow- also band together and qualify for des- (5) bounty hunters; and ing: (6) corporate sureties. ignation. It is for Iraqis, not Americans SECTION 1. SHORT TITLE. (b) RECOMMENDATIONS.—The guidelines devel- to organize themselves to put Saddam This Act may be cited as the ‘‘Bounty Hunter oped under subsection (a) shall include rec- Hussein out of power, just as it will be Accountability and Quality Assistance Act of ommendations of the Attorney General regard- for Iraqis to choose their leaders in a 1998’’. ing whether— democratic Iraq. This bill will help the SEC. 2. FINDINGS. (1) a person seeking employment as a bounty Administration encourage and support Congress finds that— hunter should— Iraqis to make their revolution. (1) bounty hunters, also known as bail en- (A) be required to submit to a fingerprint- Second, this bill is not a device to in- forcement officers or recovery agents, provide based criminal background check prior to enter- ing into the performance of duties pursuant to volve the U.S. military in operations in law enforcement officers and the courts with valuable assistance in recovering fugitives from employment as a bounty hunter; or or near Iraq. The Iraqi revolution is for justice; (B) not be allowed to obtain such employment Iraqis, not Americans, to make. The (2) regardless of the differences in their duties, if that person has been convicted of a felony of- bill provides the Administration a po- skills, and responsibilities, the public has had fense under Federal or State law; October 7, 1998 CONGRESSIONAL RECORD — SENATE S11813 (2) bounty hunters and bounty hunter em- EXECUTIVE SESSION tion and irrigation water contractors ployers should be required to obtain adequate li- in Wyoming and Nebraska that receive ability insurance for actions taken in the course water from Glendo Reservoir, was con- of performing duties pursuant to employment as EXECUTIVE CALENDAR sidered, ordered to a third reading, a bounty hunter; and (3) State laws should provide— Mr. MCCAIN. I ask unanimous con- read the third time, and passed. (A) for the prohibition on bounty hunters en- sent that the Senate immediately pro- f tering any private dwelling, unless the bounty ceed to executive session to consider the following nominations on the Exec- MOUNT ST. HELENS NATIONAL hunter first knocks on the front door and an- VOLCANIC MONUMENT COMPLE- nounces the presence of 1 or more bounty hunt- utive Calendar: No. 816 and No. 817. ers; and The PRESIDING OFFICER. Without TION ACT (B) the official recognition of bounty hunters objection, it is so ordered. The bill (H.R. 1659) to provide for the from other States. Mr. MCCAIN. I further ask unani- expeditious completion of the acquisi- (c) EFFECT ON BAIL.—The guidelines pub- mous consent the nominations be con- tion of private mineral interests within lished under subsection (a) shall include an firmed, the motions to reconsider be the Mount St. Helens National Vol- analysis of the estimated effect, if any, of the laid upon the table, the President be canic Monument mandated by the 1982 adoption of the guidelines by the States on— (1) the cost and availability of bail; and immediately notified of the Senate’s Act that established the Monument (2) the bail bond agent industry. action, and the Senate then return to and for other purposes, was considered, (d) BYRNE GRANT PREFERENCE FOR CERTAIN legislative session. ordered to a third reading, read the STATES.— The PRESIDING OFFICER. Without third time, and passed. (1) IN GENERAL.—Section 505 of title I of the objection, it is so ordered. f Omnibus Crime Control and Safe Streets Act of The nominations considered and con- 1968 (42 U.S.C. 3755) is amended by adding at firmed en bloc are as follows: ANCSA LAND BANK PROTECTION ACT OF 1998 the end the following: NATIONAL FOUNDATION ON THE ARTS AND THE ‘‘(e) PREFERENCE FOR CERTAIN STATES.—Not- HUMANITIES The bill (H.R. 2000) to amend the withstanding any other provision of this part, Joy Harjo, of New Mexico, to be a Member Alaska Native Claims Settlement Act in making grants to States under this subpart, of the National Council on the Arts for a to make certain clarifications to the the Director shall give priority to States that term expiring September 3, 2002. land bank protection provisions, and have adopted the model guidelines developed Joan Specter, of Pennsylvania, to be a under section 4(a) of the Bounty Hunter Ac- for other purposes, was considered, or- Member of the National Council on the Arts dered to a third reading, read the third countability and Quality Assistance Act of for a term expiring September 3, 2002. 1998.’’. time, and passed. f (2) EFFECTIVE DATE.—The amendment made f by paragraph (1) shall take effect 2 years after LEGISLATIVE SESSION the date of enactment of this Act. CARLSBAD IRRIGATION PROJECT (e) NO REGULATORY AUTHORITY.—Nothing in The PRESIDING OFFICER. Under ACQUIRED LAND TRANSFER ACT the previous order, the Senate will re- this section may be construed to authorize the The Senate proceeded to consider the sume legislative session. promulgation of any Federal regulation relating bill (S. 736) to convey certain real prop- to bounty hunters, bounty hunter employers, or f erty within the Carlsbad Project in bail bond agents. New Mexico to the Carlsbad Irrigation (f) PUBLICATION OF GUIDELINES.—The Attor- THE CALENDAR ney General shall publish model guidelines de- Mr. MCCAIN. Mr. President, I ask District, which had been reported from veloped pursuant to subsection (a) in the Fed- unanimous consent the Senate now the Committee on Energy and Natural eral Register. proceed to the consideration of the fol- Resources, with an amendment to Mr. MCCAIN. I ask unanimous con- lowing bills, en bloc: Calendar No. 578, strike all after the enacting clause and sent that the substitute amendment be H.R. 2795; Calendar No. 600, H.R. 1659; inserting in lieu thereof the following: agreed to, the bill be considered read a Calendar No. 601, H.R. 2000; Calendar S. 736 third time and passed, the motion to No. 612, S. 736; Calendar No. 614, S. 777; Be it enacted by the Senate and House of Rep- reconsider be laid upon the table, and Calendar No. 616, S. 1175; Calendar No. resentatives of the United States of America in that any statements relating to the 617, S. 1641; Calendar No. 619, S. 2041; Congress assembled, bill be printed in the RECORD. Calendar No. 620, S. 2086; Calendar No. SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Carlsbad Irriga- The PRESIDING OFFICER. Without 624, S. 2140; Calendar No. 625, S. 2142; tion Project Acquired Land Transfer Act’’. objection, it is so ordered. Calendar No. 626, S. 2239; Calendar No. SEC. 2. CONVEYANCE. The Committee substitute amend- 627, S. 2240; Calendar No. 628, S. 2241; (a) LANDS AND FACILITIES.— ment was agreed to. Calendar No. 629, S. 2246; Calendar No. (1) IN GENERAL.—Except as provided in para- The bill (S. 1637), as amended, was 630, S. 2247; Calendar No. 631, S. 2248; graph (2), and subject to subsection (c), the Sec- considered read the third time, and Calendar No. 632, S. 2257; Calendar No. retary of the Interior (in this Act referred to as passed. 633, S. 2284; Calendar No. 634, S. 2285; the ‘‘Secretary’’) may convey to the Carlsbad Ir- Calendar No. 636, S. 2309; Calendar No. rigation District (a quasi-municipal corporation formed under the laws of the State of New Mex- f 638, S. 2468; Calendar No. 641, H.R. 2411; ico and in this Act referred to as the ‘‘District’’), Calendar No. 643, H.R. 4079; Calendar all right, title, and interest of the United States UNANIMOUS CONSENT No. 644, H.R. 4166. in and to the lands described in subsection (b) AGREEMENT—H.R. 3694 I ask unanimous consent that any (in this Act referred to as the ‘‘acquired lands’’) committee amendments be agreed to; and all interests the United States holds in the Mr. MCCAIN. I ask unanimous con- that the bills be read a third time and irrigation and drainage system of the Carlsbad sent that when the Senate proceeds to passed, as amended, if amended; that Project and all related lands including ditch the consideration of the conference re- the motions to reconsider be laid upon rider houses, maintenance shop and buildings, port to accompany H.R. 3694, the Intel- the table; that any amendments to ti- and Pecos River Flume. (2) LIMITATION.— ligence authorization bill, that there tles be agreed to, as may be necessary; be 30 minutes for debate divided as fol- (A) RETAINED SURFACE RIGHTS.—The Sec- and that any statements relating to retary shall retain title to the surface estate (but lows: 15 minutes for Senator MOYNIHAN, the bills appear at the appropriate not the mineral estate) of such acquired lands 15 minutes equally divided between the place in the RECORD, with the above oc- which are located under the footprint of managers. I further ask unanimous curring en bloc. Brantley and Avalon dams or any other project consent that following that debate The PRESIDING OFFICER. Without dam or reservoir division structure. time, the conference report be agreed objection, it is so ordered. (B) STORAGE AND FLOW EASEMENT.—The Sec- retary shall retain storage and flow easements to, the motion to reconsider be laid f upon the table, and any statements re- for any tracts located under the maximum spill- way elevations of Avalon and Brantley Res- lating to the conference report be IRRIGATION PROJECT CONTRACT EXTENSION ACT OF 1998 ervoirs. printed in the RECORD. (b) ACQUIRED LANDS DESCRIBED.—The lands The PRESIDING OFFICER. Without The bill (H.R. 2795) to extend con- referred to in subsection (a) are those lands (in- objection, it is so ordered. tracts between the Bureau of Reclama- cluding the surface and mineral estate) in Eddy S11814 CONGRESSIONAL RECORD — SENATE October 7, 1998 County, New Mexico, described as the acquired Carlsbad Project under the terms of the Mineral the repayment obligations to the Gov- lands and in section (7) of the ‘‘Status of Lands Leasing Act for Acquired Lands (30 U.S.C. 351– ernment in 1991, and it’s about time we and Title Report: Carlsbad Project’’ as reported 359) shall be deposited in the General Treasury let CID have what is rightfully theirs. by the Bureau of Reclamation in 1978. and credited to deficit reduction or retirement of This legislation accomplishes three (c) TERMS AND CONDITIONS OF CONVEYANCE.— the Federal debt. things: Conveys title of acquired lands Any conveyance of the acquired lands under (2) RECEIPTS AFTER ENACTMENT.—Of the re- this Act shall be subject to the following terms ceipts from mineral and grazing leases, licenses, and facilities to Carlsbad Irrigation and conditions: and permits on acquired lands to be conveyed District; allows the District to assume (1) MANAGEMENT AND USE, GENERALLY.—The under section 2, that are received by the United management of leases and the benefits conveyed lands shall continue to be managed States after the date of enactment and before of the receipts from these acquired and used by the District for the purposes for the date of conveyance— lands; and sets a 180-day deadline for which the Carlsbad Project was authorized, (A) not to exceed $200,000 shall be available to the transfer, establishing a 50–50 cost- based on historic operations and consistent with the Secretary for the actual costs of implement- sharing standard for carrying out the the management of other adjacent project lands. ing this Act with any additional costs shared (2) ASSUMED RIGHTS AND OBLIGATIONS.—Ex- equally between the Secretary and the District; transfer. cept as provided in paragraph (3), the District and The Carlsbad Irrigation Project is a shall assume all rights and obligations of the (B) the remainder shall be deposited into the single-purpose project created in 1905 United States under— General Treasury of the United States and cred- by the Bureau of Reclamation, acquir- (A) the agreement dated July 28, 1994, between ited to deficit reduction or retirement of the Fed- ing all facilities, lands and water rights the United States and the Director, New Mexico eral debt. of the privately-owned Pecos Irrigation Department of Game and Fish (Document No. 2– SEC. 4. VOLUNTARY WATER CONSERVATION Company. The CID has had operations LM–40–00640), relating to management of cer- PRACTICES. and maintenance responsibilities for tain lands near Brantley Reservoir for fish and Nothing in this Act shall be construed to limit wildlife purposes; and the irrigation and drainage system the ability of the District to voluntarily imple- since 1932. (B) the agreement dated March 9, 1977, be- ment water conservation practices. tween the United States and the New Mexico During the 104th Congress, the Carls- Department of Energy, Minerals, and Natural SEC. 5. LIABILITY. bad Irrigation District presented testi- Effective on the date of conveyance of any Resources (Contract No. 7–07–57–X0888) for the mony before the Committee on Energy management and operation of Brantley Lake lands and facilities authorized by this Act, the United States shall not be held liable by any and Natural Resources on one occasion, State Park. and before the House Committee on Re- (3) EXCEPTIONS.—In relation to agreements re- court for damages of any kind arising out of ferred to in paragraph (2)— any act, omission, or occurrence relating to the sources on two occasions. Additionally, (A) the District shall not be obligated for any conveyed property, except for damages caused the administration expressed on sev- financial support agreed to by the Secretary, or by acts of negligence committed by the United eral occasions before these two com- the Secretary’s designee, in either agreement; States or by its employees, agents, or contrac- mittees that they want to move for- and tors, prior to conveyance. Nothing in this sec- ward with acquired land transfers (B) the District shall not be entitled to any re- tion shall be considered to increase the liability of the United States beyond that provided under where they make sense. The Commis- ceipts for revenues generated as a result of ei- sioner of the Bureau of Reclamation, ther agreement. chapter 171 of title 28, United States Code, pop- (d) COMPLETION OF CONVEYANCE.—If the Sec- ularly known as the Federal Tort Claims Act. Eluid Martinez, has informed the dis- retary does not complete the conveyance within SEC. 6. FUTURE BENEFITS. trict and me that he believes that the 180 days from the date of enactment of this Act, Effective upon transfer, the lands and facili- Carlsbad project is one of several the Secretary shall submit a report to the Con- ties transferred pursuant to this Act shall not be projects where the Bureau would like gress within 30 days after that period that in- entitled to receive any further Reclamation ben- to pursue transfer opportunities. It is cludes a detailed explanation of problems that efits pursuant to the Reclamation Act of June about time that we pass this legisla- have been encountered in completing the con- 17, 1902, and Acts supplementary thereof or tion to provide the Bureau with the veyance, and specific steps that the Secretary amendatory thereto attributable to their status ability to accomplish their stated goal has taken or will take to complete the convey- as part of a Reclamation Project. ance. in a fair and equitable manner. The committee amendment was This transfer shifts responsibility SEC. 3. LEASE MANAGEMENT AND PAST REVE- agreed to. NUES COLLECTED FROM THE AC- from the Federal Government back to QUIRED LANDS. The bill (S. 736), as amended, was a local entity, and creates opportunity (a) IDENTIFICATION AND NOTIFICATION OF considered read the third time and for the district to improve and enhance LEASEHOLDERS.—Within 120 days after the date passed. the management of these lands. After a of enactment of this Act, the Secretary of the Mr. DOMENICI. Mr. President, I am long wait, we have gotten administra- Interior shall— very pleased that the Senate has tion support for this transfer in lan- (1) provide to the District a written identifica- passed S. 736—the Carlsbad Irrigation tion of all mineral and grazing leases in effect guage substituted by the Senate En- on the acquired lands on the date of enactment Project Acquired Land Transfer Act. I, ergy Committee, and have gained sup- of this Act; and along with Congressman SKEEN, have port from the Democratic side of the (2) notify all leaseholders of the conveyance been working to convey tracts of aisle. I hope that the House of Rep- authorized by this Act. land—paid for by Carlsbad Irrigation resentatives will act quickly on this (b) MANAGEMENT OF MINERAL AND GRAZING District and referred to as ‘‘acquired legislation so that the Carlsbad Irriga- LEASES, LICENSES, AND PERMITS.—The District lands’’—back to the district, during the tion District will promptly begin get- shall assume all rights and obligations of the past several congresses. United States for all mineral and grazing leases, ting the benefits for that which they licenses, and permits existing on the acquired I introduced this bill in May of 1997 have paid. lands conveyed under section 2, and shall be en- in order to transfer lands back to the f titled to any receipts from such leases, licenses, rightful owners. This legislation will and permits accruing after the date of convey- not affect operations at the New Mex- LEWIS AND CLARK RURAL WATER ance. All such receipts shall be used for pur- ico State park at Brantley Dam, or the SYSTEM ACT OF 1998 poses for which the Project was authorized and operations and ownership of the dam The Senate proceeded to consider the for financing the portion of operations, mainte- itself. Furthermore, the bill will not af- bill (S. 777) to authorize the construc- nance, and replacement of the Summer Dam fect recreation activities in the area. tion of the Lewis and Clark Water Sys- which, prior to conveyance, was the responsibil- ity of the Bureau of Reclamation, with the ex- This legislation is specific to the tem and to authorize assistance to ception of major maintenance programs in Carlsbad project in New Mexico, and di- Lewis and Clark Rural Water System, progress prior to conveyance which shall be rects the Carlsbad Irrigation District Inc., a nonprofit corporation, for the funded through the cost share formulas in place to continue to manage the lands as planning and construction of the water at the time of conveyance. The District shall they have been in the past, for the pur- supply system, and for other purposes, continue to adhere to the current Bureau of poses for which the project was con- which had been reported from the Com- Reclamation mineral leasing stipulations for the structed. I believe this is a fair and eq- mittee on Energy and Natural Re- Carlsbad Project. uitable bill that has been developed sources, with amendments, as follows: (c) AVAILABILITY OF AMOUNTS PAID INTO REC- over years of negotiations. The Carls- (The parts of the bill intended to be LAMATION FUND.— (1) EXISTING RECEIPTS.—Receipts in the rec- bad Irrigation District has had oper- stricken are shown in boldface brack- lamation fund on the date of enactment of this ations and maintenance responsibil- ets and the parts of the bill intended to Act which exist as construction credits to the ities for the past 66 years. It met all be inserted are shown in italic.) October 7, 1998 CONGRESSIONAL RECORD — SENATE S11815

S. 777 (d) LIMITATION ON AVAILABILITY OF CON- section (a) shall be the firm power rate Be it enacted by the Senate and House of Rep- STRUCTION FUNDS.—The øSecretary¿ System schedule of the Pick-Sloan Eastern Division resentatives of the United States of America in Funding Agencies shall not obligate funds for of the Western Area Power Administration Congress assembled, the construction of the water supply system in effect when the power is delivered by the SECTION 1. SHORT TITLE. until— Administration. This Act may be cited as the ‘‘Lewis and (1) the requirements of the National Envi- (4) It is agreed by contract among— Clark Rural Water System Act of 1997’’. ronmental Policy Act of 1969 (42 U.S.C. 4321 (A) the Western Area Power Administra- et seq.) are met; tion; SEC. 2. DEFINITIONS. (2) a final engineering report is prepared (B) the power supplier with which the In this Act: and submitted to Congress not less than 90 water supply system contracts under para- (1) ENVIRONMENTAL ENHANCEMENT.—The days before the commencement of construc- graph (2); term ‘‘environmental enhancement’’ means tion of the water supply system; and (C) the power supplier of the entity de- the wetland and wildlife enhancement activi- (3) a water conservation program is devel- scribed in subparagraph (B); and ties that are carried out substantially in ac- oped and implemented. (D) the water supply system; cordance with the environmental enhance- ment component of the feasibility study. SEC. 4. FEDERAL ASSISTANCE FOR THE ENVI- that in the case of the capacity and energy RONMENTAL ENHANCEMENT COM- made available under subsection (a), the ben- (2) ENVIRONMENTAL ENHANCEMENT COMPO- PONENT. efit of the rate schedule described in para- NENT.—The term ‘‘environmental enhance- (a) INITIAL DEVELOPMENT.—The [Secretary¿ graph (3) shall be passed through to the ment component’’ means the component de- System Funding Agencies shall make grants scribed in the report entitled ‘‘Wetlands and water supply system, except that the power and other funds available to the water sup- supplier of the water supply system shall not Wildlife Enhancement for the Lewis and ply system and other private, State, and Clark Rural Water System’’, dated April be precluded from including, in the charges Federal entities, for the initial development of the supplier to the water system for the 1991, that is included in the feasibility study. of the environmental enhancement compo- electric service, the other usual and cus- (3) FEASIBILITY STUDY.—The term ‘‘feasibil- nent. tomary charges of the supplier. ity study’’ means the study entitled ‘‘Fea- (b) NONREIMBURSEMENT.—Funds provided sibility Level Evaluation of a Missouri River SEC. 8. NO LIMITATION ON WATER PROJECTS IN under subsection (a) shall be nonreimburs- STATES. Regional Water Supply for South Dakota, able and nonreturnable. This Act does not limit the authorization Iowa and Minnesota’’, dated September 1993, SEC. 5. WATER CONSERVATION PROGRAM. for water projects in the States of South Da- that includes a water conservation plan, en- (a) IN GENERAL.—The water supply system kota, Iowa, and Minnesota under law in ef- vironmental report, and environmental en- shall establish a water conservation program fect on or after the date of enactment of this hancement component. that ensures that users of water from the Act. (4) MEMBER ENTITY.—The term ‘‘member water supply system use the best practicable SEC. 9. WATER RIGHTS. entity’’ means a rural water system or mu- technology and management techniques to Nothing in this Act— nicipality that signed a Letter of Commit- conserve water use. (1) invalidates or preempts State water law ment to participate in the water supply sys- (b) REQUIREMENTS.—The water conserva- or an interstate compact governing water; tem. tion programs shall include— (2) alters the rights of any State to any ap- (5) PROJECT CONSTRUCTION BUDGET.—The (1) low consumption performance standards propriated share of the waters of any body of term ‘‘project construction budget’’ means for all newly installed plumbing fixtures; surface or ground water, whether determined the description of the total amount of funds (2) leak detection and repair programs; by past or future interstate compacts or by needed for the construction of the water sup- (3) rate schedules that do not include de- past or future legislative or final judicial al- ply system, as contained in the feasibility clining block rate schedules for municipal locations; study. households and special water users (as de- (3) preempts or modifies any Federal or (6) PUMPING AND INCIDENTAL OPERATIONAL fined in the feasibility study); State law, or interstate compact, governing REQUIREMENTS.—The term ‘‘pumping and in- (4) public education programs and tech- water quality or disposal; or cidental operational requirements’’ means nical assistance to member entities; and (4) confers on any non-Federal entity the all power requirements that are incidental to (5) coordinated operation among each rural ability to exercise any Federal right to the the operation of intake facilities, pumping water system, and each water supply facility waters of any stream or to any ground water stations, water treatment facilities, res- in existence on the date of enactment of this resource. ervoirs, and pipelines up to the point of de- Act, in the service area of the system. SEC. 10. COST SHARING. livery of water by the water supply system (c) REVIEW AND REVISION.—The programs (a) FEDERAL COST SHARE.— to each member entity that distributes described in subsection (b) shall contain pro- (1) IN GENERAL.—Except as provided in water at retail to individual users. visions for periodic review and revision, in paragraph (2), the øSecretary¿ System Fund- ø(7) SECRETARY.—The term ‘‘Secretary’’ cooperation with the øSecretary.¿ Secretary ing Agencies shall provide funds equal to 80 means the Secretary of the Interior.¿ of the Interior. percent of— (7) SYSTEM FUNDING AGENCIES.—The term SEC. 6. MITIGATION OF FISH AND WILDLIFE (A) the amount allocated in the total ‘‘System Funding Agencies’’ means the Environ- LOSSES. project construction budget for planning and mental Protection Agency and the Department Mitigation for fish and wildlife losses in- construction of the water supply system of Agriculture. curred as a result of the construction and op- under section 3; (8) WATER SUPPLY SYSTEM.—The term eration of the water supply system shall be (B) such amounts as are necessary to de- ‘‘water supply system’’ means the Lewis and on an acre-for-acre basis, based on ecological fray increases in the budget for planning and Clark Rural Water System, Inc., a nonprofit equivalency, concurrent with project con- construction of the water supply system corporation established and operated sub- struction, as provided in the feasibility under section 3; and stantially in accordance with the feasibility study. (C) such amounts as are necessary to de- study. SEC. 7. USE OF PICK–SLOAN POWER. fray increases in development costs reflected SEC. 3. FEDERAL ASSISTANCE FOR THE WATER (a) IN GENERAL.—From power designated in appropriate engineering cost indices after SUPPLY SYSTEM. for future irrigation and drainage pumping September 1, 1993. (a) IN GENERAL.—The øSecretary¿ System for the Pick-Sloan Missouri Basin program, (2) SIOUX FALLS.—The øSecretary¿ System Funding Agencies shall make grants to the the Western Area Power Administration Funding Agencies shall provide funds for the water supply system for the planning and shall make available the capacity and en- city of Sioux Falls, South Dakota, in an construction of the water supply system. ergy required to meet the pumping and inci- amount equal to 50 percent of the incremen- (b) SERVICE AREA.—The water supply sys- dental operational requirements of the water tal cost to the city of participation in the tem shall provide for safe and adequate mu- supply system during the period beginning project. nicipal, rural, and industrial water supplies, on May 1 and ending on October 31 of each (b) NON-FEDERAL COST SHARE.— environmental enhancement, mitigation of year. (1) IN GENERAL.—Except as provided in wetland areas, and water conservation in— (b) CONDITIONS.—The capacity and energy paragraph (2), the non-Federal share of the (1) Lake County, McCook County, Minne- described in subsection (a) shall be made costs allocated to the water supply system haha County, Turner County, Lincoln Coun- available on the following conditions: shall be 20 percent of the amounts described ty, Clay County, and Union County, in (1) The water supply system shall be oper- in subsection (a)(1). southeastern South Dakota; ated on a not-for-profit basis. (2) SIOUX FALLS.—The non-Federal cost- (2) Rock County and Nobles County, in (2) The water supply system shall contract share for the city of Sioux Falls, South Da- southwestern Minnesota; and to purchase the entire electric service re- kota, shall be 50 percent of the incremental (3) Lyon County, Sioux County, Osceola quirements of the system, including the ca- cost to the city of participation in the County, O’Brien County, Dickinson County, pacity and energy made available under sub- project. and Clay County, in northwestern Iowa. section (a), from a qualified preference power SEC. 11. BUREAU OF RECLAMATION. (c) AMOUNT OF GRANTS.—Grants made supplier that itself purchases power from the (a) AUTHORIZATION.—The Secretary of the available under subsection (a) to the water Western Area Power Administration. Interior may allow the Director of the Bureau supply system shall not exceed the amount (3) The rate schedule applicable to the ca- of Reclamation to provide project construc- of funds authorized under section 10. pacity and energy made available under sub- tion oversight to the water supply system S11816 CONGRESSIONAL RECORD — SENATE October 7, 1998 and environmental enhancement component section as the ‘‘Secretary’’), shall conduct a ergy and Natural Resources of the Senate a for the service area of the water supply sys- study of alternatives for øestablishing a na- report on the findings and recommendations tem described in section 3(b). tional historic trail¿ commemorating and in- of the study. (b) PROJECT OVERSIGHT ADMINISTRATION.— terpreting the history of women’s rights in f The amount of funds used by the Director of the United States. the Bureau of Reclamation for øplanning and (b) MATTERS TO BE CONSIDERED.—The WILLOW LAKE NATURAL construction¿ oversight and other technical as- study under subsection (a) shall include— TREATMENT SYSTEM PROJECT sistance of the water supply system shall not (1) consideration of the establishment of a exceed the amount that is equal to 1 percent new unit of the National Park System; The bill (S. 2041) to amend the Rec- of the amount provided in the total project (2) consideration of the establishment of lamation Wastewater and Groundwater construction budget for the entire project various appropriate designations for routes Study and Facilities Act to authorize construction period. and sites relating to the history of women’s the Secretary of the Interior to partici- SEC. 12. AUTHORIZATION OF APPROPRIATIONS. rights in the United States, and alternative pate in the design, planning, and con- There is authorized to be appropriated to means to link those sites, including a cor- struction of the Willow Lake Natural carry out this Act $226,320,000, of which not ridor between Buffalo, New York, and Bos- Treatment System Project for the rec- less than $8,487,000 shall be used for the ini- ton, Massachusetts; lamation and reuse of water, and for tial development of the environmental en- (3) recommendations for cooperative ar- rangements with State and local govern- other purposes, was considered, ordered hancement component under section 4, to re- to be engrossed for a third reading, main available until expended. ments, local historical organizations, and other entities; and read the third time, and passed, as fol- The committee amendments were (4) cost estimates for the alternatives. lows: agreed to. (c) STUDY PROCESS.—The Secretary shall— S. 2041 The bill (S. 777), as amended, was (1) conduct the study with public involve- Be it enacted by the Senate and House of Rep- ment and in consultation with State and considered read the third time and resentatives of the United States of America in local officials, scholarly and other interested passed, as follows: Congress assembled, [The bill was not available for print- organizations, and individuals; (2) complete the study as expeditiously as SECTION 1. WILLOW LAKE NATURAL TREATMENT ing. It will appear in a future issue of SYSTEM PROJECT. practicable after the date on which funds are the RECORD.] made available for the study; and (a) IN GENERAL.—The Reclamation Waste- f (3) on completion of the study, submit to water and Groundwater Study and Facilities the Committee on Resources of the House of Act (43 U.S.C. 390h et seq.) is amended— DELAWARE WATER GAP NATIONAL Representatives and the Committee on En- (1) by redesignating sections 1631, 1632, and RECREATION AREA CITIZEN AD- ergy and Natural Resources of the Senate a 1633 as sections 1632, 1633, and 1634, respec- VISORY COMMISSION report on the findings and recommendations tively; and of the study. (2) by inserting after section 1630 the fol- The bill (S. 1175) to reauthorize the lowing new section 1631: Delaware Water Gap National Recre- The committee amendment was ‘‘SEC. 1631. WILLOW LAKE NATURAL TREATMENT ation Area Citizen Advisory Commis- agreed to. SYSTEM PROJECT. sion for 10 additional years, was consid- The bill (S. 1641), as amended, was ‘‘(a) AUTHORIZATION.—The Secretary, in co- ered, ordered to be engrossed for a considered read the third time and operation with the City of Salem, Oregon, is third reading, read the third time, and passed, as follows: authorized to participate in the design, plan- passed, as follows: S. 1641 ning, and construction of the Willow Lake Natural Treatment System Project to re- S. 1175 Be it enacted by the Senate and House of Rep- claim and reuse wastewater within and with- Be it enacted by the Senate and House of Rep- resentatives of the United States of America in out the service area of the City of Salem. Congress assembled, resentatives of the United States of America in ‘‘(b) COST SHARE.—The Federal share of the Congress assembled, SECTION 1. SHORT TITLE. cost of a project described in subsection (a) SECTION 1. REAUTHORIZATION OF THE DELA- This Act may be cited as the ‘‘Women’s shall not exceed 25 percent of the total cost. WARE WATER GAP NATIONAL Rights National Historic Trail Act of 1998’’. ‘‘(c) LIMITATION.—The Secretary shall not RECREATION AREA CITIZEN ADVI- SEC. 2. STUDY OF ALTERNATIVES FOR NATIONAL provide funds for the operation and mainte- SORY COMMISSION. HISTORIC TRAIL TO COMMEMORATE nance of a project described in subsection Section 5 of Public Law 101–573 (16 U.S.C. AND INTERPRET HISTORY OF WOM- (a).’’. EN’S RIGHTS IN THE UNITED 460o note) is amended by striking ‘‘10’’ and (b) CONFORMING AMENDMENTS.—That Act is STATES. inserting ‘‘20’’. further amended— (a) IN GENERAL.—The Secretary of the In- f (1) in section 1632 (43 U.S.C. 390h–13) (as re- terior, acting through the Director of the designated by subsection (a)(1)), by striking WOMEN’S RIGHTS NATIONAL National Park Service (referred to in this ‘‘section 1630’’ and inserting ‘‘section 1631’’; section as the ‘‘Secretary’’), shall conduct a HISTORIC TRAIL ACT OF 1998 (2) in section 1633(c) (43 U.S.C. 390h–14) (as study of alternatives for commemorating so redesignated), by striking ‘‘section 1633’’ The Senate proceeded to consider the and interpreting the history of women’s and inserting ‘‘section 1634’’; and bill (S. 1641) to direct the Secretary of rights in the United States. (3) in section 1634 (43 U.S.C. 390h–15) (as so the Interior to study alternatives for (b) MATTERS TO BE CONSIDERED.—The redesignated), by striking ‘‘section 1632’’ and establishing a national historic trail to study under subsection (a) shall include— inserting ‘‘section 1633’’. (1) consideration of the establishment of a commemorate and interpret the his- (c) CLERICAL AMENDMENT.—The table of new unit of the National Park System; contents in section 2 of the Reclamation tory of women’s rights in the United (2) consideration of the establishment of States, which had been reported from Projects Authorization and Adjustment Act various appropriate designations for routes of 1992 is amended by striking the items re- the Committee on Energy and Natural and sites relating to the history of women’s lating to sections 1631 through 1633 and in- Resources with an amendment, as fol- rights in the United States, and alternative serting the following: lows: means to link those sites, including a cor- ridor between Buffalo, New York, and Bos- ‘‘Sec. 1631. Willow Lake Natural Treatment (The part of the bill intended to be System Project. stricken is shown in boldface brackets.) ton, Massachusetts; (3) recommendations for cooperative ar- ‘‘Sec. 1632. Authorization of appropriations. S. 1641 rangements with State and local govern- ‘‘Sec. 1633. Groundwater study. Be it enacted by the Senate and House of Rep- ments, local historical organizations, and ‘‘Sec. 1634. Authorization of appropria- resentatives of the United States of America in other entities; and tions.’’. Congress assembled, (4) cost estimates for the alternatives. f SECTION 1. SHORT TITLE. (c) STUDY PROCESS.—The Secretary shall— (1) conduct the study with public involve- GEORGE WASHINGTON BIRTH- This Act may be cited as the ‘‘Women’s PLACE NATIONAL MONUMENT Rights National Historic Trail Act of 1998’’. ment and in consultation with State and local officials, scholarly and other interested SEC. 2. STUDY OF ALTERNATIVES FOR NATIONAL The Senate proceeded to consider the HISTORIC TRAIL TO COMMEMORATE organizations, and individuals; bill (S. 2086) to revise the boundaries of AND INTERPRET HISTORY OF WOM- (2) complete the study as expeditiously as the George Washington Birthplace Na- EN’S RIGHTS IN THE UNITED practicable after the date on which funds are STATES. made available for the study; and tional Monument, which had been re- (a) IN GENERAL.—The Secretary of the In- (3) on completion of the study, submit to ported from the Committee on Energy terior, acting through the Director of the the Committee on Resources of the House of and Natural Resources, with an amend- National Park Service (referred to in this Representatives and the Committee on En- ment to strike all after the enacting October 7, 1998 CONGRESSIONAL RECORD — SENATE S11817 clause and inserting in lieu thereof the (1) by redesignating sections 1631, 1632, and 36 Stat. 835; facilities appurtenant to the Dam following: 1633 (42 U.S.C. 390h–13, 390h–14, 390h–15) as and Reservoir, including equipment, buildings, sections 1632, 1633, and 1634, respectively; and and other improvements; lands adjacent to the SECTION 1. ADDITION TO NATIONAL MONUMENT. (2) by inserting after section 1630 (43 U.S.C. Dam and Reservoir; easements and rights-of- (a) ADDITION.—The boundaries of the George 390h–12p) the following: way necessary for access and all required con- Washington Birthplace National Monument are ‘‘SEC. 1631. DENVER WATER REUSE PROJECT. nections with the Dam and Reservoir, including modified to include the property generally know those for necessary roads; and associated per- as George Washington’s Boyhood Home, Ferry ‘‘(a) AUTHORIZATION.—The Secretary, in co- operation with the appropriate State and sonal property, including contract rights and Farm, located in Stafford County, Virginia, any and all ownership or property interest in across the Rappahannock River from Fred- local authorities, may participate in the de- sign, planning, and construction of the Den- water or water rights. ericksburg, Virginia, comprising approximately 8 (3) The term ‘‘Repayment Contract’’ means acres. The boundary modification is generally ver Water Reuse project to reclaim and reuse water in the service area of the Denver Repayment Contract #I1r–1204, between Rec- depicted on the map entitled ‘‘George Washing- lamation and the Pine River Irrigation District, ton Birthplace National Monument Boundary Water Department of the city and county of Denver, Colorado. dated April 15, 1940, and amended November 30, Map’’, numbered 322/80, 020 and dated April 1953, and all amendments and additions thereto, ‘‘(b) COST SHARE.—The Federal share of the 1998. The Secretary of the Interior shall keep the including the Act of July 27, 1954 (68 Stat. 534), map on file and available for public inspection cost of the project described in subsection (a) shall not exceed 25 percent of the total cost. covering the Pine River Project and certain in appropriate offices of the National Park Serv- lands acquired in support of the Vallecito Dam ice. ‘‘(c) LIMITATION.—The Secretary shall not provide funds for the operation or mainte- and Reservoir pursuant to which the Pine River (b) ACQUISITION OF EASEMENT.—After the en- Irrigation District has assumed operation and actment of this Act, the Secretary of the Interior nance of the project described in subsection (a).’’. maintenance responsibilities for the dam, res- may acquire a conservation easement for the ervoir, and water-based recreation in accord- property described in subsection (a) to ensure (b) CONFORMING AMENDMENTS.— (1) The table of contents in section 2 of the ance with existing law. the preservation of this important cultural and (4) The term ‘‘Reclamation’’ means the De- Reclamation Projects Authorization and Ad- natural resources associated with Ferry Farm. partment of the Interior, Bureau of Reclama- justment Act of 1992 (43 U.S.C. prec. 371) is SEC. 2. RESOURCE STUDY. tion. amended— (a) IN GENERAL.—Not later than 18 months (5) The term ‘‘Secretary’’ means the Secretary (A) by redesignating the items relating to of the Interior. after the date on which funds are made avail- sections 1631, 1632, and 1633 as items relating able to carry out this section, the Secretary of (6) The term ‘‘Southern Ute Indian Tribe’’ or to sections 1632, 1633, and 1634, respectively, ‘‘Tribe’’ means a federally recognized Indian the Interior shall submit to the Committee on and Energy and Natural Resources of the Senate tribe, located on the Southern Ute Indian Res- (B) by inserting after the item relating to ervation, La Plata County, Colorado. and the Committee on Resources of the House of section 1630 the following: Representatives a resource study of the property (7) The term ‘‘Pine River Irrigation District’’ described in section 1(a). ‘‘Sec. 1631. Denver Water Reuse or ‘‘District’’ means a political division of the (b) CONTENTS.—The study under subsection Project.’’. State of Colorado duly organized, existing, and (a) shall— (2) Section 1632(a) of the Reclamation acting pursuant to the laws thereof with its (1) identify the full range of resources and Projects Authorization and Adjustment Act principal place of business in the City of historic themes associated with Ferry Farm, in- of 1992 (as redesignated by subsection (a)(1)) Bayfield, La Plata County, Colorado and hav- 5 cluding those associated with George Washing- is amended by striking ‘‘1630’’ and inserting ing an undivided ⁄6 right and interest in the use ton’s tenure at the property described in section ‘‘1631’’. of the water made available by Vallecito Res- 1(a) and those associated with the Civil War pe- (3) Section 1633(c) of the Reclamation ervoir for the purpose of supplying the lands of riod; Projects Authorization and Adjustment Act the District, pursuant to the Repayment Con- (2) identify alternatives for further National of 1992 (as redesignated by subsection (a)(1)) tract, and the decree in Case No. 1848–B, Dis- Park Service involvement at the property de- is amended by striking ‘‘section 1633’’ and in- trict Court, Water Division 7, State of Colorado, 5 scribed in section 1(a) beyond those that may be serting ‘‘section 1634’’. as well as an undivided ⁄6 right and interest in provided for in the acquisition authorized under (4) Section 1634 of the Reclamation the Pine River Project. section 1(b); and Projects Authorization and Adjustment Act SEC. 3. TRANSFER OF THE PINE RIVER PROJECT. (3) include cost estimates for any necessary of 1992 (as redesignated by subsection (a)(1)) (a) CONVEYANCE.—The Secretary is authorized acquisition, development, interpretation, oper- is amended by striking ‘‘section 1632’’ and in- to convey, without consideration or compensa- ation, and maintenance associated with the al- serting ‘‘section 1633’’. tion to the District, by quitclaim deed or patent, ternatives identified. f pursuant to section 6, the United States undi- vided 5⁄6 right and interest in the Pine River SEC. 3. AGREEMENTS. PINE RIVER PROJECT Project under the jurisdiction of Reclamation Upon completion of the resource study under for the benefit of the Pine River Irrigation Dis- section 2, the Secretary of the Interior may enter CONVEYANCE ACT trict. No partition of the undivided 5⁄6 right and into agreements with the owner of the property The Senate proceeded to consider the interest in the Pine River Project shall be per- described in section 1(a) or other entities for the bill (S. 2142) to authorize the Secretary mitted from the undivided 1⁄6 right and interest purpose of providing programs, services, facili- of the Interior to convey the facilities in the Pine River Project described in subsection ties, or technical assistance that further the of the Pine River Project, to allow ju- 3(b) and any quit claim deed or patent evidenc- preservation and public use of the property. risdictional transfer of lands between ing a transfer shall expressly prohibit partition- The committee amendment was the Department of Agriculture, Forest ing. Effective on the date of the conveyance, all agreed to. Service, and the Department of the In- obligations between the District and the Bureau The bill (S. 2086), as amended, was of Indian Affairs on the one hand and Reclama- terior, Bureau of Reclamation, and the tion on the other hand, under the Repayment considered read the third time and Bureau of Indian Affairs, and for other passed. Contract or with respect to the Pine River purposes, which had been reported from Project are extinguished. Upon completion of f the Committee on Energy and Natural the title transfer, said Repayment Contract shall become null and void. The District shall be re- DENVER WATER REUSE PROJECT Resources, with an amendment to strike all after the enacting clause and sponsible for paying 50 percent of all costs asso- The bill (S. 2140) to amend the Rec- inserting in lieu thereof the following: ciated with the title transfer. (b) BUREAU OF INDIAN AFFAIRS INTEREST.—At lamation Projects Authorization and SECTION 1. SHORT TITLE. Adjustment Act of 1992 to authorize the option of the Tribe, the Secretary is author- This Act may be cited as the ‘‘Pine River ized to convey to the Tribe the Bureau of Indian the Secretary of the Interior to partici- Project Conveyance Act’’. Affairs’ undivided 1⁄6 right and interest in the pate in the design, planning, and con- SEC. 2. DEFINITIONS. Pine River Project and the water supply made struction of the Denver Water Reuse For purposes of this Act: available by Vallecito Reservoir pursuant to the project, was considered, ordered to be (1) The term ‘‘Jurisdictional Map’’ means the Memorandum of Understanding between the engrossed for a third reading, read the map entitled ‘‘Transfer of Jurisdiction— Bureau of Reclamation and the Office of Indian third time, and passed, as follows: Vallecito Reservoir, United States Department of Affairs dated January 3, 1940, together with its Agriculture, Forest Service and United States S. 2140 Amendment dated July 9, 1964 (‘MOU’), the Re- Department of the Interior, Bureau of Reclama- payment Contract and decrees in Case Nos. Be it enacted by the Senate and House of Rep- tion and the Bureau of Indian Affairs’’ dated 1848–B and W–1603–76D, District Court, Water resentatives of the United States of America in March, 1998. Division 7, State of Colorado. In the event of Congress assembled, (2) The term ‘‘Pine River Project’’ or the such conveyance, no consideration or compensa- SECTION 1. DENVER WATER REUSE PROJECT. ‘‘Project’’ means Vallecito Dam and Reservoir tion shall be required to be paid to the United (a) IN GENERAL.—The Reclamation owned by the United States and authorized in States. Projects Authorization and Adjustment Act 1937 under the provisions of the Department of (c) FEDERAL DAM USE CHARGE.—Nothing in of 1992 (43 U.S.C. 390h et seq.) is amended— the Interior Appropriation Act of June 25, 1910, this Act shall relieve the holder of the license S11818 CONGRESSIONAL RECORD — SENATE October 7, 1998 issued by the Federal Energy Regulatory Com- Forest Service, at no cost to the Forest Service, months from the date of enactment of this Act, mission under the Federal Power Act for for the reconstruction, maintenance, and oper- the Secretary, in coordination with the District, Vallecito Dam in effect on the date of enactment ation of a road from La Plata County Road No. shall promptly provide a report to the Committee of this Act from the obligation to make pay- 501 to National Forest System lands east of the on Resources of the House of Representatives ments under section 10(e)(2) of the Federal Reservoir. and to the Committee on Energy and Natural Power Act during the remaining term of the (d) VALID EXISTING RIGHTS.—Nothing in this Resources of the Senate on the status of the present license. At the expiration of the present section shall affect any valid existing rights or transfer described in section 3(a), any obstacles license term, the Federal Energy Regulatory interests in any existing land use authorization, to completion of such transfer, and the antici- Commission shall adjust the charge to reflect ei- except that any such land use authorization pated date for such transfer. ther (1) the 1⁄6 interest of the United States re- shall be administered by the agency having ju- (c) FUTURE BENEFITS.—Effective upon trans- maining in the Vallecito Dam after conveyance risdiction over the land after the Jurisdictional fer, the District shall not be entitled to receive to the District; or (2) if the remaining 1⁄6 interest Transfer in accordance with subsection (c) and any further Reclamation benefits attributable to of the United States has been conveyed to the other applicable law. Renewal or reissuance of its status as a Reclamation project pursuant to Tribe pursuant to section 3(b), then no federal any such authorization shall be in accordance the Reclamation Act of June 17, 1902, and Acts dam charge shall be levied from the date of expi- with applicable law and the regulations of the supplementary thereto or amendatory thereof. ration of the present license. agency having jurisdiction, except that the The committee amendment was SEC. 4. JURISDICTIONAL TRANSFER OF LANDS. change of administrative jurisdiction shall not agreed to. (a) INUNDATED LANDS.—To provide for the in itself constitute a ground to deny the renewal or reissuance of any such authorization. The bill (S. 2142), as amended, was consolidation of lands associated with the Pine considered the third time and passed. River Project to be retained by the Forest Serv- SEC. 5. LIABILITY. ice and the consolidation of lands to be trans- Effective on the date of the conveyance of the f remaining undivided 1⁄6 right and interest in the ferred to the District, the administrative juris- FORT MATANZAS NATIONAL diction of lands inundated by and along the Pine River Project to the Tribe pursuant to sub- shoreline of Vallecito Reservoir, as shown on section 3(b), the United States shall not be held MONUMENT the Jurisdictional Map, shall be transferred, as liable by any court for damages of any kind The bill (S. 2239) to revise the bound- set forth below (the ‘‘Jurisdictional Transfer’’), arising out of any act, omission, or occurrence ary of Fort Matanzas National Monu- concurrently with the conveyance described in relating to such Project, except for damages ment, and for other purposes, was con- caused by acts of negligence committed by the section 3(a). Except as otherwise shown on the sidered, ordered to be engrossed for a Jurisdictional Map— United States or by its employees, agents, or (1) for withdrawn lands (approximately 260 contractors prior to the date of conveyance. third reading, read the third time, and acres) lying below the 7,765-foot reservoir water Nothing in this section shall be deemed to in- passed, as follows: surface elevation level, the Forest Service shall crease the liability of the United States beyond S. 2239 transfer an undivided 5⁄6 interest to Reclamation that currently provided in the Federal Tort Be it enacted by the Senate and House of Rep- and an undivided 1⁄6 interest to the Bureau of Claims Act (28 U.S.C. 2671 et seq.) resentatives of the United States of America in Indian Affairs in trust for the Tribe; and SEC. 6. COMPLETION OF CONVEYANCE. Congress assembled, (2) for Project acquired lands (approximately (a) IN GENERAL.—The Secretary’s completion SECTION 1. REVISION OF BOUNDARIES. 230 acres) above the 7,765-foot reservoir water of the conveyance under section 3 shall not The boundary of Fort Matanzas National surface elevation level, Reclamation and the occur until the following events have been com- Monument is revised to include the area gen- Bureau of Indian Affairs shall transfer their in- pleted: erally depicted on the map entitled ‘‘Fort terests to the Forest Service. (1) Compliance with the National Environ- Matanzas National Monument’’, numbered (b) MAP.—The Jurisdictional Map and legal mental Policy Act of 1969 (42 U.S.C. 4321 et 347/80,004 and dated February 1991, which descriptions of the lands transferred pursuant to seq.), and other applicable Federal and State shall be on file and available for public in- subsection (a) above shall be on file and avail- laws. spection in the offices of the National Park able for public inspection in the offices of the (2) The submission of a written statement from Service, Department of the Interior. Chief of the Forest Service, Department of Agri- the Southern Ute Indian Tribe to the Secretary culture, the Commissioner of Reclamation, De- indicating the Tribe’s satisfaction that the SEC. 2. ACQUISITION. partment of the Interior, appropriate field of- Tribe’s Indian Trust Assets are protected in the The Secretary is authorized to acquire by fices of those agencies, and the Committee on conveyance described in section 3. donation, purchase with donated or appro- Resources of the House of Representatives and (3) Execution of an agreement acceptable to priated funds, transfer from any other Fed- the Committee on Energy and Natural Resources the Secretary which limits the future liability of eral Agency, or exchange, my lands, waters of the Senate. the United States relative to the operation of the or interests which are located within the re- (c) ADMINISTRATION.—Following the Jurisdic- Project. vised boundaries of the monument. tional Transfer: (4) The submission of a statement by the Sec- SEC. 3. ADMINISTRATION. (1) All lands that, by reason of the Jurisdic- retary to the District, the Bureau of Indian Af- Lands and interests in land held by the tional Transfer, become National Forest System fairs, and the State of Colorado on the existing United States which are included within the lands within the boundaries of the San Juan condition of Vallecito Dam based on Bureau of boundary referred to in section 1 shall be ad- National Forest, shall be administered in ac- Reclamation’s current knowledge and under- ministered by the Secretary as part of the cordance with the laws, rules, and regulations standing. Fort Matanzas National Monument, subject applicable to the National Forest System. (5) The development of an agreement between to the laws applicable to the monument. (2) Reclamation withdrawals of land from the the Bureau of Indian Affairs and the District to f San Juan National Forest established by Sec- prescribe the District’s obligation to so operate retarial Orders on November 9, 1936, October 14, the Project that the 1⁄6 rights and interests to the ADAMS NATIONAL HISTORICAL 1937, and June 20, 1945, together designated as Project and water supply made available by PARK ACT OF 1998 Serial No. C–28259, shall be revoked. Vallecito Reservoir held by the Bureau of In- (3) The Forest Service shall issue perpetual dian Affairs are protected. Such agreement shall The Senate proceeded to consider the easements to the District and the Bureau of In- supercede the Memorandum of Agreement re- bill (S. 2240) to establish the Adams Na- dian Affairs, at no cost to the District or the ferred to in section 3(b) of this Act. tional Historic Park in the Common- Bureau of Indian Affairs, providing adequate (6) The submission of a plan by the District to wealth of Massachusetts, and for other access across all lands subject to Forest Service manage the Project in a manner substantially purposes, which had been reported from jurisdiction to insure the District and the Bu- similar to the manner in which it was managed the Committee on Energy and Natural reau of Indian Affairs the ability to continue to prior to the transfer and in accordance with ap- Resources, with amendments, as fol- operate and maintain the Pine River Project. plicable Federal and State laws, including man- lows: (4) The undivided 5⁄6 interest in National For- agement for the preservation of public access est System lands that, by reason of the Jurisdic- and recreational values and for the prevention (The parts of the bill intended to be tional Transfer is to be administered by Rec- of growth on certain lands to be conveyed here- stricken are shown in boldface brack- lamation, shall be conveyed to the District pur- under, as set forth in an Agreement dated ets and the parts of the bill intended to suant to section 3(a). March 20, 1998, between the District and resi- be inserted are shown in italic.) (5) The District and the Bureau of Indian Af- dents of Vallecito Reservoir. Any future change S. 2240 fairs shall issue perpetual easements to the For- in the use of the water supplied by Vallecito Be it enacted by the Senate and House of Rep- est Service, at no cost to the Forest Service, from Reservoir shall comply with applicable law. resentatives of the United States of America in National Forest System lands to Vallecito Res- (7) The development of a flood control plan by Congress assembled, ervoir to assure continued public access to the Secretary of the Army acting through the Vallecito Reservoir when the Reservoir level Corps of Engineers which shall direct the Dis- SECTION 1. SHORT TITLE. drops below the 7,665-foot water surface ele- trict in the operation of Vallecito Dam for such This Act may be cited as the ‘‘Adams Na- vation. purposes. tional Historical Park Act of 1998’’. (6) The District and the Bureau of Indian Af- (b) REPORT.—If the transfer authorized in sec- SEC. 2. FINDINGS AND PURPOSES. fairs shall issue a perpetual easement to the tion 3 is not substantially completed within 18 (a) FINDINGS.—Congress finds that— October 7, 1998 CONGRESSIONAL RECORD — SENATE S11819 (1) in 1946, Secretary of the Interior J.A. shall be on file and available for public in- thorized to acquire real property with appro- Krug, by means of the authority granted the spection in the appropriate offices of the Na- priated or donated funds, by donation, or by Secretary of the Interior under section 2 of tional Park Service. exchange, within the boundaries of the park. the Historic Sites Act of August 21, 1935, es- ø(2) To preserve the historical setting of (d) REPEAL OF SUPERCEDED ADMINISTRATIVE tablished the Adams Mansion National His- the Adams property, the Secretary is author- AUTHORITIES.— toric Site, located in Quincy, Massachusetts; ized to acquire up to 10 additional acres for (1) Section 312 of the National Parks and (2) in 1952, Acting Secretary of the Interior the development of visitor, administrative, Recreation Act of 1978 (Public Law 95–625; 92 Vernon D. Northrup enlarged the site and re- museum, curatorial, and maintenance facili- Stat. 3479) is amended by striking ‘‘(a)’’ after named it the Adams National Historic Site, ties adjacent to or in the general proximity ‘‘SEC. 312’’; and strike subsection (b) in its en- using the Secretary’s authority as provided of the property depicted on the map identi- tirety. in the Historic Sites Act; fied in subsection (b)(1) of this section. Any (2) The first section of Public Law 96–435 (94 (3) in 1972, Congress, through Public Law lands acquired shall be administered by the Stat. 1861) is amended by striking ‘‘(a)’’ after 92–272, authorized the Secretary of the Inte- Secretary as part of the park and the park’s ‘‘That’’; and strike subsection (b) in its entirety. rior to add approximately 3.68 acres at boundary shall be modified to include the ad- (e) REFERENCES TO THE HISTORIC SITE.—Any Adams National Historic Site; ditional land parcels upon their convey- reference in any law (other than this Act), regu- (4) in 1978, Congress, through Public Law ance.¿ lation, document, record, map, or other paper of 95–625, authorized the Secretary of the Inte- SEC. 4. ADAMS NATIONAL HISTORICAL PARK. the United States to the Adams National His- rior to accept by conveyance the birthplaces (a) ESTABLISHMENT.—In order to preserve for toric Site shall be considered to be a reference to of John Adams and John Quincy Adams, the benefit and inspiration of the people of the the historical park. both in Quincy, Massachusetts, to be man- United States as a national historical park cer- SEC. 6. AUTHORIZATION OF APPROPRIATIONS. aged as part of the Adams National Historic tain properties in Quincy, Massachusetts, asso- øThere are authorized such sums as may be Site; ciated with John Adams, second President of the necessary to carry out the purposes of this (5) in 1980, Congress, through Public Law United States, his wife, Abigail Adams, John Act for annual operations and maintenance 96–435, authorized the Secretary of the Inte- Quincy Adams, sixth President of the United of the park and for acquisition of property rior to accept the conveyance of the United States, and his wife, Louisa Adams, there is es- and development of facilities necessary to First Parish Church in Quincy, Massachu- tablished the Adams National Historical Park as operate and maintain the park as may be setts, the burial place of John Adams, Abi- a unit of the National Park System. outlined in an approved general management gail Adams, and John Quincy Adams and his (b) BOUNDARIES.— plan for the park.¿ wife, to be administered as part of the (1) The historical park shall be comprised of There is authorized to be appropriated such Adams National Historic Site; the following: sums as may be necessary to carry out this Act. (6) the actions taken by past Secretaries of (A) All property administered by the National The committee amendments were Park Service in the Adams National Historic the Interior and past Congresses to preserve agreed to. for the benefit, education and inspiration of Site as of the date of enactment of this Act, as well as all property previously authorized to be The bill (S. 2240), as amended, was present and future generations of Americans considered read the third time and the home, property, birthplaces and burial acquired by the Secretary for inclusion in the site of John Adams, John Quincy Adams, and Adams National Historic Site, as generally de- passed, as follows: Abigail Adams, have resulted in a multi-site picted on the map entitled ‘‘Adams National S. 2240 unit of the National Park System with no Historical Park’’, numbered NERO 386/80,000, Be it enacted by the Senate and House of Rep- overarching enabling or authorizing legisla- and dated April 1998; resentatives of the United States of America in tion; and (B) all property authorized to be acquired for Congress assembled, inclusion in the historical park by this Act or (7) that the sites and resources associated SECTION 1. SHORT TITLE. other law enacted after the date of the enact- with John Adams, 2nd President of the This Act may be cited as the ‘‘Adams Na- ment of this Act. United States, his wife Abigail Adams, and tional Historical Park Act of 1998’’. (c) VISITOR AND ADMINISTRATIVE SITES.—To John Quincy Adams, 6th President of the preserve the historical character and landscape SEC. 2. FINDINGS AND PURPOSES. United States, require recognition as a na- of the main features of the historical park, the (a) FINDINGS.—Congress finds that— tional historical park in the National Park Secretary may acquire up to 10 acres for the de- (1) in 1946, Secretary of the Interior J.A. System. velopment of visitor, administrative, museum, Krug, by means of the authority granted the (b) PURPOSE.—The purpose of this Act is to curatorial, and maintenance facilities adjacent Secretary of the Interior under section 2 of establish the Adams National Historical the Historic Sites Act of August 21, 1935, es- Park in the City of Quincy, in the Common- to or in the general proximity of the property depicted on the map identified in subsection tablished the Adams Mansion National His- wealth of Massachusetts, to preserve, main- toric Site, located in Quincy, Massachusetts; tain and interpret the home, property, birth- (b)(1)(A). (d) MAP.—The map of the historical park (2) in 1952, Acting Secretary of the Interior places, and burial site of John Adams and his shall be on file and available for public inspec- Vernon D. Northrup enlarged the site and re- wife Abigail, John Quincy Adams, and subse- tion in the appropriate offices of the National named it the Adams National Historic Site, quent generations of the Adams family asso- Park Service. using the Secretary’s authority as provided ciated with the Adams property in Quincy, in the Historic Sites Act; Massachusetts, for the benefit, education SEC. 5. ADMINISTRATION. (a) IN GENERAL.—The park shall be admin- (3) in 1972, Congress, through Public Law and inspiration of present and future genera- istered by the Secretary in accordance with 92–272, authorized the Secretary of the Inte- tions of Americans. this section and the provisions of law gen- rior to add approximately 3.68 acres at SEC. 3. DEFINITIONS. erally applicable to units of the National Adams National Historic Site; As used in this Act: Park System, including the Act entitled ‘‘An (4) in 1978, Congress, through Public Law ø(1) ADAMS PROPERTY.—The term ‘‘Adams Act to establish a National Park Service, 95–625, authorized the Secretary of the Inte- property’’ means the property currently and for other purposes’’, approved August 25, rior to accept by conveyance the birthplaces owned by the National Park Service and 1916 (39 Stat. 535; 16 U.S.C. 1, 2, 3, and 4) and of John Adams and John Quincy Adams, commonly referred to as the Old House and the Act of August 21, 1935 (49 Stat. 666; 16 both in Quincy, Massachusetts, to be man- Stone Library situated at the northwest cor- U.S.C. 461–467), as amended. aged as part of the Adams National Historic ner of the intersection of Adams Street and (b) COOPERATIVE AGREEMENTS.—(1) The Site; Newport Avenue in Quincy, Massachusetts.¿ Secretary may consult and enter into coop- (5) in 1980, Congress, through Public Law (1) HISTORICAL PARK.—The term ‘‘historical erative agreements with interested entities 96–435, authorized the Secretary of the Inte- park’’ means the Adams National Historical and individuals to provide for the preserva- rior to accept the conveyance of the United Park established in section 4. tion, development, interpretation, and use of First Parish Church in Quincy, Massachu- (2) SECRETARY.—The term ‘‘Secretary’’ the park. setts, the burial place of John Adams, Abi- means the Secretary of the Interior. (2) Any payment made by the Secretary gail Adams, and John Quincy Adams and his øSEC. 4. ADAMS NATIONAL HISTORICAL PARK. pursuant to a cooperative agreement under wife, to be administered as part of the ø(a) ESTABLISHMENT.—In order to preserve this paragraph shall be subject to an agree- Adams National Historic Site; for the benefit and inspiration of the people ment that conversion, use, or disposal of the (6) the actions taken by past Secretaries of of the United States as a national historical project so assisted for purposes contrary to the Interior and past Congresses to preserve park certain properties in Quincy, Massachu- the purposes of this Act, as determined by for the benefit, education and inspiration of setts, there is established as a unit of the Na- the Secretary, shall result in a right of the present and future generations of Americans tional Park System the Adams National His- United States to reimbursement of all funds the home, property, birthplaces and burial torical Park. made available to such a project or the pro- site of John Adams, John Quincy Adams, and ø(b) BOUNDARIES.—(1) The historical park portion of the increased value of the project Abigail Adams, have resulted in a multi-site shall be comprised of all property currently attributable to such funds as determined at unit of the National Park System with no owned by the National Park Service as gen- the time of such conversion, use, or disposal, overarching enabling or authorizing legisla- erally depicted on the map entitled ‘‘Adams whichever is greater. tion; and National Historical Park’’, numbered (c) ACQUISITION OF REAL PROPERTY.—For (7) that the sites and resources associated llll and dated llll , 1997. Such map the purposes of the park, the Secretary is au- with John Adams, second President of the S11820 CONGRESSIONAL RECORD — SENATE October 7, 1998 United States, his wife Abigail Adams, and the purposes of this Act, as determined by modifying the boundary, and for other John Quincy Adams, sixth President of the the Secretary, shall result in a right of the purposes, was considered, ordered to be United States, require recognition as a na- United States to reimbursement of all funds engrossed for a third reading, read the tional historical park in the National Park made available to such a project or the pro- third time, and passed, as follows: System. portion of the increased value of the project (b) PURPOSE.—The purpose of this Act is to attributable to such funds as determined at S. 2246 establish the Adams National Historical the time of such conversion, use, or disposal, Be it enacted by the Senate and House of Rep- Park in the City of Quincy, in the Common- whichever is greater. resentatives of the United States of America in wealth of Massachusetts, to preserve, main- (c) ACQUISITION OF REAL PROPERTY.—For Congress assembled, That section 201 of the tain and interpret the home, property, birth- the purposes of the park, the Secretary is au- Act of October 12, 1979 (93 Stat. 664), is places, and burial site of John Adams and his thorized to acquire real property with appro- amended by adding at the end thereof a new wife Abigail, John Quincy Adams, and subse- priated or donated funds, by donation, or by subsection to read as follows: quent generations of the Adams family asso- exchange, within the boundaries of the park. ‘‘(d) In order to preserve and maintain the ciated with the Adams property in Quincy, (d) REPEAL OF SUPERCEDED ADMINISTRATIVE historic setting of the Site, the Secretary is Massachusetts, for the benefit, education AUTHORITIES.— authorized to acquire, through donation and inspiration of present and future genera- (1) Section 312 of the National Parks and only, lands with associated easements situ- tions of Americans. Recreation Act of 1978 (Public Law 95–625; 92 ated adjacent to the Site owned by the SEC. 3. DEFINITIONS. Stat. 3479) is amended by striking ‘‘(a)’’ after Brookline Conservation Land Trust. These As used in this Act: ‘‘SEC. 312’’; and strike subsection (b) in its lands are to be used for educational and in- (1) HISTORICAL PARK.—The term ‘‘historical entirety. terpretive purposes and shall be maintained park’’ means the Adams National Historical (2) The first section of Public Law 96–435 and managed as part of the Frederick Law Park established in section 4. (94 Stat. 1861) is amended by striking ‘‘(a)’’ Olmsted National Historic Site.’’. (2) SECRETARY.—The term ‘‘Secretary’’ after ‘‘That’’; and strike subsection (b) in its f means the Secretary of the Interior. entirety. SEC. 4. ADAMS NATIONAL HISTORICAL PARK. (e) REFERENCES TO THE HISTORIC SITE.— NATIONAL PARK SERVICE (a) ESTABLISHMENT.—In order to preserve Any reference in any law (other than this LEGISLATION for the benefit and inspiration of the people Act), regulation, document, record, map, or other paper of the United States to the The bill (S. 2247) to permit the pay- of the United States as a national historical ment of medical expenses incurred by park certain properties in Quincy, Massachu- Adams National Historic Site shall be con- setts, associated with John Adams, second sidered to be a reference to the historical the United States Park Police in the President of the United States, his wife, Abi- park. performance of duty to be made di- gail Adams, John Quincy Adams, sixth Presi- SEC. 6. AUTHORIZATION OF APPROPRIATIONS. rected by the National Park Service, dent of the United States, and his wife, Lou- There is authorized to be appropriated and for other purposes, was considered, isa Adams, there is established the Adams such sums as may be necessary to carry out ordered to be engrossed for a third National Historical Park as a unit of the Na- this Act. reading, read the third time, and tional Park System. f passed, as follows: (b) BOUNDARIES.—The historical park shall S. 2247 be comprised of the following: ROOSEVELT NATIONAL HISTORIC (1) All property administered by the Na- SITE Be it enacted by the Senate and House of Rep- tional Park Service in the Adams National resentatives of the United States of America in Historic Site as of the date of enactment of The bill (S. 2241) to provide for the Congress assembled, That section 12(e) of the this Act, as well as all property previously acquisition of lands formerly occupied Act of September 1, 1916 (ch. 433, 39 Stat. authorized to be acquired by the Secretary by the Franklin D. Roosevelt family at 718), is amended— for inclusion in the Adams National Historic Hyde Park, New York, and for other (1) following ‘‘District of Columbia’’, by in- Site, as generally depicted on the map enti- purposes, was considered, ordered to be serting ‘‘in the case of Metropolitan Police members, or by the National Park Service in tled ‘‘Adams National Historical Park’’, engrossed for a third reading, read the numbered NERO 386/80,000, and dated April the case of United States Park Police mem- 1998. third time, and passed, as follows: bers’’; and (2) All property authorized to be acquired S. 2241 (2) following the second reference to ‘‘the for inclusion in the historical park by this Be it enacted by the Senate and House of Rep- Mayor’’, by inserting, ‘‘, in the case of Met- Act or other law enacted after the date of resentatives of the United States of America in ropolitan Police members, or upon a certifi- the enactment of this Act. Congress assembled, cate of the Chief, United States Park Police, (c) VISITOR AND ADMINISTRATIVE SITES.—To SECTION 1. GENERAL AUTHORITY. in the case of United States Park Police preserve the historical character and land- The Secretary of the Interior (hereinafter members’’. scape of the main features of the historical referred to as the ‘‘Secretary’’) is authorized f park, the Secretary may acquire up to 10 to acquire, by purchase with donated or ap- acres for the development of visitor, admin- propriated funds, by donation, or otherwise, NATIONAL PARK SERVICE istrative, museum, curatorial, and mainte- lands and interests in lands located in Hyde LEGISLATION nance facilities adjacent to or in the general Park, New York, that were owned by Frank- The bill (S. 2248) to allow for waiver proximity of the property depicted on the lin D. Roosevelt or his family at the time of map identified in subsection (b)(1)(A). and indemnification in mutual law en- his death as depicted on the map entitled forcement agreements between the Na- (d) MAP.—The map of the historical park ‘‘F.D. Roosevelt Property Entire Park’’ shall be on file and available for public in- dated July 26, 1962, and numbered FDR–NHS tional Park Service and a State or po- spection in the appropriate offices of the Na- 3008. Such map shall be on file for inspection litical subdivision, when required by tional Park Service. in the appropriate offices of the National State law, and for other purposes, was SEC. 5. ADMINISTRATION. Park Service. considered, ordered to be engrossed for N ENERAL (a) I G .—The park shall be admin- SEC. 2. ADMINISTRATION. a third reading, read the third time, istered by the Secretary in accordance with Lands and interests therein acquired by and passed, as follows: this section and the provisions of law gen- the Secretary shall be added to, and adminis- erally applicable to units of the National S. 2248 tered by the Secretary as part of the Home Park System, including the Act entitled ‘‘An Be it enacted by the Senate and House of Rep- of Franklin D. Roosevelt National Historic Act to establish a National Park Service, resentatives of the United States of America in Site or the Eleanor Roosevelt National His- and for other purposes’’, approved August 25, Congress assembled, That section 10 of the Act toric Site, as appropriate. 1916 (39 Stat. 535; 16 U.S.C. 1, 2, 3, and 4) and of August 18, 1970, Public Law 91–383 (16 the Act of August 21, 1935 (49 Stat. 666; 16 SEC. 3. AUTHORIZATION OF APPROPRIATIONS. U.S.C. 1a–6), is amended— U.S.C. 461–467), as amended. There are authorized to be appropriated (1) in paragraph (c)(2) by striking ‘‘and’’; (b) COOPERATIVE AGREEMENTS.—(1) The such sums as are necessary to carry out this (2) by redesignating paragraphs (c)(3) and Secretary may consult and enter into coop- Act. (c)(4) as (c)(4) and (c)(5), respectively; and erative agreements with interested entities f (3) by inserting the following new para- and individuals to provide for the preserva- graph: tion, development, interpretation, and use of FREDERICK LAW OLMSTED ‘‘(c)(3) waive, in any agreement pursuant the park. NATIONAL HISTORIC SITE to paragraph (1) and (2) of this subsection (2) Any payment made by the Secretary with any state or political subdivision there- pursuant to a cooperative agreement under The bill (S. 2246) to amend the Act of where state law requires such waiver and this paragraph shall be subject to an agree- which established the Frederick Law indemnification, any and all claims against ment that conversion, use, or disposal of the Olmsted National Historic Site, in the all the other parties thereto and, subject to project so assisted for purposes contrary to Commonwealth of Massachusetts, by available appropriations, indemnify and save October 7, 1998 CONGRESSIONAL RECORD — SENATE S11821 harmless the other parties to such agree- (3) the facilities provide a unique opportunity (2) The plan shall include an evaluation of an ment from all claims by third parties for to illustrate the history and significance of the appropriate location for a visitor facility and property damage or personal injury, which Cold War, the arms race, and ICBM develop- administrative site within the areas depicted as may arise out of the state or political sub- ment; and ‘‘Support Facility Study Area—Alternative A’’ division’s activities outside their respective (4) the National Park System does not contain or ‘‘Support Facility Study Area—Alternative jurisdictions under such agreement; and’’. a unit that specifically commemorates or inter- B’’ on the map referred to in subsection (a). SEC. 2. TECHNICAL AMENDMENT. prets the Cold War. Upon a determination by the Secretary of the Section 10(c)(5) is further amended by (b) PURPOSES.—The purposes of this Act are— appropriate location for such facilities, the striking the paragraph (5) designation, by (1) to preserve, protect, and interpret for the boundaries of the historic site shall be modified striking ‘‘the’’ at the beginning of the para- benefit and enjoyment of present and future to include the selected site. graph and inserting ‘‘The’’, and by removing generations the structures associated with the (3) In developing the plan, the Secretary shall the indentation of the first line of the para- Minuteman II missile defense system; consider coordinating or consolidating appro- (2) to interpret the historical role of the Min- graph. priate administrative, management, and person- uteman II missile defense system in the broader nel functions with Badlands National Park. f context of the Cold War and the role of the sys- SEC. 4. AUTHORIZATION OF APPROPRIATIONS. tem as a key component of America’s strategic (a) IN GENERAL.—There is authorized to be ADVISORY COUNCIL ON HISTORIC commitment to preserve world peace; and appropriated such sums as may be necessary to PRESERVATION (3) to complement the interpretive programs carry out this Act. relating to the Minuteman II missile defense The Senate proceeded to consider the (b) AIR FORCE FUNDS.—The Secretary of the system offered by the South Dakota Air and bill (S. 2257) to reauthorize the Na- Air Force shall transfer to the Secretary any Space Museum at Ellsworth Air Force Base. tional historic Preservation Act, which funds specifically appropriated to the Air Force SEC. 3. MINUTEMAN MISSILE NATIONAL HIS- for the maintenance, protection, or preservation had been reported from the Committee TORIC SITE. of the facilities described in section 3. Such on Energy and Natural Resources, with (a) ESTABLISHMENT.—(1) The Minuteman Mis- funds shall be used by the Secretary for estab- amendments, as follows: sile National Historic Site in the State of South lishing, operating, and maintaining the historic Dakota (hereinafter referred to as the ‘‘historic (The part of the bill intended to be site. site’’) is hereby established as a unit of the Na- stricken is shown in boldface brackets (c) LEGACY RESOURCE MANAGEMENT PRO- tional Park System. The historic site shall con- and the part of the bill intended to be GRAM.—Nothing in this Act affects the use of sist of lands and interests therein comprising the inserted is shown in italic.) any funds available for the Legacy Resource following Minuteman II ICBM launch control Management Program being carried out by the S. 2257 facilities, as generally depicted on the map re- Air Force that, before the date of enactment of Be it enacted by the Senate and House of Rep- ferred to as ‘‘Minuteman Missile National His- this Act, were directed to be used for resource resentatives of the United States of America in toric Site’’, numbered 406/80,008 and dated Sep- preservation and treaty compliance. Congress assembled, tember, 1998: SECTION 1. øNATIONAL HISTORIC PRESERVA- (A) An area surrounding the Minuteman II The committee amendment was TION ACT.¿ REAUTHORIZATION OF ICBM launch control facility depicted as ‘‘Delta agreed to. HISTORIC PRESERVATION FUND. 1 Launch Control Facility’’. The bill (S. 2284), as amended, was The second sentence of section 108 of the (B) An area surrounding the Minuteman II considered read the third time and National Historic Preservation Act (16 U.S.C. ICBM launch control facility depicted as ‘‘Delta passed. 470h) is amended by striking ‘‘1997’’ and in- 9 Launch Facility’’. serting ‘‘2004’’. (2) The map described in paragraph (1) shall f SEC. 2. REAUTHORIZATION OF ADVISORY COUN- be on file and available for public inspection in CIL ON HISTORIC PRESERVATION. the appropriate offices of the National Park WOMEN’S PROGRESS The last sentence of section 212(a) (16 U.S.C. Service. COMMEMORATION ACT 470t(a)) is amended by striking ‘‘2000’’ and in- (3) The Secretary of the Interior (hereinafter The bill (S. 2285) to establish a com- serting in lieu thereof, ‘‘2004’’. referred to as the ‘‘Secretary’’) is authorized to make minor adjustments to the boundary of the mission in honor of the 150th Anniver- The committee amendments were historic site. sary of the Seneca Falls Convention, to agreed to. (b) ADMINISTRATION OF HISTORIC SITE.—The further protect sites of importance in The bill (S. 2257), as amended, was Secretary shall administer the historic site in ac- the historic efforts to secure equal considered read the third time and cordance with this Act and laws generally ap- rights for women, was considered, or- passed. plicable to units of the National Park System, dered to be engrossed for a third read- including the Act of August 25, 1916 (16 U.S.C. f ing, read the third time, and passed, as 1, 2–4) and the Act of August 21, 1935 (16 U.S.C. follows: MINUTEMAN MISSILE NATIONAL 461–467). (c) COORDINATION WITH SECRETARY OF DE- S. 2285 HISTORIC SITE ESTABLISHMENT FENSE.—The Secretary shall consult with the Be it enacted by the Senate and House of Rep- ACT OF 1998 Secretary of Defense and the Secretary of State, resentatives of the United States of America in The Senate proceeded to consider the as appropriate, to ensure that administration of Congress assembled, bill (S. 2284) to establish the Minute- the historic site is in compliance with applicable SECTION 1. SHORT TITLE. man Missile National Historic Site in treaties. This Act may be cited as the ‘‘Women’s (d) COOPERATIVE AGREEMENTS.—The Sec- Progress Commemoration Act’’. the State of South Dakota, and for retary may enter into cooperative agreements SEC. 2. DECLARATION. other purposes, which had been re- with appropriate public and private entities and ported from the Committee on Energy individuals in furtherance of the purposes of Congress declares that— and Natural Resources, with an amend- this Act. (1) the original Seneca Falls Convention, held in upstate New York in July 1848, con- ment to strike all after the enacting (e) LAND ACQUISITION.—(1) Except as provided in paragraph (2), the Secretary is authorized to vened to consider the social conditions and clause and inserting in lieu thereof the civil rights of women at that time; following: acquire lands and interests therein within the boundaries of the historic site by donation, pur- (2) the convention marked the beginning of SECTION 1. SHORT TITLE. chase with donated or appropriated funds, ex- an admirable and courageous struggle for This Act may be cited as the ‘‘Minuteman change or transfer from another Federal agen- equal rights for women; Missile National Historic Site Establishment Act cy: Provided, That lands or interests therein (3) the 150th Anniversary of the convention of 1998’’. owned by the State of South Dakota may only provides an excellent opportunity to exam- SEC. 2. FINDINGS AND PURPOSES. be acquired by donation or exchange. ine the history of the women’s movement; (a) FINDINGS.—Congress finds that— (2) The Secretary shall not acquire any lands and (1) the Minuteman II intercontinental ballistic pursuant to this Act if the Secretary determines (4) a Federal Commission should be estab- missile (hereinafter referred to as ‘‘ICBM’’) that such lands, or any portion thereof, are con- lished for the important task of ensuring the launch control facility and launch facility taminated with hazardous substances (as de- historic preservation of sites that have been known as ‘‘Delta 1’’ and ‘‘Delta 9’’, respec- fined in the Comprehensive Environmental Re- instrumental in American women’s history, tively, have national significance as the best sponse, Compensation and Liability Act (42 creating a living legacy for generations to preserved examples of the operational character U.S.C. 9601)), unless all remedial action nec- come. of American history during the Cold War; essary to protect human health and the environ- SEC. 3. ESTABLISHMENT OF COMMISSION. (2) the facilities are symbolic of the dedication ment has been taken pursuant to such Act. (a) ESTABLISHMENT.—There is established a and preparedness exhibited by the missileers of (f) GENERAL MANAGEMENT PLAN.—(1) Within commission to be known as the ‘‘Women’s the Air Force stationed throughout the upper three years after the date funds are made avail- Progress Commemoration Commission’’ (re- Great Plains in remote and forbidding locations able, the Secretary shall prepare a general man- ferred to in this Act as the ‘‘Commission’’). during the Cold War; agement plan for the historic site. (b) MEMBERSHIP.— S11822 CONGRESSIONAL RECORD — SENATE October 7, 1998

(1) IN GENERAL.—The Commission shall be places, take such testimony, and receive SEC. 8. TERMINATION. composed of 15 members, of whom— such evidence as the Commission considers The Commission shall terminate on the (A) 3 shall be appointed by the President; advisable to carry out its duties of this Act. date that is 30 days after the date on which (B) 3 shall be appointed by the Speaker of (b) INFORMATION FROM FEDERAL AGEN- the Commission submits to the Secretary of the House of Representatives; CIES.—The Commission may secure directly the Interior the report under section 4(b). (C) 3 shall be appointed by the minority from any Federal department or agency such SEC. 9. REPORTS TO CONGRESS. leader of the House of Representatives; information as the Commission considers Not later than 2 years and not later than 5 (D) 3 shall be appointed by the majority necessary to carry out the provisions of this years after the date on which the Commis- leader of the Senate; and Act. At the request of the Chairperson of the sion submits to the Secretary of the Interior (E) 3 shall be appointed by the minority Commission, the head of such department or the report under section 4, the Secretary of leader of the Senate. agency shall furnish such information to the the Interior shall submit to Congress a re- (2) PERSONS ELIGIBLE.— Commission. port describing the actions that have been (A) IN GENERAL.—The members of the Com- SEC. 6. COMMISSION PERSONNEL MATTERS. taken to preserve the sites identified in the mission shall be individuals who have knowl- (a) COMPENSATION OF MEMBERS.—A member Commission report as being of historical sig- edge or expertise, whether by experience or of the Commission who is not otherwise an nificance. training, in matters to be studied by the officer or employee of the Federal Govern- f Commission. The members may be from the ment shall be compensated at a rate equal to public or private sector, and may include the daily equivalent of the annual rate of GATEWAY VISITOR CENTER Federal, State, local, or employees, members basic pay prescribed for a position at level IV AUTHORIZATION ACT OF 1998 of academia, nonprofit organizations, or in- of the Executive Schedule under section 5315 The bill (S. 2309) to authorize the dustry, or other interested individuals. of title 5, United States Code, for each day Secretary of the Interior to enter into (B) DIVERSITY.—It is the intent of Congress (including travel time) during which the an agreement for the construction and that persons appointed to the Commission member is engaged in the performance of the under paragraph (1) be persons who represent duties of the Commission. A member of the operation of the Gateway Visitor Cen- diverse economic, professional, and cultural Commission who is otherwise an officer or ter at Independence National Histori- backgrounds. employee of the United States shall serve cal Park, was considered, ordered to be (3) CONSULTATION AND APPOINTMENT.— without compensation in addition to that re- engrossed for a third reading, read the (A) IN GENERAL.—The President, Speaker of ceived for services as an officer or employee third time, and passed, as follows: of the United States. the House of Representatives, minority lead- S. 2309 er of the House of Representatives, majority (b) TRAVEL EXPENSES.—A member of the Be it enacted by the Senate and House of Rep- leader of the Senate, and minority leader of Commission shall be allowed travel expenses, resentatives of the United States of America in the Senate shall consult among themselves including per diem in lieu of subsistence, at Congress assembled, before appointing the members of the Com- rates authorized for employees of agencies mission in order to achieve, to the maximum under subchapter I of chapter 57 of title 5, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Gateway extent practicable, fair and equitable rep- United States Code, while away from the Visitor Center Authorization Act of 1998’’. resentation of various points of view with re- home or regular place of business of the spect to the matters to be studied by the member in the performance of service for the SEC. 2. FINDINGS AND PURPOSES. Commission. Commission. (a) FINDINGS.—Congress finds that— (c) STAFF.— (1) in 1997, the National Park Service com- (B) COMPLETION OF APPOINTMENTS; VACAN- (1) IN GENERAL.—The Chairperson of the pleted a general management plan for Inde- CIES.—The President, Speaker of the House of Representatives, minority leader of the Commission may, without regard to the civil pendence National Historical Park that es- House of Representatives, majority leader of service laws (including regulations), appoint tablishes goals and priorities for the future the Senate, and minority leader of the Sen- and terminate an executive director and of the park; ate shall conduct the consultation under such other additional personnel as may be (2) the plan calls for the revitalization of subparagraph (3) and make their respective necessary to enable the Commission to per- Independence Mall and recommends as a appointments not later than 60 days after form its duties. The employment and termi- critical component of the revitalization the the date of enactment of this Act. nation of an executive director shall be sub- development of a new visitor center; ject to confirmation by a majority of the (3) such a visitor center would replace the (4) VACANCIES.—A vacancy in the member- ship of the Commission shall not affect the members of the Commission. existing park visitor center and serve as an powers of the Commission and shall be filled (2) COMPENSATION.—The executive director orientation center for visitors to the park in the same manner as the original appoint- shall be compensated at a rate not to exceed and to city and regional attractions; ment not later than 30 days after the va- the rate payable for a position at level V of (4) after completing of the general manage- cancy occurs. the Executive Schedule under section 5316 of ment plan, the National Park Service com- (c) MEETINGS.— title 5, United States Code. The Chairperson pleted a design project and master plan for (1) INITIAL MEETING.—Not later than 30 may fix the compensation of other personnel Independence Mall that includes the Gate- days after the date on which all members of without regard to the provisions of chapter way Visitor Center; the Commission have been appointed, the 51 and subchapter III of chapter 53 of title 5, (5) plans for the Gateway Visitor Center Commission shall hold its first meeting. United States Code, relating to classification call for the center to be developed and man- (2) SUBSEQUENT MEETINGS.—After the ini- of positions and General Schedule pay rates, aged, in cooperation with the Secretary of tial meeting, the Commission shall meet at except that the rate of pay for such person- the Interior, by a nonprofit organization the call of the Chairperson. nel may not exceed the rate payable for a po- that represents the various public and civic (d) QUORUM.—A majority of the members of sition at level V of the Executive Schedule interests of the Philadelphia metropolitan the Commission shall constitute a quorum under section 5316 of that title. area; and for the transaction of business, but a lesser (3) DETAIL OF GOVERNMENT EMPLOYEES.— (6) the Gateway Visitor Center Corpora- number of members may hold hearings. Any Federal Government employee, with the tion, a nonprofit organization, has been es- (e) CHAIRPERSON AND VICE CHAIRPERSON.— approval of the head of the appropriate Fed- tablished to raise funds for and cooperate in The Commission shall select a Chairperson eral agency, may be detailed to the Commis- a program to design, develop, construct, and and Vice Chairperson from among its mem- sion without reimbursement, and the detail operate the proposed Gateway Visitor Cen- bers. shall be without interruption or loss of civil ter. SEC. 4. DUTIES OF THE COMMISSION. service status, benefits, or privilege. (b) PURPOSE.—The purpose of this Act is to Not later than 1 year after the initial (d) PROCUREMENT OF TEMPORARY AND authorize the Secretary of the Interior to meeting of the Commission, the Commission, INTERMITTENT SERVICES.—The Chairperson of enter into an agreement with the Gateway in cooperation with the Secretary of the In- the Commission may procure temporary and Visitor Center Corporation to construct and terior and other appropriate Federal, State, intermittent services under section 3109(b) of operate a regional visitor center on Inde- and local public and private entities, shall title 5, United States Code, at rates for indi- pendence Mall in cooperation with the Sec- prepare and submit to the Secretary of the viduals not to exceed the daily equivalent of retary. Interior a report that— the annual rate of basic pay prescribed for a SEC. 3. GATEWAY VISITOR CENTER. (1) identifies sites of historical significance position at level V of the Executive Schedule The Act of June 28, 1948 (16 U.S.C. 407m et to the women’s movement; and under section 5316 of that title. seq.) is amended by adding at the end the fol- (2) recommends actions, under the Na- SEC. 7. FUNDING. lowing: tional Historic Preservation Act (16 U.S.C. (a) AUTHORIZATION OF APPROPRIATIONS.— ‘‘SEC. 8. REGIONAL GATEWAY VISITOR CENTER. 470 et seq.) and other law, to rehabilitate and There are authorized to be appropriated to ‘‘(a) DEFINITIONS.—In this section: preserve the sites and provide to the public the Commission such sums as are necessary ‘‘(1) CENTER.—The term ‘Center’ means the interpretive and educational materials and to carry out this Act. Gateway Visitor Center authorized by sub- activities at the sites. (b) DONATIONS.—The Commission may ac- section (b). SEC. 5. POWERS OF THE COMMISSION. cept donations from non-Federal sources to ‘‘(2) CORPORATION.—The term ‘Corporation’ (a) HEARINGS.—The Commission may hold defray the costs of the operations of the means Gateway Visitor Center Corporation, such hearings, sit and act at such times and Commission. a nonprofit organization. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11823 ‘‘(b) AGREEMENT.—The Secretary of the In- tion to honor former Congressman considered, ordered to a third reading, terior may enter into an agreement under Dante Fascell by naming the Biscayne read the third time, and passed. appropriate terms and conditions with the National Park Visitors Center after the f Corporation to facilitate the construction ex-Congressman of Florida. I had the and operation of the Gateway Visitor Center FOLSOM DAM, CALIFORNIA on Independence Mall. pleasure to begin my political career as ‘‘(c) AUTHORIZED ACTIVITIES.—The agree- an intern in Congressman Fascell’s of- The bill (H.R. 4079) to authorize the ment under subsection (b) shall— fice and am proud to have had the op- construction of temperature control ‘‘(1) authorize the Corporation— portunity to serve with one of Florida’s devices at Folsom Dam in California, ‘‘(A) to operate the Center in cooperation greatest representatives. was considered, ordered to a third read- with the Secretary and provide at the Center Congressman Fascell’s long history ing, read the third time, and passed. information, interpretation, facilities, and of public service began in the Florida f services to visitors of Independence National House of Representatives after his Historical Park, its surrounding historic IDAHO ADMISSION ACT sites, the city of Philadelphia, and the re- service in World War II. He was elected gion, in order to assist in the enjoyment of to the Eighty-fourth Congress and AMENDMENTS the historic, cultural, educational, and rec- spent the following thirty-six years in The bill (H.R. 4166) to amend the reational resources of the Philadelphia met- office. During this time Congressman Idaho Admission Act regarding the sale ropolitan area; and Fascell was influential in both foreign or lease of school land, was considered, ‘‘(B) to engage in activities appropriate for and domestic policy. ordered to a third reading, read the operation of a regional visitor center, which While in Congress, Dante Fascell in- third time, and passed. may include selling food, charging fees, con- fluenced U.S. foreign policy by co-au- ducting events, and selling merchandise and f tickets to visitors to the Center; and thoring the War Powers act and ‘‘(2) authorize the Secretary to undertake chairing the Committees on Foreign UNANIMOUS CONSENT at the Center activities relating to the man- Affairs and Arms Control, Inter- AGREEMENT—S. 744 AND S. 2117 agement of Independence National Historical national Security and Science. In 1969, Mr. MCCAIN. Mr. President, I ask Park, including provision of appropriate visi- Congressman Fascell led House action unanimous consent that the Senate tor information and interpretive facilities to establish the Department of Housing proceed to the consideration en bloc of and programs related to the park. and Urban Development. This legisla- the following bills: Calendar No. 613, S. ‘‘(d) REVENUES.—Revenues from the oper- tion was the first step in efforts to de- ation of the Center’s facilities and services 744 and Calendar No. 621, S. 2117. shall be used to pay for expenses of oper- velop economically healthy commu- I further ask unanimous consent that ation. nities and affordable opportunities for amendment No. 3786 to S. 744 and ‘‘(e) PRESERVATION AND PROTECTION.— numerous families throughout the na- amendment No. 3787 to S. 2117 be Nothing in this section authorizes the Sec- tion. He was also a devout supporter of agreed to, en bloc. retary or the Corporation to take any action both law enforcement and education on I finally ask unanimous consent that in derogation of the preservation and protec- narcotics abuse. any committee amendments be agreed tion of the values and resources of Independ- During his years in Congress, Dante to; that the bills then be read a third ence National Historical Park.’’. Fascell was an outstanding environ- f time and passed, as amended; that the mental activist and improved the qual- motions to reconsider be laid upon the DANTE FASCELL BISCAYNE NA- ity of Florida’s natural habitats and table; and that any statements relating TIONAL PARK VISITOR CENTER wildlife. He battled to protect South to these measures appear at the appro- DESIGNATION ACT Florida’s national parks and led the priate place in the RECORD. successful effort to establish the na- The Senate proceeded to consider the The PRESIDING OFFICER. Without tional marine sanctuary in the Florida bill (S. 2468) to designate the Biscayne objection, it is so ordered. Keys during the 101st Congress. National Park visitor center as the f The Biscayne National Park visitor Dante Fascell Visitor Center at Bis- center introduces local, national and cayne National Park, which had been FALL RIVER WATER USERS DIS- international visitors to the resources reported from the Committee on En- TRICT WATER SYSTEM ACT OF of the Biscayne National Park at Con- ergy and Natural Resources, with an 1998 voy Point, Florida. Its museum fea- amendment, as follows: The Senate proceeded to consider the tures exhibits simulating the park’s (The parts of the bill intended to be bill (S. 744) to authorize the construc- four main ecosystems: the mangrove stricken are shown in boldface brack- tion of the Fall River Water Users Dis- forest, Biscayne Bay, the Florida Keys, ets and the parts of the bill intended to trict Rural Water System and author- and the coral reef. The naming of this be inserted are shown in italic.) ize financial assistance to the Fall visitor center will serve as a lasting River Water Users District, a nonprofit S. 2468 tribute to Congressman Fascell’s per- corporation, in the planning and con- Be it enacted by the Senate and House of Rep- sistent efforts to protect the environ- struction of the water supply system, resentatives of the United States of America in ment for future generations. and for other purposes, which had been Congress assembled, I ask for your support today for our reported from the Committee on En- SECTION 1. SHORT TITLE. bill which will pay tribute to the serv- This Act may be cited as the ‘‘Dante Fas- ergy and Natural Resources, with ice of the former Florida Congressman, cell Biscayne National Park Visitor Center amendments, as follows: Dante Fascell. Designation Act’’. (The parts of the bill intended to be The committee amendment was SEC. 2. DESIGNATION OF THE DANTE FASCELL stricken are shown in boldface brack- agreed to. VISITOR CENTER AT BISCAYNE NA- ets and the parts of the bill intended to TIONAL PARK. The bill (S. 2468), as amended, was be inserted are shown in italic.) (a) DESIGNATION.—The Biscayne National considered read the third time and Park visitor center, located on the shore of passed. S. 744 Biscayne Bay on Convoy Point, Florida, is The title was amended so as to read: Be it enacted by the Senate and House of Rep- designated as the ‘‘Dante Fascell Visitor ‘‘A bill to designate the Biscayne Na- resentatives of the United States of America in øCenter at Biscayne National Park’’.¿ Cen- Congress assembled, ter.’’ tional Park Visitor Center as the Dante Fascell Visitor Center.’’. SECTION 1. SHORT TITLE. (b) REFERENCES.—Any reference in a law, This Act may be cited as the ‘‘Fall River f map, regulation, document, paper, or other Water Users District Rural Water System document of the United States to the Bis- CAPE COD NATIONAL SEASHORE Act of 1997’’. cayne National Park visitor center shall be deemed to be a reference to the ‘‘Dante Fas- ADVISORY COMMISSION SEC. 2. FINDINGS AND PURPOSES. cell Visitor øCenter at Biscayne National The bill (H.R. 2411) to provide for a (a) FINDINGS.—Congress finds that— Park’’.¿ Center.’’ (1) there are insufficient water supplies of land exchange involving the Cape Cod reasonable quality available to the members Mr. GRAHAM. Mr. President, I am National Seashore and to extend the of the Fall River Water Users District Rural pleased today to support, along with authority for the Cape Cod National Water System located in Fall River County, my colleague, Senator MACK, legisla- Seashore Advisory Commission, was South Dakota, and the water supplies that S11824 CONGRESSIONAL RECORD — SENATE October 7, 1998 are available are of poor quality and do not Reservoir, the Cheyenne River, and the line SEC. 8. WATER RIGHTS. meet minimum health and safety standards, between Fall River and Custer Counties, Nothing in this Act— thereby posing a threat to public health and bounded on the east by the line between Fall (1) invalidates or preempts State water law safety; River and Shannon Counties, bounded on the or an interstate compact governing water; (2) past cycles of severe drought in the south by the line between South Dakota and (2) alters the rights of any State to any ap- southeastern area of Fall River County have Nebraska, and bounded on the west by the propriated share of the waters of any body of left residents without a satisfactory water Igloo-Provo Water Project District. surface or ground water, whether determined supply, and, during 1990, many home owners (c) AMOUNT OF GRANTS.—Grants made by past or future interstate compacts or by and ranchers were forced to haul water to available under subsection (a) to the water past or future legislative or final judicial al- sustain their water needs; supply system shall not exceed the Federal locations; (3) because of the poor quality of water share under section 9. (3) preempts or modifies any Federal or supplies, most members of the Fall River (d) LIMITATION ON AVAILABILITY OF CON- State law, or interstate compact, dealing Water Users District are forced to either STRUCTION FUNDS.—The Secretary shall not with water quality or disposal; or haul bottled water for human consumption obligate funds for the construction of the (4) confers on any non-Federal entity the or use distillers; water supply system until— ability to exercise any Federal right to the (4) the Fall River Water Users District (1) the requirements of the National Envi- waters of any stream or to any ground water Rural Water System has been recognized by ronmental Policy Act of 1969 (42 U.S.C. 4321 resource. the State of South Dakota; and et seq.) are met with respect to the water SEC. 9. FEDERAL SHARE. (5) the best available, reliable, and safe supply system; and The Federal share under section 4 shall be rural and municipal water supply to serve (2) a final engineering report has been pre- 80 percent of— the needs of the Fall River Water Users Dis- pared and submitted to Congress for a period (1) the amount allocated in the total trict Rural Water System members consists of not less than 90 days before the com- project construction budget for the planning of a Madison Aquifer well, 3 separate water mencement of construction of the system. and construction of the water supply system storage reservoirs, 3 pumping stations, and SEC. 5. MITIGATION OF FISH AND WILDLIFE under section 4; and approximately 200 miles of pipeline. LOSSES. (2) such sums as are necessary to defray in- (b) PURPOSES.—The purposes of this Act Mitigation of fish and wildlife losses in- creases in development costs reflected in ap- are— curred as a result of the construction and op- propriate engineering cost indices after Au- (1) to ensure a safe and adequate munici- eration of the water supply system shall be gust 1, 1995. pal, rural, and industrial water supply for on an acre-for-acre basis, based on ecological SEC. 10. NON-FEDERAL SHARE. the members of the Fall River Water Users equivalency, concurrent with project con- The non-Federal share under section 4 District Rural Water System in Fall River struction, as provided in the engineering re- shall be 20 percent of— County, South Dakota; port. (1) the amount allocated in the total (2) to assist the members of the Fall River SEC. 6. USE OF PICK-SLOAN POWER. project construction budget for the planning Water Users District in developing safe and (a) IN GENERAL.—From power designated and construction of the water supply system adequate municipal, rural, and industrial for future irrigation and drainage pumping under section 4; and water supplies; and for the Pick-Sloan Missouri River Basin Pro- (2) such sums as are necessary to defray in- (3) to promote the implementation of gram, the Western Area Power Administra- creases in development costs reflected in ap- water conservation programs by the Fall tion shall make available the capacity and propriate engineering cost indices after Au- River Water Users District Rural Water Sys- energy required to meet the pumping and in- gust 1, 1995. tem. cidental operational requirements of the SEC. 11. CONSTRUCTION OVERSIGHT. SEC. 3. DEFINITIONS. water supply system during the period begin- (a) AUTHORIZATION.—The Secretary of the In this Act: ning May 1 and ending October 31 of each Interior, acting through the Director of the Bu- (1) ENGINEERING REPORT.—The term ‘‘engi- year. reau of Reclamation may provide construction neering report’’ means the study entitled (b) CONDITIONS.—The capacity and energy oversight to the water supply system for ‘‘Supplemental Preliminary Engineering Re- described in subsection (a) shall be made areas of the water supply system. port for Fall River Water Users District’’ available on the following conditions: (b) PROJECT OVERSIGHT ADMINISTRATION.— published in August 1995. (1) The water supply system shall be oper- The amount of funds used by the Secretary (2) PROJECT CONSTRUCTION BUDGET.—The ated on a not-for-profit basis. for planning and construction of the water term ‘‘project construction budget’’ means (2) The water supply system shall contract supply system may not exceed an amount the description of the total amount of funds to purchase its entire electric service re- equal to 3 percent of the amount provided in that are needed for the construction of the quirements, including the capacity and en- the total project construction budget for the water supply system, as described in the en- ergy made available under subsection (a), portion of the project to be constructed in gineering report. from a qualified preference power supplier Fall River County, South Dakota. that itself purchases power from the Western (3) PUMPING AND INCIDENTAL OPERATIONAL SEC. 12. AUTHORIZATION OF APPROPRIATIONS. Area Power Administration. REQUIREMENTS.—The term ‘‘pumping and in- There are authorized to be appropriated— (3) The rate schedule applicable to the ca- cidental operational requirements’’ means (1) $3,600,000 for the planning and construc- pacity and energy made available under sub- all power requirements that are incidental to tion of the water system under section 4; and section (a) shall be the firm power rate the operation of intake facilities, pumping (2) such sums as are necessary to defray in- schedule of the Pick-Sloan Eastern Division stations, water treatment facilities, cooling creases in development costs reflected in ap- of the Western Area Power Administration facilities, reservoirs, and pipelines to the propriate engineering cost indices after Au- in effect when the power is delivered by the point of delivery of water by the Fall River gust 1, 1995. Water Users District Rural Water System to Administration. each entity that distributes water at retail (4) It shall be agreed by contract among— The amendment (No. 3786) was agreed to individual users. (A) the Western Area Power Administra- to, as follows: (4) SECRETARY.—The term ‘‘Secretary’’ tion; On page 2, line 3, strike ‘‘1997’’ and insert means the Secretary of øthe Interior, acting (B) the power supplier with which the ‘‘1998’’. through the Director of the Bureau of Rec- water supply system contracts under para- On page 6, line 3, strike ‘‘has’’ and insert lamation.¿ Agriculture. graph (2); ‘‘and plan’’ for a water conservation program (5) WATER SUPPLY SYSTEM.—The term (C) the power supplier of the entity de- have’’. ‘‘water supply system’’ means the Fall River scribed in subparagraph (B); and On page 9, line 2, strike ‘‘80’’ and insert Water Users District Rural Water System, a (D) the Fall River Water Users District; ‘‘70’’. nonprofit corporation, established and oper- that in the case of the capacity and energy On page 9, line 11, strike ‘‘20’’ and insert ated substantially in accordance with the en- made available under subsection (a), the ben- ‘‘30’’. gineering report. efit of the rate schedule described in para- The committee amendments were SEC. 4. FEDERAL ASSISTANCE FOR WATER SUP- graph (3) shall be passed through to the agreed to. PLY SYSTEM. water supply system, except that the power The bill (S. 744), as amended, was (a) IN GENERAL.—The Secretary shall make supplier of the water supply system shall not considered read the third time and grants to the water supply system for the be precluded from including, in the charges passed, as follows: Federal share of the costs of the planning of the supplier to the water system for the and construction of the water supply system. electric service, the other usual and cus- S. 744 (b) SERVICE AREA.—The water supply sys- tomary charges of the supplier. Be it enacted by the Senate and House of Rep- tem shall provide for safe and adequate mu- SEC. 7. NO LIMITATION ON WATER PROJECTS IN resentatives of the United States of America in nicipal, rural, and industrial water supplies, STATE. Congress assembled, mitigation of wetlands areas, and water con- This Act does not limit the authorization SECTION 1. SHORT TITLE. servation within the boundaries of the Fall for water projects in South Dakota under This Act may be cited as the ‘‘Fall River River Water Users District, described as fol- law in effect on or after the date of enact- Water Users District Rural Water System lows: bounded on the north by the Angostura ment of this Act. Act of 1998’’. October 7, 1998 CONGRESSIONAL RECORD — SENATE S11825 SEC. 2. FINDINGS AND PURPOSES. nicipal, rural, and industrial water supplies, SEC. 7. NO LIMITATION ON WATER PROJECTS IN (a) FINDINGS.—Congress finds that— mitigation of wetlands areas, and water con- STATE. (1) there are insufficient water supplies of servation within the boundaries of the Fall This Act does not limit the authorization reasonable quality available to the members River Water Users District, described as fol- for water projects in South Dakota under of the Fall River Water Users District Rural lows: bounded on the north by the Angostura law in effect on or after the date of enact- Water System located in Fall River County, Reservoir, the Cheyenne River, and the line ment of this Act. South Dakota, and the water supplies that between Fall River and Custer Counties, SEC. 8. WATER RIGHTS. are available are of poor quality and do not bounded on the east by the line between Fall Nothing in this Act— meet minimum health and safety standards, River and Shannon Counties, bounded on the (1) invalidates or preempts State water law thereby posing a threat to public health and south by the line between South Dakota and or an interstate compact governing water; safety; Nebraska, and bounded on the west by the (2) alters the rights of any State to any ap- (2) past cycles of severe drought in the Igloo-Provo Water Project District. propriated share of the waters of any body of southeastern area of Fall River County have (c) AMOUNT OF GRANTS.—Grants made surface or ground water, whether determined left residents without a satisfactory water available under subsection (a) to the water by past or future interstate compacts or by supply, and, during 1990, many home owners supply system shall not exceed the Federal past or future legislative or final judicial al- and ranchers were forced to haul water to share under section 9. locations; sustain their water needs; (d) LIMITATION ON AVAILABILITY OF CON- (3) preempts or modifies any Federal or (3) because of the poor quality of water STRUCTION FUNDS.—The Secretary shall not State law, or interstate compact, dealing supplies, most members of the Fall River obligate funds for the construction of the with water quality or disposal; or Water Users District are forced to either water supply system until— (4) confers on any non-Federal entity the haul bottled water for human consumption (1) the requirements of the National Envi- ability to exercise any Federal right to the or use distillers; ronmental Policy Act of 1969 (42 U.S.C. 4321 waters of any stream or to any ground water (4) the Fall River Water Users District et seq.) are met with respect to the water resource. supply system; and Rural Water System has been recognized by SEC. 9. FEDERAL SHARE. (2) a final engineering report and plan for the State of South Dakota; and The Federal share under section 4 shall be a water conservation program have been pre- (5) the best available, reliable, and safe 70 percent of— pared and submitted to Congress for a period rural and municipal water supply to serve (1) the amount allocated in the total of not less than 90 days before the com- the needs of the Fall River Water Users Dis- project construction budget for the planning mencement of construction of the system. trict Rural Water System members consists and construction of the water supply system of a Madison Aquifer well, 3 separate water SEC. 5. MITIGATION OF FISH AND WILDLIFE under section 4; and LOSSES. storage reservoirs, 3 pumping stations, and (2) such sums as are necessary to defray in- Mitigation of fish and wildlife losses in- approximately 200 miles of pipeline. creases in development costs reflected in ap- curred as a result of the construction and op- (b) PURPOSES.—The purposes of this Act propriate engineering cost indices after Au- eration of the water supply system shall be are— gust 1, 1995. (1) to ensure a safe and adequate munici- on an acre-for-acre basis, based on ecological pal, rural, and industrial water supply for equivalency, concurrent with project con- SEC. 10. NON-FEDERAL SHARE. the members of the Fall River Water Users struction, as provided in the engineering re- The non-Federal share under section 4 District Rural Water System in Fall River port. shall be 30 percent of— County, South Dakota; SEC. 6. USE OF PICK-SLOAN POWER. (1) the amount allocated in the total project construction budget for the planning (2) to assist the members of the Fall River (a) IN GENERAL.—From power designated Water Users District in developing safe and for future irrigation and drainage pumping and construction of the water supply system adequate municipal, rural, and industrial for the Pick-Sloan Missouri River Basin Pro- under section 4; and water supplies; and gram, the Western Area Power Administra- (2) such sums as are necessary to defray in- (3) to promote the implementation of tion shall make available the capacity and creases in development costs reflected in ap- water conservation programs by the Fall energy required to meet the pumping and in- propriate engineering cost indices after Au- River Water Users District Rural Water Sys- cidental operational requirements of the gust 1, 1995. tem. water supply system during the period begin- SEC. 11. CONSTRUCTION OVERSIGHT. SEC. 3. DEFINITIONS. ning May 1 and ending October 31 of each (a) AUTHORIZATION.—The Secretary of the In this Act: year. Interior, acting through the Director of the (1) ENGINEERING REPORT.—The term ‘‘engi- (b) CONDITIONS.—The capacity and energy Bureau of Reclamation may provide con- neering report’’ means the study entitled described in subsection (a) shall be made struction oversight to the water supply sys- ‘‘Supplemental Preliminary Engineering Re- available on the following conditions: tem for areas of the water supply system. port for Fall River Water Users District’’ (1) The water supply system shall be oper- (b) PROJECT OVERSIGHT ADMINISTRATION.— published in August 1995. ated on a not-for-profit basis. The amount of funds used by the Secretary (2) PROJECT CONSTRUCTION BUDGET.—The (2) The water supply system shall contract for planning and construction of the water term ‘‘project construction budget’’ means to purchase its entire electric service re- supply system may not exceed an amount the description of the total amount of funds quirements, including the capacity and en- equal to 3 percent of the amount provided in that are needed for the construction of the ergy made available under subsection (a), the total project construction budget for the water supply system, as described in the en- from a qualified preference power supplier portion of the project to be constructed in gineering report. that itself purchases power from the Western Fall River County, South Dakota. (3) PUMPING AND INCIDENTAL OPERATIONAL Area Power Administration. SEC. 12. AUTHORIZATION OF APPROPRIATIONS. REQUIREMENTS.—The term ‘‘pumping and in- (3) The rate schedule applicable to the ca- There are authorized to be appropriated— cidental operational requirements’’ means pacity and energy made available under sub- (1) $3,600,000 for the planning and construc- all power requirements that are incidental to section (a) shall be the firm power rate tion of the water system under section 4; and the operation of intake facilities, pumping schedule of the Pick-Sloan Eastern Division (2) such sums as are necessary to defray in- stations, water treatment facilities, cooling of the Western Area Power Administration creases in development costs reflected in ap- facilities, reservoirs, and pipelines to the in effect when the power is delivered by the propriate engineering cost indices after Au- point of delivery of water by the Fall River Administration. gust 1, 1995. Water Users District Rural Water System to (4) It shall be agreed by contract among— each entity that distributes water at retail (A) the Western Area Power Administra- f to individual users. tion; (4) SECRETARY.—The term ‘‘Secretary’’ (B) the power supplier with which the PERKINS COUNTY RURAL WATER means the Secretary of Agriculture. water supply system contracts under para- SYSTEM ACT OF 1988 (5) WATER SUPPLY SYSTEM.—The term graph (2); ‘‘water supply system’’ means the Fall River (C) the power supplier of the entity de- The Senate proceeded to consider the Water Users District Rural Water System, a scribed in subparagraph (B); and bill (S. 2117) to authorize the construc- nonprofit corporation, established and oper- (D) the Fall River Water Users District; tion of the Perkins County Rural ated substantially in accordance with the en- that in the case of the capacity and energy Water System and authorize financial gineering report. made available under subsection (a), the ben- assistance to the Perkins County Rural SEC. 4. FEDERAL ASSISTANCE FOR WATER SUP- efit of the rate schedule described in para- Water System, Inc., a nonprofit cor- PLY SYSTEM. graph (3) shall be passed through to the poration, in the planning and construc- (a) IN GENERAL.—The Secretary shall make water supply system, except that the power tion of the water supply system, and grants to the water supply system for the supplier of the water supply system shall not Federal share of the costs of the planning be precluded from including, in the charges for other purposes, which had been re- and construction of the water supply system. of the supplier to the water system for the ported from the Committee on Energy (b) SERVICE AREA.—The water supply sys- electric service, the other usual and cus- and Natural Resources, with amend- tem shall provide for safe and adequate mu- tomary charges of the supplier. ments, as follows: S11826 CONGRESSIONAL RECORD — SENATE October 7, 1998 (The parts of the bill intended to be (5) WATER SUPPLY SYSTEM.—The term for the Pick-Sloan Missouri River Basin Pro- stricken are shown in boldface brack- ‘‘water supply system’’ means the Perkins gram, the Western Area Power Administra- ets and the parts of the bill intended to County Rural Water System, Inc., a non- tion shall make available the capacity and be inserted are shown in italic.) profit corporation, established and operated energy required to meet the pumping and in- substantially in accordance with the fea- cidental operational requirements of the S. 2117 sibility study. water supply system during the period begin- Be it enacted by the Senate and House of Rep- SEC. 4. FEDERAL ASSISTANCE FOR WATER SUP- ning May 1 and ending October 31 of each resentatives of the United States of America in PLY SYSTEM. year. Congress assembled, (a) IN GENERAL.—The Secretary shall make (b) CONDITIONS.—The capacity and energy SECTION 1. SHORT TITLE. grants to the water supply system for the described in subsection (a) shall be made This Act may be cited as the ‘‘Perkins Federal share of the costs of— available on the following conditions: County Rural Water System Act of 1997’’. (1) the planning and construction of the (1) The water supply system shall be oper- SEC. 2. FINDINGS AND PURPOSES. water supply system; and ated on a not-for-profit basis. (a) FINDINGS.—Congress finds that— (2) repairs to existing public water dis- (2) The water supply system shall contract (1) there are insufficient water supplies of tribution systems to ensure conservation of to purchase its entire electric service re- reasonable quality available to the members the resources and to make the systems func- quirements, including the capacity and en- of the Perkins County Rural Water System tional under the new water supply system. ergy made available under subsection (a), located in Perkins County, South Dakota, (b) SERVICE AREA.—The water supply sys- from a qualified preference power supplier and the water supplies that are available do tem shall provide for safe and adequate mu- that itself purchases power from the Western not meet minimum health and safety stand- nicipal, rural, and industrial water supplies, Area Power Administration. ards, thereby posing a threat to public mitigation of wetlands areas, repairs to ex- (3) The rate schedule applicable to the ca- health and safety; isting public water distribution systems, and pacity and energy made available under sub- (2) in 1977, the North Dakota State Legisla- water conservation in Perkins County, section (a) shall be the firm power rate ture authorized and directed the State Water South Dakota. schedule of the Pick-Sloan Eastern Division Commission to conduct the Southwest Area (c) AMOUNT OF GRANTS.—Grants made of the Western Area Power Administration Water Supply Study, which included water available under subsection (a) to the water in effect when the power is delivered by the service to a portion of Perkins County, supply system shall not exceed the Federal Administration. South Dakota; share under section 10. (4) It shall be agreed by contract among— (3) amendments made by the Garrison Di- (d) LIMITATION ON AVAILABILITY OF CON- (A) the Western Area Power Administra- version Unit Reformulation Act of 1986 (Pub- STRUCTION FUNDS.—The Secretary shall not tion; lic Law 101–294) authorized the Southwest obligate funds for the construction of the (B) the power supplier with which the Pipeline project as an eligible project for water supply system until— water supply system contracts under para- Federal cost share participation; (1) the requirements of the National Envi- graph (2); (4) the Perkins County Rural Water Sys- ronmental Policy Act of 1969 (42 U.S.C. 4321 (C) the power supplier of the entity de- tem has continued to be recognized by the et seq.) are met with respect to the water scribed in subparagraph (B); and State of North Dakota, the Southwest Water supply øsystem;¿ system; and (D) the Perkins County Rural Water Sys- Authority, the North Dakota Water Commis- (2) a final engineering report has been pre- tem, Inc.; pared and submitted to Congress for a period sion, the Department of the Interior, and that in the case of the capacity and energy of not less than 90 days before the com- Congress as a component of the Southwest made available under subsection (a), the ben- mencement of construction of the øsystem; Pipeline Project; and efit of the rate schedule described in para- and¿ system. (5) the best available, reliable, and safe graph (3) shall be passed through to the ø(3) the water supply system has developed rural and municipal water supply to serve water supply system, except that the power and implemented a water conservation pro- the needs of the Perkins County Rural Water supplier of the water supply system shall not gram. System, Inc., members is the waters of the be precluded from including, in the charges Missouri River as delivered by the Southwest øSEC. 5. WATER CONSERVATION PROGRAM. of the supplier to the water system for the (a) PURPOSE.—The water conservation Pipeline Project in North Dakota. ø electric service, the other usual and cus- program under section 4(d)(3) shall be de- (b) PURPOSES.—The purposes of this Act tomary charges of the supplier. are— signed to ensure that users of water from the water supply system will use the best prac- SEC. ø8.¿ 7. NO LIMITATION ON WATER PROJECTS (1) to ensure a safe and adequate munici- IN STATES. ticable technology and management tech- pal, rural, and industrial water supply for This Act does not limit the authorization niques to conserve water use. the members of the Perkins County Rural for water projects in South Dakota and ø(b) DESCRIPTION.—The water conservation Water Supply System, Inc., in Perkins Coun- North Dakota under law in effect on or after program shall include— ty, South Dakota; the date of enactment of this Act. (1) low consumption performance stand- (2) to assist the members of the Perkins ø ards for all newly installed plumbing fix- SEC. ø9.¿ 8. WATER RIGHTS. County Rural Water Supply System, Inc., in tures; Nothing in this Act— developing safe and adequate municipal, (2) leak detection and repair programs; (1) invalidates or preempts State water law rural, and industrial water supplies; and ø (3) rate structures that do not include de- or an interstate compact governing water; (3) to promote the implementation of ø clining block rate schedules for municipal (2) alters the rights of any State to any ap- water conservation programs by the Perkins households or special water users (as defined propriated share of the waters of any body of County Rural Water System, Inc. in the feasibility study); surface or ground water, whether determined SEC. 3. DEFINITIONS. ø(4) public education programs; by past or future interstate compacts or by In this Act: ø(5) coordinated operation and mainte- past or future legislative or final judicial al- (1) FEASIBILITY STUDY.—The term ‘‘feasibil- nance (including necessary repairs to ensure locations; ity study’’ means the study entitled ‘‘Fea- minimal water losses) by and between the (3) preempts or modifies any Federal or sibility Study for Rural Water System for water supply system and any member of the State law, or interstate compact, dealing Perkins County Rural Water System, Inc.’’, system that is a preexisting water supply fa- with water quality or disposal; or as amended in March 1995. cility within the service area of the system; (4) confers on any non-Federal entity the (2) PROJECT CONSTRUCTION BUDGET.—The and ability to exercise any Federal right to the waters of any stream or to any ground water term ‘‘project construction budget’’ means ø(6) coordinated operation between the the description of the total amount of funds Southwest Pipeline Project of North Dakota resource. that are needed for the construction of the and the Perkins County Rural Water Sys- SEC. ø10.¿ 9. FEDERAL SHARE. water supply system, as described in the fea- tem, Inc., of South Dakota. The Federal share under section 4 shall be sibility study. ø(c) REVIEW AND REVISION.—The program 75 percent of— (3) PUMPING AND INCIDENTAL OPERATIONAL described in subsection (b) shall contain pro- (1) the amount allocated in the total REQUIREMENTS.—The term ‘‘pumping and in- visions for periodic review and revision, in project construction budget for the planning cidental operational requirements’’ means cooperation with the Secretary.¿ and construction of the water supply system all power requirements that are incidental to SEC. ø6.¿ 5. MITIGATION OF FISH AND WILDLIFE under section 4; and the operation of intake facilities, pumping LOSSES. (2) such sums as are necessary to defray in- stations, water treatment facilities, cooling Mitigation of fish and wildlife losses in- creases in development costs reflected in ap- facilities, reservoirs, and pipelines to the curred as a result of the construction and op- propriate engineering cost indices after point of delivery of water by the Perkins eration of the water supply system shall be March 1, 1995. County Rural Water System to each entity on an acre-for-acre basis, based on ecological SEC. ø11.¿ 10. NON-FEDERAL SHARE. that distributes water at retail to individual equivalency, concurrent with project con- The non-Federal share under section 4 users. struction, as provided in the feasibility shall be 25 percent of— (4) SECRETARY.—The term ‘‘Secretary’’ study. (1) the amount allocated in the total means the Secretary of the Interior, acting SEC. ø7.¿ 6. USE OF PICK-SLOAN POWER. project construction budget for the planning through the Commissioner of the Bureau of (a) IN GENERAL.—From power designated and construction of the water supply system Reclamation. for future irrigation and drainage pumping under section 4; and October 7, 1998 CONGRESSIONAL RECORD — SENATE S11827 (2) such sums as are necessary to defray in- (1) to ensure a safe and adequate munici- equivalency, concurrent with project con- creases in development costs reflected in ap- pal, rural, and industrial water supply for struction, as provided in the feasibility propriate engineering cost indices after the members of the Perkins County Rural study. March 1, 1995. Water Supply System, Inc., in Perkins Coun- SEC. 6. USE OF PICK-SLOAN POWER. SEC. ø12.¿ 11. CONSTRUCTION OVERSIGHT. ty, South Dakota; (a) IN GENERAL.—From power designated (a) AUTHORIZATION.—The Secretary may (2) to assist the members of the Perkins for future irrigation and drainage pumping provide construction oversight to the water County Rural Water Supply System, Inc., in for the Pick-Sloan Missouri River Basin Pro- supply system for areas of the water supply developing safe and adequate municipal, gram, the Western Area Power Administra- system. rural, and industrial water supplies; and tion shall make available the capacity and (b) PROJECT OVERSIGHT ADMINISTRATION.— (3) to promote the implementation of energy required to meet the pumping and in- The amount of funds used by the Secretary water conservation programs by the Perkins cidental operational requirements of the for planning and construction of the water County Rural Water System, Inc. water supply system during the period begin- supply system may not exceed an amount SEC. 3. DEFINITIONS. ning May 1 and ending October 31 of each equal to 3 percent of the amount provided in In this Act: year. the total project construction budget for the (1) FEASIBILITY STUDY.—The term ‘‘feasibil- (b) CONDITIONS.—The capacity and energy portion of the project to be constructed in ity study’’ means the study entitled ‘‘Fea- described in subsection (a) shall be made Perkins County, South Dakota. sibility Study for Rural Water System for available on the following conditions: SEC. ø13.¿ 12. AUTHORIZATION OF APPROPRIA- Perkins County Rural Water System, Inc.’’, (1) The water supply system shall be oper- TIONS. as amended in March 1995. ated on a not-for-profit basis. There are authorized to be appropriated— (2) PROJECT CONSTRUCTION BUDGET.—The (2) The water supply system shall contract (1) $15,000,000 for the planning and con- term ‘‘project construction budget’’ means to purchase its entire electric service re- struction of the water system under section the description of the total amount of funds quirements, including the capacity and en- 4; and that are needed for the construction of the ergy made available under subsection (a), (2) such sums as are necessary to defray in- water supply system, as described in the fea- from a qualified preference power supplier creases in development costs reflected in ap- sibility study. that itself purchases power from the Western propriate engineering cost indices after (3) PUMPING AND INCIDENTAL OPERATIONAL Area Power Administration. March 1, 1995. REQUIREMENTS.—The term ‘‘pumping and in- (3) The rate schedule applicable to the ca- The amendment (No. 3787) was agreed cidental operational requirements’’ means pacity and energy made available under sub- to, as follows: all power requirements that are incidental to section (a) shall be the firm power rate the operation of intake facilities, pumping schedule of the Pick-Sloan Eastern Division AMENDMENT NO. 3787 stations, water treatment facilities, cooling of the Western Area Power Administration (Purpose: To require a water conservation facilities, reservoirs, and pipelines to the in effect when the power is delivered by the program) point of delivery of water by the Perkins Administration. On page 2, line 3, strike ‘‘1997’’ and insert County Rural Water System to each entity (4) It shall be agreed by contract among— ‘‘1998’’. that distributes water at retail to individual (A) the Western Area Power Administra- On page 6, line 1, strike ‘‘has’’ and insert users. tion; ‘‘and a plan for a water conservation pro- (4) SECRETARY.—The term ‘‘Secretary’’ (B) the power supplier with which the gram have’’. means the Secretary of the Interior, acting water supply system contracts under para- The committee amendments were through the Commissioner of the Bureau of graph (2); agreed to. Reclamation. (C) the power supplier of the entity de- (5) WATER SUPPLY SYSTEM.—The term scribed in subparagraph (B); and The bill (S. 2117), as amended, was (D) the Perkins County Rural Water Sys- considered read the third time and ‘‘water supply system’’ means the Perkins County Rural Water System, Inc., a non- tem, Inc.; passed, as follows: profit corporation, established and operated that in the case of the capacity and energy S. 2117 substantially in accordance with the fea- made available under subsection (a), the ben- Be it enacted by the Senate and House of Rep- sibility study. efit of the rate schedule described in para- resentatives of the United States of America in SEC. 4. FEDERAL ASSISTANCE FOR WATER SUP- graph (3) shall be passed through to the Congress assembled, PLY SYSTEM. water supply system, except that the power SECTION 1. SHORT TITLE. (a) IN GENERAL.—The Secretary shall make supplier of the water supply system shall not This Act may be cited as the ‘‘Perkins grants to the water supply system for the be precluded from including, in the charges County Rural Water System Act of 1998’’. Federal share of the costs of— of the supplier to the water system for the SEC. 2. FINDINGS AND PURPOSES. (1) the planning and construction of the electric service, the other usual and cus- (a) FINDINGS.—Congress finds that— water supply system; and tomary charges of the supplier. (1) there are insufficient water supplies of (2) repairs to existing public water dis- SEC. 7. NO LIMITATION ON WATER PROJECTS IN reasonable quality available to the members tribution systems to ensure conservation of STATES. of the Perkins County Rural Water System the resources and to make the systems func- This Act does not limit the authorization located in Perkins County, South Dakota, tional under the new water supply system. for water projects in South Dakota and and the water supplies that are available do (b) SERVICE AREA.—The water supply sys- North Dakota under law in effect on or after not meet minimum health and safety stand- tem shall provide for safe and adequate mu- the date of enactment of this Act. ards, thereby posing a threat to public nicipal, rural, and industrial water supplies, SEC. 8. WATER RIGHTS. health and safety; mitigation of wetlands areas, repairs to ex- Nothing in this Act— (2) in 1977, the North Dakota State Legisla- isting public water distribution systems, and (1) invalidates or preempts State water law ture authorized and directed the State Water water conservation in Perkins County, or an interstate compact governing water; Commission to conduct the Southwest Area South Dakota. (2) alters the rights of any State to any ap- Water Supply Study, which included water (c) AMOUNT OF GRANTS.—Grants made propriated share of the waters of any body of service to a portion of Perkins County, available under subsection (a) to the water surface or ground water, whether determined South Dakota; supply system shall not exceed the Federal by past or future interstate compacts or by (3) amendments made by the Garrison Di- share under section 10. past or future legislative or final judicial al- version Unit Reformulation Act of 1986 (Pub- (d) LIMITATION ON AVAILABILITY OF CON- locations; lic Law 101–294) authorized the Southwest STRUCTION FUNDS.—The Secretary shall not (3) preempts or modifies any Federal or Pipeline project as an eligible project for obligate funds for the construction of the State law, or interstate compact, dealing Federal cost share participation; water supply system until— with water quality or disposal; or (4) the Perkins County Rural Water Sys- (1) the requirements of the National Envi- (4) confers on any non-Federal entity the tem has continued to be recognized by the ronmental Policy Act of 1969 (42 U.S.C. 4321 ability to exercise any Federal right to the State of North Dakota, the Southwest Water et seq.) are met with respect to the water waters of any stream or to any ground water Authority, the North Dakota Water Commis- supply system; and resource. sion, the Department of the Interior, and (2) a final engineering report and a plan for SEC. 9. FEDERAL SHARE. Congress as a component of the Southwest a water conservation program have been pre- The Federal share under section 4 shall be Pipeline Project; and pared and submitted to Congress for a period 75 percent of— (5) the best available, reliable, and safe of not less than 90 days before the com- (1) the amount allocated in the total rural and municipal water supply to serve mencement of construction of the system. project construction budget for the planning the needs of the Perkins County Rural Water SEC. 5. MITIGATION OF FISH AND WILDLIFE and construction of the water supply system System, Inc., members is the waters of the LOSSES. under section 4; and Missouri River as delivered by the Southwest Mitigation of fish and wildlife losses in- (2) such sums as are necessary to defray in- Pipeline Project in North Dakota. curred as a result of the construction and op- creases in development costs reflected in ap- (b) PURPOSES.—The purposes of this Act eration of the water supply system shall be propriate engineering cost indices after are— on an acre-for-acre basis, based on ecological March 1, 1995. S11828 CONGRESSIONAL RECORD — SENATE October 7, 1998 SEC. 10. NON-FEDERAL SHARE. The PRESIDING OFFICER. Without Act in significant ways. Although it is The non-Federal share under section 4 objection, it is so ordered. unlikely that we will take up this bill shall be 25 percent of— Mr. MCCAIN. Mr. President, I further in the short time remaining to us, I (1) the amount allocated in the total ask unanimous consent that following would like to make a few observations project construction budget for the planning and construction of the water supply system morning business, the Senate proceed about the Endangered Species Act and under section 4; and to the consideration of the VA-HUD what it has meant to Hawaii, home to (2) such sums as are necessary to defray in- conference report, and that there be 1 more endangered species than any creases in development costs reflected in ap- hour for debate equally divided on the other state or territory within the propriate engineering cost indices after report. I further ask that at 11 a.m., United States. March 1, 1995. the Senate proceed to vote on the adop- Mr. President, as legislators, we are SEC. 11. CONSTRUCTION OVERSIGHT. tion of the conference report. guardians of our Nation’s rich natural (a) AUTHORIZATION.—The Secretary may The PRESIDING OFFICER. Without inheritance; in this capacity, we can- provide construction oversight to the water objection, it is so ordered. not afford to squander the ecological supply system for areas of the water supply f legacy we leave to our children. Surely, system. part of our concern for rare species and (b) PROJECT OVERSIGHT ADMINISTRATION.— The amount of funds used by the Secretary PROGRAM ecosystems is the simple realization for planning and construction of the water Mr. MCCAIN. Mr. President, for the that once they are gone, we would have supply system may not exceed an amount information of all Senators, on Thurs- failed in our stewardship responsibil- equal to 3 percent of the amount provided in day, there will be a period for the ity. Hawaii is poised on the brink of ir- the total project construction budget for the transaction of morning business until reversible ecological change, and it is portion of the project to be constructed in important that wise stewardship deci- Perkins County, South Dakota. 10 a.m. Following morning business, the Senate will begin consideration of sions be rendered to preserve our SEC. 12. AUTHORIZATION OF APPROPRIATIONS. the VA–HUD conference report under a unique, tropical ecosystem. There are authorized to be appropriated— The term ‘‘ecosystem’’ has become a 1-hour time agreement. At 11 a.m., the (1) $15,000,000 for the planning and con- political buzzword and does not ade- Senate will proceed to vote on the struction of the water system under section quately described the delicate checks 4; and adoption of the VA–HUD conference re- and balances that make up the natural (2) such sums as are necessary to defray in- port. world. The basis of Hawaii’s natural creases in development costs reflected in ap- Following that vote, the Senate may system begins not with a list of threat- propriate engineering cost indices after resume consideration of the Internet ened plants and animals, but with the March 1, 1995. tax bill or begin consideration of the unique origin of the islands. For mil- f intelligence authorization conference lions of years, lava welling out from report, the human services reauthor- EXTENDING DEADLINE UNDER the earth’s mantle cooled upon the ization conference report and possibly FEDERAL POWER ACT ocean floor, gradually forming the Ha- the Treasury-Postal appropriations Mr. MCCAIN. Mr. President, I ask waiian islands, one by one, a process conference report. The Senate may also unanimous consent that the Senate that is ongoing even today. As one is- consider any other available con- proceed to the immediate consider- land moves away from the influence of ference reports or other legislative or ation of H.R. 4081, just received from a ‘‘hot spot’’ in the middle of the Pa- executive items cleared for action. the House. cific, another island is born. Each is- Once again, the leader would like to The PRESIDING OFFICER. Without land is the peak of a volcanic moun- stress to all Members that there are objection, it is so ordered. The clerk tain, with its base hidden far below the only a few days remaining in which to will report. surface of the ocean. Only a few types complete many important legislative The legislative clerk read as follows: of birds, insects, and plants were able items. Therefore, Members are encour- to colonize the remote islands, and A bill (H.R. 4081) to extend the deadline aged to be flexible to accommodate a under the Federal Power Act applicable to these few evolved into scores or even busy schedule, with votes occurring the construction of a hydroelectric project in hundreds of unique species. The islands throughout each day and into the eve- the State of Arkansas. sheltered no large land mammals or nings. The Senate proceeded to consider the reptiles, only creatures that have bill. f gradually lost their natural defenses Mr. MCCAIN. Mr. President, I ask ORDER FOR RECESS against such predators. unanimous consent that the bill be The Endangered Species Act is criti- read a third time and passed and that Mr. MCCAIN. Mr. President, if there cal to this unique, insular ecosystem. the motion to reconsider be laid upon is no further business to come before There are, 1,126 total U.S. species listed the table, without intervening action the Senate, I ask unanimous consent by Fish and Wildlife Service under pro- or debate. that following the remarks of the Sen- tection of the ESA, and although its is- The PRESIDING OFFICER. Without ator from Hawaii, the Senate stand in lands represent just two-tenths of one objection, it is so ordered. recess under the previous order. percent of the total U.S. land area, Ha- The bill (H.R. 4081) was considered The PRESIDING OFFICER. Without waii is home to more rare and endan- read the third time and passed. objection, it is so ordered. gered species than any other state or f Mr. MCCAIN. Mr. President, I thank territory. In addition, three-fourths of the Senator from Hawaii for his usual the nation’s now extinct plants and ORDERS FOR THURSDAY, OCTOBER courtesy in allowing me to proceed birds once existed only in Hawaii. Ha- 8, 1998 with this closing business. I thank my waii has an astounding 363 listed en- Mr. MCCAIN. Mr. President, I ask dear friend from Hawaii. I yield the dangered species. Only California, with unanimous consent that when the Sen- floor. 223 listed species, rivals Hawaii in the ate completes its business today, it f number of listed endangered species. stand in recess until 9:30 a.m. on Thurs- The Pacific islands, not including Ha- day, October 8. I further ask unani- REAUTHORIZATION OF THE waii, have a total of 16 listed endan- mous consent that the time for the two ENDANGERED SPECIES ACT gered species. leader be reserved. Mr. AKAKA. Mr. President, for the The causes of Hawaiian species de- The PRESIDING OFFICER. Without last year or so, both the House and cline are numerous and complicated, objection, it is so ordered. Senate have been working on legisla- but the most significant threats come Mr. MCCAIN. I further ask unani- tion that would reauthorize the Endan- from non-native animals that uproot mous consent that there then be a pe- gered Species Act of 1973. The Senate and devour fragile native plants. Feral riod for the transaction of morning Environment and Public Works Com- pigs, rats, and mongooses not only business until 10 a.m., with Senators mittee has reported legislation offered physicially destroy plants, but spread permitted to speak for up to 5 minutes by my colleague from Idaho, Senator the seeds of aggressive alien plants each. KEMPTHORNE, that would modify the such as the South American banana October 7, 1998 CONGRESSIONAL RECORD — SENATE S11829 poke vine, and small invasive trees like More importantly, at least half of all ine if our knowledge or medical science the Brazilian strawberry guava. These species listed for a decade or more are were similarly locked in—we would alien plants form thick, impenetrable not either stable or improving in sta- still be using leeches to bleed patients monocultures that choke out native tus. of ‘‘humors.’’ plants. When native plants disappear, For example, the first group of cap- In addition, the Kempthorne measure the birds and insects that rely on na- tive-bred Mexican wolves was released does not fully cover water rights, nor tive plants for food are also threatened. back into the American southwest this does it provide just compensation to Diseases that kill native flora and year; California condors, southeastern property owners. It would also estab- fauna are also spread by alien species: fish, and dear to me, the Hawaiian lish significant bureaucratic obstacles birds in particular are ravaged by dis- silversword plant and ‘alala have also to listing, management, and recovery eases transmitted through mosquitoes. been re-introduced to the wild. Bird plans. And it offers less conservation Hawaiian plants and animals co- conservation groups in my own state per dollar appropriated. evolved over millions of years and con- have hatched eggs from 12 different en- tinue to depend on each other for sur- demic species—species that have never Our House colleague, Congressman vival. The interdependency of Hawai- before been reared in captivity like the GEORGE MILLER, has put forward a bill ian insects, birds, and plants makes ‘akohekohe, palila, Maui parrotbill, that I find more consistent with the this ecosystem susceptible to rapid, ir- puaiohi, ‘elepaio, and ‘amakihi. All of original intent of the Endangered Spe- reversible change due to loss of species this has been accomplished in 25 years cies Act. The Miller bill emphasizes re- richness. Endangered species in Hawaii since the Act’s passage—remarkable covery of species; steps up protection range from mammals such as the char- when considered on nature’s time scale of candidate species; creates a new and ismatic monk seal and the Hawaiian rather than our fast paced Congres- important category of ‘‘survival habi- goose (also the state bird), or nene sional calendar. tat’’ which is designated at time of [nay-nay], to sea creatures like the But these successful conservation ef- listing, yet also has a version of ‘‘no hawksbill sea turtle and invertebrates forts are not merely a result of Federal surprises’’ permits; and creates a habi- such as the Oahu tree snail. There are law. In Hawaii at least, the State legis- tat conservation fund based on per- endangered plants from 279 taxa, in- lature has enacted an endangered spe- formance bonds paid by recipients of cluding plants with great cultural sig- cies law that is comparable, and, in incidental take permits. It contains ex- nificance such as the mahoe and some instances, stronger than Federal tensive tax benefits for landowners af- uhiuhi. Hawaii harbors at least 5,000 law. Last year, the State amended this fected by the Endangered Species Act. species as yet unknown to science as law to allow ‘‘take’’ of endangered or Most importantly, under the Miller well as many rare species, including threatened species when such author- legislation, the public is allowed to sue the wekiu bug, which has ‘‘antifreeze’’ ization is issued in conjunction with a to enforce the terms of Habitat Con- in its blood, and the Wood’s tree hibis- safe harbor agreement or habitat con- servation Plans. cus, a small tree previously unknown servation plan. Although modelled I applaud Senator KEMPTHORNE for to science, found in Kauai, with only after Federal law, the State amend- attempting in his legislation to bal- four individuals known worldwide. ments are more strict. For example, ance the needs of private landowners I cannot stress enough that the loss under the ESA, in order to allow for a against the protections we accord en- of even one species may contribute to ‘‘take,’’ the population must not de- dangered species; unfortunately, I be- the decline of entire ecosystems, and crease; however, under the Hawaiian lieve his bill tilts too far in favor of the barring unprecedented action, many statute, the likelihood of population former. However well-meaning, key species may vanish undiscovered. increase must be proven before taking provisions of the bill represent a back- Along with the species, lost also is ge- is allowed. tracking on endangered species and en- netic information that could lead to Despite success on the Federal and dangered species habitat protection. new foods and medicines. State levels to protect and preserve bi- Until these shortcomings are ad- Mr. President, the survival of hun- ological diversity, Congress may next dressed, Congress should not consider dreds of endangered species now de- year consider legislation similar to the altering the most important and effec- pends on human intervention. Though Kempthorne bill, that in its current tive law we have on the books for pro- gravely threatened, Hawaii’s remaining form could weaken the Endangered tecting our rarest forms of life. natural treasures can be saved. Con- Species Act of 1973, the Nation’s most Mr. President, let me conclude by servation of habitat, control and eradi- important law protecting endangered noting that more than any other state, cation of noxious introduced plants and wildlife and wildlife habitat. Hawaii is teetering on the edge of no predators, and enlightened resource There are many provisions of the return. The Endangered Species Act is management are the answer. Conserva- Kempthorne bill, S. 1180, the Endan- our ultimate safety net when the more tionists within Hawaii kill feral ani- gered Species Recovery Act of 1997, than 150 other U.S. laws and inter- mals, erect fences to keep ungulates that I applaud and support. The bill national treaties fail to prevent a spe- away from fragile plants, breed ani- emphasizes recovery efforts, and codi- cies from declining toward extinction. mals in captivity, pollinate flowers by fies many of the administration’s ef- When measured in terms of preventing hand, and destroy alien plants. We are forts to provide incentives to land- threatened species from going extinct, hoping to restore and maintain healthy owners that are affected by the Endan- the Act has been an overwhelming suc- ecosystems so that Hawaii’s native spe- gered Species Act. The Kempthorne cess. I would be reluctant to support cies have the respite and protection bill also expands the role of States in legislation, however well-intentioned, they need to survive. Thus, Hawaii is implementing the act, which has the that would reduce the effectiveness of not a lost cause: more than a quarter potential to tailor species recovery ef- this landmark law. of the state’s land remains unspoiled. forts on a case-by-case basis, rather But we must continue in our struggle than applying a Federal cookie-cutter I therefore look forward to debating to protect rare and endangered species approach to species protection. reauthorization of the Endangered Spe- before the battle is over and our legacy However, there are key elements of cies Act when the 106th Congress con- to our children is robbed of species S. 1180 that are fundamentally un- venes. Senator KEMPTHORNE and Con- richness. sound. For example, the legislation gressman MILLER have both made good Since the enactment of the Endan- would lock in Habitat Conservation starts in heightening concern about en- gered Species Act of 1973, we have gar- Plans without allowing for review and dangered species and in bringing to nered important knowledge and won adjustment. Mr. President, our knowl- light the complexities of species pro- substantial victories across the coun- edge of rare species is slow in coming; tection and recovery. Let us build on try in our efforts to protect imperiled but as our information base grows, their efforts next year and debate more species. Eight U.S. species have re- Habitat Conservation Plans need to thoroughly the requirements that are moved from the list due to recovery change and grow, too, reflecting new necessary to crafting a stronger, more and another 18 species have been up- and more complete information about effective endangered species law. graded from endangered to threatened. the needs of endangered species. Imag- I yield the floor. S11830 CONGRESSIONAL RECORD — SENATE October 7, 1998 RECESS UNTIL 9:30 A.M. DEPARTMENT OF JUSTICE CONFIRMATIONS TOMORROW MARGARET ELLEN CURRAN, OF RHODE ISLAND, TO BE UNITED STATES ATTORNEY FOR THE DISTRICT OF Executive Nominations Confirmed by The PRESIDING OFFICER. Under RHODE ISLAND FOR THE TERM OF FOUR YEARS, VICE the Senate October 7, 1998: the previous order, the Senate stands SHELDON WHITEHOUSE, RESIGNED. BYRON TODD JONES, OF MINNESOTA, TO BE UNITED in recess until 9:30 a.m., Thursday, Oc- STATES ATTORNEY FOR THE DISTRICT OF MINNESOTA NATIONAL FOUNDATION ON THE ARTS AND THE tober 7, 1998. FOR THE TERM OF FOUR YEARS, VICE DAVID LEE HUMANITIES LILLEHAUG, RESIGNED. Thereupon, the Senate, at 8:04 p.m., JOY HARJO, OF NEW MEXICO, TO BE A MEMBER OF THE recessed until 9:30 a.m., Thursday, Oc- FEDERAL MARITIME COMMISSION NATIONAL COUNCIL ON THE ARTS FOR A TERM EXPIRING SEPTEMBER 3, 2002. tober 8, 1998. HAROLD J. CREEL, JR., OF SOUTH CAROLINA, TO BE A JOAN SPECTER, OF PENNSYLVANIA, TO BE A MEMBER FEDERAL MARITIME COMMISSIONER FOR THE TERM EX- OF THE NATIONAL COUNCIL ON THE ARTS FOR A TERM f PIRING JUNE 30, 2004. (REAPPOINTMENT) EXPIRING SEPTEMBER 3, 2002. NOMINATIONS ENVIRONMENTAL PROTECTION AGENCY THE ABOVE NOMINATIONS WERE APPROVED SUBJECT TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- Executive nominations received by ROBERT W. PERCIASEPE, OF MARYLAND, TO BE AN AS- QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY SISTANT ADMINISTRATOR OF THE ENVIRONMENTAL CONSTITUTED COMMITTEE OF THE SENATE. the Senate October 7, 1998: PROTECTION AGENCY. (REAPPOINTMENT)